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Ensco Rowan (ESV) Tops Q1 Earnings Estimates, Lags Revenues

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Ensco Rowan plc (ESV - Free Report) reported adjusted first-quarter 2019 loss of $1.69 a share, narrower than the Zacks Consensus Estimate of a loss of $1.79. The quarterly loss was, however, wider than the year-ago loss of $1.28.

Total revenues amounted to $406 million, down from $417 million a year ago. The top line marginally missed the Zacks Consensus Estimate of $407 million.

Higher utilization of Jackups supported the narrower-than-expected quarterly loss. This was however partly offset by a fall in average day rates for the floaters.

Segmental Performance

Floaters: Revenues came in at $233 million, down from the year-ago quarter’s $259 million. The fall in average day rates primarily led to the downturn.

Average day rates for the floaters fell 8.5% to $240,440. However, floaters reported utilization of 43%, almost in line with the year-ago quarter level.

Jackups: Revenues totaled $157 million, up from $143 million in the March quarter of 2018, thanks to higher utilization.

Average day rates fell to $72,146 from $73,529 in the prior-year quarter. However, rig utilization of the jackups was recorded at 68%, up from 61% in the year-ago quarter.

Other: Revenues from this segment were reported at $16 million, up from the year-ago quarter’s $15 million. It is to be noted that from $15 million in the March quarter of 2018, the company’s contract drilling expenses rose to $16 million.

Balance Sheet 

At the end of the March quarter of 2019, Ensco had $298.4 million in cash and cash equivalents. Long-term debt was $5,018.5      million, with a net debt-to-capitalization ratio of 38.9%.

Ensco plc Price, Consensus and EPS Surprise

 

Ensco plc Price, Consensus and EPS Surprise | Ensco plc Quote

 

Zacks Rank and Key Picks

Ensco Rowan currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Murphy Oil Corporation (MUR - Free Report) , Anadarko Petroleum Corporation (APC - Free Report) , and ProPetro Holding Corp. (PUMP - Free Report) . Murphy and Anadarko sport a Zacks Rank #1 (Strong Buy), while ProPetro holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.      

Murphy Oil posted an average positive earnings surprise of 17.3% for the past four quarters.

Anadarko Petroleum has average positive earnings surprise of 6.6% for the past four quarters.

The Zacks Consensus Estimate for ProPetro’s 2019 earnings is pegged at $2.42, indicating 21% growth over the year-ago reported figure. Next year’s forecast is $2.70, hinting at 11.5% growth.

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