What Is Going On With ENSCO PLC (NYSE:ESV)?

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ENSCO PLC (NYSE:ESV) posted a loss of $0.49 a share for Q4 2017 as against earnings of $0.13 a share, a year earlier. Results from discontinued operations came at zero cents a share in Q4 2017 compared to EPS of $0.03 in Q4 2016.

The performance

Ensco reported revenue of $454 million in Q4 2017 compared to revenue of $505 million a year earlier. Revenues dropped 10% versus the year-ago period mainly due to a drop in the average day rate. The addition of revenue of $23 million from Atwood, contract intangible asset amortization of net of $16 million, partly offset reduced average day rates of the fleet.

Carl Trowell, the President and Chief Executive Officer of Ensco, expressed that during Q4 2017, they successfully closed the Atwood deal, which significantly improved the technical capabilities of their rig fleet and enhanced their ability to fulfill growing demand for high-specification resources. Integration continues to advance as planned and they remain on track to record targeted synergies.

Mr. Trowell added that they took additional measures to enhance their financial position by extending their revolving credit facility and refinancing their approaching debt maturities via a debt tender and senior notes offering earlier this year. These measures provide them with the financial flexibility to remain positioning Ensco as a major offshore service provider.

The CEO of Ensco added that their onshore employees and offshore crews achieved remarkable results irrespective of tough market conditions last year. Operational uptime came at 99% for the second successive year and they established a new firm record for safety performance by reducing their aggregate recordable incident rate to 0.15, considerably surpassing the industry average that surged year over year. This exceptional safety and operational performance was recognized by their customers, who rated company first in segment of total satisfaction for the eighth successive year in the independent EnergyPoint poll.


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