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%.
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%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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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%.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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