Offshore driller Ensco has reported record revenues in the second quarter of 2013 of US $1.248 billion, up from $1.071 billion in the equivalent quarter last year.
Operating income grew 12% to $452 million and earnings increased $20 million to a record $361 million. Ensco laid the credit for the rise on the addition of the deepwater Ensco 8506 and Ensco DS-6 units to its active fleet, as well as a full quarter of operations for the Ensco 8505. The average dayrate for the fleet increased $36,000 year-on-year to $228,000.
Chairman, President and CEO, Dan Rabun, said, “We continue to see strong, broad-based customer demand given the steady pace of new discoveries that must be appraised and developed. Based on our positive outlook, we recently ordered our eighth Samsung DP3 drillship, Ensco DS-10, and our seventh Keppel FELS B Class jackup, Ensco 110.”
Costs rose too, however, with contract drilling expense rising to $607 million from $494 million in Q2 2012. This increase was primarily due to adding new floaters to the active fleet as well as a previously anticipated increase in labour costs, said the company.
Floater revenues were $823 million in Q2 2013, up 22% from $673 million a year earlier, due to the aforementioned startup of the newbuild rigs. The average dayrate increased to $399,000 from $352,000 in the second quarter of last year. Utilisation declined to 86% from 92% a year ago, mostly due to a planned shipyard project for the Ensco 5005 initiated during the first quarter of 2013 to significantly increase the capabilities of the rig.
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