This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ensco Plc Reports Fourth Quarter And Full-Year 2012 Results

Mr. Swent added, “We exceeded our 2012 expense synergy target of $100 million related to the acquisition and we remain on track to deliver additional synergies in 2013. During 2012, we also restructured subsidiaries from our acquisition to achieve enhanced tax efficiencies and improve capital management flexibility. For full-year 2013, we expect our effective tax rate to be approximately 12%.”

Ensco will conduct a conference call at 10:00 a.m. Central Time (4:00 p.m. London time) on Thursday, 21 February 2013 to discuss fourth quarter 2012 results. The call will be webcast live at www.enscoplc.com. Interested parties may listen to the call by dialing (866) 524-3160 from within the United States and +1 (412) 317-6760 from outside the U.S. Please ask for the Ensco conference call. It is recommended that participants call fifteen minutes before the scheduled start time.

A replay of the conference call will be available by telephone one hour after the completion of the call through 6 March 2013 by dialing (877) 344-7529 or, if calling from outside the U.S. +1 (412) 317-0088 (Conference ID 10023271). A webcast replay, MP3 download and transcript of the call will be available at www.enscoplc.com.

Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. For more than 25 years, the company has focused on operating safely and exceeding customer expectations. Ensco is ranked #1 for total customer satisfaction with top honors in 10 separate categories in the most recent annual survey by EnergyPoint Research. Operating the world’s newest ultra-deepwater fleet and largest fleet of active premium jackups, Ensco has a major presence in the most strategic offshore basins across six continents. Ensco plc is an English limited company (England No. 7023598) with its registered office and corporate headquarters located at 6 Chesterfield Gardens, London W1J 5BQ. To learn more, visit our website at www.enscoplc.com.

Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,” “should,” “will” and similar words and specifically include statements regarding expected financial performance, effective tax rate, day rates and backlog; the expected synergies from the integration of Pride International’s operations; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; and general market, business and industry conditions, trends and outlook. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including downtime and other risks associated with offshore rig operations, relocations, severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; possible cancellation or suspension of drilling contracts as a result of mechanical difficulties, performance or other reasons; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; our ability to realize the expected benefits from our redomestication and actual contract commencement dates. In addition to the numerous factors described above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.enscoplc.com . Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.

 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)

 

                           
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
 
OPERATING REVENUES $ 1,085.5 $ 973.2 $ 4,300.7 $ 2,797.7
 
OPERATING EXPENSES
Contract drilling (exclusive of depreciation) 524.5 498.3 2,028.0 1,449.1
Depreciation 143.9 136.5 558.6 408.9
General and administrative   35.0           40.3             148.9     158.6  
  703.4           675.1             2,735.5     2,016.6  
 
OPERATING INCOME 382.1 298.1 1,565.2 781.1
 
OTHER INCOME (EXPENSE)
Interest income 5.5 8.2 22.8 17.2
Interest expense, net (28.1 ) (41.4 ) (123.6 ) (95.9 )
Other, net   0.9     4.7     2.2     20.8  
  (21.7 )   (28.5 )   (98.6 )   (57.9 )
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 360.4 269.6 1,466.6 723.2
 
PROVISION FOR INCOME TAXES 117.1 44.0 244.4 115.4
 
INCOME FROM CONTINUING OPERATIONS 243.3 225.6 1,222.2 607.8
 
DISCONTINUED OPERATIONS, NET (22.1 ) 4.8 (45.5 ) (2.2 )
 
NET INCOME 221.2 230.4 1,176.7 605.6
 
NONCONTROLLING INTERESTS (1.7 ) (1.0 ) (7.0 ) (5.2 )
 
NET INCOME ATTRIBUTABLE TO ENSCO $ 219.5   $ 229.4   $ 1,169.7   $ 600.4  
 
 
EARNINGS (LOSS) PER SHARE - BASIC
Continuing Operations $ 1.04 $ 0.97 $ 5.24 $ 3.10
Discontinued Operations $ (0.10 ) $ 0.02   $ (0.19 ) $ (0.01 )
$ 0.94 $ 0.99 $ 5.05 $ 3.09
 
EARNINGS (LOSS) PER SHARE - DILUTED
Continuing Operations $ 1.04 $ 0.97 $ 5.23 $ 3.09
Discontinued Operations $ (0.10 ) $ 0.02   $ (0.19 ) $ (0.01 )
$ 0.94 $ 0.99 $ 5.04 $ 3.08
 
NET INCOME ATTRIBUTABLE TO ENSCO SHARES - BASIC AND DILUTED $ 217.0 $ 226.8 $ 1,157.4 $ 593.5
 
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic 230.0 228.4 229.4 192.2
Diluted 230.3 229.0 229.7 192.6
 
 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
               
 
December 31, December 31,
2012 2011
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 487.1 $ 430.7
Accounts receivable, net 811.4 851.7
Other   425.4   398.9
Total current assets 1,723.9 1,681.3
 
PROPERTY AND EQUIPMENT, NET 13,145.6 12,421.9
 
GOODWILL 3,274.0 3,274.0
 
OTHER ASSETS, NET   421.8   521.6
 
$ 18,565.3 $ 17,898.8
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES
Accounts payable and accrued liabilities and other $ 942.2 $ 1,160.1
Short-term debt

-

125.0
Current maturities of long-term debt   47.5   47.5
Total current liabilities 989.7 1,332.6
 
LONG-TERM DEBT 4,798.4 4,877.6
 
DEFERRED INCOME TAXES 351.7 339.5
 
OTHER LIABILITIES 573.4 464.6
 
TOTAL EQUITY   11,852.1   10,884.5
 
$ 18,565.3 $ 17,898.8
 
 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

 

               
Twelve Months Ended
December 31,
2012 2011
 
OPERATING ACTIVITIES
Net income $ 1,176.7 $ 605.6
Adjustments to reconcile net income to net cash provided by
operating activities:
Discontinued operations, net 45.5 2.2
Depreciation expense 558.6 408.9
Other (7.8 ) (12.4 )
Changes in operating assets and liabilities   427.2     (272.5 )
Net cash provided by operating activities of continuing   2,200.2     731.8  
operations
 
INVESTING ACTIVITIES
Additions to property and equipment (1,802.2 ) (729.0 )
Acquisition of Pride International, Inc., net of cash acquired

-

(2,656.0 )
Other   (42.3 )   0.8  
Net cash used in investing activities of continuing   (1,844.5 )   (3,384.2 )
operations
 
FINANCING ACTIVITIES
Cash dividends paid (348.1 ) (292.3 )
Commercial paper borrowings, net (125.0 ) 125.0
Equity issuance reimbursement (cost) 66.7 (70.5 )
Reduction of long-term borrowings (47.5 ) (213.3 )
Proceeds from issuance of senior notes

-

2,462.8
Debt financing costs

-

(31.8 )
Other   18.4     24.2  
Net cash (used in) provided by financing activities of continuing   (435.5 )   2,004.1  
operations
 
DISCONTINUED OPERATIONS
Operating activities (13.1 ) 0.4
Investing activities   147.3     28.7  
Net cash provided by discontinued operations   134.2     29.1  
 
Effect of exchange rate changes on cash and cash equivalents 2.0 (0.8 )
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 56.4 (620.0 )
 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   430.7     1,050.7  
 
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 487.1   $ 430.7  
 
 
ENSCO PLC AND SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
                       
Third
Fourth Quarter Quarter
2012 2011 2012
 
Rig utilization (1)
 
Floaters 83 % 80 % 90 %
Jackups 87 % 88 % 87 %
     
Total   86 %   85 %   88 %
 
 
Average day rates (2)
 
Floaters $ 367,718 $ 341,841 $ 363,416
Jackups 111,459 96,927 108,588
     
Total $ 199,025 $ 176,204 $ 200,409
 
(1)       Rig utilization is derived by dividing the number of days under contract by the number of days in the period. Days under contract equals the total number of days that rigs have earned a day rate, including days associated with compensated downtime and mobilizations. For newly-constructed or acquired rigs, the number of days in the period begins upon commencement of drilling operations for rigs with a contract or when the rig becomes available for drilling operations for rigs without a contract.
 
(2) Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, lump sum revenues and revenues attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain mobilizations, demobilizations, shipyard contracts and standby contracts.




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs