A Detailed Look at Ensco’s Backlog

As of December 31, 2017, Ensco (ESV) had a total contracted backlog of $2.8 billion compared to $3.6 billion as of December 30, 2016. The decline in its backlog was due to revenues realized during fiscal 2017, which was partially offset by contract extensions and new contract awards.  

A company’s backlog helps us gauge what’s in store for the company going forward. While 56.0% (~$1.5 billion) of Ensco’s backlog is through floaters, 36.0% (~$1.0 billion) of the backlog is through jack-ups.

Ensco’s (ESV) backlog for fiscal 2018 is ~$1.4 billion. If the company isn’t able to secure new contracts, its revenues in fiscal 2018 could fall more than 22.0% from its fiscal 2017 revenues of $1.8 billion. 

As older, higher day rate contracts expire, the company is expected to experience a continued decline in its backlog. Currently, the company’s backlog for fiscal 2019 stands at $791.0 million.

Following are the backlog details of other offshore drillers (XLE):

• Diamond Offshore’s (DO) backlog fell to $2.4 billion as of January 2018, compared to $3.5 billion on January 1, 2017.
• Transocean (RIG) had a backlog of $12.8 billion as of February 2018, up from $9.4 billion in October 2017.
• Noble Corporation’s (NE) contract backlog was sustained at $3.0 billion in January 2018.