KeyBanc Starts ENSCO International Plc (ESV) at Sector Weight

KeyBanc initiated coverage on ENSCO International Plc (NYSE: ESV) with a Sector Weight rating.

Analyst Robin Shoemaker said, "CEO Carl Trowell, who joined ESV from Schlumberger in 2014, has capably led the Company in the new era of austerity. However, he faces continuing challenges in regards to the ESV fleet. The biggest challenge is the Company’s “8500 series” semisubmersible rigs. The seven rigs in this series were built and delivered starting in 2008 at a significantly lower average cost than other deepwater rigs. But in the downturn, the 8500s must compete with more capable rigs offered at similar pricing points. Five of the seven rigs are now idle. ESV has cold stacked two of the rigs and will consider cold stacking more. The high costs of reactivation could mean that some of the 8500 series rigs might become candidates for scrapping, although ESV is not weighing this option at the present time."

For an analyst ratings summary and ratings history on ENSCO International Plc click here. For more ratings news on ENSCO International Plc click here.

Shares of ENSCO International Plc closed at $16.06 yesterday.

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