Rowan: Higher Day Rates Boost Revenue

Rowan Companies plc, an international drilling contractor,  yesterday reported that for the three months ended March 31, 2013, the company generated net income from continuing operations of $68.1 million or $0.55 per share, compared to $55.5 million or $0.45 per share in the first quarter of 2012.

The prior-year quarter also included a $6.0 million loss from discontinued operations or $0.05 per share, and as a result, net income was $49.5 million or $0.40 per share. Rowan’s revenues were $394.2 million in the first quarter of 2013, up 18% over the prior-year quarter due primarily to higher average day rates, incremental activity from fleet additions and higher utilization for existing rigs between periods.

Costs and expenses during the prior-year quarter included $4.6 million of unusual or one-time items, or $0.02 per share after tax, from a write down of a fixed asset as well at certain transactional costs related to the Company’s corporate restructuring.

Matt Ralls, Chief Executive Officer, commented, “We are pleased with our first quarter operating results and remain confident that we are well positioned strategically as we celebrate Rowan’s 90th anniversary this month. We continue to see strengthening in the jack-up markets, especially for high-spec rigs, along with strong demand and encouraging new fixtures in the ultra-deepwater markets. We expect our focus on operational execution and the earnings power from our newbuild drillships and higher jack-up day rates to lead to strong earnings increases in 2014 and beyond.”