Rowan Profit Jumps - Update

(RTTNews) - Energy services provider Rowan Cos. plc (RDC) Tuesday reported a better-than-expected surge in second-quarter profit, backed by higher revenues and gains from the sale of a jack-up rig.

Moving forward, the company said it has received lucrative contracts for its second and third ultra-deepwater newbuild drillships.

"Our high-spec jack-ups continue to roll over to new contracts at higher rates, which along with earnings from our newbuild drillships should provide strong earnings growth in 2014 and 2015," said CEO Matt Ralls.

Rowan provides offshore oil and gas contract drilling services.

The Houston, Texas-based company posted quarterly net income of $83 million or $0.67 per share, compared with $49 million or $0.40 per share last year.

Results for the recent quarter included a $12.5 million after-tax gain, or $0.10 per share, on the sale of a 116-C class jack-up rig.

Excluding items, adjusted earnings for the quarter were $70 million or $0.57 per share.

On average, 38 analysts polled by Thomson Reuters expected earnings of $0.56 for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 16 percent to $409 million from $351 million a year ago, due to higher average day rates and utilization. Analysts expected revenue of $399.62 million for the quarter.

The company's stock is trading at $36.00, up $0.96 or 2.74%, on a volume of 1.4 million shares on the NYSE.