Ensco plc Press Releases

Ensco plc Announces Cash Dividend

Mon, 20 May 2013 09:49:00 -0400

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) announced today that its Board of Directors has declared a regular quarterly cash dividend of US$0.50 per Class A ordinary share payable on 21 June 2013 to holders of Ensco’s shares as of the 10 June 2013 record date.

Ensco uses its website to disclose material and non-material information to investors, customers, employees and others interested in the Company. To receive regular updates on Ensco news or SEC filings, please sign-up for Email Alerts on the Company’s website.

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 of 16 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.

Source: Ensco plc

Ensco plc
Investor Contacts:
Sean O’Neill, 713-430-4607
Vice President - Investor Relations and Communications
or
Nick Georgas, 713-430-4490
Manager - Investor Relations
or
Media Contact:
Alice Brink, 713-430-4658
Manager - Communications

Ensco plc Shareholders Elect Two New Directors, Pass Share Repurchase Authorization and Board Declassification

Mon, 20 May 2013 08:54:00 -0400

LONDON--(BUSINESS WIRE)-- At today’s annual general meeting, shareholders elected two new directors to the board of directors of Ensco plc (NYSE: ESV) and passed special resolutions authorizing $2 billion in share repurchases and declassifying the board. The new board members are Roxanne J. Decyk, former Executive Vice President of Global Government Relations for Royal Dutch Shell plc, and Mary Francis CBE, Senior Independent Director of Centrica plc and a former senior civil servant in the British Treasury and Prime Minister's Office.

“I am very pleased to have both Ms. Decyk and Mrs. Francis join our board,” said Dan Rabun, Chairman, President and CEO of Ensco plc. “They each bring a wealth of international experience and a strong background in energy.”

Ms. Decyk and Mrs. Francis replace two retiring board members: Thomas (Tad) Kelly, who has been a member of the Ensco board of directors since 1987; and Rita Rodriguez, who joined the board in 2003.

“Tad and Rita have both made immeasurable contributions to Ensco’s success over the past years,” said Mr. Rabun. “Their counsel and insight will be missed.”

Ms. Decyk retired as Executive Vice President of Global Government Relations for Royal Dutch Shell plc, where she also held senior-level positions in Corporate Affairs, Human Resources and Corporate Strategy. Ms. Decyk serves as a Director of Alliant Techsystems Inc. and Petrofac Limited.

Mrs. Francis is a former senior civil servant in the British Treasury and the Prime Minister's office and also served as Director General of the Association of British Insurers. She is currently Senior Independent Director of Centrica plc, an integrated energy company, and a director of Swiss Re Group.

Shareholders passed a special resolution authorizing the company to repurchase up to $2 billion of the company’s issued Class A ordinary shares. This authorization replaces a previous share purchase agreement that expired with the conversion last year of Ensco’s American Depository Shares to Class A ordinary shares. Shareholders also passed a special resolution to eliminate staggered three-year term classes for board members. The term of all directors will now be one year.

Source: Ensco plc

Ensco plc
Sean O’Neill, 713-430-4607
Vice President
Investor Relations and Communications
or
Nick Georgas, 713-430-4490
Manager - Investor Relations
or
Alice Brink, 713-430-4658
Manager - Communications

Ensco plc Reports First Quarter 2013 Results

Mon, 29 Apr 2013 17:46:00 -0400

Earnings Per Share Grew 18% on Record Revenues

Record $12 Billion Revenue Backlog

Increased Cash Dividend 33% to $2.00 Per Share Annually

#1 in Total Customer Satisfaction for Third Consecutive Year

ENSCO 8506 and ENSCO DS-6 Commenced Drilling Operations

Contracted ENSCO DS-7 Ultra-Deepwater Drillship and ENSCO 121 Premium Jackup

Sold An Additional Rig As Part of Continuous High-Grading Strategy

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) reported diluted earnings per share from continuing operations of $1.36 in first quarter 2013, compared to $1.20 per share in first quarter 2012. Discontinued operations primarily related to rigs and other assets no longer on the Company’s balance sheet resulted in a loss of $0.05 per share a year ago. Diluted earnings per share increased 18% year to year to $1.36 from $1.15 in first quarter 2012.

Earnings increased $52 million to $317 million and operating income grew 17% to $402 million on record revenues of $1.150 billion in first quarter 2013. These increases were driven by a $28,000 increase in the average day rate and a 6% increase in floater rig days as new rigs were added to the active fleet.

Chairman, President and Chief Executive Officer Dan Rabun stated, “During the quarter, ENSCO 8506, the final rig in the ENSCO 8500 Series^®,began work for Anadarko in the U.S. Gulf of Mexico. ENSCO DS-6, our fourth Samsung DP3 drillship, commenced drilling operations for BP in Angola. In both cases, these ultra-deepwater assets started multi-year programs for repeat customers reinforcing the advantages that fleet standardization provides for us and our customers.”

Mr. Rabun added, “We also contracted two of our newbuild rigs during the quarter. ENSCO DS-7, our fifth Samsung ultra-deepwater drillship, was contracted to Total in Angola for three years. ENSCO 121, our second ENSCO 120 Series ultra-premium jackup, was contracted to Wintershall in the North Sea for two years. Given continued strong customer demand, we recently ordered ENSCO 110, a premium jackup with delivery scheduled for early 2015.”

Mr. Rabun concluded, “We were once again gratified to learn that our customers rated Ensco #1 in total customer satisfaction in the independent survey conducted by EnergyPoint Research. Receiving this designation for the third year in a row is recognition of the hard work and dedication of our offshore crews and onshore personnel worldwide.”

Revenues grew 13% to $1.150 billion in first quarter 2013 from $1.021 billion a year ago. The addition of ENSCO 8505, ENSCO 8506 and ENSCO DS-6 to the active fleet and an increase in average day rates for the jackups segment contributed to this increase.

Contract drilling expense was $561 million, up from $502 million in first quarter 2012. A growing active floater fleet drove this increase along with an increase in labor costs as expected.

Depreciation expense was $149 million, compared to $136 million a year ago. The $13 million increase was mostly due to more rigs in the active fleet. General and administrative expense was $38 million in first quarter 2013 and first quarter 2012.

Interest expense in first quarter 2013 was $39 million, net of $18 million of interest that was capitalized, compared to interest expense of $35 million in first quarter 2012, net of $23 million of interest that was capitalized.

Segment Highlights

Floaters

Floater revenues were $719 million in first quarter 2013, up 12% from $639 million a year ago. The commencement of ENSCO 8505, ENSCO 8506 and ENSCO DS-6 contributed to this growth. The average day rate increased to $380,000 from $350,000 in first quarter 2012 and the number of rig days increased 6% year to year due to the addition of three newbuild floaters. Utilization declined to 83% from 85% a year ago primarily due to previously reported downtime prompted by a vendor notice regarding inspection and replacement of connector bolts.

Floater contract drilling expense was $345 million in first quarter 2013, up from $313 million in first quarter 2012. A growing active floater fleet contributed to this increase along with a previously anticipated increase in labor costs.

Jackups

Jackup revenues grew 14% to $411 million, up from $360 million a year ago. The increase was due mostly to a $17,000 increase in the average day rate to $117,000, driven by a broad-based pickup in customer demand around the world. Utilization was 88% compared to 91% a year ago, resulting primarily from more planned shipyard days during first quarter 2013 versus first quarter 2012. Contract drilling expense increased $26 million to $200 million, due in part to an increase in labor costs as expected.

Other

Other is composed of managed drilling rig operations. Revenues decreased to $20 million from $22 million in first quarter 2012 due to a $10,000 decline in average day rates. Contract drilling expense was $16 million, unchanged from a year ago.


	First Quarter

(in millions of $,	Floaters				Jackups				Other				Reconciling Items				Consolidated Total
except %)	2013	2012	Chg		2013	2012	Chg		2013	2012	Chg		2013		2012		2013	2012	Chg

Revenues	719.2	639.3	12	%	410.5	359.8	14	%	20.2	21.5	-6	%	-		-		1,149.9	1,020.6	13	%
Operating expenses
Contract drilling	344.9	312.9	10	%	200.2	173.6	15	%	15.7	15.7	0	%	-		-		560.8	502.2	12	%
Depreciation	107.1	91.0	18	%	40.3	41.4	-3	%	-	-	-		1.6		3.6		149.0	136.0	10	%
General and admin.	-	-	-		-	-	-		-	-	-		37.8		38.2		37.8	38.2	-1	%
Operating income (loss)	267.2	235.4	14	%	170.0	144.8	17	%	4.5	5.8	-22	%	(39.4	)	(41.8	)	402.3	344.2	17	%

Strong Financial Position – 31 March 2013

Ensco maintained a strong financial position:

$12 billion of contracted revenue backlog excluding bonus opportunities
Long-term debt-to-capital ratio of 28%
$1.9 billion of available revolving credit facilities
$562 million of cash and cash equivalents

EVP and Chief Financial Officer Jay Swent commented, “We raised our regular dividend 33% during the first quarter to $2.00 per share annually, and this month, we ordered an additional jackup, showing once again our ability to invest further in our fleet while returning additional capital to shareholders.”

Mr. Swent added, “Ensco now has seven rigs under construction that are scheduled for delivery over the next two years. We also sold another jackup rig during the first quarter. This continuous high-grading strategy will help us to maintain our #1 customer satisfaction scores.”

Ensco will conduct a conference call at 10:00 a.m. Central Time (4:00 p.m. London time) on Tuesday, 30 April 2013 to discuss first quarter 2013 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 13 May 2013 by dialing (877) 344-7529 or, if calling from outside the U.S. +1 (412) 317-0088 (Conference ID 10025928). 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 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) (Unaudited)

	Three Months Ended
	March 31,
	2013			2012

OPERATING REVENUES	$	1,149.9		$	1,020.6

OPERATING EXPENSES
Contract drilling (exclusive of depreciation)		560.8			502.2
Depreciation		149.0			136.0
General and administrative		37.8			38.2
		747.6			676.4

OPERATING INCOME		402.3			344.2

OTHER INCOME (EXPENSE)
Interest income		3.3			5.9
Interest expense, net		(39.2	)		(34.6	)
Other, net		6.1			2.0
		(29.8	)		(26.7	)

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		372.5			317.5

PROVISION FOR INCOME TAXES		51.7			37.0

INCOME FROM CONTINUING OPERATIONS		320.8			280.5

LOSS FROM DISCONTINUED OPERATIONS, NET		(0.9	)		(13.1	)

NET INCOME		319.9			267.4

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(2.8	)		(2.0	)

NET INCOME ATTRIBUTABLE TO ENSCO	$	317.1		$	265.4


EARNINGS (LOSS) PER SHARE - BASIC
Continuing Operations	$	1.37		$	1.21
Discontinued Operations	$	(0.01	)	$	(0.06	)
	$	1.36		$	1.15

EARNINGS (LOSS) PER SHARE - DILUTED
Continuing Operations	$	1.36		$	1.20
Discontinued Operations	$	-		$	(0.05	)
	$	1.36		$	1.15

NET INCOME ATTRIBUTABLE TO ENSCO SHARES - BASIC AND DILUTED	$	313.8		$	262.7

WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		230.3			228.8
Diluted		230.6			229.2


ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)

	March 31,		December 31,
	2013		2012
	(Unaudited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	561.8	$	487.1
Accounts receivable, net		809.1		811.4
Other		414.0		425.4
Total current assets		1,784.9		1,723.9

PROPERTY AND EQUIPMENT, NET		13,155.2		13,145.6

GOODWILL		3,274.0		3,274.0

OTHER ASSETS, NET		378.4		421.8

	$	18,592.5	$	18,565.3


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities and other	$	797.9	$	942.2
Current maturities of long-term debt		47.5		47.5
Total current liabilities		845.4		989.7

LONG-TERM DEBT		4,783.3		4,798.4

DEFERRED INCOME TAXES		346.8		351.7

OTHER LIABILITIES		548.4		573.4

TOTAL EQUITY		12,068.6		11,852.1

	$	18,592.5	$	18,565.3


ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited)

	Three Months Ended
	March 31,
	2013			2012

OPERATING ACTIVITIES
Net income	$	319.9		$	267.4
Adjustments to reconcile net income to net cash provided by
operating activities:
Discontinued operations, net		0.9			13.1
Depreciation expense		149.0			136.0
Other		(14.0	)		6.0
Changes in operating assets and liabilities		(113.7	)		133.1
Net cash provided by operating activities of continuing operations		342.1			555.6

INVESTING ACTIVITIES
Additions to property and equipment		(168.3	)		(764.1	)
Other		0.9			5.1
Net cash used in investing activities of continuing operations		(167.4	)		(759.0	)

FINANCING ACTIVITIES
Cash dividends paid		(116.5	)		(86.8	)
Proceeds from exercise of share options		13.4			11.9
Reduction of long-term borrowings		(7.1	)		(7.1	)
Commercial paper borrowings, net		-			75.0
Other		(5.5	)		(3.6	)
Net cash used in financing activities of continuing operations		(115.7	)		(10.6	)

DISCONTINUED OPERATIONS
Operating activities		0.2			(8.3	)
Investing activities		15.5			-
Net cash provided by (used in) discontinued operations		15.7			(8.3	)

Effect of exchange rate changes on cash and cash equivalents		-			0.5

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		74.7			(221.8	)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		487.1			430.7

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	561.8		$	208.9


ENSCO PLC AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

							Fourth
	First Quarter						Quarter
	2013			2012			2012

Rig utilization⁽¹⁾

Floaters		83	%		85	%		83	%
Jackups		88	%		91	%		87	%

Total		86	%		89	%		86	%


Average day rates⁽²⁾

Floaters	$	379,801		$	349,942		$	367,718
Jackups		117,268			99,618			111,459

Total	$	209,824		$	182,462		$	199,025


⁽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.

Source: Ensco plc

Ensco plc

Investor Contacts:

Sean O’Neill, 713-430-4607

Vice President - Investor Relations and Communications

or

Nick Georgas, 713-430-4490

Manager - Investor Relations

or

Media Contact:

Alice Brink, 713-430-4658

Manager - Communications

Ensco plc Schedules First Quarter 2013 Earnings Release and Conference Call

Wed, 10 Apr 2013 08:49:00 -0400

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) will hold its first quarter 2013 earnings conference call at 10:00 a.m. CDT (11:00 a.m. EDT and 4:00 p.m. London) on Tuesday, 30 April 2013. The earnings release will be issued before the New York Stock Exchange opens that morning. The conference call will be webcast live at www.enscoplc.com. Interested parties also may listen to the call by dialing 1-866-524-3160 within the United States, or +1-412-317-6760 from outside the U.S., and asking for the first quarter 2013 Ensco conference call. It is recommended that participants call 15 minutes before the scheduled start time.

A replay of the conference call will be available by phone through 15 May 2013 by dialing 1-877-344-7529 within the United States or 1-412-317-0088 from outside the U.S. (conference ID 10025928). A webcast replay, MP3 download and transcript of the call will be available at www.enscoplc.com.

Ensco uses its website to disclose material and non-material information to investors, customers, employees and others interested in Ensco. To receive regular updates on Ensco news or SEC filings please Sign-up for E-mail Alerts on the website.

Source: Ensco plc

Ensco plc Orders New Premium Jackup for Early 2015 Delivery

Mon, 08 Apr 2013 08:55:00 -0400

Newbuild Program Driven by Strong Customer Demand Reinforces Strategy of Fleet Renewal and Standardization

LONDON--(BUSINESS WIRE)-- Responding to continued customer demand, Ensco plc (NYSE: ESV) has ordered a new premium jackup rig for delivery in early 2015. ENSCO 110, based on the Keppel FELS B Class Bigfoot design, will be constructed under a fixed-price contract with Keppel FELS Limited (KFELS) in Singapore. Including commissioning, systems integration testing and project management, the construction cost is expected to be approximately $225 million.

“The market for premium jackups is very strong and we expect this trend to continue,” said Dan Rabun, Ensco Chairman, President and CEO. “Customer demand is broad-based for high-specification jackup rigs, and this rig can work in virtually every shallow water basin around the world.”

Three active Ensco rigs, ENSCO 106, ENSCO 107 and ENSCO 108, are also based on the KFELS B Class Bigfoot design.

“We are strong proponents of rig standardization, and this latest order is in line with our strategy,” said John Knowlton, Ensco Senior Vice President, Technical. “Design standardization allows us to staff, operate and maintain our rigs more efficiently, and our customers reap the benefits of this through increased reliability.”

The KFELS B Class Bigfoot design is capable of working at water depths up to 400 feet with a maximum drilling depth of 30,000 feet. ENSCO 110 will have a nominal variable deck load of 7,500 kips and a cantilever load of 2,500 kips. It also has a 1.5 million-pound derrick, TDS-8 top drive and 15k BOP. Ensco has customized the rig to add dual drilling fluid capability and to upgrade the living quarters to 6 one-person and 67 two-person rooms.

With this contract, Ensco now has seven newbuild rigs on order, including four jackup rigs and three ultra-deepwater drillships. The two ultra-premium harsh environment jackups and one ultra-deepwater drillship scheduled for delivery in 2013 are all contracted.

“Our ongoing strategy of highgrading our fleet not only creates additional earnings potential for Ensco but contributes to our ability to maintain our number one rating in customer satisfaction and to attract the best employees in the industry,” Rabun added.

Source: Ensco plc

Ensco plc Increases Cash Dividend 33% to $2.00 Per Share Annually

Tue, 26 Feb 2013 09:12:00 -0500

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) announced today that its Board of Directors has declared a regular quarterly cash dividend of US$0.50 per Class A ordinary share payable on 22 March 2013 to holders of Ensco’s shares as of the 11 March 2013 record date. The prior quarterly dividend was $0.375 per share.

Chairman, President and Chief Executive Officer Dan Rabun stated, “Our strong financial position and positive outlook for future earnings growth supports this increase to our quarterly cash dividend. Contracted revenue backlog is now a record $11 billion. Our active fleet has grown with the commencement of two additional ultra-deepwater rigs this quarter alone. And our fleet will continue to expand as we deliver six new rigs through the end of next year, which we expect will earn favorable day rates and multi-year terms. We continue to have a very bullish outlook in terms of customer demand for both deep- and shallow-water offshore markets. These factors give us significant visibility into future cash flows.”

Mr. Rabun added, “Management and the Board believe the new dividend payout is prudent and sustainable. We expect that we will continue to have adequate liquidity to meet capital commitments for our rigs under construction, as well as sufficient flexibility to make new investments and return capital to shareholders.”

Source: Ensco plc

Ensco Rated #1 Among Offshore Drillers for Third Year in Independent Customer Satisfaction Survey

Thu, 21 Feb 2013 09:02:00 -0500

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) once again received the first place ranking for total customer satisfaction among offshore drillers in the 2012 Oilfield Products & Services Customer Satisfaction Survey. Conducted by EnergyPoint Research, the annual survey is the industry benchmark for customer satisfaction in the global oilfield.

Ensco led all offshore drilling contractors in the survey, receiving top honors in 10 of 16 categories including job quality; performance and reliability; technology; special drilling applications; non-vertical wells and shelf wells. Ensco also earned the top ranking among multinational customers and was rated first internationally overall and specifically in the North Sea.

Ensco Chairman, President and Chief Executive Officer Dan Rabun stated, “This recognition is a testament to our people around the globe who strive to deliver excellence to our customers every day. We are committed to going beyond expectations and this is an important measure of the success of our effort.

“Safety remains our highest priority, and in 2012 we also achieved our best safety performance ever,” he added. “Our total recordable incident rate was well ahead of the industry average, as we continue to strive for a zero-incident workplace.”

The independent survey was conducted as part of EnergyPoint Research’s 2012 industry-wide Oilfield Products & Services Survey, comprising thousands of in-depth evaluations performed over a 24-month period by qualified professionals at domestic and international customers of oilfield suppliers.

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. 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 at 6 Chesterfield Gardens, London W1J 5BQ. To learn more, visit www.enscoplc.com.

EnergyPoint Research, Inc. provides independent research regarding the oil and gas industry’s satisfaction with the products and services it purchases and utilizes. Founded in 2003, the firm offers oil and gas industry professionals and organizations opportunities to both provide and gather confidential ratings and customer feedback in areas important to oilfield product and service suppliers through objective and independent evaluation processes. For more information regarding EnergyPoint Research and its surveys and data, visit the company’s website at www.energypointresearch.com or contact the company at info@epresearch.com.

Source: Ensco plc

Ensco plc
Investor Contact:
Sean O’Neill, 713-430-4607
Vice President – Investor Relations and Communications
or
Nick Georgas, 713-430-4490
Manager – Investor Relations
or
Media Contact:
Alice Brink, 713-430-4658
Manager – Communications

Ensco plc Reports Fourth Quarter and Full-Year 2012 Results

Wed, 20 Feb 2013 19:36:00 -0500

Record Full-Year 2012 Revenues and Earnings
Reinvested a Record $1.8 Billion in Fleet
#1 Total Customer Satisfaction Rating
Realized More Than $100 Million of Targeted Expense Synergies
Sold Additional Rigs as Part of Continuous High-Grading Strategy
ENSCO 8505 Commences Initial Term Contract and ENSCO 8506 Delivered

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) reported diluted earnings per share from continuing operations of $1.04 in fourth quarter 2012, compared to $0.97 per share in fourth quarter 2011. Discontinued operations primarily related to rigs and other assets no longer on the Company’s balance sheet resulted in a loss of $0.10 per share in fourth quarter 2012. Earnings from discontinued operations in fourth quarter 2011 were $0.02 per share. Diluted earnings per share were $0.94 in fourth quarter 2012, compared to $0.99 in fourth quarter 2011.

Certain items influenced earnings per share from continuing operations comparisons year to year. Provision for income taxes in fourth quarter 2012 included $75 million, $0.33 per share, in discrete tax items including $51 million related to restructuring certain subsidiaries from the 2011 acquisition and $24 million of additional discrete tax items primarily related to adjustments of certain prior year tax positions. Professional fees, severance payments and other acquisition-related costs in fourth quarter 2011 general and administrative expense totaled approximately $8 million, $0.03 per share. In addition, fourth quarter 2011 contract drilling expense included approximately $4 million, $0.02 per share, of severance and relocation costs related to the acquisition. Adjusted for these items, fourth quarter earnings per share from continuing operations increased approximately 34% year to year to $1.37 from $1.02.

Full-year 2012 diluted earnings per share from continuing operations were $5.23, compared to $3.09 per share in 2011. Discontinued operations resulted in a loss of $0.19 per share in 2012, compared to a loss of $0.01 per share in 2011. The $0.19 per share loss from discontinued operations in 2012 includes losses from asset sales and operating results during the first three quarters of 2012 that were reclassified from continuing operations to discontinued operations. Diluted earnings per share were $5.04 in 2012, compared to $3.08 in 2011.

Chairman, President and Chief Executive Officer Dan Rabun stated, “The past year has been a remarkable period of growth for Ensco. We achieved record revenues and earnings as we added new ultra-deepwater rigs, increased utilization and benefited from rising customer demand. During the year, we delivered ENSCO 8505 and ENSCO 8506, the final two rigs in the ENSCO 8500 Series^®, as well as ENSCO DS-6, our fourth Samsung DP-3 ultra-deepwater drillship. Each of these rigs has commenced work on multi-year programs for repeat customers, reinforcing the advantages of fleet standardization.”

Mr. Rabun added, “We are gratified to, once again, achieve the #1 customer satisfaction award given the exceptional work of our crews who achieved the best safety record in our history and a significant increase in overall rig utilization. All of this was accomplished as we integrated our acquisition - achieving expense synergies above initial targets.”

Mr. Rabun concluded, “Ensco’s growth will continue as we complete the construction of six additional rigs that are scheduled for delivery through the end of next year. These rigs will provide future earnings growth and afford us the flexibility to invest further in our fleet while returning additional capital to shareholders.”

Revenues grew 12% to $1.086 billion in fourth quarter 2012 from $973 million a year ago. A growing active fleet, higher average day rates in the jackups segment and improved utilization and average day rates for the floaters segment contributed to this increase.

Contract drilling expense was $525 million, up from $498 million in fourth quarter 2011. More rigs in the active fleet as well as higher utilization in the floaters segment drove this increase along with a rise in unit labor costs. Warranty claim settlements of $11 million related to lost revenues and costs incurred in prior periods reduced fourth quarter 2012 contract drilling expense. Adjusted for this item and acquisition-related costs equaling $4 million in fourth quarter 2011, contract drilling expense increased 9%.

Depreciation expense was $144 million, compared to $137 million a year ago. The $7 million increase was mostly due to the addition of ENSCO 8505 to the active fleet.

General and administrative expense declined to $35 million from $40 million in fourth quarter 2011. Acquisition-related costs in fourth quarter 2011 equaled $8 million as noted above.

Interest expense in fourth quarter 2012 was $28 million, net of $28 million of interest that was capitalized, compared to interest expense of $41 million in fourth quarter 2011, net of $17 million of interest that was capitalized.

Segment Highlights

In fourth quarter 2012, the Company changed its segment reporting. All drillships and semisubmersibles are now reflected in a Floaters segment. The Jackups and Other segments are unchanged.

Floaters

Floater revenues were $672 million in fourth quarter 2012, up 10% from $610 million a year ago. A full quarter of operations for ENSCO DS-5, the commencement of ENSCO 8505, and an increase in the average day rate and utilization contributed to this growth. The average day rate increased to $368,000 from $342,000 in fourth quarter 2011. Utilization improved three percentage points to 83%.

Floater contract drilling expense was $313 million in fourth quarter 2012, up from $312 million in fourth quarter 2011. Adjusted for warranty claim settlements of $11 million noted above and ENSCO 5005 and ENSCO DS-1 deferring expenses related to shipyard upgrades, contract drilling expense increased 9%. Commencement of operations for ENSCO 8505 and an increase in unit labor costs contributed to this increase.

Jackups

Jackup revenues grew 15% to $393 million, up from $341 million a year ago. The increase was due to a $14,000 increase in the average day rate to $111,000, partially offset by a one percentage point decline in utilization to 87%. A broad-based pickup in customer demand around the world drove the increase in average day rate. Contract drilling expense increased $29 million to $196 million, mostly due to an increase in unit labor costs.

Other

Other is composed of managed drilling rig operations. Revenues decreased to $20 million from $22 million in fourth quarter 2011 due to a $12,000 decline in average day rates. Contract drilling expense was $15 million, compared to $19 million a year ago. The decreases in average day rate and contract drilling expense are related to declining crew requirements year to year.

	Fourth Quarter

(in millions of $,	Floaters				Jackups				Other				Reconciling Items				Consolidated Total
except %)	2012	2011	Chg		2012	2011	Chg		2012	2011	Chg		2012		2011		2012	2011	Chg

Revenues	672.3	610.3	10	%	392.9	340.8	15	%	20.3	22.1	-8	%	-		-		1,085.5	973.2	12	%
Operating expenses
Contract drilling	313.1	311.6	0	%	196.2	167.6	17	%	15.2	19.1	-20	%	-		-		524.5	498.3	5	%
Depreciation	99.6	92.7	7	%	42.6	42.2	1	%	-	-	-		1.7		1.6		143.9	136.5	5	%
General and admin.	-	-	-		-	-	-		-	-	-		35.0		40.3		35.0	40.3	-13	%
Operating income (loss)	259.6	206.0	26	%	154.1	131.0	18	%	5.1	3.0	NM		(36.7	)	(41.9	)	382.1	298.1	28	%

Strong Financial Position – 31 December 2012

Ensco maintained a strong financial position:

$10 billion of contracted revenue backlog excluding bonus opportunities
Long-term debt-to-capital ratio of 29%
$1.9 billion of available revolving credit facilities
$487 million of cash and cash equivalents

EVP and Chief Financial Officer Jay Swent commented, “Capital expenditures for full-year 2012 totaled $1.8 billion of which $1.3 billion, or 72%, was invested in new construction. These investments, coupled with $1.9 billion of remaining contractual commitments for rigs being constructed through 2014, will propel the future growth of our company. We also continued to high-grade our fleet by selling two additional rigs in the fourth quarter.”

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.

Source: Ensco plc

Ensco plc Schedules Fourth Quarter and Full-Year 2012 Earnings Release and Conference Call

Mon, 11 Feb 2013 10:41:00 -0500

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) will hold its fourth quarter and full-year 2012 earnings conference call at 10:00 a.m. CST (11:00 a.m. EST and 4:00 p.m. London) on Thursday, 21 February 2013. The earnings release will be issued before the New York Stock Exchange opens that morning. The conference call will be webcast live at www.enscoplc.com. Interested parties also may listen to the call by dialing 1-866-524-3160 within the United States, or +1-412-317-6760 from outside the U.S., and asking for the fourth quarter 2012 Ensco conference call. It is recommended that participants call 15 minutes before the scheduled start time.

A replay of the conference call will be available by phone through 8 March 2013 by dialing 1-877-344-7529 within the United States or 1-412-317-0088 from outside the U.S. (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 13 of 17 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.

Source: Ensco plc

Ensco plc
Investor and Media Contacts:
Sean O’Neill, 713-430-4607
Vice President
Investor Relations and Communications
or
Nick Georgas, 713-430-4490
Manager - Investor Relations
or
Alice Brink, 713-430-4658
Manager - Communications

Ensco plc Reports on Connector Bolts Identified in Vendor Notice

Thu, 07 Feb 2013 14:49:00 -0500

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) reported that a vendor, GE Oil & Gas, recently communicated that certain batches of bolts used in offshore drilling should be inspected for possible replacement. GE Oil & Gas issued notices regarding these bolts after a competitor’s rig experienced operational problems in connection with the bolts. Ensco’s rigs have not experienced any operational problems related to the bolts, used in H4 connectors, which connect a lower marine riser package to a wellhead.

Immediately upon receipt of the notice from GE Oil & Gas, Ensco began an evaluation of its fleet to determine which rigs have H4 connectors with bolts identified in the notice. Ensco’s jackup fleet and seven ENSCO 8500 Series^® floater rigs are not affected by the GE Oil & Gas notices. For certain other floaters in the Company’s fleet, the relevant bolts have already been replaced. On the remaining floaters, the relevant bolts are scheduled for evaluation, and, where appropriate, will be replaced. The Company will provide an update on this issue in its regularly scheduled monthly fleet status report to be issued in mid-February.

The U.S. Bureau of Safety and Environmental Enforcement (BSEE) issued instructions to operators requiring drilling contractors to inspect the relevant bolts for possible replacement. Ensco is working through this process, and in all cases, spare bolts are on hand or can be re-qualified from the Company’s available stock to replace the relevant bolts. Ensco has also secured new bolts to augment inventory.

Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. With a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs, Ensco serves customers with high-quality equipment, a well-trained workforce and a strong record of safety and reliability. To learn more about Ensco, please visit our website at www.enscoplc.com. Ensco plc is registered in England No. 7023598 with offices located at 6 Chesterfield Gardens, London, W1J 5BQ.

Source: Ensco plc

Ensco plc
Investor and Media Contact:
Sean O’Neill, 713-430-4607
Vice President – Investor Relations and Communications