Morningstar - Valaris PLC Class A (E65F) No Positive News for Enscos Deep-Water Rigs Means Our Bearish View Remains Unchanged

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Morningstar

Stephen Simko

EUR 147.86 For Business Accounts Only

No Positive News for Ensco's Deep-Water Rigs Means Our Bearish View Remains Unchanged

Ensco unveiled third-quarter earnings per share of $0.28, slightly beating the consensus mean of $0.14. Nevertheless, utilization of the companyâ€™s deep-water-focused floater rigs fell to 48% in the quarter and could fall to about 30% by first-quarter 2017 if the company is unable to add new contracts. The company will be protected in the near term by generous contract cancellation payments. However, as we have previously noted, the fact that oil and gas operators are willing to cancel even those...

27/10/2016 13 EN

Underlying

Valaris PLC Class A

Ensco is an offshore contract drilling company engaged in providing offshore contract drilling services to the international oil and gas industry. As of Dec 31 2017, Co. owned and operated an offshore drilling rig fleet of 62 rigs. Co.'s rig fleet includes 12 drillships, 11 semisubmersible rigs, four moored semisubmersible rigs and 38 jackup rigs, including rigs under construction. Co.'s business consists of three operating segments: floaters, which includes its drillships and semisubmersible rigs; jackups; and other, which consists of management services on rigs owned by third-parties. Co.'s two reportable segments, floaters and jackups, provide one service, contract drilling.

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GB00B4VLR192 Frankfurt Stock Exchange United Kingdom

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Stephen Simko

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No Positive News for Ensco's Deep-Water Rigs Means Our Bearish View Remains Unchanged

Petrobras UDW rig selection

Back to normal with Petrobras

Monthly LMI Update Independent Investment Research

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Sasol Provides Full-Year Production Update

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