Ensco sells two oldies

ENSCO 69 ENSCO 69

FEBRUARY 4, 2014 —  Offshore drilling contractor Ensco plc (ESV) has sold its two remaining cold-stacked jack-up rigs for $33 million. The net book value of the two rigs, ENSCO 69 and Wisconsin, both built in 1976, was approximately $9 million. The pre-tax gain on the sale is approximately $24 million, which will be included in first quarter 2014 operating results.

"This sale is part of Ensco's ongoing strategy of high-grading our fleet by divesting older, less-capable assets and reinvesting in advanced-technology rigs" said Executive VP and CFO Jay Swent. "We believe our orderly process of selling rigs has generated superior value for shareholders over time, and that this strategy keeps us at the forefront of industry technology with one of the newest and most capable fleets in the world."

In the past four years, Ensco has sold 13 rigs and proceeds have been reinvested in the fleet. Over the same period, Ensco has taken delivery of 12 high-performance rigs, including five Samsung DP3 ultra-deepwater drillships, five ENSCO 8500 Series ultra-deepwater semisubmersibles and two ENSCO 120 Series ultra-premium harsh environment jack-ups. In addition, Ensco has six rigs under construction – three ultra-deepwater drillships and three premium jack-ups – that reinforce the company's commitment to standardization.

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