Rowan Reports First Quarter 2015 Results and Announces Increase and Extension of Revolving Credit Facility

HOUSTON, May 6, 2015 /PRNewswire/ -- For the three months ended March 31, 2015, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) reported net income of $123.7 million, or $0.99 per share, compared to $59.6 million, or $0.48 per share in the first quarter of 2014.  Net income for the prior-year quarter included a litigation settlement gain which increased net income from continuing operations by $20.9 million, or $0.17 per share.  The prior-year quarter also included a gain from discontinued operations which increased net income by $4.0 million, or $0.03 per share. Excluding the impact of these items, net income for the first quarter of 2014 was $34.7 million or $0.28 per share.

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Rowan's revenues were $547.0 million in the first quarter of 2015, an increase of 45% over the prior-year quarter due primarily to the contributions from three of the Company's newbuild ultra-deepwater drillships. The first two ultra-deepwater drillships began operating in April and October 2014, and the third ultra-deepwater drillship began operating on February 1, 2015.

On May 5, 2015, the Company amended and restated its revolving credit agreement to increase the borrowing capacity from $1.0 billion to $1.5 billion and to extend the maturity date by one year to January 23, 2020. Commitments during the final year of the agreement decline by $60 million to $1.44 billion.

Tom Burke, President and Chief Executive Officer, commented, "We are pleased with our first quarter operating results which reflect higher earnings and better margins due to the contributions from three newbuild ultra-deepwater drillships, low out of service time and significant cost control efforts.

Although it is difficult to determine the duration and severity of the current industry downturn, with our drillship capital expenditures largely behind us, our contractual backlog and our strong balance sheet, we believe we are well-positioned to weather the storm and take advantage of opportunities when markets begin to recover."

Rowan will conduct its earnings conference call on Wednesday, May 6, 2015, 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) 201-0168, or internationally (647) 788-4901.  The conference ID is 20952884. 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.rowan.com.  You should connect to our website at least 15 minutes prior to the conference call to register, and download any necessary software.

Rowan is a global provider of contract drilling services with a fleet of 34 offshore drilling units, including four ultra-deepwater drillships and 30 jack-up rigs, 19 of which are rated high-specification.  The Company's fleet is located worldwide, including the United Kingdom and Norwegian sectors of the North Sea, the Middle East, the United States Gulf of Mexico, Southeast Asia, West and North Africa 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.

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, 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.

Non-GAAP Measures

We report our financial results in accordance with generally accepted accounting principles (GAAP) in the United States. However, in our earnings release and during our earnings calls we may reference company information that does not conform to GAAP.  Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.  Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company.  However, these measures should not be viewed as an alternative to or substitute for GAAP measures of performance, and these non-GAAP measures may not be consistent with previously published Company reports on Forms 10-K, 10-Q and 8-K. Non-GAAP measures we may reference have been reconciled to the nearest GAAP measure in the table entitled Reconciliation of GAAP to Non-GAAP Financial Measures below.    

SOURCE Rowan Companies plc

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