Offshore drilling contractor Ensco Plc. reported Wednesday a profit for the fourth quarter that grew from last year, despite lower total fleet utilization, reflecting double-digit revenue growth amid improved average day rate. However, both earnings per share from continuing operations and quarterly revenues missed analysts' expectations.

London, U.K.-based Ensco reported record net income of $361.4 million or $1.54 per share for the fourth quarter, higher than $219.5 million or $0.94 per share in the prior-year quarter.

Income from continuing operations for the quarter increased to $368.1 million or $1.56 per share from $243.3 million or $1.04 per share in the year-ago quarter. Excluding items, adjusted earnings from continuing operations was $1.56 per share, compared to last year's $1.37 per share.

On average, 34 analysts polled by Thomson Reuters expected the company to report earnings of $1.59 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter increased 16 percent to a record of $1.26 billion from $1.09 billion in the same quarter last year, but missed twenty-seven Wall Street analysts' consensus estimate of $1.27 billion by a whisker.

Floater revenues grew 16 percent to $779 million, and Jackup revenues increased 17 percent to $461 million from the year-ago quarter.

Total fleet utilization declined three percentage points to 83 percent, while total average day rates rose 16 percent to $230,000.

Operating income for the fourth quarter grew to $448 million from $382 million in the prior-year quarter.

Total operating expenses for the quarter were $808 million, higher than $703 million in the year-ago quarter, with contract drilling expense rising.

"The past year has been a period of remarkable growth for Ensco. We achieved record revenues and earnings as we added three new ultra-deepwater rigs to our active fleet. Each of these rigs commenced work on multi-year contracts for repeat customers, reinforcing the advantages of fleet standardization," Chairman, President and CEO Dan Rabun said in a statement.

For fiscal 2013, the company reported record net income of $1.42 billion or $6.07 per share, higher than $1.17 billion or $5.04 per share in the prior year.

Income from continuing operations for the year increased to $1.43 billion or $6.09 per share from $1.22 billion or $5.23 per share in the year ago.

Operating revenues for the full year increased 14 percent to a record of $1.26 billion from $1.09 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of $6.18 per share on annual revenues of $4.94 billion.

"Ensco's fleet will continue to grow as we complete the construction of six additional rigs scheduled for delivery through 2016. Highgrading our fleet with technologically-advanced rigs is a key element of our success in achieving the highest levels of customer satisfaction," Rabun added.

ESV closed Wednesday's regular trading session at $51.68, up $0.38 or 0.74% on a volume of 3.02 million shares.

Source: by RTTNews