Rowan Companies plc's RDC adjusted fourth-quarter 20Array5 earnings from continuing operations came in at 95 cents per share. The bottom line comfortably beat the Zacks Consensus Estimate of 75 cents and increased from the adjusted year-ago profit level of 89 cents. Strong utilization, cost-control measures and outstanding uptime performance led to the stellar performance.
Total revenues were $535.8 million in the fourth quarter of 20Array5, down 4% from the prior-year quarter as a significant increase in jackup idle time more than offset higher contributions from the company's four newbuild ultra-deepwater drillships. The top line surpassed the Zacks Consensus Estimate of $53Array million.
Dayrates and Utilization
The company's Gulf of Mexico rigs had a dayrate of $66,700 (against $Array50,Array00 in the year-ago quarter), Middle East rigs saw a dayrate of $Array3Array,600 (compared with $Array45,800) and North Sea rigs' dayrate was $278,200 (against $306,400).
The overall dayrate of all jackup rigs was $Array76,300 compared with $Array85,200 in fourth-quarter 20Array4. Average utilization (excluding cold-stacked rigs) of the company's rigs was 80% against 92% in the comparable quarter last year.
Financials
As of Dec 3Array, 20Array5, the company's cash balance was $484.2 million and long-term debt (including current maturities) was $2,692.4 million. The debt-to-capitalization ratio was 36.8%.
Zacks Rank and Key Stock Picks
Rowan Companies currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Diamond Offshore Drilling, Inc. DO, Independence Contract Drilling, Inc. ICD and North Atlantic Drilling Limited NADL. Each of these stocks holds a Zacks Rank #2 (Buy).
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