Ensco sells drillships, and jack-ups for scrap

Ensco sells drillships, and jack-ups for scrap

UK-based offshore drilling contractor Ensco has sold a number of its drilling rigs for scrap value including semi-subs, drillships, and jack-ups.

According to Ensco’s latest fleet status report, two 2004-built semi-submersible drilling rigs, Ensco 6003 and Ensco 6004, have been sold for scrap value with the sale price in line with net book value of the rig.

Further, Ensco’s two drillships of a DP Gusto 10,000 design, Ensco DS-1 and Ensco DS-2, have also been sold for scrap value. Both rigs were built in 1999.

The drilling contractor also sold two jack-up drilling rigs. The first rig, Ensco 91, is of a Hitachi Zosen Drill Hope C-150 design built in 1980, and the second one, Ensco 58, is of an F&G L-780 Mod II design built in 1981.

In addition, two DP3 Samsung drillships, Ensco DS-4 and Ensco DS-5, have been stacked in Spain. These two drillships were built in 2010 and 2011, respectively.

Offshore Energy Today

Related News: Ensco idles five of its major jack-up drilling rigs

Ensco, a UK-based drilling contractor, has decided to scrap five of its jack-up drilling rigs and one drillship in order to reduce costs.

The rigs set for scraping are jack-up drilling rigs Ensco 56, Ensco 81, Ensco 82, Ensco 86, and Ensco 99, and a 1999-built drillship Ensco DS-1.

Ensco Chief Executive Officer and President Carl Trowell said: “Three floaters and three jack-ups previously classified as held for sale will also be scrapped.

“All 12 of these rigs have been cold stacked to significantly reduce expenses. By scrapping rigs, we eliminate costs and contribute to reducing global rig supply.”

Ensco on Thursday posted a net loss of $2.5 billion for the fourth quarter 2015, compared to $3.45 billion in the corresponding period the year before.

Fourth quarter 2015 results included:

– $2.584 billion of non-cash asset impairments out of which $2.468 billion in continuing operations, and $116 million in discontinued operations;
– $276 million of non-cash goodwill impairments in continuing operations;
– the impact of a previously disclosed customer notice regarding ENSCO DS5; out of which $45 million of fourth quarter contract backlog not recognized as revenue, and$17 million provision for doubtful accounts in contract drilling expense; and
– $11 million favorable discrete tax item in continuing operations.

Revenues were $828 million in fourth quarter 2015 compared to $1.16 billion a year ago primarily due to a year-over-year decline in reported utilization to 63% from 86% in fourth quarter 2014. Also, the average day rate for the fleet declined to $216,000 from $243,000 a year ago.

 

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