Rowan swings to net loss on asset impairments

  • Exploration & Production

Rowan Companies, a U.S. based offshore driller has, for the 4th quarter of 2014 reported a net loss of $326.9 million, due to a non cash asset impairment charge of $438.4 million, relating to twelve of the company’s oldest jack-up rigs.

Excluding the impact of this noncash asset impairment charge, net income was $111.5 million or $0.89 per share in the fourth quarter of 2014. Net income for the prior-year quarter was $49.7 million or $0.40 per share and included a noncash asset impairment charge of $2.9 million (after tax), or $0.02 per share. Excluding the impact of the noncash asset impairment charge, net income was $52.6 million or $0.42 per share in the fourth quarter of 2013.

Rowan’s revenues were $556.2 million in the fourth quarter of 2014, up 41% over the prior-year quarter due primarily to the commencement of two of the company’s newbuild ultra-deepwater drillships, less out-of-service time for jack-up rigs and slightly higher average day rates.

Tom Burke, President and Chief Executive Officer, commented, “I am pleased with our successful entry into the ultra-deepwater market, with our second newbuild ultra-deepwater drillship, the Rowan Resolute commencing operations in the US Gulf of Mexico in October 2014 and our third newbuild drillship, the Rowan Reliance, operating since early February 2015. In 2014, both our jack-up and drillship fleet had excellent safety results and limited operational downtime.

“We believe that with our high-specification assets, strong operational performance, continued cost control focus and financial strength, we are in a good position to weather the current downturn in our industry.”

 

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