Rowan Reports Second Quarter 2012 Operating Results

News provided by

Rowan Companies plc

Aug 02, 2012, 09:16 ET

HOUSTON, Aug. 2, 2012 /PRNewswire/ -- For the three months ended June 30, 2012, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) generated net income from continuing operations of $50.9 million or $0.41 per share, compared to $44.4 million or $0.35 per share in the second quarter of 2011. 

(Logo:  http://photos.prnewswire.com/prnh/20081031/DA43093LOGO)

Net income from continuing operations during the second quarter of 2012 included $17.8 million of unusual or one-time items, or $0.10 per share after tax, including losses on early redemption of Marad debt and transactional costs of the Company's corporate redomestication, net of gains on asset disposals.  Excluding such items, net income from continuing operations was $63.4 million or $0.51 per share during the second quarter of 2012.  The prior year quarter included a net reduction of $4.7 million, or $0.03 per share after tax, from one-time charges and gains on asset disposals.

Net income totaled $49.4 million or $0.40 per share in the second quarter of 2012, compared to $465.9 million or $3.65 per share in the second quarter of 2011, as the prior year quarter included income from discontinued manufacturing and land drilling operations of $421.5 million or $3.30 per share, including the after-tax gain on the sale of manufacturing operations of $424.5 million.

Rowan's revenues were $351.0 million in the second quarter of 2012, up by 57% over the prior-year quarter due primarily to incremental activity from fleet additions and higher utilization and day rates for existing rigs between periods.  The Company's operating income was $70.4 million in the second quarter of 2012, up by 36% over the prior-year quarter.

Matt Ralls, President and Chief Executive Officer, commented, "On top of the solid results for the second quarter, we were very pleased to receive a three-year commitment for the first of our three ultra-deepwater newbuild drillships, the Rowan Renaissance, at an effective day rate ranging from $614,000 to  $624,000, depending on work location.  We continue to be encouraged by customer interest in these very high specification rigs."

Rowan will conduct its earnings conference call on Thursday, August 2, 2012, at 10:00 a.m. Central Daylight 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 can dial (877) 869-3847, or internationally (201) 689-8261.  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.rowancompanies.com.  You should connect to our website at least 15 minutes prior to the conference call to register, download and install any necessary software.

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 31 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico.  Rowan will enter the ultra-deepwater market with three 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.

This report contains 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 financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company.  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, energy demand, the general economy, including inflation, weather conditions in the Company's principal operating areas and environmental and other laws and regulations, including changes in tax laws, and whether we achieve the benefits we expect from the change in our corporate structure.  Other relevant factors have been disclosed in the Company's filings with the U.S. Securities and Exchange Commission.

ROWAN  COMPANIES  plc

CONDENSED  CONSOLIDATED  BALANCE  SHEETS

Unaudited  (In  Millions)













JUNE  30,

DECEMBER 31,

2012

2011




ASSETS






Cash and cash equivalents

$           665.6

$               438.9

Restricted cash

9.4

-

Accounts receivable

330.1

283.6

Other current assets

85.6

71.6

Assets of discontinued operations

26.7

27.6

     Total current assets

1,117.4

821.7

Property, plant and equipment - net

5,809.0

5,678.7

Other assets

100.8

97.4

     TOTAL

$       7,027.2

$           6,597.8








LIABILITIES  AND  STOCKHOLDERS'  EQUITY






Current maturities of long-term debt

$             98.8

$                 45.0

Accounts payable

74.0

111.1

Other current liabilities

146.3

167.3

Liabilities of discontinued operations

21.3

25.0

     Total current liabilities

340.4

348.4

Long-term debt

1,392.9

1,089.3

Other liabilities

853.6

834.1

Stockholders' equity

4,440.3

4,326.0

     TOTAL

$       7,027.2

$           6,597.8




ROWAN  COMPANIES  plc

CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

Unaudited  (In  Millions  Except  Per  Share  Amounts)





















THREE  MONTHS

SIX MONTHS



ENDED  JUNE  30

ENDED  JUNE  30



2012

2011

2012

2011










REVENUES

$    351.0

$    223.5

$    684.5

$    429.5










COSTS  AND  EXPENSES:







Operations

188.1

104.5

370.2

215.8

Depreciation and amortization

61.3

40.8

120.3

79.0

Selling, general and administrative

25.1

21.8

48.2

42.5

Gain on disposals of property and equipment

(2.0)

(1.4)

(2.1)

(1.4)

Material charges and other expenses

8.1

6.1

12.7

6.1


Total

280.6

171.8

549.3

342.0

INCOME  FROM  OPERATIONS

70.4

51.7

135.2

87.5

Net interest and other income

(24.7)

(7.0)

(34.5)

(13.4)

INCOME  FROM  CONTINUING  OPERATIONS  BEFORE  INCOME  TAXES

45.7

44.7

100.7

74.1

Provision (credit) for income taxes

(5.2)

0.3

(5.7)

2.9

NET  INCOME  FROM  CONTINUING  OPERATIONS

50.9

44.4

106.4

71.2

Discontinued operations, net of tax

(1.5)

421.5

(7.4)

426.7

NET  INCOME

$      49.4

$    465.9

$      99.0

$    497.9










PER  SHARE  AMOUNTS:







Income from continuing operations

$      0.41

$      0.35

$      0.86

$      0.56

Discontinued operations, net of tax

$    (0.01)

$      3.30

$    (0.06)

$      3.35

Net income

$      0.40

$      3.65

$      0.80

$      3.91










AVERAGE  DILUTED  SHARES

123.8

127.6

123.7

127.3










NOTE:  Refer to supplemental operating information.














ROWAN  COMPANIES  plc

CONDENSED  CONSOLIDATED   STATEMENTS  OF  CASH  FLOWS

Unaudited  (In  Millions)









SIX  MONTHS

ENDED  JUNE  30

2012

2011

CASH  PROVIDED  BY  (USED  IN):


   Operations:


      Net income

$         99.0

$       497.9

      Adjustments  to  reconcile  net  income  to  net


      cash  provided  by  operations:


         Depreciation  and  amortization

120.3

99.9

         Deferred  income  taxes

4.8

70.7

         Gain  on  disposals  of  assets

(2.1)

(664.8)

         Other -  net

(3.1)

(9.6)

      Net  changes  in  current  assets  and  liabilities

(68.2)

143.6

      Net  changes  in  other  noncurrent  assets  and  liabilities

12.1

8.2

   Net  cash  provided  by  operations

162.8

145.9




   Investing  activities:


      Property,  plant  and  equipment  additions

(290.8)

(931.0)

      Proceeds  from  disposals  of  property,  plant  and  equipment

9.2

4.1

      Proceeds  from  sale  of  manufacturing  operations - net

-

1,044.5

      Change  in  Restricted  cash

(9.4)

15.3

   Net  cash  provided by  (used  in)  investing  activities

(291.0)

132.9




   Financing  activities:


      Proceeds from borrowings

493.4

-

      Repayments  of  borrowings

(139.6)

(26.1)

      Proceeds  from  equity  compensation  plans  and  other

1.1

21.1

   Net  cash  provided  by  (used  in)  financing  activities

354.9

(5.0)




INCREASE  IN  CASH  AND  CASH  EQUIVALENTS

226.7

273.8

CASH  AND  CASH  EQUIVALENTS,  BEGINNING  OF  PERIOD

438.9

437.5

CASH  AND  CASH  EQUIVALENTS,  END  OF  PERIOD

$       665.6

$       711.3




ROWAN  COMPANIES  plc

SUPPLEMENTAL  OPERATING  INFORMATION

Unaudited

























THREE  MONTHS  ENDED

SIX  MONTHS  ENDED



June 30,

March 31,

June 30,

June 30,

June 30,



2012

2012

2011

2012

2011











RIG  DAYS:








Operating

2,217

2,088

1,668

4,305

3,145

Shipyard / transit

313

300

484

613

1,060

Stacked and other downtime

291

388

234

679

452













Total available

2,821

2,776

2,386

5,597

4,657













Utilization

79%

75%

70%

77%

68%






















AVERAGE  DAY  RATES  (in  thousands):








North Sea

$   234.5

$   227.7

$   195.3

$    231.1

$   189.3

Middle East

130.8

145.8

123.6

137.2

126.2

Gulf of Mexico

119.1

118.2

118.7

118.6

118.5

All rigs

154.0

156.5

133.3

155.2

134.7






















OPERATIONS  COSTS  AND  EXPENSES  (in  millions):







Personnel (a)

$   113.9

$   105.0

$     62.7

$ 218.9

$   122.7

Repairs and maintenance

32.3

38.5

22.1

70.8

43.5

Insurance

8.1

8.0

6.3

16.1

15.5

Rig moves

8.4

8.4

3.8

16.8

10.3

Rebillables

9.5

6.6

0.9

16.1

5.2

All other

15.9

15.6

8.8

31.5

18.6













Total

$   188.1

$   182.1

$   104.5

$    370.2

$   215.8












(a)  Includes labor, fringes, training, travel and catering costs.


SOURCE Rowan Companies plc

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