Rowan Q3 Profit Surges - Update

(RTTNews) - Rowan Companies Plc (RDC) Wednesday reported a surge in third-quarter profit, as revenues jumped reflecting higher rig rates and the launch of its first ultra-deepwater drillship, and as well on a hefty tax benefit. Both earnings and revenues for the quarter topped analysts' estimates.

The Houston, Texas-based contract driller's third-quarter profit rose to $119.6 million or $0.96 per share from $51.9 million or $0.42 per share last year.

Results for the third-quarter included a tax benefit of $41 million. Excluding the benefit, earnings were $78.6 million or $0.63 per share, trumping analysts' average estimate of $0.54 per share. Analysts estimates typically exclude one-time items.

Revenues for the third quarter grew 22 percent to $467.7 million from $382.8 million last year. Analysts had a consensus revenue estimate of $465.42 million for the quarter. The company credited the revenue growth to the commencement of its first ultra-deepwater drillship and less out-of-service time for jack-up rigs.

The average daily rate for jackup rigs rose to $174,300 from $169,200 last year, while the average daily rate for its drillship was $660,200. Fleet utilization rate rose to 84 percent from 80 percent last year.

CEO Tom Burke said, "During the quarter we added $1.2 billion of new contract backlog, principally from four jack-up contract extensions with Saudi Aramco. Our second newbuild ultra-deepwater drillship, the Rowan Resolute commenced operations in the US Gulf of Mexico in October and we will take delivery of our third newbuild drillship, the Rowan Reliance, in Korea this week."

Moving ahead, the company expects revenue to increase in 2015 as new drillships are added to its fleet.

RDC is currently trading at $23.73, up $0.88 or 3.85%, on the NYSE.