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TheStreet Open House

Rowan Provides Fleet Contract Status Update

Stock quotes in this article: RDC

HOUSTON, May 27, 2014 /PRNewswire/ -- Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced today that its monthly report of drilling rig status and contract information has been updated as of May 27, 2014.  The report titled "Monthly Fleet Status Report" can be found on the Company's website at www.rowancompanies.com.

Rowan Companies plc

Notable events in the current report include:

  • Rowan Renaissance :  The rig began experiencing issues with its subsea systems on May 19, 2014.  The Company is working to rectify these issues and expects the rig to resume normal operations by the beginning of June 2014.  During this period the Company may incur some amount of unbillable operational downtime.
  • Joe Douglas :  Awarded an estimated 90-day contract with Freeport-McMoRan Oil & Gas in the Gulf of Mexico commencing May 2014 at a day rate of $165,000, which is above the previous day rate of $160,000.
  • Rowan Gorilla VII :  Awarded a 220-day extension with Apache in the UK sector of the North Sea commencing in November 2014 at a day rate of $280,000, which is no change from the current day rate.
  • Rowan Gorilla II :  Extended contract for approximately 120 days with Pertamina in Indonesia with no change from the previous day rate.

For the second quarter and full-year of 2014, the Company expects jack-up out-of-service time to be approximately 10% and 7-9%, respectively.  No operational downtime is included in projected out-of-service days, but the Company estimates jack-up operational downtime to account for approximately 2.5% of in-service days in current and future quarters.  Except for the out-of-service days specified in the Monthly Fleet Status Report for the Rowan Renaissance, the Company does not currently expect any further drillship out-of-service days in 2014, and continues to expect operational downtime to be approximately 5% after a break-in period of approximately six months up to one year when operational downtime could be somewhat higher.

Out-of-service days include days for which no revenues are recognized other than operational downtime and cold-stacked days.  The Company may be compensated for certain out-of-service days, such as for shipyard stays or for transit periods preceding a contract.  However, recognition of any such compensation received is deferred and recognized over the period of drilling operations.  Operational downtime is when a rig is under contract and unable to conduct planned operations due to equipment breakdowns or procedural failures.  

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