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Ensco (ESV) Q1 Loss Narrower than Expected, Revenues Miss
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Oil and natural gas driller Ensco plc reported diluted first-quarter 2017 loss (excluding one-time items) of 4 cents a share, substantially narrower than the Zacks Consensus Estimate of a loss of 12 cents. Notably, the company posted earnings of 74 cents a share in the year-earlier quarter.
Total revenue declined to $471.1 million from $814.0 million in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $473.03 million.
Segmental Performance
Floaters: Revenues were $284.8 million compared with $512.6 million last year. This was primarily because of fewer rig operating days and a decline in the average day rate to $336,636 from $364,771 a year ago.
Reported utilization was 47% compared with 64% last year. Adjusted for uncontracted rigs and planned downtime, operational utilization remained unchanged from last year at 99%.
Jackups: Revenues were $171.8 million compared with $277.9 million a year ago. This was mostly due to a decline in average day rates to $86,390 from $118,138 in the prior-year quarter. Fewer operating days for several jackups also contributed to the decrease in revenues.
Reported utilization was 64% compared with 66% in first-quarter 2016. Adjusted for uncontracted rigs and planned downtime, operational utilization in the reported quarter was 99.2% as against 99.8% a year ago.
Other: Revenues plummeted to $14.5 million from $23.5 million in first-quarter 2016. Contract drilling expenses, however, decreased to $13 million from $18 million a year ago.
Costs and Expenses
Depreciation expenses declined to $109.2 million from $113.3 million in first-quarter 2016. This was due to the extension of lives for certain contracted assets. General and administrative expenses increased to $26 million from $23.4 million last year, mainly due to higher compensation costs.
Balance Sheet and Capex
At the end of the first quarter, Ensco had $271.7 million in cash and cash equivalents. Long-term debt (including current maturities) was $4,905.9 million, with net debt-to-capitalization ratio coming in at 37.4%.
Ensco currently carries a Zacks Rank #3 (Hold). Some better-ranked from the same space are Diamond Offshore Drilling Inc. (DO - Free Report) , China Petroleum & Chemical Corporation and Bellatrix Exploration Ltd. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It topped estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.
Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It surpassed estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.
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Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Ensco (ESV) Q1 Loss Narrower than Expected, Revenues Miss
Oil and natural gas driller Ensco plc reported diluted first-quarter 2017 loss (excluding one-time items) of 4 cents a share, substantially narrower than the Zacks Consensus Estimate of a loss of 12 cents. Notably, the company posted earnings of 74 cents a share in the year-earlier quarter.
Total revenue declined to $471.1 million from $814.0 million in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $473.03 million.
Segmental Performance
Floaters: Revenues were $284.8 million compared with $512.6 million last year. This was primarily because of fewer rig operating days and a decline in the average day rate to $336,636 from $364,771 a year ago.
Reported utilization was 47% compared with 64% last year. Adjusted for uncontracted rigs and planned downtime, operational utilization remained unchanged from last year at 99%.
Jackups: Revenues were $171.8 million compared with $277.9 million a year ago. This was mostly due to a decline in average day rates to $86,390 from $118,138 in the prior-year quarter. Fewer operating days for several jackups also contributed to the decrease in revenues.
Reported utilization was 64% compared with 66% in first-quarter 2016. Adjusted for uncontracted rigs and planned downtime, operational utilization in the reported quarter was 99.2% as against 99.8% a year ago.
Other: Revenues plummeted to $14.5 million from $23.5 million in first-quarter 2016. Contract drilling expenses, however, decreased to $13 million from $18 million a year ago.
Costs and Expenses
Depreciation expenses declined to $109.2 million from $113.3 million in first-quarter 2016. This was due to the extension of lives for certain contracted assets. General and administrative expenses increased to $26 million from $23.4 million last year, mainly due to higher compensation costs.
Balance Sheet and Capex
At the end of the first quarter, Ensco had $271.7 million in cash and cash equivalents. Long-term debt (including current maturities) was $4,905.9 million, with net debt-to-capitalization ratio coming in at 37.4%.
ENSCO PLC Price, Consensus and EPS Surprise
ENSCO PLC Price, Consensus and EPS Surprise | ENSCO PLC Quote
Zacks Rank
Ensco currently carries a Zacks Rank #3 (Hold). Some better-ranked from the same space are Diamond Offshore Drilling Inc. (DO - Free Report) , China Petroleum & Chemical Corporation and Bellatrix Exploration Ltd. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It topped estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.
Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It surpassed estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>