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Ensco slips deeper into the red

UK driller Ensco saw its net loss for the second quarter of the year more than triple as its drilling expenses spiked due to costs associated with 11 Atwood rigs. 

According to the driller’s report on Wednesday, net loss attributable to Ensco was $151 million compared to a $45.5 million loss in the same period of 2017.

Revenues were $459 million in second quarter 2018 compared to $458 million a year ago. The addition of $55 million of revenue from Atwood rigs, Ensco DS-10 joining the active fleet and an increase in reported utilization to 61% from 56% were largely offset by a decline in the average day rate to $135,000 from $156,000 in second quarter 2017.

Contract drilling expense increased to $344 million in second quarter 2018 from $291 million a year ago primarily due to $47 million of costs associated with 11 Atwood rigs, the addition of Ensco DS-10 and $5 million of integration-related transaction costs.

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Categories: Uncategorized

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