Ensco International

Ensco International, Inc. (ESV - Analyst Report) recently reported a record quarter. Earnings reached a record $296.7 million, which translates into $2.07 per share. The $2.07 topped last year’s $1.72 and eclipsed the consensus estimate by 5%. Revenues of $637.1 million surpassed the year-prior $548.6.

Company Description

Ensco International is a global offshore oil and gas drilling contractor. Its fleet of 52 rigs (including six ultra-deepwater semisubmersible rigs under construction) is strategically located in the most prolific domestic and international oil and gas markets and is managed through four major business units including: North & South America, Europe & Africa, Asia & Pacific Rim and Deepwater.

Record Second Quarter

The company recently reported a record quarter. Earnings reached a record $296.7 million, which translates into $2.07 per share. The $2.07 topped last year’s $1.72 and eclipsed the consensus estimate by 5%. Revenues of $637.1 million surpassed the year-prior $548.6.

Dan Rabun, Chairman, President and Chief Executive Officer, commented on the Company's results, strategic deepwater initiative and outlook: "Increases in average day rates in all regions and asset classes contributed to the sequential improvement in our second quarter results, and to another record quarter.

Rabun added that for the remainder of the year, the company is seeing improvement in backlog and day rates for its U.S. Gulf of Mexico and North Sea jackup fleets, and Ensco expects a balanced market for its Asia Pacific rigs. As a result, the company anticipates that 2008 will be another record year. With the planned expansion of its active deepwater rig fleet commencing in 2009, and the expected continued strength in markets for its premium jackups, Ensco believes that it is well positioned for continued growth.

Estimated Jumped Higher and Long-term Growth is in the Cards

Wall Street liked ESV’s record quarter as evidenced by higher earnings forecasts. Fifteen out of 22 covering analysts hiked full-year 2008 earnings projections from last week’s $8.28 per share to $8.45. Twelve out of 21 analysts increased third-quarter expectations from last week’s $2.17 per share to $2.22.

Ensco’s earnings per share are expected to grow by 20% over the next 3 – 5 years, while the industry average projection is a lower 18%.