Of the Company’s 43 jackup rigs, 19 are located in the Asia Pacific region, 10 are located in the Europe/Africa region and 14 are located in the North and South America region. The Company’s business consists of four operating segments: Deepwater, Asia Pacific, Europe/Africa and North and South America. Each of its four operating segments provide one service, contract drilling. The Company has contracted Keppel FELS Limited (KFELS) to construct seven ultra-deepwater semisubmersible rigs (the ENSCO 8500 Series).
The Company provides drilling services on a day rate contract basis. Under day rate contracts, it provides the drilling rig and rig crews, and receives a fixed amount per day for drilling the well. Its customers bear substantially all of the ancillary costs of constructing the well and supporting drilling operations. In addition, its customers may pay all or a portion of the cost of moving the Company’s equipment and personnel to and from the well site. The Company does not provide turnkey or other risk-based drilling services."
Analysis: The following schedules present a comparative ratio analysis of Ensco International and firms operating in the same industry. Four categories of ratios (profitability, liquidity, debt management and asset management) have been used to compare Ensco with that of the industry. ESV has been compared to the industry median for the oil well services and equipment industry.
|Net Profit Margin||44.00%||4.90%||39.10|
|Return on Equity||21.00%||11.50%||9.50|
|Return on Assets||16.90%||2.50%||14.40|
|Times Interest Earned||60.60||4.30||56.30|
|Total Liabilities to Total Assets||19.30||50.40||(31.10)|
|Long-Term Debt to Equity||5.20||30.40||(25.20)|
|Long-Term Debt to Capital||4.90||25.10||(20.20)|