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Rowan provides fleet contract status update

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Oilfield Technology,

Rowan Companies plc has announced that its report of drilling rig status and contract information has been updated as of January 20, 2016. The report titled 'Fleet Status Report' can be found on the Company's website at Rowan. Rowan intends to provide quarterly updates to this report in 2016.

Notable events in the current report include:

  • Joe Douglas: Awarded a 300-day estimated contract with BP in Trinidad at a dayrate of US$157 000 commencing around August 1, following scheduled time in the shipyard.
  • Rowan Louisiana: Rig was sold in Q4 2015.
  • Rowan Gorilla III: Rig is Cold Stacked.
  • 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. Rowan continues to expect drillship operational downtime to be approximately 5% after a break-in period of approximately six months up to one year (during which drillship operational downtime will likely be higher).

    Out-of-service days

    Out-of-service days are days where a rig is (or is planned to be) out-of-service and is not able to earn revenue. The company may be compensated for certain out-of-service days such as shipyard stays or transit periods preceding a contract. However, any such compensation is deferred and recognised 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.

    Day rates

    Unless otherwise indicated, all day rates on the fleet status include estimated amortisation of contract mobilisation/modification revenues. However, day rates exclude approximately US$20 to US$30 million of other miscellaneous aggregate annual revenue the company receives during rig operations (or approximately US$5 to US$8 million per quarter). Day rates also exclude rebillable revenues which are equally offset by drilling expenses.

    This summary is provided as a courtesy and is not intended to replace a detailed review of the Fleet Status Report. While the company has attempted to include items it believes are significant, it encourages readers to review the Fleet Status Report in detail.

    Rowan is a global provider of contract drilling services with a fleet of 31 mobile offshore drilling units, composed of 27 self-elevating jack-up rigs and four ultra-deepwater drillships. The company's fleet operates worldwide, including the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, Southeast Asia and Trinidad. The company's Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol "RDC." For more information on the company, please visit Rowan

    Adapted from a press release by Louise Mulhall

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