Ensco books bigger loss on lower utilization, slashed rig rates

UK driller Ensco saw its net loss deepen over the first quarter 2018 with its revenues down on lower rig utilization and dayrate decline. 

In the first quarter of this year Ensco’s net loss increased to $140.1 million from a $25.7 million loss in the same period last year.

Revenues were $417 million in the first quarter 2018 compared to $471 million a year ago due to a decline in reported utilization to 54% from 58% and a decline in the average day rate to $132,000 from $156,000.

The addition of $26 million of revenue from Atwood rigs partially offset lower utilization and average day rates across the fleet.

Ensco’s contract drilling expense increased to $325 million in first quarter 2018 from $278 million a year ago primarily due to the addition of $39 million of costs associated with 11 Atwood rigs and $8 million of integration-related transaction costs.

Looking at segments, revenues for Ensco’s floaters segment were $259 million in first quarter 2018 compared to $285 million a year ago. Revenues declined due to a decrease in reported utilization to 44% from 47% in first quarter 2017 and a decline in average day rates to $263,000 from $337,000 a year ago. First quarter 2018 floater revenues included $21 million from acquired Atwood rigs.

In the jack-up segment, revenues were $143 million in first quarter 2018 compared to $172 million a year ago due to a decline in reported utilization to 61% from 64% and a decline in average day rates to $74,000 from $86,000. First quarter 2018 jack-up revenues included $5 million from acquired Atwood rigs.

At the end of the quarter, Ensco had $2.7 billion of contracted revenue backlog, excluding bonus opportunities, and about $2.9 billion of liquidity.

Ensco’s long-term debt amounts to $5 billion.

Offshore Energy Today Staff

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Posted on April 26, 2018 with tags .

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