Deepwater contract drilling expense was $246 million in third quarter 2012, up from $233 million in third quarter 2011. More operating days for ENSCO 8505, ENSCO 8504 and ENSCO 7500 as well as improved utilization contributed to this increase. Adjusted for warranty claim settlements of $31 million noted above, contract drilling expense increased 19%.
Midwater segment revenues declined to $94 million from $121 million in third quarter 2011. This decrease is due to a decline in utilization and average day rate. Utilization was 74% and the average day rate was $221,000 in third quarter 2012, compared to 89% and $239,000, respectively, a year ago. Contract drilling expense in third quarter 2012 was $65 million, compared to $72 million in the prior year period.
JackupJackup segment revenues grew 15% to $381 million, up from $330 million a year ago. The increase was mostly due to a $9,000 increase in the average day rate to $109,000 and a six percentage point increase in utilization to 83%. A broad-based pickup in customer demand around the world drove the increase in utilization and average day rate. Contract drilling expense increased $35 million to $190 million, mostly due to an increase in utilization. Third quarter 2011 contract drilling expense benefited from an $11 million gain from a cash settlement of the ENSCO 69 insurance claim. Adjusting for this item, contract drilling expense increased $24 million, or 14%. Other Other is composed of managed drilling rig operations and ENSCO I, a barge rig that was sold during third quarter 2012. Revenues decreased to $20 million from $24 million in third quarter 2011. This revenue decrease reflects a decline in average day rates to $66,000 from $87,000 a year ago. Contract drilling expense was $22 million, compared to $18 million a year ago. Excluding an $8 million loss on the sale of ENSCO I, contract drilling expense declined $4 million year to year.
|(in millions of $,||Deepwater||Midwater||Jackup||Other||
|General and admin.||-||-||-||-||-||-||-||-||-||-||-||-||40.2||40.8||40.2||40.8||-1||%|
|Operating income (loss)||300.2||133.9||124||%||11.8||33.5||-65||%||148.3||131.2||13||%||(3.2||)||5.5||NM||(42.0||)||(42.6||)||415.1||261.5||59||%|
- $9 billion of contracted revenue backlog excluding bonus opportunities
- Long-term debt-to-capital ratio of 29%
- $1.9 billion of available revolving credit facilities
- $160 million of cash and cash equivalents