Rowan Q4 Adj. Profit Matches Estimates, Revenues Beat

(RTTNews) - Contract driller Rowan Companies Plc (RDC) on Friday reported a loss for the fourth quarter as strong revenue growth was more than offset by higher impairment charges. However, adjusted earnings per share for the quarter matched analysts' expectations, while revenues beat their estimates.

The Houston, Texas-based company's net loss for the fourth quarter was $326.9 million or $2.63 per share, compared to net income of $49.7 million or $0.40 per share last year.

The latest quarter includes a non-cash asset impairment charge of $438.4 million, after tax, or $3.53 per share, relating to twelve of the company's oldest jack-up rigs. The prior-year period's results included a non-cash asset impairment charge of $2.9 million, after tax, or $0.02 per share.

Excluding the charges, adjusted earnings for the latest quarter were $0.89 per share, compared to $0.42 per share in the year-ago quarter. On average, thirty analysts polled by Thomson Reuters expected the company to report earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew 41 percent to $556.2 million from $393.4 million in the same period last year. Analysts had a consensus revenue estimate of $529.90 million for the quarter.

The increase in revenues for the quarter was due primarily to the commencement of two of the company's newbuild ultra-deepwater drillships, less out-of-service time for jack-up rigs, and slightly higher average day rates.

Total costs and expenses for the quarter rose to $968.0 million from $332.9 million in the year-ago period.

The average daily rate for jackup rigs in the quarter rose to $185,200 from $168,400 last year, while the average daily rate for drillships was $658,600. Fleet utilization rate rose to 86 percent from 83 percent last year.

Looking ahead, Tom Burke, President and Chief Executive Officer, said, "We believe that with our high-specification assets, strong operational performance, continued cost control focus and financial strength, we are in a good position to weather the current downturn in our industry."

RDC is currently trading at $20.70, up $0.01 or 0.05 percent on a volume of 72,725 shares.