HOUSTON, April 20, 2016 /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 April 20, 2016. The report titled "Fleet Status Report" can be found on the Company's website at www.rowan.com. Rowan intends to provide quarterly updates to this report in 2016.
Notable events in the current report include:
- Rowan Viking: A reduced rate of $282k is retroactive to January 1, 2016 pending Lundin's exercise of an option to extend the contract by 270 days for $275K per day following the firm term. The strike date of the option is June 1, 2016 and the financial impact will be recognized in the period the customer exercises the option. Should the option not be exercised, the day rates under the original contract will remain effective.
- Ralph Coffman: Awarded an estimated three month contract in Suriname with Petronas at a day rate of $161K that commenced in mid-April.
- Ralph Coffman: Awarded a multiple well contract estimated for 10 months in Trinidad with EOG at a day rate of $135k commencing in October 2016.
- Rowan Renaissance: Rig went on Standby Rate in mid-March (98% of Operating Rate.)
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 31 mobile offshore drilling units, composed of 27 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, 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.
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SOURCE Rowan Companies plc