Ensco plc (ESV) has reported 70.79 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $85.30 million, or $0.28 a share in the quarter, compared with $292 million, or $1.24 a share for the same period last year. Revenue during the quarter plunged 45.84 percent to $548.20 million from $1,012.20 million in the previous year period. Gross margin for the quarter contracted 1155 basis points over the previous year period to 45.62 percent. Total expenses were 78.95 percent of quarterly revenues, up from 60.22 percent for the same period last year. That has resulted in a contraction of 1873 basis points in operating margin to 21.05 percent.
Operating income for the quarter was $115.40 million, compared with $402.70 million in the previous year period.
Chief Executive Officer and President Carl Trowell said, “Market conditions remain challenging for the offshore drilling sector due to declining rig demand as customers restrict capital spending. Our focus is on areas we can control ��" namely operational excellence, capital discipline and expense management. We have made progress on all three fronts with record operational utilization and safety performance, a one-year extension of a portion of our revolving credit facility, incremental debt repurchases to further reduce balance sheet leverage and additional expense savings.”
Operating cash flow declines
Ensco plc has generated cash of $994.80 million from operating activities during the nine month period, down 21.95 percent or $279.80 million, when compared with the last year period. The company has spent $369.80 million cash to meet investing activities during the nine month period as against cash outgo of $1,537.10 million in the last year period.
The company has spent $287.70 million cash to carry out financing activities during the nine month period as against cash outgo of $148.90 million in the last year period.
Cash and cash equivalents stood at $465.40 million as on Sep. 30, 2016, up 93.59 percent or $225 million from $240.40 million on Sep. 30, 2015.
Working capital increases
Ensco plc has recorded an increase in the working capital over the last year. It stood at $1,875.50 million as at Sep. 30, 2016, up 16.53 percent or $266 million from $1,609.50 million on Sep. 30, 2015. Current ratio was at 4.18 as on Sep. 30, 2016, up from 3 on Sep. 30, 2015.
Days sales outstanding went up to 89 days for the quarter compared with 66 days for the same period last year.
At the same time, days payable outstanding went up to 136 days for the quarter from 62 for the same period last year.
Debt comes down significantly
Ensco plc has recorded a decline in total debt over the last one year. It stood at $25.60 million as on Sep. 30, 2016, down 99.57 percent or $5,877.70 million from $5,903.30 million on Sep. 30, 2015. Short-term debt stood at $25.60 million as on Sep. 30, 2016. Total debt was 0.19 percent of total assets as on Sep. 30, 2016, compared with 35.91 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.16 for the quarter from 7.28 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: editor@irisindia.net
