Rowan Reports Second Quarter 2014 Results

HOUSTON, Aug. 6, 2014 /PRNewswire/ -- For the three months ended June 30, 2014, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) generated net income from continuing operations of $32.9 million, or $0.26 per share, compared to $82.8 million, or $0.67 per share in the second quarter of 2013.  The current quarter reflects a noncash asset impairment charge which reduced net income from continuing operations by $8.3 million, or $0.07 per share.  The prior-year quarter included a $12.5 million after-tax gain, or $0.10 per share on the sale of a jack-up rig (Rowan – Paris).  Excluding the impacts of these items, net income from continuing operations was $41.2 million or $0.33 per share in the second quarter of 2014 and $70.3 million, or $0.57 per share in the second quarter of 2013.

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Rowan's revenues were $422.9 million in the second quarter of 2014, up 3% over the prior-year quarter due primarily to the commencement, in late April 2014, of the company's first ultra-deepwater drillship.  However, our second quarter 2014 revenues and operating results were significantly impacted by previously disclosed out-of-service periods which resulted in 13% out-of-service time during the second quarter of 2014, compared to 8% in the prior-year quarter. 

Tom Burke, President and Chief Executive Officer, commented, "We are pleased that our first ultra-deepwater drillship, the Rowan Renaissance, commenced operations in the second quarter. As our remaining three drillships commence operations over the next twelve months, we look forward to the stability that this earnings growth and associated balancing of our fleet will provide to our shareholders.

"The second quarter was negatively impacted by additional out-of-service days for certain jack-ups as well as start-up issues for the Renaissance.  We expect our out-of-service time for our jack-up fleet to decrease significantly beginning in the third quarter.

"We continue to believe that our quality fleet, the talent and experience of our crews, our significant revenue backlog, and our conservative financial profile place us in a solid competitive position as new capacity enters the market and displaces older and less capable rigs."

Rowan will conduct its earnings conference call on Wednesday, August 6, 2014, 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) 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, and download any necessary software.

Rowan Companies plc is a global provider of international contract drilling services in the ultra-deepwater and shallow water jack-up market with a fleet of 34 offshore drilling units, including four ultra-deepwater drillships, two of which are currently under construction, 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.  All four of the Company's ultra-deepwater drillships are now under long-term 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, changes in tax rates and provisions, 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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