Rowan Provides Fleet Contract Status Update
HOUSTON, Nov. 27, 2012 /PRNewswire/ -- Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced today that its monthly report of drilling rig status and contract information has been updated as of November 27, 2012. The report, titled "Monthly Fleet Status Report," can be found on the Company's website, www.rowancompanies.com, on the Home page.
Notable events in the current report include:
- J.P. Bussell: Awarded a contract for approximately one year of work in Malaysia at a day rate in the high $130s, above its previous day rate in the high $120s, expected to commence operations at the end of November 2012.
Planned Off Rate Days
- Cecil Provine: Off rate time in the 4Q 2012 was 57 days instead of the previously expected 45 days.
- Gorilla II: Rig is expected to enter the shipyard in June 2013 for repairs for approximately 45 days.
- EXL I: Off rate time in the 4Q 2012 was 35 days instead of the previously expected 21 days and includes approximately 15 days of compensated transit time which is being deferred over the contract period and is reflected in the day rate in the mid $210s.
- Ralph Coffman: Approximately 60 days of compensated shipyard time (which occurred in the 2Q and 3Q 2012) is being deferred over the contract period and is reflected in the day rate in the mid $210s. The Company will record a reduction in revenue of approximately $7 million, offset by a $2 million reduction in costs, in Q4 2012 to defer previously recognized amounts. The day rate reflected has been increased to the mid $220s to recognize the deferred revenue over the contract period.
- Gorilla VII: Total off rate time in 2013 is expected to be approximately 131 days instead of the previously expected 110 days.
- Rowan Stavanger: Rig is currently off rate for 16 days from mid November 2012 until the end of November 2012 for repairs.
- Rowan Norway: Rig is currently in the shipyard for contract requirements and is expected to commence operations in mid December 2012. Approximately 30 days of compensated shipyard time in the 4Q 2012 is being deferred over the contract period and is reflected in the day rate in the mid $360s.
The Company will not realize any day rate revenue during these periods of off rate time, and crew costs will be capitalized.
This summary is provided as a courtesy and is not intended to replace a detailed review of the Monthly Fleet Status Report. While the Company has attempted to include items it believes are significant, we encourage you to review the Monthly Fleet Status Report in detail.
Rowan Companies plc is a major provider of international and domestic contract drilling services with a leading position in high-specification jack-up rigs. The Company's fleet of 31 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico. Rowan will enter the ultra-deepwater market with four high-specification drillships expected to be delivered starting in late 2013. 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 or transportation of rigs, 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, 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.
SOURCE Rowan Companies plc