Ensco Q2 2013 Contracted Revenue Backlog $11-biliion

MarineLink.com July 29, 2013

Image courtesy of Ensco

Offshore drilling services provider Ensco on the crest of the wave according to their second quarter 2013 financial results.

Record Revenues Totaling $1.2 Billion 
Operating Income Grew 12% 
$11 Billion of Contracted Revenue Backlog 
Ordered ENSCO DS-10 Ultra-Deepwater Drillship and ENSCO 110 Premium Jackup 
Hosted Naming Ceremony for ENSCO DS-7 in South Korea

Chairman, President and Chief Executive Officer Dan Rabun stated, “We continue to see strong, broad-based customer demand given the steady pace of new discoveries that must be appraised and developed. Based on our positive outlook, we recently ordered our eighth Samsung DP3 drillship, ENSCO DS-10, and our seventh Keppel FELS B Class jackup, ENSCO 110.”

Mr. Rabun added, “These new assets reinforce our fleet standardization strategy that provides customers consistently high levels of operational excellence.”

Revenues grew 17% to a record $1.248 billion in second quarter 2013 from $1.071 billion a year ago. Operating income grew 12% to $452 million and earnings increased $20 million to a record $361 million. The addition of ENSCO 8506 and ENSCO DS-6 to the active fleet as well as a full quarter of operations for ENSCO 8505 drove these increases. The average day rate for the fleet increased $36,000 year to year to $228,000.

Contract drilling expense was $607 million, up from $494 million in second quarter 2012. This increase was primarily due to adding new floaters to the active fleet as well as a previously anticipated increase in labor costs.