Rowan Provides Fleet Contract Status Update
HOUSTON, June 20, 2013 /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 June 19, 2013. The report titled "Monthly Fleet Status Report," can be found on the Company's website www.rowancompanies.com.
(Logo: http://photos.prnewswire.com/prnh/20120827/DA62568LOGO)
Notable events in the current report include:
- Rowan Resolute: Entered into a three-year contract with Anadarko Petroleum Corporation at an effective day rate in the high $600s. The drillship is expected to be delivered at the end of the second quarter 2014 and operate in the U.S. Gulf of Mexico starting in the late third quarter 2014. The Rowan Resolute is one of four ultra-deepwater drillships being constructed for Rowan by Hyundai Heavy Industries Co. Ltd. ("HHI") shipyard in Ulsan, South Korea.
With the award of this contract for the Rowan Resolute, two of the Company's four ultra-deepwater drillships under construction at HHI are now under contract. The remaining two uncontracted drillships are scheduled to be delivered from the shipyard at the end of October 2014 and March 2015.
- Gorilla II:
- Awarded a 170 day contract with Pertamina Hulu Energi in Indonesia at a day rate in the high $160s (above previous day rate in the mid $130s) expected to commence operation in September 2013. Day rate includes amortization of 20 days of rig mobilization compensation.
-
Delayed part of the out of service project to 2014 and reduced 2Q/3Q 2013 out of service days by 32 days to 88 days (previously 120 days) for repairs, upgrades, inspections and transit. Twenty of the 88 days are for transit to the well site in Indonesia and will be compensated by Pertamina Hulu Energi.
- Rowan Gorilla VI: Increased 4Q 2013 off rate time by 32 days to 75 days (previously 43 days) for repairs, upgrades and inspections. Rig is scheduled to return to service in December 2013 after entering the yard June 2013 for 182 days (previously 150 days).
- Rowan California: Increased 3Q 2013 off rate time by 22 days to 52 days (previously 30 days) for repairs, upgrades and inspections. Rig is scheduled to return to service in August 2013 after entering the shipyard in January 2013 for 180 days (previously 158 days).
- Rowan Paris: Rig sold for $40 million in June 2013. The total net book value for the Rowan Paris was approximately $20 million.
The Company will not realize any day rate revenue during periods of off rate time, and crew costs will be capitalized during rig modifications and/or upgrades.
Out of service days include shipyard stays and transit periods preceding contracts which are often compensated by a customer, but compensation is deferred and not included in current period earnings. Out of service days also include shipyards stays and transit periods for inspection, maintenance and upgrades. Out of service days do not include any operational downtime except for extraordinary events in the current quarter. No operational downtime is included in projected out of service days, but the company expects operational downtime to account for approximately 2.5% of in service days in current and future quarters.
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 30 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Egypt, 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
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article