ENSCO PLC (NYSE:ESV) announced a loss of $0.08 per share for Q3 2017 versus earnings of $0.28 per share in the same period, a year ago. Results from discontinued operations came at zero cents per share in third quarter 2017, which was unchanged from Q3 2016.
Numerous items influenced these comparisons, which include transaction costs of $6 million or $0.02 per share linked to the acquisition of Atwood Oceanics in Q3 2017; discrete tax expense of $3 million or $0.01 per share in Q3 2017 tax provision; other income of $18 million included in Q3 2016 linked to the repurchase of senior notes; other discrete tax items amounting to $6 million that lowered the Q3 2016 tax provision; severance and other restructuring expenses of $4 million in Q3 2016 contract drilling expense; and adjusted for the items mentioned above, the loss from continuing operations came at $0.05 per share in Q3 2017 versus earnings of $0.21 per share in the same period, a year ago.
Carl Trowell, the President and CEO of Ensco, expressed that earlier this month, they successfully closed the acquisition of Atwood, considerably improving the capabilities of their rig fleet and enhancing their ability to fulfill future consumer demand with the best-specification assets. Their plans to integrate systems and operations are well underway and they remain on track to accomplish yearly run rate synergies of $80 million starting in 2019.
Mr. Trowell added that by strengthening their rig fleet via acquisition, they were able to extend their revolving credit facility into 2022 and enhance their financial flexibility over the subsequent five years. They continue to showcase one of the impressive liquidity positions in the offshore drilling segment, which offers a competitive benefit during the market recovery.
The CEO of Ensco added that their onshore employees and offshore crews continue offering the highest levels of operational excellence and service quality to their consumers, helping to lower offshore project costs and creating efficiencies.