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Ensco (ESV) Q4 Loss Narrower Than Expected, Revenues Beat
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Ensco plc reported fourth-quarter 2017 loss of 23 cents a share (excluding one-time items), which was narrower than the Zacks Consensus Estimate of a loss of 26 cents. However, the figure compared unfavorably with earnings of 9 cents in the year-earlier quarter. The decline was mainly attributable to lower dayrates of the floater and jackups as well as higher expenses.
Total revenues were $454.2 million, down from $504.6 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $452.25 million.
Full-year 2017 loss of 66 cents per share was wider than the Zacks Consensus Estimate of a loss of 50 cents. The company reported earnings of $1.59 per share in 2016.
Total revenues in 2017 fell to $1,843 million from $2,776.4 million in 2016. However, the figure surpassed the Zacks Consensus Estimate of $1,840 million.
Segmental Performance
Floaters: Revenues in the segment totaled $303 million and were flat year over year. This was caused by fewer rig operating days, which had led to a fall in the average day rate to $306,937 from $358,405 a year ago. Reported utilization was 44%, unchanged from the prior-year quarter. Floater contract drilling expenses increased nearly 27.5% to $193 million from $151.4 million in fourth-quarter 2016.
Jackups: Revenues at this segment declined 26.5% to $137 million from $186.5 million in the year-ago quarter. The downside mainly stemmed from fewer rig operating days for several jackups and a decline in the average day rate to $76,037 from $101,252. Reported utilization was unchanged at 54% from the year-ago quarter. Contract drilling expenses inched up 1% year over year to $128 million in the fourth quarter.
Other: Revenues of $15 million were flat year over year. Contract drilling expenses increased to $13 million from $10.8 million in the prior-year quarter.
Costs and Expenses
Depreciation expenses were $119.5 million compared with $110.2 million in fourth-quarter 2016. The increase was mainly due to the addition of Atwood rigs to its fleet. General and administrative expenses increased to $70.9 million from $24.7 million in the year-ago quarter.
Balance Sheet and Capex
At the end of the fourth quarter, Ensco had $445.4 million in cash and cash equivalents. Long-term debt was $4,750.7 million, with debt-to-capitalization ratio of 35.2% compared with 37.4% in the year-ago quarter.
Q4 Price Performance
During the fourth quarter, Ensco’s shares have underperformed the industry. The company’s shares fell 1% compared with the industry’s 7.1% rally.
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% in the preceding four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. The company delivered a positive earnings surprise of 144.45% in the preceding four quarters.
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Ensco (ESV) Q4 Loss Narrower Than Expected, Revenues Beat
Ensco plc reported fourth-quarter 2017 loss of 23 cents a share (excluding one-time items), which was narrower than the Zacks Consensus Estimate of a loss of 26 cents. However, the figure compared unfavorably with earnings of 9 cents in the year-earlier quarter. The decline was mainly attributable to lower dayrates of the floater and jackups as well as higher expenses.
Total revenues were $454.2 million, down from $504.6 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $452.25 million.
Ensco plc Price, Consensus and EPS Surprise
Ensco plc Price, Consensus and EPS Surprise | Ensco plc Quote
Full-year 2017 loss of 66 cents per share was wider than the Zacks Consensus Estimate of a loss of 50 cents. The company reported earnings of $1.59 per share in 2016.
Total revenues in 2017 fell to $1,843 million from $2,776.4 million in 2016. However, the figure surpassed the Zacks Consensus Estimate of $1,840 million.
Segmental Performance
Floaters: Revenues in the segment totaled $303 million and were flat year over year. This was caused by fewer rig operating days, which had led to a fall in the average day rate to $306,937 from $358,405 a year ago. Reported utilization was 44%, unchanged from the prior-year quarter. Floater contract drilling expenses increased nearly 27.5% to $193 million from $151.4 million in fourth-quarter 2016.
Jackups: Revenues at this segment declined 26.5% to $137 million from $186.5 million in the year-ago quarter. The downside mainly stemmed from fewer rig operating days for several jackups and a decline in the average day rate to $76,037 from $101,252. Reported utilization was unchanged at 54% from the year-ago quarter. Contract drilling expenses inched up 1% year over year to $128 million in the fourth quarter.
Other: Revenues of $15 million were flat year over year. Contract drilling expenses increased to $13 million from $10.8 million in the prior-year quarter.
Costs and Expenses
Depreciation expenses were $119.5 million compared with $110.2 million in fourth-quarter 2016. The increase was mainly due to the addition of Atwood rigs to its fleet. General and administrative expenses increased to $70.9 million from $24.7 million in the year-ago quarter.
Balance Sheet and Capex
At the end of the fourth quarter, Ensco had $445.4 million in cash and cash equivalents. Long-term debt was $4,750.7 million, with debt-to-capitalization ratio of 35.2% compared with 37.4% in the year-ago quarter.
Q4 Price Performance
During the fourth quarter, Ensco’s shares have underperformed the industry. The company’s shares fell 1% compared with the industry’s 7.1% rally.
Zacks Rank & Key Picks
Ensco carries a Zacks Rank #4 (Sell).
A few better-ranked players in the same sector are EOG Resources (EOG - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and ConocoPhillips (COP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% in the preceding four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. The company delivered a positive earnings surprise of 144.45% in the preceding four quarters.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>