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Oil and natural gas driller, Ensco plc reported diluted third-quarter 2016 earnings of 25 cents a share (excluding one-time items), which surpassed the Zacks Consensus Estimate of 13 cents. The figure, however, decreased from 89 cents a share earned in the year-earlier quarter.
Total revenue decreased to $548.2 million from $1,012.2 million in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $553.81 million.
Segmental Performance
Floaters: Revenues from floaters plunged 51% to $319.3 million in the third quarter from $646.4 million a year ago. The decline primarily stemmed from lower utilization of several floaters in the U.S. Gulf of Mexico, which in turn, led to a fall in the average day rate to $353,187 from $421,903 a year ago. Reported utilization was 48% as against 59% in the prior-year quarter. Floater contract drilling expenses declined 37% to $153.7 million from $242.4 million in third-quarter 2015.
Jackups: Revenues from this segment decreased 34% to $213.8 million from $325.8 million a year ago. The downside mainly stemmed from fewer rig operating days for several jackups and a decline a in the average day rate to $109,379 from $133,619. Reported utilization fell to 55% from 64% a year ago. Contract drilling expenses decreased 17% year over year to $133.2 million in the third quarter. The decline was partly due to lower compensation, and repair and maintenance expenses.
Other: Revenues decreased significantly to $15.1 million from $40 million in third-quarter 2015. Contract drilling expenses fell to $11.2 million from $31.1 million a year ago.
Depreciation expenses were $109.4 million compared with $145.2 million in third-quarter 2015. General and administrative expenses declined to $25.3 million from $28.4 million last year, mostly due to disciplined expense management.
Balance Sheet and Capex
At the end of the third quarter, Ensco had $465.4 million in cash and cash equivalents. Long-term debt was $4,677 million, with debt-to-capitalization ratio of 36.9% compared with 38.3% in the year-ago quarter.
Zacks Rank
Currently, Ensco carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
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Ensco (ESV) Q3 Earnings Beat, Revenues Miss; Decline Y/Y
Oil and natural gas driller, Ensco plc reported diluted third-quarter 2016 earnings of 25 cents a share (excluding one-time items), which surpassed the Zacks Consensus Estimate of 13 cents. The figure, however, decreased from 89 cents a share earned in the year-earlier quarter.
Total revenue decreased to $548.2 million from $1,012.2 million in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $553.81 million.
Segmental Performance
Floaters: Revenues from floaters plunged 51% to $319.3 million in the third quarter from $646.4 million a year ago. The decline primarily stemmed from lower utilization of several floaters in the U.S. Gulf of Mexico, which in turn, led to a fall in the average day rate to $353,187 from $421,903 a year ago. Reported utilization was 48% as against 59% in the prior-year quarter. Floater contract drilling expenses declined 37% to $153.7 million from $242.4 million in third-quarter 2015.
Jackups: Revenues from this segment decreased 34% to $213.8 million from $325.8 million a year ago. The downside mainly stemmed from fewer rig operating days for several jackups and a decline a in the average day rate to $109,379 from $133,619. Reported utilization fell to 55% from 64% a year ago. Contract drilling expenses decreased 17% year over year to $133.2 million in the third quarter. The decline was partly due to lower compensation, and repair and maintenance expenses.
Other: Revenues decreased significantly to $15.1 million from $40 million in third-quarter 2015. Contract drilling expenses fell to $11.2 million from $31.1 million a year ago.
ENSCO PLC Price, Consensus and EPS Surprise
ENSCO PLC Price, Consensus and EPS Surprise | ENSCO PLC Quote
Costs and Expenses
Depreciation expenses were $109.4 million compared with $145.2 million in third-quarter 2015. General and administrative expenses declined to $25.3 million from $28.4 million last year, mostly due to disciplined expense management.
Balance Sheet and Capex
At the end of the third quarter, Ensco had $465.4 million in cash and cash equivalents. Long-term debt was $4,677 million, with debt-to-capitalization ratio of 36.9% compared with 38.3% in the year-ago quarter.
Zacks Rank
Currently, Ensco carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>