UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): 2 November 2011
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Ensco plc
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(Exact name of registrant as specified in its charter)
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England and Wales
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1-8097
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98-0635229
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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6 Chesterfield Gardens
London, England W1J 5BQ
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(Address of Principal Executive Offices and Zip Code)
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Registrant's telephone number, including area code: 44 (0) 20 7659 4660
Not Applicable
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Press release issued by Ensco plc dated 2 November 2011.
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Ensco plc
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Date: 2 November 2011 |
/s/ DOUGLAS J. MANKO
Douglas J. Manko
Controller
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Exhibit No.
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Description
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99.1
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Press release issued by Ensco plc dated 2 November 2011.
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4
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Ensco plc
6 Chesterfield Gardens
London, England W1J 5BQ
www.enscoplc.com
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Press Release
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Third Quarter
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||||||||||||||||||||||||||||||||||
Deepwater
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Midwater | Jackup |
Other
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Reconciling
Items
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Consolidated Total
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|||||||||||||||||||||||||||||
(in millions of $,
except %)
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2011
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2010
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Chg
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2011 | 2010 | Chg | 2011 | 2010 | Chg |
2011
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2010
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Chg
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2011
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2010
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2011
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2010
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Chg
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|||||||||||||||||
Revenues
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440
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.4
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110
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.5
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299
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%
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121 | .3 | -- | N | M | 330 | .1 | 317 | .8 | 4 | % |
23
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.8
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--
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N
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M
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--
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--
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915
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.6
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428
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.3
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114
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%
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Operating expenses
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||||||||||||||||||||||||||||||||||
Contract drilling
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233
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.0
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48
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.0
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385
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%
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72 | .1 | -- | N | M | 154 | .7 | 145 | .6 | 6 | % |
17
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.7
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0
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.5
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N
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M
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--
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--
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477
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.5
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194
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.1
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146
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%
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|||
Depreciation
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73
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.5
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11
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.7
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528
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%
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15 | .7 | -- | N | M | 44 | .2 | 43 | .2 | 2 | % |
0
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.6
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0
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.4
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50
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%
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1
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.8
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0
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.3
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135
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.8
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55
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.6
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144
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%
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General and admin.
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--
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--
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--
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-- | -- | -- | -- | -- | -- |
--
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--
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--
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40
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.8
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20
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.6
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40
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.8
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20
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.6
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98
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%
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||||||||||||
Operating income (loss)
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133
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.9
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50
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.8
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164
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%
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33 | .5 | -- | N | M | 131 | .2 | 129 | .0 | 2 | % |
5
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.5
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(0
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.9)
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N
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M
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(42
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.6)
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(20
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.9)
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261
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.5
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$158
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.0
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66
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%
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•
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Approximately $9 billion of contract revenue backlog excluding bonus opportunities
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•
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$480 million of cash and cash equivalents
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•
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$1.9 billion of available revolving credit facilities
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•
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Long-term debt-to-capital ratio of 31%
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Investor and Media Contact: |
Sean O'Neill
Vice President
Investor Relations and Communications
713-430-4607
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Three Months Ended
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Nine Months Ended
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||||||||
September 30,
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September 30,
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||||||||
2011*
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2010
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2011*
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2010
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OPERATING REVENUES
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$915.6
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$428.3
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$1,841.3
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$1,288.3
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OPERATING EXPENSES
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|||||||||
Contract drilling (exclusive of depreciation)
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477.5
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194.1
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955.4
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582.5
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Depreciation
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135.8
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55.6
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278.8
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159.2
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|||||
General and administrative
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40.8
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20.6
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118.3
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63.2
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654.1
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270.3
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1,352.5
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804.9
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OPERATING INCOME
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261.5
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158.0
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488.8
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483.4
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OTHER INCOME (EXPENSE) | |||||||||
Interest income | 6.5 | 0.2 | 9.0 | 0.5 | |||||
Interest expense, net | (30.8 | ) | -- | (54.5 | ) | -- | |||
Other, net | 10.8 | 2.5 | 16.1 | 18.1 | |||||
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(13.5
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) |
2.7
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(29.4
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) |
18.6
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INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
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248.0
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160.7
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459.4
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502.0
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|||||
PROVISION FOR INCOME TAXES
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41.9
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26.7
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84.2
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84.1
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|||||
INCOME FROM CONTINUING OPERATIONS
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206.1
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134.0
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375.2
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417.9
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DISCONTINUED OPERATIONS, NET
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--
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(1.9
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) |
--
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33.7
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NET INCOME
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206.1
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132.1
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375.2
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451.6
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NONCONTROLLING INTERESTS
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(1.6
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)
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(1.6
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)
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(4.2
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)
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(5.0
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)
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NET INCOME ATTRIBUTABLE TO ENSCO
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$204.5
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$130.5
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$ 371.0
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$ 446.6
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EARNINGS (LOSS) PER SHARE - BASIC
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Continuing operations
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$ 0.89
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$ 0.92
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$ 2.04
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$ 2.89
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Discontinued operations
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--
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(0.01
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) |
--
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0.24
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$ 0.89
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$ 0.91
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$ 2.04
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$ 3.13
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EARNINGS (LOSS) PER SHARE - DILUTED
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Continuing operations
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$ 0.88
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$ 0.92
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$ 2.03
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$ 2.89
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Discontinued operations
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--
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(0.01
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) |
--
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0.24
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$ 0.88
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$ 0.91
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$ 2.03
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$ 3.13
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NET INCOME ATTRIBUTABLE TO ENSCO
SHARES - BASIC AND DILUTED
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$202.2
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$128.7
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$ 366.7
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$ 440.9
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WEIGHTED-AVERAGE SHARES OUTSTANDING
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|||||||||
Basic
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228.1
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141.1
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180.0
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140.9
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|||||
Diluted
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228.6
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141.2
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180.4
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141.0
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September 30,
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December 31,
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||||
2011
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2010
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(Unaudited)
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ASSETS
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CURRENT ASSETS
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Cash and cash equivalents
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$ 479.9
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$1,050.7
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Accounts receivable, net
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654.9
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214.6
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Other
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379.6
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171.4
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Total current assets
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1,514.4
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1,436.7
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PROPERTY AND EQUIPMENT, NET
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12,311.7
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5,049.9
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GOODWILL
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3,296.1
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336.2
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OTHER ASSETS, NET
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528.0
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228.7
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$17,650.2
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$7,051.5
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LIABILITIES AND SHAREHOLDERS' EQUITY
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|||||
CURRENT LIABILITIES
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|||||
Accounts payable and accrued liabilities and other
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$ 1,032.7
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$ 331.8
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Short-term debt | 175.0 | -- | |||
Current maturities of long-term debt
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47.5
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17.2
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|||
Total current liabilities
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1,255.2
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349.0
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LONG-TERM DEBT
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4,902.1
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240.1
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DEFERRED INCOME TAXES
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355.0
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358.0
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OTHER LIABILITIES
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421.8
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139.4
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TOTAL EQUITY
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10,716.1
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5,965.0
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|||
$17,650.2
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$7,051.5
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Nine Months Ended
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|||||
September 30,
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|||||
2011*
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2010
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OPERATING ACTIVITIES
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|||||
Net income
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$ 375.2
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$ 451.6
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Adjustments to reconcile net income to net cash provided by operating
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|||||
activities of continuing operations:
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|||||
Depreciation expense
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278.8
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159.2
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Gain on disposal of discontinued operations, net | -- | (34.9 | ) | ||
Other
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28.2
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84.0
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|||
Changes in operating assets and liabilities
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(280.2
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)
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(138.5
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)
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Net cash provided by operating activities of continuing operations
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402.0
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521.4
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INVESTING ACTIVITIES
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|||||
Acquisition of Pride International, Inc., net of cash acquired | (2,656.0 | ) | -- | ||
Additions to property and equipment
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(498.4
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)
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(737.5
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)
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Proceeds from disposal of discontinued operations | -- | 132.4 | |||
Other
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41.6
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1.1
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|||
Net cash used in investing activities
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(3,112.8
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)
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(604.0
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)
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FINANCING ACTIVITIES
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|||||
Proceeds from issuance of senior notes | 2,462.8 | -- | |||
Cash dividends paid | (211.4 | ) | (103.6 | ) | |
Reduction of long-term borrowings
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(196.7
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)
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(8.6
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)
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Commercial paper borrowings, net | 175.0 | -- | |||
Equity financing costs | (70.5 | ) | -- | ||
Debt financing costs | (31.9 | ) | (6.2 | ) | |
Other
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13.4
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(13.0
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) | |
Net cash provided by (used in) financing activities
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2,140.7
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(131.4
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)
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Effect of exchange rate changes on cash and cash equivalents
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(0.7
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) |
(0.5
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)
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Net cash used in operating activities of discontinued operations
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--
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(21.7
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) | |
DECREASE IN CASH AND CASH EQUIVALENTS
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(570.8
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) |
(236.2
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)
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CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
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1,050.7
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1,141.4
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|||
CASH AND CASH EQUIVALENTS, END OF PERIOD
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$ 479.9
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$ 905.2
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Second | |||||||
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Third Quarter
|
Quarter | |||||
2011(1)
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2010
|
2011(1) | |||||
Rig Utilization(2)
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|||||||
Deepwater
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74%
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75%
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86% | ||||
Midwater | 89% | n/a | 79% | ||||
Jackup(4)
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77%
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79%
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75% | ||||
Total Reportable Segments
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77%
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79%
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77% | ||||
Other(5)
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100%
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n/a
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100% | ||||
Total
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78%
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79%
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77% | ||||
Average day rates(3)
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|||||||
Deepwater
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$391,129
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$387,777
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$347,024 | ||||
Midwater | 239,379 | n/a | 237,139 | ||||
Jackup(4)
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99,775
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105,068
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99,024 | ||||
Total Reportable Segments
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178,006
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127,545
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147,305 | ||||
Other(5)
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86,916
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n/a
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73,093 | ||||
Total
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$174,626
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$127,545
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$146,101 | ||||
(1) |
Includes the results of Pride International, Inc., from the acquisition date of 31 May 2011.
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(2)
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Rig utilization is derived by dividing the number of days under contract by the number of days in the period. Days under contract equals the total number of days that rigs have earned a day rate, including days associated with compensated downtime and mobilizations. For newly-constructed or acquired rigs, the number of days in the period begins upon commencement of drilling operations for rigs with a contract or when the rig becomes available for drilling operations for rigs without a contract.
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(3)
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Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, lump sum revenues and revenues attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain mobilizations, demobilizations, shipyard contracts and standby contracts.
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(4) |
ENSCO 69 has been excluded from rig utilization and average day rates for our Jackup segment during the period the rig was controlled and operated by Petrosucre, a subsidiary of Petróleos de Venezuela S.A., the national oil company of Venezuela (January 2009 - August 2010).
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(5) |
Other includes the utilization and average day rates of our two deepwater drilling management contracts but excludes ENSCO I, the only barge rig in our fleet, which is currently cold stacked.
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