NEW YORK (TheStreet) -- Rowan Companies (RDC) was gaining 0.7% to $31.94 Friday after signing a two-year drilling contract in the Gulf of Mexico with a subsidiary of Freeport-McMoRan Copper & Gold (FCX).
The contract is for the Rowan Relentless, the fourth and final drillship in Rowan's current construction program. The contract is expected to start in the third quarter of 2015, and will add about $425 million to Rowan's current contract backlog.
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TheStreet Ratings team rates ROWAN COMPANIES PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROWAN COMPANIES PLC (RDC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: