Rowan Companies plc RDC released the updated drilling rig status and contract information report as of Oct 14, 2015.
Per the report, the Rowan Renaissance rig started drilling operations in the U.S. Gulf of Mexico (GoM) on Sep 8, 2015. Rowan Gorilla IV received an extension of 300-days in the U.S. GoM, which is a direct continuation of the previous contract. Depending on the location, the dayrate for each well of the contract will be either $70,000 or $75,000. The rig, Joe Douglas, also began operations in Trinidad on Sep 28, 2015.However, the rigs – Cecil Provine and Gorilla II – have been cold stacked.
Subject to fleet repositioning and market conditions, Rowan reiterated its estimated planned out-of-service time for full-year 2015 in the range of 3% to 6% for its jack-ups and drillships.
Rowan provides international and domestic contract drilling and aviation services. It also operates a mini-steel mill, a manufacturing facility that produces heavy equipment for the mining, timber and transportation industries. Moreover, the company is in charge of a drilling products group that designs or builds about one third of all mobile offshore jackup drilling rigs.
The company's fleet of 30 jackup rigs is spread worldwide including the Middle East, the North Sea, Trinidad, Southeast Asia and the GoM. Rowan’s deep focus on high-spec resources, along with impending tendering activities for multi-year drilling programs in key markets such as the North Sea, Southeast Asia, Australia and Saudi Arabia, will likely support the requirement of high-spec units.
Rowan carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS, Matrix Service Company MTRX and ReneSola Ltd SOL. All these stocks sport a Zacks Rank #1 (Strong Buy).
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