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Rowan Provides Fleet Contract Status Update

Stocks in this article: RDC

HOUSTON, Aug. 25, 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 August 25, 2014.  The report titled "Monthly Fleet Status Report" can be found on the Company's website at www.rowancompanies.com.

Logo - http://photos.prnewswire.com/prnh/20120827/DA62568LOGO

Notable events in the current report include:

  • Gorilla IV : Awarded 60 day contract with ExxonMobil in the Gulf of Mexico commencing at the beginning of November 2014 at $200,000 per day.
  • Joe Douglas : Awarded extension for an estimated 120 days with Freeport-McMoRan Oil & Gas in the Gulf of Mexico at current day rate of $165,000.
  • Cecil Provine: Awarded extension for an estimated 60 days with Fieldwood Energy in the Gulf of Mexico commencing early September 2014 at $130,000 per day, above the previous day rate of $125,000.
  • Rowan Stavanger: In lieu of previously scheduled 90 day accommodation work with Talisman in the Norwegian sector of the North Sea, awarded seven month contract with the same customer in the U.K. sector commencing the beginning of September 2014 at a day rate of $225,000.
  • Rowan Viking : Rig received its Acknowledgement of Compliance (AoC) from the Norwegian Petroleum Safety Authority and departed the shipyard late August 2014. Increased shipyard off rate time by 8 days to 54 days during 3Q 2014.
  • Hank Boswell : Reduced 3Q 2014 off rate time by 20 days to 8 days for previously scheduled inspections.
  • Rowan Gorilla VI: Increased shipyard off rate time by 19 days to 62 days due to completion of equipment commissioning during 3Q 2014 and expect the rig to resume operations at the end of August 2014.
  • Charles Rowan : Previously scheduled 25 days off rate for inspections to occur during 1Q 2015 instead of 4Q 2014.
  • Rowan Middletown: Previously scheduled 30 days off rate time for inspections to occur during 1Q 2015 instead of 4Q 2014.
  • For the third quarter and full-year of 2014, the Company expects jack-up out-of-service time to be approximately 8% and 9-10%, respectively.
  • To provide more visibility, out-of-service time through 2015 has been included on the Monthly Fleet Status Report. The Company expects out-of service time for the full-year of 2015 to be approximately 3-6%, inclusive of jack-ups and drillships.

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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