Rowan Reports Third Quarter 2012 Operating Results

              Rowan Reports Third Quarter 2012 Operating Results

PR Newswire

HOUSTON, Oct. 31, 2012

HOUSTON, Oct. 31, 2012 /PRNewswire/ --For the three months ended September
30, 2012, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) generated
net income from continuing operations of $26.4 million or $0.21 per share,
compared to $31.4 million or $0.25 per share in the third quarter of 2011.

(Logo: http://photos.prnewswire.com/prnh/20120827/DA62568LOGO)

Net income from continuing operations during the third quarter of 2012
included $28.1 million of non-recurring or unusual items, or $0.18 per share
after tax, including costs associated with early redemption of MARAD debt,
repairs to the EXL I due to a tanker collision, equity compensation charges
related to a retiring executive, settlement costs related to the Company's
frozen manufacturing pension plan and certain corporate redomestication costs,
net of gains on asset disposals. Excluding such items, net income from
continuing operations was $48.8 million or $0.39 per share during the third
quarter of 2012.

The third quarter results also reflect additional tax expense related to an
increase in the Company's full year 2012 estimated tax rate primarily due to
adjustments related to the completion of its 2011 U.S. federal tax return and
changes to projected foreign and domestic earnings. The full-year effective
tax rate for continuing operations is now projected to be 2%, up from the 6%
credit projected at the end of the second quarter, which resulted in increased
tax expense in the third quarter of $10.6 million, or $0.09 per share.

Net income totaled $27.6 million or $0.22 per share in the third quarter of
2012, compared to $193.8 million or $1.53 per share in the third quarter of
2011, as the prior year quarter included income from discontinued
manufacturing and land drilling operations of $162.4 million or $1.28 per
share, including the after-tax gain on the sale of land drilling operations of
$155.0 million.

Rowan's revenues were $353.9 million in the third quarter of 2012, up 51% over
the prior-year quarter due primarily to incremental activity from fleet
additions and higher utilization and day rates for existing rigs between
periods. The Company's operating income was $59.3 million in the third
quarter of 2012, up 86% over the prior-year quarter.

Matt Ralls, President and Chief Executive Officer, commented, "While our
operating revenues and earnings for the third quarter were generally in line
with analysts' expectations, a number of non-recurring or unusual items
negatively impacted our net income. As we look ahead to coming quarters, we
see several positive factors. We have nine jack-ups in our active fleet with
contract expirations in the next three quarters, and we expect all of those
rigs to move to contracts at higher day rates. We also expect our days off
rate due to shipyard, transit and inspection time to trend lower in the fourth
quarter of this year and in 2013. Finally, for our three uncontracted
remaining ultra-deepwater drillships, we continue to have serious discussions
with multiple customers for long term contracts at day rates that are
consistent with those recently announced for other high-end drillships."

Rowan will conduct its earnings conference call on Wednesday, October 31,
2012, at 10:00 a.m. Central Daylight 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 can 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, download and install any
necessary software.

Rowan Companies plc is a major provider of international and domestic contract
drilling services with a leading position in high-specification jack-up rigs.
The Company's fleet of 31 jack-up rigs is located worldwide, including the
Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico.
Rowan will enter the ultra-deepwater market with four high-specification
drillships expected to be delivered starting in late 2013. 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 or transportation of
rigs, 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, 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)
                                     SEPTEMBER 30,      DECEMBER 31,
                                     2012                2011
ASSETS
Cash and cash equivalents            $      328.3   $     
                                                         438.9
Accounts receivable                  403.5               283.6
Other current assets                 107.8               71.6
Assets of discontinued operations    26.9                27.6
 Total current assets            866.5               821.7
Property, plant and equipment - net  6,021.9             5,678.7
Other assets                         100.4               97.4
 TOTAL                           $    6,988.8     $   
                                                         6,597.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term      $           $      
debt                                  -                45.0
Accounts payable                     90.1                111.1
Other current liabilities            138.3               167.3
Liabilities of discontinued          21.3                25.0
operations
 Total current liabilities       249.7               348.4
Long-term debt                       1,393.1             1,089.3
Other liabilities                    867.7               834.1
Stockholders' equity                 4,478.3             4,326.0
 TOTAL                           $    6,988.8     $   
                                                         6,597.8







ROWAN COMPANIES plc

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited (In Millions Except Per Share Amounts)
                                    THREE MONTHS       NINE MONTHS
                                    ENDED SEPTEMBER   ENDED SEPTEMBER 30
                                    30
                                    2012      2011      2012          2011
REVENUES                            $ 353.9  $ 234.7  $ 1,038.4    $ 664.2
COSTS AND EXPENSES:
  Operations                        188.2     129.8     558.4         345.6
  Depreciation and amortization     63.0      50.3      183.3         129.3
  Selling, general and              25.8      22.6      73.9          65.2
  administrative
  Gain on disposals of property     (0.6)     -         (2.6)         (1.4)
  and equipment
  Material charges and other        18.2      -         30.9          6.1
  expenses
         Total                      294.6     202.7     843.9         544.8
INCOME FROM OPERATIONS            59.3      32.0      194.5         119.4
Net interest and other income       (24.4)    (4.4)     (58.9)        (17.8)
INCOME FROM CONTINUING           34.9      27.6      135.6         101.6
OPERATIONS BEFORE INCOME TAXES
Provision (credit) for income taxes 8.5       (3.8)     2.9           (1.0)
NET INCOME FROM CONTINUING      26.4      31.4      132.7         102.6
OPERATIONS
Discontinued operations, net of     1.2       162.4     (6.2)         589.1
tax
NET INCOME                         $       $ 193.8  $   126.5  $ 691.7
                                    27.6
PER SHARE AMOUNTS:
  Income from continuing            $       $       $          $  
  operations                        0.21      0.25      1.07         0.81
  Discontinued operations, net of   $       $       $           $  
  tax                               0.01      1.28      (0.05)       4.64
  Net income                        $       $       $          $  
                                    0.22      1.53      1.02         5.45
AVERAGE DILUTED SHARES            124.0     126.4     123.8         127.0





ROWAN COMPANIES plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited (In Millions)
                                                  NINE MONTHS
                                                  ENDED SEPTEMBER 30
                                                  2012           2011
CASH PROVIDED BY (USED IN):
 Operations:
 Net income                                  $    126.5  $    691.7
 Adjustments to reconcile net income
to net
 cash provided by operations:
 Depreciation and amortization          183.3          150.2
 Deferred income taxes                  (5.1)          (30.9)
 Gain on disposals of assets          (2.7)          (881.2)
 Other - net                             6.8            (29.0)
 Net changes in current assets and     (129.2)        190.6
liabilities
 Net changes in other noncurrent        9.9            36.6
assets and liabilities
 Net cash provided by operations            189.5          128.0
 Investing activities:
 Property, plant and equipment           (566.1)        (1,155.1)
additions
 Proceeds from disposals of property,   10.6           5.5
plant and equipment
 Proceeds from sale of manufacturing    -              1,560.5
operations - net
 Change in Restricted cash                -              15.3
 Net cash provided by (used in)            (555.5)        426.2
investing activities
 Financing activities:
 Proceeds from borrowings                    492.6          -
 Repayments of borrowings                  (238.5)        (38.4)
 Proceeds from equity compensation       1.3            20.2
plans and other
 Payments to acquire treasury stock                         (80.9)
 Net cash provided by (used in)           255.4          (99.1)
financing activities
INCREASE (DECREASE) IN CASH AND CASH         (110.6)        455.1
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF     438.9          437.5
PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD    $    328.3  $    892.6



ROWAN COMPANIES plc

SUPPLEMENTAL OPERATING INFORMATION

Unaudited
                            THREE MONTHS ENDED           NINE MONTHS ENDED
                            Sept 30,  June 30,  Sept 30,   Sept 30,   Sept 30,
                            2012      2012      2011       2012       2011
RIG DAYS:
   Operating                2,130     2,217     1,576      6,435      4,721
   Shipyard / transit       401       313       694        1,014      1,754
   Stacked and other        321       291       306        1,000      758
   downtime
       Total available      2,852     2,821     2,576      8,449      7,233
       Utilization          75%       79%       61%        76%        65%
AVERAGE DAY RATES (in
thousands):
   North Sea                $ 250.2  $ 234.5  $ 224.9   $  237.5  $ 204.9
   Middle East              129.3     130.8     125.4      134.3      125.9
   Gulf of Mexico           120.4     119.1     115.8      119.0      117.7
   All rigs                 161.5     154.0     148.5      157.3      139.3
OPERATIONS COSTS AND
EXPENSES (in millions):
   Personnel (a)            $ 112.8  $ 113.9  $  74.3  $ 331.6    $ 197.6
   Repairs and maintenance  34.5      32.3      32.0       105.4      75.4
   Insurance                8.6       8.1       7.3        24.7       22.8
   Rig moves                6.3       8.4       3.0        22.1       13.3
   Rebillables (b)          9.8       9.5       1.5        25.8       6.7
   All other                16.2      15.9      11.7       48.8       29.8
       Total                $ 188.2  $ 188.1  $ 129.8   $  558.4  $ 345.6



(a) Includes labor, fringes, training, travel and catering costs.
(b) Amounts are fully offset by incremental revenues.



SOURCE Rowan Companies plc

Website: http://www.rowancompanies.com
Contact: Suzanne M. Spera, Director of Investor Relations, +1-713-960-7517,
sspera@rowancompanies.com
 
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