LONDON--(BUSINESS WIRE)--
Ensco plc (NYSE: ESV) announced today that its Board of Directors has
declared a regular quarterly cash dividend of US$0.35 per Class A
ordinary share payable on 18 June 2010 to holders of Ensco's American
depositary shares (ADSs) as of the 7 June 2010 record date. The prior
quarterly dividend was US$0.025 per share.
Chairman, President and Chief Executive Officer Dan Rabun stated, "The
large increase to our quarterly dividend is a major milestone in Ensco's
history. We established the new quarterly dividend following a thorough
review of several factors including our record shareholders' equity,
strong cash position, modest leverage, positive cash flow outlook and
the enhanced diversification of our fleet."
Mr. Rabun added, "Management and the Board believe the new dividend
payout is prudent and sustainable. It allows adequate flexibility for
new investments and additional share repurchases under our remaining
$560 million share buyback authorization. We will continue to assess
economic, energy and credit market conditions, as well as our financial
outlook, to evaluate whether additional returns of capital may be
appropriate as part of our overall capital management plan."
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. With a fleet of
ultra-deepwater semisubmersible and premium jackup drilling rigs, Ensco
serves customers with high-quality equipment, a well-trained workforce
and a strong record of safety and reliability. To learn more about
Ensco, please visit our website at www.enscoplc.com.
Ensco plc is registered in England No. 7023598 with offices located at 6
Chesterfield Gardens, London, W1J 5BQ.
Statements contained in this press release that state the Company's
or management's intentions, plans, hopes, beliefs, expectations,
anticipations, projections, confidence, schedules, or predictions of the
future are forward-looking statements made pursuant to the Private
Securities Litigation Reform Act of 1995.
Forward-looking statements include words or phrases such as
"anticipate," "believe," "estimate," "expect," "intend," "plan,"
"project," "could," "may," "might," "should," "will" and words and
phrases of similar import. The forward-looking statements include, but
are not limited to, statements about future dividend payments, positive
cash flow outlook, potential share repurchases and our plans,
objectives, expectations and intentions with respect thereto and with
respect to future operations, the impact of the December 2009
reorganization of the Company's corporate structure (referred to
elsewhere herein as the "redomestication") and the tax savings or other
benefits that we expect to achieve as a result of the redomestication.
Forward-looking statements also include statements or references to
factors regarding future operations, market conditions, cash generation,
the impact of recently contracted premium jackups, contributions from
our ultra-deepwater semisubmersible rig fleet expansion program, expense
management, industry trends or conditions and the overall business
environment; statements regarding future levels of, or trends in,
utilization, day rates, revenues, operating expenses, contract term,
contract backlog, capital expenditures, insurance, financing and
funding; statements regarding future rig construction (including
construction in progress and completion thereof), enhancement, upgrade
or repair and timing thereof; statements regarding future delivery,
mobilization, contract commencement, relocation or other movement of
rigs and timing thereof; statements regarding future availability or
suitability of rigs and the timing thereof; and statements regarding the
likely outcome of litigation, legal proceedings, investigations or
insurance or other claims and the timing thereof.
Forward-looking statements are made pursuant to safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Numerous factors could cause actual results to differ materially from
those in the forward-looking statements, including: (i) changes in U.S.
or non-U.S. laws, including tax laws, that could effectively reduce or
eliminate the benefits we expect to achieve from the redomestication,
(ii) an inability to realize expected benefits from the redomestication,
(iii) costs related to the redomestication and ancillary matters, which
could be greater than expected, (iv) industry conditions and
competition, including changes in rig supply and demand or new
technology, (v) risks associated with the global economy and its impact
on capital markets and liquidity, (vi) prices of oil and natural gas and
their impact upon future levels of drilling activity and expenditures,
(vii) further declines in drilling activity, which may cause us to idle
or stack additional rigs, (viii) excess rig availability or supply
resulting from delivery of newbuild drilling rigs, (ix) concentration of
our fleet in premium jackup rigs, (x) cyclical nature of the industry,
(xi) worldwide expenditures for oil and natural gas drilling, (xii) the
ultimate resolution of the ENSCO 69 situation in general and the pending
litigation, potential return of the rig or package policy political risk
insurance recovery in particular, (xiii) changes in the timing of
revenue recognition resulting from the deferral of certain revenues for
mobilization of our drilling rigs, time waiting on weather or time in
shipyards, which are recognized over the contract term upon commencement
of drilling operations, (xiv) operational risks, including excessive
unplanned downtime due to rig or equipment failure, damage or repair in
general and hazards created by severe storms and hurricanes in
particular, (xv) changes in the dates our rigs will enter a shipyard, be
delivered, return to service or enter service, (xvi) risks inherent to
shipyard rig construction, repair or enhancement, including risks
associated with concentration of our ENSCO 8500 Series(R) rig construction
contracts in a single shipyard in Singapore, unexpected delays in
equipment delivery and engineering or design issues following shipyard
delivery, (xvii) changes in the dates new contracts actually commence,
(xviii) renegotiation, nullification, cancellation or breach of
contracts or letters of intent with customers or other parties,
including failure to negotiate definitive contracts following
announcements or receipt of letters of intent, (xix) risks associated
with offshore rig operations or rig relocations, (xx) inability to
collect receivables, (xxi) availability of transport vessels to relocate
rigs, (xxii) environmental or other liabilities, risks or losses,
whether related to hurricane damage, losses or liabilities (including
wreckage or debris removal) in the Gulf of Mexico or otherwise, that may
arise in the future which are not covered by insurance or indemnity in
whole or in part, (xxiii) limited availability or high cost of insurance
coverage for certain perils such as hurricanes in the Gulf of Mexico or
associated removal of wreckage or debris, (xxiv) self-imposed or
regulatory limitations on drilling locations in the Gulf of Mexico
during hurricane season, (xxv) impact of current and future government
laws and regulation affecting the oil and gas industry in general and
our operations in particular, including taxation, as well as repeal or
modification of same, (xxvi) our ability to attract and retain skilled
personnel, (xxvii) governmental action and political and economic
uncertainties, including expropriation, nationalization, confiscation or
deprivation of our assets, (xxviii) terrorism or military action
impacting our operations, assets or financial performance, (xxix)
outcome of litigation, legal proceedings, investigations or insurance or
other claims, (xxx) adverse changes in foreign currency exchange rates,
including their impact on the fair value measurement of our derivative
instruments, (xxxi) potential long-lived asset or goodwill impairments,
(xxxii) potential reduction in fair value of our auction rate securities
and the ultimate resolution of our pending arbitration proceedings, and
(xxxiii) other risks a described from time to time as Risk Factors in
the Company's SEC filings.
Copies of such SEC filings may be obtained at no charge by contacting
our Investor Relations Department at 214-397-3045 or by referring to our
website at www.enscoplc.com.
All information in this news release is as of today. The Company
undertakes no duty to update any forward-looking statement, to conform
the statement to actual results, or reflect changes in the Company's
expectations.
Source: Ensco plc