I believe ESV shareholders will receive another divvy increase next year but probably no dramatic increase in the pps, day rate increased dramatically, but utilization fell:
4:16AM Ensco beats by $0.06, misses on revs (ESV) 55.30 : Reports Q3 (Sep) earnings of $1.69 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.63; revenues rose 9.1% year/year to $1.23 bln vs the $1.28 bln consensus.
Co reports $11 bln of Contracted Revenue Backlog
Floater revenues grew 9% to $788 million in third quarter 2013 from $723 million a year ago, primarily due to the commencement of ENSCO 8506 and ENSCO DS-6. As noted above, the Company did not recognize revenue for ENSCO 5002 and ENSCO 5004 contracted to OGX in Brazil during third quarter 2013. The average day rate increased 15% to $416,000 from $362,000 in third quarter 2012.
Utilization was 79% compared to 90% a year ago. This decline was mostly due to a shipyard upgrade project for ENSCO 5005, an inspection for ENSCO DS-2, mobilizations for two rigs and no revenues being recognized for ENSCO 5002 and ENSCO 5004 that are contracted to OGX. Adjusted for non-operational items, utilization increased to 93% from 92% in third quarter 2012.
Jackup revenues grew 21% to $460 million, up from $381 million a year ago. The increase was mostly due to a $16,000 increase in the average day rate to $125,000, driven by strong customer demand around the world. Utilization was 90% compared to 87% a year ago. Adjusted for non-operational items including planned upgrade projects, inspections and cold stacked rigs, utilization was 99% compared to 97% in third quarter 2012.