LONDON, UK / ACCESSWIRE / January 08, 2018 / Active-Investors.com has just released a free research report on Rowan Cos. PLC (NYSE: RDC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RDC as the Company's latest news hit the wire. On January 05, 2018, the Company announced that it has completed the acquisition of two LeTourneau Super 116E jack-up rigs, the P-59, and P-60 from a subsidiary of Petroleo Brasileiro S.A. (Petrobras). The Company bagged the two jack-up rigs via a public auction for $38.5 million each. These acquisitions will allow the Company to increase its earning capacity and generate higher cash flows. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Rowan most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Highlights of the acquisition

The Company had participated in the Petrobras public rig auction for the two 2013 built P-59 and P-60 LeTourneau Super 116E jack-up rigs, the results of which were declared in May 2017. The Company was the highest bidder with a bid price of $30 million per rig. However, Petrobras was not willing to complete the sale at this low price. Later, both companies came together for negotiations to finalize a mutually acceptable price for these two rigs. Both companies locked the final price at $38.5 million per rig. Currently both these rigs are at a location in Brazil and the Company plans to mobilize them to reach the Middle-East before end of Q1 2018.

Additionally, the Company announced that it has sold the Cecil Provine rig as scrap in November 2017 and that it has cold-stacked the Gorilla IV after the completion of its latest contract.

Commenting on the acquisition and changes to its fleet of drilling units, Tom Burke, President and CEO of Rowan Cos. Said:

"We consider this purchase an opportunistic investment, made near a cyclical low, at a highly attractive price. Since mid-2015 we have divested five older jack-ups (Rowan Louisiana, Rowan Juneau, Rowan Alaska, Rowan Gorilla II and Rowan Gorilla III). The addition of these two modern rigs will help renew the Rowan fleet and increase the Company's future earnings capability. We are very familiar with the design and construction of these rigs. We are confident in our ability to integrate these jack-ups into our existing fleet to generate strong financial returns from this investment and deliver safe, efficient and reliable operations to our customers."

Acquisition part of Rowan Cos.' long-term business strategy

The acquisition makes great business sense for Rowan Cos. as it strengthens its presence in the Middle-East. The Company had launched ARO Drilling, a 50:50 joint venture with Saudi Arabian Oil Company (Saudi Aramco) in October 2017. The JV Company started off operations with purchase of four rigs, three from Rowan Cos. and one from Saudi Aramco. As per the terms of the agreement, the JV Company plans to acquire one jack-up rig from Saudi Aramco in 2017 and two jack-up rigs from Rowan after they complete their current contracts in late 2018.

The Company has noticed that the demand for offshore drilling services is slowly recovering and the opportunities to contract rigs have shown marginal improvements in recent months. However, the current offshore rig market continues to remain competitive given the current offshore rig supply and demand dynamics. The Company expects the situation to continue for some time till the recovery of the offshore rig market is more pronounced.

While announcing its Q3 217 results in November 2017, the Company had revealed its plans to be strategically well-positioned to take advantage of the next up-cycle and therefore be equipped with a modern fleet of high-specification jack-ups and state-of-the-art ultra-deepwater drillships. The Company planned to face the challenging business environment by focusing on improving operational efficiencies, cost-cutting measures, upgradation of systems and data analytics to drive improved drilling performance, and predictive maintenance.

About Rowan Cos., Inc.

Houston, Texas-based Rowan Cos. is a global provider of offshore contract drilling services. It has a fleet of 27 mobile offshore drilling units, including 23 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company's operations are spread across US Gulf of Mexico, UK, and Norwegian sectors of the North Sea, Middle-East, and Trinidad. The Company has 50:50 partnership with Saudi Aramco in JV Company ARO Drilling. ARO Drilling currently owns a fleet of five self-elevating jack-up rigs that operate in the Arabian Gulf.

Stock Performance Snapshot

January 05, 2018 - At Friday's closing bell, Rowan's stock slightly fell 0.76%, ending the trading session at $17.07.

Volume traded for the day: 2.14 million shares.

Stock performance in the last month ? up 13.35%; previous three-month period ? up 31.11%; past six-month period ? up 73.30%; and year-to-date - up 9.00%

After last Friday's close, Rowan's market cap was at $2.15 billion.

The stock is part of the Basic Materials sector, categorized under the Oil & Gas Drilling & Exploration industry. This sector was up 0.2% at the end of the session.

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