Ensco profit spikes, revenues benefit from rig terminations
- Business & Finance
UK-based drilling contractor Ensco on Wednesday saw its profit for the second quarter of 2016 rise when compared to the year-ago quarter and revenues benefit from rig deal terminations.
The drilling contractor’s net income for the quarter jumped to $590.6 million, compared to $260.3 million in the same period last year.
Revenues were $910 million in second quarter 2016 compared to $1.059 billion a year ago primarily due to a decline in reported utilization to 61% from 76% in second quarter 2015.
Revenues benefited from $205 million of early contract termination settlements in second quarter 2016, including $185 million for the Ensco DS-9 effective May 2016, and $20 million for Ensco 8503 effective June 2016, which was under a contract with Stone Energy.
The average day rate for the fleet declined to $195,000 in second quarter 2016 from $237,000 a year ago.
Contract drilling expense declined 30% to $350 million from $503 million last year due to fewer rig operating days and disciplined expense management.
Offshore Energy Today Staff