Ensco plc recently announced second quarter 2010 earnings of $126.3 million, or $0.89 per share. As expected, the results were negatively impacted by lower utilization for the fleet as well as lower average dayrates. Contract drilling revenues were $406.3 million compared to $449.4 million for the first quarter. Second quarter 2009 contract drilling revenues were $497.3 million. The company ended the quarter with $1.2 billion of cash and tangible book value of $5.4 billion, or approximately $38 per share. The long term debt to capital ratio was 4 percent and total contract backlog was $2.6 billion.
Last week, we reported that David Einhorn’s Greenlight Capital took a large position in Ensco plc during the second quarter. Ensco was profiled in an article on The Rational Walk in early June and the company is scheduled to report second quarter earnings on Thursday, July 22. Here is what Mr. Einhorn had to say about the Ensco purchase in his letter to shareholders dated July 16.
In this article, we profile Diamond Offshore, one of the leading companies in the deepwater drilling industry. In previous articles, we focused on two companies in the offshore drilling industry with lower risk profiles. Both Noble Corporation and Ensco plc have exposure to deepwater drilling in the Gulf of Mexico but also have significant international operations along with large fleets of jackup rigs that are designed for less controversial shallow water drilling. Read this article for more information.
In a sign that value oriented hedge fund managers are continuing to wade into the depressed offshore drilling sector, David Einhorn’s Greenlight Capital has reported a 5.2 percent stake in Ensco plc as of June 30, 2010. Mr. Einhorn controls 7.4 million shares with a market value of slightly over $300 million at today’s closing price. This represents a substantial commitment for Mr. Einhorn’s funds which were valued at $2.93 billion as of March 31. It appears that his purchases were definitely made in the second quarter, and most likely were made after the Deepwater Horizon disaster. Read this article for more details.
Last Friday, we presented a profile and analysis of Ensco plc. At that time, the latest fleet status report was dated May 14, 2010 and was nearly a month old. The company provided an updated fleet status report (pdf) today and the details for the Gulf of Mexico fleet are mostly unchanged. Read this article for more details.