Ensco International (ESV) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $25.70 million, or $ 0.09 a share in the quarter, against a net profit of $175.30 million, or $0.74 a share in the last year period. Revenue during the quarter plunged 42.13 percent to $471.10 million from $814 million in the previous year period. Gross margin for the quarter contracted 1435 basis points over the previous year period to 40.97 percent. Total expenses were 87.73 percent of quarterly revenues, up from 61.47 percent for the same period last year. That has resulted in a contraction of 2626 basis points in operating margin to 12.27 percent.
Operating income for the quarter was $57.80 million, compared with $313.60 million in the previous year period.
Chief Executive Officer and President Carl Trowell said, "While market conditions remain challenging, we recently won several contracts and extensions including a four-year extension for jackup ENSCO 92 in the North Sea. This contracting success demonstrates our ability to leverage a proven operating and safety track record as well as a strong financial position to differentiate Ensco as the offshore driller of choice among customers."
Operating cash flow drops significantly
Ensco International has generated cash of $104.60 million from operating activities during the quarter, down 55.13 percent or $ 128.50 million, when compared with the last year period. The company has spent $645.40 million cash to meet investing activities during the quarter as against cash inflow of $727 million in the last year period.
The company has spent $346.70 million cash to carry out financing activities during the quarter as against cash outgo of $2.90 million in the last year period.
Cash and cash equivalents stood at $271.70 million as on Mar. 31, 2017, down 74.94 percent or $812.30 million from $1,084 million on Mar. 31, 2016.
Working capital increases sharplyEnsco International has recorded an increase in the working capital over the last year. It stood at $2,167.50 million as at Mar. 31, 2017, up 165.82 percent or $1,352.10 million from $815.40 million on Mar. 31, 2016. Current ratio was at 4.97 as on Mar. 31, 2017, up from 1.54 on Mar. 31, 2016.
Days sales outstanding went up to 87 days for the quarter compared with 65 days for the same period last year.
At the same time, days payable outstanding went up to 119 days for the quarter from 55 for the same period last year.
Debt comes down
Ensco International has recorded a decline in total debt over the last one year. It stood at $4,943.50 million as on Mar. 31, 2017, down 15.65 percent or $917.50 million from $5,861 million on Mar. 31, 2016. Total debt was 35.38 percent of total assets as on Mar. 31, 2017, compared with 43.06 percent on Mar. 31, 2016. Debt to equity ratio was at 0.60 as on Mar. 31, 2017, down from 0.87 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.99 for the quarter from 4.82 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
