Rowan Companies 8-K Rowan Reports First Quarter 2014 Results

Rowan Reports First Quarter 2014 Results

HOUSTON, May 6, 2014 /PRNewswire/ -- For the three months ended March 31, 2014, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) generated net income from continuing operations of $55.6 million, or $0.45 per share, compared to $68.1 million, or $0.55 per share in the first quarter of 2013. The current quarter reflects a settlement gain related to a rig collision during 2012 which increased net income from continuing operations by $20.9 million, or $0.17 per share. Excluding the impact of this item, net income from continuing operations for the first quarter of 2014 was $34.7 million, or $0.28 per share.

Rowan's revenues were $377.6 million in the first quarter of 2014, down 4% from the prior-year quarter due primarily to slightly lower utilization. Our first quarter 2014 revenues and operating results were significantly impacted by the previously disclosed out-of-service periods for the Gorilla VI and Gorilla VII.

Tom Burke, President and Chief Executive Officer, commented, "We have achieved an exciting milestone, with our first ultra-deepwater drillship operating on rate in Namibia. Our deepwater and project management teams have executed well, and the ship is one of the most capable in the world wide fleet. While we are disappointed with the first quarter's out of service time on two of our higher day rate jack-ups, our entry into deepwater and the corresponding structural earnings growth is on track.

We are in an excellent competitive position due to our high-specification jack-ups and ultra-deepwater drillships, along with our highly skilled drilling crews, even as the industry may face headwinds as new capacity enters the market and displaces older and less capable rigs. We started the year with more than half of our fleet coming off contract during 2014 and we have extended or contracted four rigs at or above their existing rates and expect similar results for the remaining rigs over the balance of the year."

Rowan will conduct its earnings conference call on Tuesday, May 6, 2014, at 10:00 a.m. Central Time. Interested parties are invited to listen to the call by telephone or over the Internet. Individuals who wish to participate on the conference call by telephone may dial (877) 869-3847, or internationally (201) 689-8261. You should dial-in approximately five to 10 minutes prior to the scheduled start time. Alternatively, to access the online simulcast and rebroadcast of the conference call, please visit Rowan's website at www.rowancompanies.com. You should connect to our website at least 15 minutes prior to the conference call to register, and download any necessary software.

Rowan Companies plc is a global provider of international and domestic contract drilling services in the ultra-deepwater and shallow water jack-up market with a fleet of 34 offshore drilling units, including four ultra-deepwater drillships, three of which are currently under construction, and 30 jack-up rigs, 19 of which are rated high-specification. The Company's fleet is located worldwide, including West Africa, the Middle East, the North Sea, Trinidad, Egypt, Southeast Asia and the Gulf of Mexico. Three of the four ultra-deepwater drillships are under three year contracts. 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 www.rowancompanies.com.

Statements herein that are not historical facts are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected business, financial performance and prospects of the Company. These forward-looking statements are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, variations in energy demand, changes in day rates, cancellation by our customers of drilling contracts or letter agreements or letters of intent for drilling contracts or the exercise of early termination provisions, risks associated with fixed cost drilling operations, cost overruns or delays on shipyard repair, construction or transportation of drilling units, maintenance and repair costs, costs or delays for conversion or upgrade projects, operating hazards and equipment failure, risks of collision and damage, casualty losses and limitations on insurance coverage, customer credit and risk of customer bankruptcy, conditions in the general economy and energy industry, weather conditions and severe weather in the Company's operating areas, increasing complexity and costs of compliance with environmental and other laws and regulations, changes in tax laws and interpretations by taxing authorities, changes in tax rates and provisions, civil unrest and instability, terrorism and hostilities in our areas of operations that may result in loss or seizure of assets, the outcome of disputes and legal proceedings, effects of the change in our corporate structure, and other risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission. Each forward-looking statement speaks only as of the date hereof, and the Company expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.

ROWAN  COMPANIES  PLC
CONDENSED  CONSOLIDATED  BALANCE  SHEETS
Unaudited  (In  Millions)
	MARCH 31,	DECEMBER 31,
	2014	2013
ASSETS
Cash and cash equivalents	$    1,440.4	$           1,092.8
Accounts receivable	383.6	344.6
Other current assets	56.3	67.7
Assets of discontinued operations	-	23.8
Total current assets	1,880.3	1,528.9
Property, plant and equipment - net	6,835.3	6,385.8
Other assets	68.5	61.1
TOTAL	$    8,784.1	$           7,975.8
LIABILITIES  AND  STOCKHOLDERS'  EQUITY
Accounts payable	$        100.1	$               124.0
Other current liabilities	199.8	210.5
Liabilities of discontinued operations	-	20.1
Total current liabilities	299.9	354.6
Long-term debt	2,808.0	2,008.7
Other liabilities	719.4	718.7
Stockholders' equity	4,956.8	4,893.8
TOTAL	$    8,784.1	$           7,975.8

ROWAN  COMPANIES  PLC
CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
Unaudited  (In  Millions  Except  Per  Share  Amounts)
			THREE  MONTHS
			ENDED  MARCH  31
			2014	2013
REVENUES			$  377.6	$  394.2
COSTS  AND  EXPENSES:
	Operations		220.3	209.5
	Depreciation and amortization		70.9	64.6
	Selling, general and administrative		29.9	29.4
	(Gain)/loss on disposals of property and equipment		0.8	0.3
	Material charges, settlements and other expenses		(20.9)	-
		Total	301.0	303.8
INCOME  FROM  OPERATIONS			76.6	90.4
Net interest and other income			(20.7)	(19.0)
INCOME  FROM  CONTINUING  OPERATIONS  BEFORE  INCOME  TAXES			55.9	71.4
Provision for income taxes			0.3	3.3
NET  INCOME  FROM  CONTINUING  OPERATIONS			55.6	68.1
Discontinued operations, net of tax			4.0	-
NET  INCOME			$    59.6	$    68.1
PER  SHARE  AMOUNTS:
	Income from continuing operations		$    0.45	$    0.55
	Discontinued operations, net of tax		$    0.03	$           -
	Net income		$    0.48	$    0.55
AVERAGE  DILUTED  SHARES			124.7	124.2

NOTE:  See final table for supplemental operating information.

ROWAN  COMPANIES  PLC
CONDENSED  CONSOLIDATED   STATEMENTS  OF  CASH  FLOWS
Unaudited  (In  Millions)
	THREE  MONTHS
	ENDED  MARCH  31
	2014	2013
CASH  PROVIDED  BY  (USED  IN):
Operations:
Net income	$     ��  59.6	$        68.1
Adjustments  to  reconcile  net  income  to  net
cash  provided  by  operations:
Depreciation  and  amortization	70.9	64.6
Deferred  income  taxes	(1.5)	(0.4)
Gain  on  disposals  of  assets	(1.1)	0.3
Other -  net	6.4	13.8
Net  changes  in  current  assets  and  liabilities	(55.9)	(45.2)
Net  changes  in  other  noncurrent  assets  and  liabilities	2.1	2.0
Net  cash  provided  by  operations	80.5	103.2
Investing  activities:
Property,  plant  and  equipment  additions	(532.5)	(111.9)
Proceeds  from  disposals  of  property,  plant  and  equipment	6.6	2.4
Net  cash  used  in  investing  activities	(525.9)	(109.5)
Financing  activities:
Proceeds from borrowings	792.7	-
Proceeds  from  equity  compensation  plans  and  other	0.3	1.6
Net  cash  provided  by  financing  activities	793.0	1.6
INCREASE (DECREASE)  IN  CASH  AND  CASH  EQUIVALENTS	347.6	(4.7)
CASH  AND  CASH  EQUIVALENTS,  BEGINNING  OF  PERIOD	1,092.8	1,024.0
CASH  AND  CASH  EQUIVALENTS,  END  OF  PERIOD	$  1,440.4	$  1,019.3

ROWAN  COMPANIES  PLC
SUPPLEMENTAL  OPERATING  INFORMATION
Unaudited
			THREE  MONTHS  ENDED
			March 31,	December 31,	March 31,
			2014	2013	2013
RIG  DAYS:
	Operating		2,153	2,279	2,230
	Out of service (shipyard/transit/inspections/other)		344	267	260
	Operational downtime (off rate during rig operations)		23	30	30
	Cold stacked		180	184	270
		Total available	2,700	2,760	2,790
		Utilization	80%	83%	80%
		Utilization (excluding cold-stacked rigs)	85%	88%	88%
AVERAGE  DAY  RATES  (in  thousands):
	North Sea		$       273.6	$               284.0	$      267.2
	Middle East		136.0	135.6	135.4
	Gulf of Mexico		153.6	143.4	132.5
	All rigs		171.4	168.4	173.2
OPERATIONS  COSTS  AND  EXPENSES  (in  millions):
	Personnel (a)		$       138.3	$               141.7	$      128.8
	Repairs and maintenance		40.8	42.3	38.0
	Insurance		7.8	8.0	8.3
	Rig moves		3.8	3.8	7.4
	All other		21.2	18.3	19.2
		Subtotal (excluding rebillables)	$       211.9	$               214.1	$      201.7
	Rebillables (equally offset with rebillable revenue)		8.4	9.4	7.8
		Total	$       220.3	$               223.5	$      209.5
		(a)  Includes labor, fringes, training, travel and catering costs.

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

CONTACT: Suzanne M. Spera, Director, Investor Relations, (713) 960-7517, sspera@rowancompanies.com