Rowan’s Q1 revenue down due to lower rig utilization

For the three months ended March 31, 2014, Rowan Companies plc generated net income from continuing operations of $55.6 million, or $0.45 per share, compared to $68.1 million, or $0.55 per share in the first quarter of 2013.

The current quarter reflects a settlement gain related to a rig collision during 2012 which increased net income from continuing operations by $20.9 million, or $0.17 per share.  Excluding the impact of this item, net income from continuing operations for the first quarter of 2014 was $34.7 million, or $0.28 per share.

Rowan’s revenues were $377.6 million in the first quarter of 2014, down 4% from the prior-year quarter due primarily to slightly lower utilization. The company’s first quarter 2014 revenues and operating results were significantly impacted by the previously disclosed out-of-service periods for the Gorilla VI and Gorilla VII.

Tom Burke, President and Chief Executive Officer, said, “We have achieved an exciting milestone, with our first ultra-deepwater drillship operating on rate in Namibia. Our deepwater and project management teams have executed well, and the ship is one of the most capable in the world wide fleet. While we are disappointed with the first quarter’s out of service time on two of our higher day rate jack-ups, our entry into deepwater and the corresponding structural earnings growth is on track.

We are in an excellent competitive position due to our high-specification jack-ups and ultra-deepwater drillships, along with our highly skilled drilling crews, even as the industry may face headwinds as new capacity enters the market and displaces older and less capable rigs. We started the year with more than half of our fleet coming off contract during 2014 and we have extended or contracted four rigs at or above their existing rates and expect similar results for the remaining rigs over the balance of the year.”