Ensco plc (ESV) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $39 million, or $ 0.13 a share in the quarter, against a net loss of $2,471.80 million, or $10.64 a share in the last year period. Revenue during the quarter plunged 39.08 percent to $504.60 million from $828.30 million in the previous year period. Gross margin for the quarter contracted 715 basis points over the previous year period to 42.73 percent.
Operating income for the quarter was $80.70 million, compared with an operating loss of $2,510.80 million in the previous year period.
Chief Executive Officer and President Carl Trowell said, "Despite arguably the most challenging market conditions the offshore drilling sector has ever faced, our offshore crews and onshore employees achieved the best operational and safety performance in Ensco's history with operational utilization of 99% and a total recordable incident rate of 0.26 across our fleet during 2016. This strong performance led to top scores for total customer satisfaction in the annual EnergyPoint survey ��" the seventh consecutive year we have been honored with this distinction ��" which sets Ensco apart as the offshore driller of choice among customers as we compete for new contracts."
Operating cash flow drops significantly
Ensco plc has generated cash of $1,077.40 million from operating activities during the year, down 36.55 percent or $620.50 million, when compared with the last year. The company has spent $575 million cash to meet investing activities during the year as against cash outgo of $2,040.60 million in the last year.
Cash flow from financing activities was $529 million for the year as against cash outgo of $191.80 million in the last year period.
Cash and cash equivalents stood at $1,159.70 million as on Dec. 31, 2016, up 856.06 percent or $1,038.40 million from $121.30 million on Dec. 31, 2015.
Working capital increases sharply
Ensco plc has recorded an increase in the working capital over the last year. It stood at $2,424.90 million as at Dec. 31, 2016, up 60.63 percent or $915.30 million from $1,509.60 million on Dec. 31, 2015. Current ratio was at 3.84 as on Dec. 31, 2016, up from 2.95 on Dec. 31, 2015.
Debt comes down
Ensco plc has recorded a decline in total debt over the last one year. It stood at $5,274.50 million as on Dec. 31, 2016, down 10.12 percent or $594.10 million from $5,868.60 million on Dec. 31, 2015. Short-term debt stood at $331.90 million as on Dec. 31, 2016. Total debt was 36.69 percent of total assets as on Dec. 31, 2016, compared with 43.03 percent on Dec. 31, 2015. Debt to equity ratio was at 0.64 as on Dec. 31, 2016, down from 0.90 as on Dec. 31, 2015.
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