Ensco plc (NYSE: ESV) reported today that diluted earnings per share increased 9% to $1.62 in third quarter 2013 from $1.48 a year ago. Discontinued operations primarily related to rigs and other assets no longer on the Company’s balance sheet reduced earnings last year by $0.07 per share. Diluted earnings per share from continuing operations were $1.62 in third quarter 2013 compared to $1.55 in third quarter 2012.
Certain items influenced third quarter 2013 results. A favorable settlement with the Mexican tax authority of $31 million, $0.10 per share, benefited other income. ENSCO 5002 and ENSCO 5004 contracted to OGX in Brazil negatively influenced results: $27 million, $0.12 per share, of contract backlog was not recognized as revenues and an $11 million, $0.05 per share, provision for doubtful accounts was included in contract drilling expense. Adjusted for these items, diluted earnings per share from continuing operations increased 9% to $1.69 compared to $1.55 in third quarter 2012.
Chairman, President and Chief Executive Officer Dan Rabun stated, “During the third quarter, we accepted delivery of two more rigs that will commence multi-year contracts later this year - - ENSCO DS-7, an ultra-deepwater drillship, and ENSCO 120, an ultra-premium harsh environment jackup. These newbuild rigs plus six more under construction will drive revenue and earnings growth in the years ahead.”
Mr. Rabun added, “I commend our capital projects teams in South Korea and Singapore for their diligence in overseeing the successful delivery of four new rigs over the past year alone.”
Earnings increased $35 million to a record $379 million. Revenues grew 13% to a record $1.266 billion in third quarter 2013 from $1.124 billion a year ago. The average day rate for the fleet increased 13% to $225,000, mostly due to adding ENSCO 8506 and ENSCO DS-6 to the active fleet, as well as higher day rates for several floaters and an increase in the jackup segment average day rate.