Free Research Report as Ensco Reported Better Than Expected Revenue and Earnings

Stock Monitor: TransAtlantic Petroleum Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 09, 2018 / Active-Investors.com has just released a free earnings report on Ensco PLC (NYSE: ESV). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ESV. Ensco reported its fourth quarter and fiscal 2017 operating and financial results on February 26, 2018. The offshore contract drilling services Company achieved operational uptime of 99% for the second consecutive year and set a new Company record for safety performance by lowering its total recordable incident rate to 0.15. Ensco won 15% of the new rig years awarded globally — more than any other offshore driller and double that of the Company's nearest independent competitor. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for TransAtlantic Petroleum, Ltd (NYSE AMER: TAT), which also belongs to the Basic Materials sector as the Company Ensco. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=TAT

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Ensco most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ESV

Earnings Highlights and Summary

Ensco's revenues were $454 million in Q4 2017, down 10% compared to $505 million in Q4 2016, primarily due to a decline in the average day rate for the fleet to $157,000 in the reported quarter from $177,000 in the prior year's corresponding quarter. The addition of $23 million of revenue from Atwood, partially offset lower average day rates across the fleet. The Company's reported numbers topped analysts' estimates of $452.3 million.

During Q4 2017, Ensco's contract drilling expense increased to $334 million from $289 million in Q4 2016, primarily due to the addition of $53 million of costs associated with 11 Atwood rigs and $7 million of integration-related transaction costs.

Ensco's depreciation expense increased to $120 million in Q4 2017 compared to $110 million in Q4 2016, due to the addition of Atwood rigs. The Company's general and administrative (G&A) expense increased to $71 million in the reported quarter from $25 million in the prior year's comparable quarter, due to $42 million of transaction costs noted above and $4 million of Atwood support costs.

For Q4 2017, Ensco's tax expense increased to $42 million from $4 million in Q4 2016. The Company's reported quarter tax provision included $19 million of discrete tax expense compared to $7 million of discrete tax items in the prior year's same quarter, primarily related to recently enacted US tax legislation.

Ensco reported a loss of $207.1 million. or $0.49 per share, for Q4 2017 compared to earnings of $39.0 million, or $0.13 per share, in Q4 2016. The Company's reported quarter results included a non-cash asset impairment of $183 million primarily related to two non-core floaters as well as the aforementioned tax expenses and other non-recurring charges.

Adjusted for these items, Ensco's loss from continuing operations was $0.23 per share in Q4 2017 compared to earnings of $0.09 per share in Q4 2016. The Company's reported numbers were better than Wall Street's estimates for a loss of $0.26 per share.

Ensco's Segment Highlights

During Q4 2017, the Floater's revenues totaled $302.8 million, consistent on a y-o-y basis, as a decline in the average day rate to $307,000 from $358,000 in the prior year's corresponding quarter was offset by an increase in the number of operating days mostly due to the Atwood acquisition. Adjusted for uncontracted rigs and planned downtime, the segment's operational utilization was 97% in Q4 2017 compared to 98% in Q4 2016.

For Q4 2017, the segment's Contract drilling expense increased to $193 million from $151 million in Q4 2016, primarily due to $48 million from the addition of six legacy Atwood floaters, partially offset by cost savings from more efficient stacking of rigs.

During Q4 2017, Jackup revenues were $137 million compared to $187 million in Q4 2016, primarily attributed to a decline in the average day rate to $76,000 from $101,000 in Q4 2016. Adjusted for uncontracted rigs and planned downtime, the segment's operational utilization was 98% in the reported quarter up from 96% in the year earlier comparable quarter. Jackup's contract drilling expense were $128 million in Q4 2017 compared to $127 million in Q4 2016, as increased costs from five acquired Atwood Jackup were largely offset by cost savings from stacked rigs that operated during the year ago same period.

Financial Position

As of December 31, 2017, Ensco had $2.8 billion of contracted revenue backlog excluding bonus opportunities. The Company had $2.9 billion of liquidity, consisting of $0.9 billion of cash and short-term investments, and $2.0 billion available under the Company's revolving credit facility. Ensco had $4.8 billion of long-term debt as on December 31, 2017.

Stock Performance Snapshot

April 06, 2018 - At Friday's closing bell, Ensco's stock declined 2.33%, ending the trading session at $4.62.

Volume traded for the day: 5.79 million shares.

Stock performance in the last month – up 2.21%

After last Friday's close, Ensco's market cap was at $2.03 billion.

The stock has a dividend yield of 0.87%.

The stock is part of the Basic Materials sector, categorized under the Oil & Gas Drilling & Exploration industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors