Rowan Provides Fleet Contract Status Update
HOUSTON, Sept. 26, 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 September 26, 2013. The report titled "Monthly Fleet Status Report" can be found on the Company's website at www.rowancompanies.com.
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Notable events in the current report include:
- Gorilla III: Awarded a multi-well contract with a rig share group that includes EOG, Trinity Exploration, Repsol and Centrica estimated at one year commencing mid-October 2013 at $160,000 per day, above its previous day rate of $145,000.
- Rowan Louisiana: Awarded a one-well contract for EnVen estimated at 30 days commencing in October 2013 in the Gulf of Mexico at $95,000 per day (no change from previous day rate) and another one-well contract estimated at 45 days at $125,000 per day.
- Gorilla VII:
- Increased 3Q/4Q 2013 off-rate time by 21 days to 82 days for leg repairs that started in mid-July 2013. Operating costs will be expensed during this period. Third party repair costs will also be expensed and are expected to total $6 million in 3Q 2013 and $1 million in 4Q 2013.
- Previously scheduled 140 days out of service time for repairs, upgrades and inspections is expected to occur sometime during 2015 instead of starting at the beginning of 2Q 2014. Rig is expected to be off-rate for 21 days for inspections during 3Q 2014.
- Gorilla VI: Increased 4Q 2013 / 1Q 2014 out of service time by 30 days to a total of 105 days for repairs, upgrades, customer required modifications and inspections. Rig is expected to receive compensation for the additional 30 days of out of service time which will be amortized over the contract term and is included in the day rate causing the day rate to rise from the previously reported $350,000 to $358,000.
- Gorilla V: Previously scheduled 30 days of off-rate time for inspections is expected during 1Q 2014 instead of 4Q 2013. Rig is expected to be out of service for an estimated 140 days in mid-2015 for repairs, upgrades and inspections.
- Gorilla II: Increased 3Q 2013 off-rate time by 10 days to a total of 75 days for repairs, upgrades and inspections. 3Q 2013 out of service days include 30 days of compensated rig mobilization which will be amortized over the contract term and is included in the day rate causing the day rate to rise from the previously reported $164,000 to $169,000.
Out-of-service days include days for which no revenues are recognized other than operational downtime and cold-stacked days. The Company may be compensated for certain out-of-service days, such as for shipyard stays or for transit periods preceding a contract. However, recognition of any such compensation received 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. No operational downtime is included in projected out-of-service days, but the company estimates 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. Additionally, Rowan has four ultra-deepwater drillships under construction with three of the four drillships under three-year contracts. 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, 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
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