ROWAN COMPANIES PLC 
By HOUSTON, Feb. 27, 2014 /PRNewswire/ -- For the three months ended December 31, 2013, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) generated net income from continuing operations of $49.7 million, or $0.40 per share, compared to $70.5 million, or $0.57 per share in the fourth quarter of 2012. The current quarter reflects a non cash impairment charge on a property held for sale which reduced net income by $2.9 million, or $0.02 per share. The prior-year quarter included non-recurring or unusual items which increased net income from continuing operations by approximately $15.6 million, or $0.13 per share.
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Rowan's revenues were $393.4 million in the fourth quarter of 2013, up 11% over the prior-year quarter due primarily to higher average day rates and slightly higher utilization. The operating results for the fourth quarter of 2013 were significantly impacted by the continued out-of-service period for the Gorilla VII following leg damage sustained as it was moving locations in July. Extended poor weather conditions in the North Sea hampered the rig's ability to return to its operating location.
Matt Ralls, Chief Executive Officer, commented, "As we enter 2014, we are very pleased with the makeup and positioning of our fleet. While the overall market is experiencing some turbulence related to new capacity coming into the market and displacing older, less capable rigs, the high specification nature of both our jack-up and drillship fleets puts us in an excellent competitive position. We have 17 of our jack-ups coming off contract over the balance of the year, and as we see the market currently, we are confident that we will find follow-on work for those rigs at or above their current day rates.
On the deepwater side, we took delivery of our first ultra-deepwater drillship early this year and it is currently in transit to West Africa to complete acceptance testing and is expected to begin a three-year contract with Repsol in April. This rig is the first of four ultra-high specification drillships being built for Rowan by Hyundai Heavy Industries in Korea. The second and third drillships both deliver later this year and have three year contracts at attractive day rates. We remain optimistic that our last remaining uncontracted ship will be contracted at market leading day rates prior to its delivery in the spring of 2015.
In January, we issued $800 million in long-term debt, which, along with an increased credit facility and cash flow from operations, is expected to provide the funds needed to complete our drillship construction program. We are also pleased to have announced in January the Board's decision to reinstate a modest quarterly dividend beginning in the second quarter of this year."
Rowan will conduct its earnings conference call on Thursday, February 27, 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 and domestic 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, three 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 West Africa, the Middle East, the North Sea, Trinidad, Egypt, Southeast Asia and the Gulf of Mexico. Three of the four ultra-deepwater drillships are 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, 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.
ROWAN COMPANIES PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions)
DECEMBER 31, DECEMBER 31,
2013 2012
---- ----
ASSETS
Cash and
cash
equivalents $1,092.8 $1,024.0
Accounts
receivable 344.6 423.8
Other
current
assets 62.2 81.8
Assets of
discontinued
operations 23.8 23.0
---- ----
Total
current
assets 1,523.4 1,552.6
Property, plant
and equipment -
net 6,385.8 6,071.7
Other
assets 61.1 75.2
---- ----
TOTAL $7,970.3 $7,699.5
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts
payable $124.0 $83.0
Other
current
liabilities 210.5 189.8
Liabilities of
discontinued
operations 20.1 21.3
---- ----
Total
current
liabilities 354.6 294.1
Long-
term
debt 2,008.7 2,009.6
Other
liabilities 713.2 864.1
Stockholders'
equity 4,893.8 4,531.7
------- -------
TOTAL $7,970.3 $7,699.5
======== ========
ROWAN COMPANIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Millions Except Per Share Amounts)
THREE MONTHS TWELVE MONTHS
ENDED ENDED DECEMBER
DECEMBER 31 31
2013 2012 2013 2012
---- ---- ---- ----
REVENUES $393.4 $354.2 $1,579.3 $1,392.6
------ ------ -------- --------
COSTS AND EXPENSES:
Operations 223.5 193.8 860.9 752.2
Depreciation
and
amortization 70.6 64.5 271.0 247.9
Selling,
general
and
administrative 35.4 25.8 131.3 99.7
(Gain)/loss
on
disposals
of property
and
equipment (1.1) 0.2 (20.1) (2.5)
Material
charges
and other
expenses 4.5 9.4 4.5 40.3
Total 332.9 293.7 1,247.6 1,137.6
----- ----- ------- -------
INCOME FROM OPERATIONS 60.5 60.5 331.7 255.0
Net interest and other income (16.6) (12.7) (70.5) (71.5)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 43.9 47.8 261.2 183.5
Provision for income taxes (5.8) (22.7) 8.6 (19.8)
NET INCOME FROM CONTINUING
OPERATIONS 49.7 70.5 252.6 203.3
Discontinued operations, net of tax - (16.4) - (22.7)
--- ----- --- -----
NET INCOME $49.7 $54.1 $252.6 $180.6
===== ===== ====== ======
PER SHARE AMOUNTS:
Income from
continuing
operations $0.40 $0.57 $2.03 $1.65
Discontinued
operations,
net of tax $ - $(0.13) $ - $(0.18)
Net income $0.40 $0.44 $2.03 $1.47
AVERAGE DILUTED SHARES 124.7 124.1 124.5 123.9
===== ===== ===== =====
NOTE: See supplemental operating information.
ROWAN COMPANIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
Unaudited (In Millions)
TWELVE MONTHS
ENDED DECEMBER
31
2013 2012
---- ----
CASH
PROVIDED
BY
(USED
IN):
Operations:
Net
income $252.6 $180.6
Adjustments
to
reconcile
net
income
to
net
cash
provided
by
operations:
Depreciation
and
amortization 271.0 247.9
Deferred
income
taxes (33.6) (4.6)
Gain
on
disposals
of
assets (20.1) (2.5)
Other
-
net 48.1 31.1
Net
changes
in
current
assets
and
liabilities 44.8 (74.0)
Net
changes
in
other
noncurrent
assets
and
liabilities 60.4 15.2
Net
cash
provided
by
operations 623.2 393.7
----- -----
Investing
activities:
Property,
plant
and
equipment
additions (607.3) (685.3)
Proceeds
from
disposals
of
property,
plant
and
44.5 10.5
Net
cash
used
in
investing
activities (562.8) (674.8)
------ ------
Financing
activities:
Proceeds
from
borrowings - 1,102.9
Repayments
of
borrowings - (238.5)
Proceeds
from
equity
compensation
plans
and
8.4 1.8
Net
cash
provided
by
(used
in)
financing
activities 8.4 866.2
--- -----
INCREASE
(DECREASE)
IN
CASH
AND
CASH
EQUIVALENTS 68.8 585.1
CASH
AND
CASH
EQUIVALENTS,
BEGINNING
OF
PERIOD 1,024.0 438.9
CASH
AND
CASH
EQUIVALENTS,
END
OF
PERIOD $1,092.8 $1,024.0
======== ========
ROWAN COMPANIES PLC
SUPPLEMENTAL OPERATING INFORMATION
Unaudited
THREE MONTHS ENDED TWELVE MONTHS
ENDED
--------------------
December 31, September 30, December 31, DECEMBER 31,
------------
2013 2013 2012 2013 2012
---- ---- ---- ---- ----
RIG DAYS:
Operating 2,279 2,205 2,242 9,027 8,677
Out of service (shipyard/
transit/inspections/other) 267 354 296 1,097 1,310
Operational downtime (off rate
during rig operations) 30 17 38 96 156
Cold stacked 184 184 276 886 1,158
--- --- --- --- -----
Total
available 2,760 2,760 2,852 11,106 11,301
=========
Utilization 83% 80% 79% 81% 77%
=========
Utilization
(excluding
cold-stacked
rigs) 88% 86% 87% 88% 86%
=========
AVERAGE DAY RATES (in thousands):
North Sea $284.0 $281.1 $234.9 $270.4 $237.0
Middle East 135.6 137.2 129.6 136.5 133.0
Gulf of Mexico 143.4 140.2 127.5 138.5 121.0
All rigs 168.4 169.2 153.5 170.9 156.3
OPERATIONS COSTS AND EXPENSES (in millions):
Personnel (a) $141.7 $129.0 $111.4 $537.7 $443.0
Repairs and maintenance 42.3 45.9 38.0 161.7 143.4
Insurance 8.0 8.0 8.0 32.5 32.7
Rig moves 3.8 4.4 7.2 23.6 30.3
All other 18.3 14.9 19.3 69.7 67.0
---- ---- ----
Subtotal
(excluding
rebillables) $214.1 $202.2 $183.9 $825.2 $716.4
-------------
Rebillables (equally offset with
rebillable revenue) 9.4 9.6 9.9 35.7 35.8
--- --- --- ---- ----
Total $223.5 $211.8 $193.8 $860.9 $752.2
=====
(a) Includes labor, fringes, training, travel and
catering costs.
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SOURCE Rowan Companies plc
