Estimated read time: 7-8 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
[STK] NYSE:RDC
[IN] OIL UTI GAS
[SU] ERN CCA
-- WITH PHOTO -- TO BUSINESS, AND ENERGY EDITORS:
Rowan Reports Fourth Quarter and Full-Year 2013 Results
HOUSTON, Feb. 27, 2014 /PRNewswire/ -- For the three months ended
December 31, 2013, Rowan Companies plc ("Rowan" or the "Company")
(NYSE: RDC) generated net income from continuing operations of $49.7
million, or $0.40 per share, compared to $70.5 million, or $0.57 per
share in the fourth quarter of 2012. The current quarter reflects a
non cash impairment charge on a property held for sale which reduced
net income by $2.9 million, or $0.02 per share. The prior-year
quarter included non-recurring or unusual items which increased net
income from continuing operations by approximately $15.6 million, or
$0.13 per share.
Rowan's revenues were $393.4 million in the fourth quarter of 2013, up
11% over the prior-year quarter due primarily to higher average day
rates and slightly higher utilization. The operating results for the
fourth quarter of 2013 were significantly impacted by the continued
out-of-service period for the Gorilla VII following leg damage
sustained as it was moving locations in July. Extended poor weather
conditions in the North Sea hampered the rig's ability to return to
its operating location.
Matt Ralls, Chief Executive Officer, commented, "As we enter 2014, we
are very pleased with the makeup and positioning of our fleet. While
the overall market is experiencing some turbulence related to new
capacity coming into the market and displacing older, less capable
rigs, the high specification nature of both our jack-up and drillship
fleets puts us in an excellent competitive position. We have 17 of
our jack-ups coming off contract over the balance of the year, and as
we see the market currently, we are confident that we will find
follow-on work for those rigs at or above their current day rates.
On the deepwater side, we took delivery of our first ultra-deepwater
drillship early this year and it is currently in transit to West
Africa to complete acceptance testing and is expected to begin a
three-year contract with Repsol in April. This rig is the first of
four ultra-high specification drillships being built for Rowan by
Hyundai Heavy Industries in Korea. The second and third drillships
both deliver later this year and have three year contracts at
attractive day rates. We remain optimistic that our last remaining
uncontracted ship will be contracted at market leading day rates prior
to its delivery in the spring of 2015.
In January, we issued $800 million in long-term debt, which, along
with an increased credit facility and cash flow from operations, is
expected to provide the funds needed to complete our drillship
construction program. We are also pleased to have announced in
January the Board's decision to reinstate a modest quarterly dividend
beginning in the second quarter of this year."
Rowan will conduct its earnings conference call on Thursday, February
27, 2014, at 10:00 a.m. Central Time. Interested parties are invited
to listen to the call by telephone or over the Internet. Individuals
who wish to participate on the conference call by telephone may dial
(877) 869-3847, or internationally (201) 689-8261. You should dial-in
approximately five to 10 minutes prior to the scheduled start time.
Alternatively, to access the online simulcast and rebroadcast of the
conference call, please visit Rowan's website at
www.rowancompanies.com. You should connect to our website at least 15
minutes prior to the conference call to register, and download any
necessary software.
Rowan Companies plc is a global provider of international and domestic
contract drilling services in the ultra-deepwater and shallow water
jack-up market with a fleet of 34 offshore drilling units, including
four ultra-deepwater drillships, three of which are currently under
construction, and 30 jack-up rigs, 19 of which are rated
high-specification. The Company's fleet is located worldwide,
including West Africa, the Middle East, the North Sea, Trinidad,
Egypt, Southeast Asia and the Gulf of Mexico. Three of the four
ultra-deepwater drillships are under three year contracts. The
Company's Class A Ordinary Shares are traded on the New York Stock
Exchange under the symbol "RDC." For more information on the Company,
please visit www.rowancompanies.com.
Statements herein that are not historical facts are forward looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, without limitation, statements as to
the expectations, beliefs and future expected business, financial
performance and prospects of the Company. These forward-looking
statements are based on our current expectations and are subject to
certain risks, assumptions, trends and uncertainties that could cause
actual results to differ materially from those indicated by the
forward-looking statements. Among the factors that could cause actual
results to differ materially include oil and natural gas prices, the
level of offshore expenditures by energy companies, variations in
energy demand, changes in day rates, cancellation by our customers of
drilling contracts or letter agreements or letters of intent for
drilling contracts or the exercise of early termination provisions,
risks associated with fixed cost drilling operations, cost overruns or
delays on shipyard repair, construction or transportation of drilling
units, maintenance and repair costs, costs or delays for conversion or
upgrade projects, operating hazards and equipment failure, risks of
collision and damage, casualty losses and limitations on insurance
coverage, customer credit and risk of customer bankruptcy, conditions
in the general economy and energy industry, weather conditions and
severe weather in the Company's operating areas, increasing complexity
and costs of compliance with environmental and other laws and
regulations, changes in tax laws and interpretations by taxing
authorities, changes in tax rates and provisions, civil unrest and
instability, terrorism and hostilities in our areas of operations that
may result in loss or seizure of assets, the outcome of disputes and
legal proceedings, effects of the change in our corporate structure,
and other risks disclosed in the Company's filings with the U.S.
Securities and Exchange Commission. Each forward-looking statement
speaks only as of the date hereof, and the Company expressly disclaims
any obligation to update or revise any forward-looking statements,
except as required by law.
ROWAN COMPANIES PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions)
DECEMBER 31, DECEMBER 31,
2013 2012
ASSETS
Cash and cash equivalents $ 1,092.8 $ 1,024.0
Accounts receivable 344.6 423.8
Other current assets 62.2 81.8
Assets of discontinued operations 23.8 23.0
Total current assets 1,523.4 1,552.6
Property, plant and equipment - net 6,385.8 6,071.7
Other assets 61.1 75.2
TOTAL $ 7,970.3 $ 7,699.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 124.0 $ 83.0
Other current liabilities 210.5 189.8
Liabilities of discontinued operations 20.1 21.3
Total current liabilities 354.6 294.1
Long-term debt 2,008.7 2,009.6
Other liabilities 713.2 864.1
Stockholders' equity 4,893.8 4,531.7
TOTAL $ 7,970.3 $ 7,699.5
ROWAN COMPANIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Millions Except Per Share Amounts)
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31 ENDED DECEMBER 31
2013 2012 2013 2012
REVENUES $ 393.4 $ 354.2 $ 1,579.3 $ 1,392.6
COSTS AND EXPENSES:
Operations 223.5 193.8 860.9 752.2
Depreciation and amortization 70.6 64.5 271.0 247.9
Selling, general and administrative 35.4 25.8 131.3 99.7
(Gain)/loss on disposals of property and equipment (1.1) 0.2 (20.1) (2.5)
Material charges and other expenses 4.5 9.4 4.5 40.3
Total 332.9 293.7 1,247.6 1,137.6
INCOME FROM OPERATIONS 60.5 60.5 331.7 255.0
Net interest and other income (16.6) (12.7) (70.5) (71.5)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 43.9 47.8 261.2 183.5
Provision for income taxes (5.8) (22.7) 8.6 (19.8)
NET INCOME FROM CONTINUING OPERATIONS 49.7 70.5 252.6 203.3
Discontinued operations, net of tax - (16.4) - (22.7)
NET INCOME $ 49.7 $ 54.1 $ 252.6 $ 180.6
PER SHARE AMOUNTS:
Income from continuing operations $ 0.40 $ 0.57 $ 2.03 $ 1.65
Discontinued operations, net of tax $ - $ (0.13) $ - $ (0.18)
Net income $ 0.40 $ 0.44 $ 2.03 $ 1.47
AVERAGE DILUTED SHARES 124.7 124.1 124.5 123.9
NOTE: See supplemental operating information.
ROWAN COMPANIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In Millions)
TWELVE MONTHS
ENDED DECEMBER 31
2013 2012
CASH PROVIDED BY (USED IN):
Operations:
Net income $ 252.6 $ 180.6
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation and amortization 271.0 247.9
Deferred income taxes (33.6) (4.6)
Gain on disposals of assets (20.1) (2.5)
Other - net 48.1 31.1
Net changes in current assets and liabilities 44.8 (74.0)
Net changes in other noncurrent assets and liabilities 60.4 15.2
Net cash provided by operations 623.2 393.7
Investing activities:
Property, plant and equipment additions (607.3) (685.3)
Proceeds from disposals of property, plant and equipment 44.5 10.5
Net cash used in investing activities (562.8) (674.8)
Financing activities:
Proceeds from borrowings - 1,102.9
Repayments of borrowings - (238.5)
Proceeds from equity compensation plans and other 8.4 1.8
Net cash provided by (used in) financing activities 8.4 866.2
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 68.8 585.1
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,024.0 438.9
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,092.8 $ 1,024.0
ROWAN COMPANIES PLC
SUPPLEMENTAL OPERATING INFORMATION
Unaudited
THREE MONTHS ENDED TWELVE MONTHS ENDED
December 31, September 30, December 31, DECEMBER 31,
2013 2013 2012 2013 2012
RIG DAYS:
Operating 2,279 2,205 2,242 9,027 8,677
Out of service (shipyard/transit/inspections/other) 267 354 296 1,097 1,310
Operational downtime (off rate during rig operations) 30 17 38 96 156
Cold stacked 184 184 276 886 1,158
Total available 2,760 2,760 2,852 11,106 11,301
Utilization 83% 80% 79% 81% 77%
Utilization (excluding cold-stacked rigs) 88% 86% 87% 88% 86%
AVERAGE DAY RATES (in thousands):
North Sea $ 284.0 $ 281.1 $ 234.9 $ 270.4 $ 237.0
Middle East 135.6 137.2 129.6 136.5 133.0
Gulf of Mexico 143.4 140.2 127.5 138.5 121.0
All rigs 168.4 169.2 153.5 170.9 156.3
OPERATIONS COSTS AND EXPENSES (in millions):
Personnel (a) $ 141.7 $ 129.0 $ 111.4 $ 537.7 $ 443.0
Repairs and maintenance 42.3 45.9 38.0 161.7 143.4
Insurance 8.0 8.0 8.0 32.5 32.7
Rig moves 3.8 4.4 7.2 23.6 30.3
All other 18.3 14.9 19.3 69.7 67.0
Subtotal (excluding rebillables) $ 214.1 $ 202.2 $ 183.9 $ 825.2 $ 716.4
Rebillables (equally offset with rebillable revenue) 9.4 9.6 9.9 35.7 35.8
Total $ 223.5 $ 211.8 $ 193.8 $ 860.9 $ 752.2
(a) Includes labor, fringes, training, travel and catering costs.
Logo - http://photos.prnewswire.com/prnh/20120827/DA62568LOGO
SOURCE Rowan Companies plc
-0- 02/27/2014
/CONTACT: Suzanne M. Spera, Director, Investor Relations, (713) 960-7517, sspera@rowancompanies.com
/Photo: http://photos.prnewswire.com/prnh/20120827/DA62568LOGO
/Web Site: http://www.rowancompanies.com
(NYSE:RDC) /
CO: Rowan Companies plc
ST: Texas
IN: OIL UTI GAS
SU: ERN CCA
PRN
-- DA73468 --
0000 02/27/2014 14:20:00 EDT http://www.prnewswire.com
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
