Rowan Provides Fleet Contract Status Update

Aug 31, 2015, 17:00 ET from Rowan Companies plc

HOUSTON, Aug. 31, 2015 /PRNewswire/ -- Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced today that its report of drilling rig status and contract information has been updated as of August 31, 2015.  The report titled "Fleet Status Report" can be found on the Company's website at www.rowan.com.

Notable events in the current report include:

  • Rowan Middletown: Awarded three-year extension through August 2018 with Saudi Aramco at a day rate of $69,000.
  • Charles Rowan: Awarded three-year extension through August 2018 with Saudi Aramco at a day rate of $69,000.
  • Arch Rowan: Awarded three-year extension through August 2018 with Saudi Aramco at a day rate of $69,000.
  • Rowan Renaissance: Rig has arrived in the U.S. Gulf of Mexico from West Africa and is at a standby day rate. It is expected to commence operations in September 2015.
  • Rowan Reliance: Rig is currently drilling North Platte #3 for Cobalt after plugging and abandoning North Platte #2 on April 6, 2015. Rowan and Cobalt have reached agreement on certain days at zero or reduced day rate which were fully reflected in the first and second quarter financial results.
  • Rowan Gorilla III: Rig became available in mid-August 2015 due to early termination of its prior contract. Revenue for balance of the contract term is expected to be received in the third quarter 2015 and will be amortized over the contract's original term (January 2016). The Company has the obligation to reduce amounts owed by the customer by the amount of any day rate revenue earned should the rig return to work prior to the original term. The rig will move to the U.S. Gulf of Mexico in the third quarter 2015.
  • Rowan Gorilla IV: Awarded an extension estimated for 60 days to November 2015 with Energy XXI at the current day rate of $70,000.
  • Rowan EXL III: Rig replaced the Cecil Provine in mid-August working for Fieldwood Energy in the U.S. Gulf of Mexico at a day rate of $55,000 and was awarded a 30-day extension to September 2015.

The Company continues to estimate planned out-of-service time for the third quarter and full-year of 2015 to range from 3% to 6% for its jack-ups and drillships, subject to fleet repositioning and market conditions.

No operational downtime is included in projected out-of-service days, but the Company estimates jack-up operational downtime to account for approximately 2.5% of in-service days in current and future quarters.  Rowan continues to expect drillship operational downtime to be approximately 5% after a break-in period of approximately six months up to one year (during which drillship operational downtime will likely be higher).

Out-of-service days are days where a rig is (or is planned to be) out-of-service and is not able to earn revenue.  The Company may be compensated for certain out-of-service days such as shipyard stays or transit periods preceding a contract.  However, any such compensation is deferred and recognized over the period of drilling operations.  Operational downtime is when a rig is under contract and unable to conduct planned operations due to equipment breakdowns or procedural failures.  

Unless otherwise indicated, all day rates on the fleet status include estimated amortization of contract mobilization/modification revenues.  However, day rates exclude approximately $20 to $30 million of other miscellaneous aggregate annual revenue the Company receives during rig operations (or approximately $5 to $8 million per quarter).  Day rates also exclude rebillable revenues which are equally offset by drilling expenses.

This summary is provided as a courtesy and is not intended to replace a detailed review of the Fleet Status Report.  While the Company has attempted to include items it believes are significant, we encourage you to review the Fleet Status Report in detail.

Rowan is a global provider of contract drilling services with a fleet of 32 mobile offshore drilling units, composed of 28 self-elevating jack-up rigs and four ultra-deepwater drillships.  The Company's fleet operates worldwide, including the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, North Africa, Southeast Asia and Trinidad.  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.rowan.com.

Forward Looking Statements

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 or renegotiation by our customers of drilling contracts, letter agreements or letters of intent 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, 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



RELATED LINKS

http://www.rowan.com