Houston-based drilling contractor Rowan (NYSE: RDC) had quite a bit to celebrate today.
In their Q2 earnings report, they announced a $32 million (63 percent) jump in quarterly net income as compared to the same period last year. Rowan notes revenues were $408.9 million in the second quarter of 2013, a 16% increase over the prior-year quarter due primarily to higher average day rates and higher utilization between periods.
In addition, they signed a 3-year, $660 million contract with Cobalt International Energy (NYSE: CIE) for the Rowan Reliance, an ultra-deepwater drillship currently under construction at Hyundai Heavy Industries (HHI).
Rowan notes that the Rowan Reliance is expected to operate in the Gulf of Mexico upon commencement of its contract in January 2015. The effective day rate will be $602,000.
Matt Ralls, Chief Executive Officer, commented, “In addition to our strong second quarter operating results, we are very pleased to have recently received contracts for our second and third ultra-deepwater newbuild drillships at attractive rates. Our backlog is at an all-time high and we are optimistic that we will have our fourth newbuild drillship contracted in the coming months. Our high-spec jack-ups continue to roll over to new contracts at higher rates, which along with earnings from our newbuild drillships should provide strong earnings growth in 2014 and 2015.”
The Rowan Reliance is one of four ultra-deepwater drillships being constructed for Rowan by HHI. All four drillships are based on a GustoMSC P10,000 hull design, capable of drilling wells to depths of 40,000 feet in water depths up to 12,000 feet. The DP-3-compliant, dynamically positioned drillship will be equipped with retractable thrusters, two readily deployable seven-ram BOP systems, five mud pumps, dual mud systems and a maximum hookload capacity of 1,250 tons.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 108,854 members that receive our newsletter.
Have a news tip? Let us know.
Equinor and its partners have discovered gas and condensate in the Mistral Sør exploration well in the Norwegian Sea’s Halten area, marking another significant find in the region’s growing energy...
The frequency of cable incidents in the Baltic Sea has been "exceptional" in recent years, but state actors have more effective ways of performing underwater sabotage than by dragging anchors, Finland's intelligence service chief said.
U.S. President Donald Trump is expected to decide on Monday what levels of tariffs he will impose early on Tuesday on Canada and Mexico amid last-minute negotiations over border security and efforts to halt the inflow of fentanyl opioids.
Maritime and offshore news trusted by our 108,854 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
