HOUSTON, Feb. 27, 2019
/PRNewswire/ -- For the quarter ended December 31, 2018,
Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) reported
a net loss of $14.3 million, or
$0.11 net loss per diluted share,
compared to net income of $112.0
million, or $0.89 net income
per diluted share, in the fourth quarter of 2017. The net loss for
the current quarter included a $65.8
million (after tax), or $0.52
per diluted share, gain on the sale of rigs to ARO Drilling and a
$68.4 million tax benefit, or
$0.54 per diluted share, related to
the release of valuation allowance on the Company's net U.S.
deferred tax assets. The net income for the prior-year quarter
included a $151.7 million (after
tax), or $1.18 per diluted share,
gain on the sale of rigs and related assets to ARO Drilling.
Logo -
https://mma.prnewswire.com/media/720386/Rowan_Companies_Logo.jpg
ARO Drilling, of which Rowan owns 50%, generated revenue and net
income of $130.5 million and
$13.6 million, respectively, for the
quarter ended December 31, 2018, compared to $48.6 million and $1.7
million, respectively, for the period October 17, 2017 to December 31, 2017. ARO Drilling's financial
information is included in this release.
Tom Burke, President and Chief
Executive Officer, commented, "The oil markets experienced a high
level of volatility at the end of last year, but have since staged
a moderate recovery so far in 2019. Despite the market
volatility, Rowan has been awarded a number of new drilling
contracts and extensions, both for our drillships and jack-up rigs,
which we believe reflects on our high-quality assets and
operational performance. As we look forward to 2019, we are
cautiously optimistic that oil market stability at current levels
will be supportive of improvements in overall offshore rig
demand."
Dr. Burke adds, "We are excited about our pending combination
with Ensco, which received shareholder approval last week.
The new company will be ideally positioned to benefit from the
anticipated long-term improvements in offshore rig demand, with
many of the best assets in the industry and a global reach to
customers, while also benefiting from the substantial cost
synergies that are only available as a combined entity."
Rowan will conduct its earnings conference call on Wednesday, February 27, 2019, 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 (833) 241-4252, or internationally (647)
689-4203. The conference ID is 7971778. 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.rowan.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 is a global provider of contract drilling services to the
oil and gas industry with a fleet of 25 mobile offshore drilling
units, comprised of 21 self-elevating jack-up rigs and four
ultra-deepwater drillships. The Company's fleet operates worldwide,
including the United States Gulf of Mexico, Mexico, the United
Kingdom and Norwegian sectors of the North Sea, the
Middle East, the Mediterranean Sea
and Central and South America.
Additionally, the Company is a 50/50 partner in a joint venture
with Saudi Aramco, named ARO Drilling, that owns a fleet of seven
self-elevating jack-up rigs that are contracted in the Arabian
Gulf. Rowan'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.rowan.com.
Forward-Looking Statements
Statements included in
this document regarding the expectations, beliefs and
future expected business, financial and operating performance and
prospects of Rowan, commodity prices, market conditions, the
capital budgets of customers, the proposed transaction, between
Ensco plc ("Ensco") and Rowan, including benefits, expected
synergies and other expense savings and operational and
administrative efficiencies, opportunities, timing, expense and
effects of the transaction, financial performance, accretion to
cash flows, revenue growth, credit ratings or other attributes of
Ensco plc following the completion of the transaction and other
statements that are not historical facts, are forward-looking
statements (including within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended (the "Securities Act")).
Forward-looking statements include words or phrases such as
"anticipate,' "believe," "contemplate," "estimate," "expect,"
"intend," "plan," "project," "could," "may," "might," "should,"
"will" and words and phrases of similar import. These
statements involve risks and uncertainties including, but not
limited to, oil and natural gas prices and the impact of the
economic climate, changes in the offshore drilling market,
including fluctuations in supply and demand, variable levels of
drilling activity and expenditures in the energy industry,
actions by regulatory authorities, rating agencies or other
third parties, actions by the respective companies' security
holders, costs and difficulties related to integration of Ensco and
Rowan, delays, costs and difficulties related to the transaction,
market conditions, and Ensco's financial results and performance
following the completion of the transaction, satisfaction of
closing conditions, ability to repay debt and timing thereof,
availability and terms of any financing and other factors detailed
in the risk factors section and elsewhere in Ensco's and Rowan's
Annual Report on Form 10-K for the year ended December 31, 2017 and their respective other
filings with the Securities and Exchange Commission (the "SEC"),
which are available on the SEC's website at www.sec.gov.
Should one or more of these risks or uncertainties materialize (or
the other consequences of such a development worsen), or should
underlying assumptions prove incorrect, actual outcomes may vary
materially from those forecasted or expected. All information
in this document is as of today. Except as required by law,
both Ensco and Rowan disclaim any intention or obligation to update
publicly or revise such statements, whether as a result
of new information, future events or otherwise.
Non-GAAP Measures
We report our financial results in
accordance with generally accepted accounting principles (GAAP) in
the United States. However, in our
earnings release and during our earnings calls we may reference
company information that does not conform to GAAP. Generally, a
non-GAAP financial measure is a numerical measure of a company's
performance, financial position, or cash flows that excludes or
includes amounts that are not normally excluded or included in the
most directly comparable measure calculated and presented in
accordance with GAAP. Management believes that an analysis of this
data is meaningful to investors because it provides insight with
respect to ongoing operating results of the Company and allows
investors to better evaluate the financial results of the Company.
However, these measures should not be viewed as an alternative to
or substitute for GAAP measures of performance, and these non-GAAP
measures may not be consistent with previously published Company
reports on Forms 10-K, 10-Q and 8-K. Non-GAAP measures we may
reference have been reconciled to the nearest GAAP measure in the
tables entitled Reconciliation of GAAP to Non-GAAP Financial
Measures below.
ROWAN COMPANIES
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In millions, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
REVENUE
|
$
|
179.4
|
|
|
$
|
296.7
|
|
|
$
|
824.8
|
|
|
$
|
1,282.8
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Direct operating
costs (excluding items below)
|
166.7
|
|
|
176.2
|
|
|
682.7
|
|
|
685.0
|
|
Depreciation and
amortization
|
94.6
|
|
|
99.7
|
|
|
388.9
|
|
|
403.7
|
|
Selling, general and
administrative
|
20.0
|
|
|
33.3
|
|
|
96.1
|
|
|
104.6
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
(65.8)
|
|
|
(157.4)
|
|
|
(65.8)
|
|
|
(157.4)
|
|
Loss on disposals of
property and equipment
|
7.1
|
|
|
0.1
|
|
|
12.1
|
|
|
9.4
|
|
Merger and related
costs
|
7.6
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
Total costs and
expenses
|
230.2
|
|
|
151.9
|
|
|
1,122.9
|
|
|
1,045.3
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated subsidiary
|
6.9
|
|
|
0.9
|
|
|
10.3
|
|
|
0.9
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
(43.9)
|
|
|
145.7
|
|
|
(287.8)
|
|
|
238.4
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
Interest
expense
|
(39.7)
|
|
|
(38.7)
|
|
|
(156.3)
|
|
|
(155.7)
|
|
Interest
income
|
10.5
|
|
|
6.5
|
|
|
33.1
|
|
|
15.4
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
Other -
net
|
1.4
|
|
|
(4.2)
|
|
|
12.0
|
|
|
(0.5)
|
|
Total other (expense)
- net
|
(27.8)
|
|
|
(36.4)
|
|
|
(111.2)
|
|
|
(139.1)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(71.7)
|
|
|
109.3
|
|
|
(399.0)
|
|
|
99.3
|
|
Provision (benefit)
for income taxes
|
(57.4)
|
|
|
(2.7)
|
|
|
(51.6)
|
|
|
26.6
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
|
(14.3)
|
|
|
$
|
112.0
|
|
|
$
|
(347.4)
|
|
|
$
|
72.7
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER
SHARE - DILUTED
|
$
|
(0.11)
|
|
|
$
|
0.89
|
|
|
$
|
(2.74)
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES - BASIC
|
127.1
|
|
|
126.3
|
|
|
126.9
|
|
|
126.1
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES - DILUTED
|
127.1
|
|
|
128.1
|
|
|
126.9
|
|
|
127.7
|
|
ROWAN COMPANIES
PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,026.7
|
|
|
$
|
1,332.1
|
|
Receivables - trade
and other
|
251.2
|
|
|
212.8
|
|
Prepaid expenses and
other current assets
|
22.4
|
|
|
15.5
|
|
Total current
assets
|
1,300.3
|
|
|
1,560.4
|
|
Property and
equipment - net
|
6,201.0
|
|
|
6,552.7
|
|
Long-term note
receivable from unconsolidated subsidiary
|
456.0
|
|
|
270.2
|
|
Investment in
unconsolidated subsidiary
|
41.2
|
|
|
30.9
|
|
Other
assets
|
119.2
|
|
|
44.1
|
|
|
$
|
8,117.7
|
|
|
$
|
8,458.3
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current portion of
long-term debt
|
$
|
201.2
|
|
|
$
|
—
|
|
Accounts payable -
trade
|
122.3
|
|
|
97.2
|
|
Deferred
revenue
|
16.7
|
|
|
1.1
|
|
Accrued
liabilities
|
113.4
|
|
|
159.1
|
|
Total current
liabilities
|
453.6
|
|
|
257.4
|
|
|
|
|
|
Long-term
debt
|
2,309.7
|
|
|
2,510.3
|
|
Other
liabilities
|
307.7
|
|
|
293.6
|
|
Deferred income taxes
- net
|
11.7
|
|
|
10.9
|
|
Shareholders'
equity
|
5,035.0
|
|
|
5,386.1
|
|
|
$
|
8,117.7
|
|
|
$
|
8,458.3
|
|
ROWAN COMPANIES
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31,
|
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
(loss)
|
$
|
(347.4)
|
|
|
$
|
72.7
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
Depreciation and
amortization
|
388.9
|
|
|
403.7
|
|
Equity in earnings of
unconsolidated subsidiary
|
(10.3)
|
|
|
(0.9)
|
|
Deferred income
taxes
|
(68.1)
|
|
|
24.7
|
|
Pension and other
postretirement benefits (income) expense
|
(9.0)
|
|
|
12.5
|
|
Share-based
compensation expense
|
24.0
|
|
|
29.0
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
(65.8)
|
|
|
(157.4)
|
|
Loss on disposals of
property and equipment
|
12.1
|
|
|
9.4
|
|
Non-cash interest
income from unconsolidated subsidiary (receipt in kind)
|
(12.0)
|
|
|
—
|
|
Other
|
8.1
|
|
|
1.6
|
|
Net changes in
current assets and liabilities
|
(47.9)
|
|
|
103.0
|
|
Other postretirement
benefit claims paid
|
(1.4)
|
|
|
(18.4)
|
|
Contributions to
pension plans
|
(24.2)
|
|
|
(29.3)
|
|
Deferred
revenue
|
5.5
|
|
|
(112.8)
|
|
Net changes in other
noncurrent assets and liabilities
|
(12.6)
|
|
|
(38.0)
|
|
Net cash provided by
(used in) operating activities
|
(160.1)
|
|
|
299.8
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
expenditures
|
(169.2)
|
|
|
(100.6)
|
|
Purchase of
rigs
|
(70.8)
|
|
|
—
|
|
Deposit on purchase
of rigs
|
—
|
|
|
(7.7)
|
|
Investment in
unconsolidated subsidiary
|
—
|
|
|
(30.0)
|
|
Contributions to
unconsolidated subsidiary for note receivable
|
(271.3)
|
|
|
(357.7)
|
|
Proceeds from sale of
assets to unconsolidated subsidiary
|
266.0
|
|
|
357.7
|
|
Repayments of note
receivable from unconsolidated subsidiary
|
98.5
|
|
|
87.5
|
|
Proceeds from
disposals of property and equipment
|
12.7
|
|
|
3.3
|
|
Net cash used in
investing activities
|
(134.1)
|
|
|
(47.5)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Reductions of
long-term debt
|
—
|
|
|
(170.0)
|
|
Debt issue
costs
|
(6.1)
|
|
|
—
|
|
Proceeds from
exercise of share options
|
0.1
|
|
|
—
|
|
Shares repurchased
for tax withholdings on vesting of restricted share
units
|
(5.2)
|
|
|
(5.7)
|
|
Net cash used in
financing activities
|
(11.2)
|
|
|
(175.7)
|
|
|
|
|
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(305.4)
|
|
|
76.6
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
1,332.1
|
|
|
1,255.5
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
$
|
1,026.7
|
|
|
$
|
1,332.1
|
|
ROWAN COMPANIES
PLC
|
SUPPLEMENTAL
OPERATING SEGMENT INFORMATION
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Deepwater
|
|
Jack-ups
|
|
ARO
|
|
Unallocated and
other
|
|
Reportable
segments total
|
|
Eliminations and
adjustments
|
|
Consolidated
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
26.3
|
|
|
$
|
146.2
|
|
|
$
|
130.5
|
|
|
$
|
6.9
|
|
|
$
|
309.9
|
|
|
$
|
(130.5)
|
|
|
$
|
179.4
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs (excluding items below)
|
50.4
|
|
|
116.3
|
|
|
73.5
|
|
|
—
|
|
|
240.2
|
|
|
(73.5)
|
|
|
166.7
|
|
Depreciation and
amortization
|
27.3
|
|
|
67.0
|
|
|
17.0
|
|
|
0.3
|
|
|
111.6
|
|
|
(17.0)
|
|
|
94.6
|
|
Selling, general and
administrative
|
—
|
|
|
—
|
|
|
7.0
|
|
|
20.0
|
|
|
27.0
|
|
|
(7.0)
|
|
|
20.0
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
—
|
|
|
(65.8)
|
|
|
—
|
|
|
—
|
|
|
(65.8)
|
|
|
—
|
|
|
(65.8)
|
|
Other operating items
- expense
|
1.6
|
|
|
0.3
|
|
|
1.4
|
|
|
5.2
|
|
|
8.5
|
|
|
(1.4)
|
|
|
7.1
|
|
Merger and related
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
Equity in earnings of
unconsolidated subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.9
|
|
|
6.9
|
|
Income (loss) from
operations
|
$
|
(53.0)
|
|
|
$
|
28.4
|
|
|
$
|
31.6
|
|
|
$
|
(26.2)
|
|
|
$
|
(19.2)
|
|
|
$
|
(24.7)
|
|
|
$
|
(43.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
96.1
|
|
|
$
|
193.2
|
|
|
$
|
48.6
|
|
|
$
|
7.4
|
|
|
$
|
345.3
|
|
|
$
|
(48.6)
|
|
|
$
|
296.7
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs (excluding items below)
|
34.3
|
|
|
141.9
|
|
|
22.2
|
|
|
—
|
|
|
198.4
|
|
|
(22.2)
|
|
|
176.2
|
|
Depreciation and
amortization
|
27.5
|
|
|
71.6
|
|
|
12.9
|
|
|
0.6
|
|
|
112.6
|
|
|
(12.9)
|
|
|
99.7
|
|
Selling, general and
administrative
|
—
|
|
|
—
|
|
|
6.1
|
|
|
33.3
|
|
|
39.4
|
|
|
(6.1)
|
|
|
33.3
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
—
|
|
|
(157.4)
|
|
|
—
|
|
|
—
|
|
|
(157.4)
|
|
|
—
|
|
|
(157.4)
|
|
Other operating items
- expense (income)
|
0.1
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Equity in earnings of
unconsolidated subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
0.9
|
|
Income (loss) from
operations
|
$
|
34.2
|
|
|
$
|
137.1
|
|
|
$
|
7.5
|
|
|
$
|
(26.5)
|
|
|
$
|
152.3
|
|
|
$
|
(6.6)
|
|
|
$
|
145.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) ARO commenced operations October
17, 2017.
|
ROWAN COMPANIES
PLC
|
SUPPLEMENTAL
OPERATING SEGMENT INFORMATION
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31,
|
|
Deepwater
|
|
Jack-ups
|
|
ARO
|
|
Unallocated and
other
|
|
Reportable
segments total
|
|
Eliminations and
adjustments
|
|
Consolidated
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
158.1
|
|
|
$
|
632.9
|
|
|
$
|
348.8
|
|
|
$
|
33.8
|
|
|
$
|
1,173.6
|
|
|
$
|
(348.8)
|
|
|
$
|
824.8
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs (excluding items below)
|
168.6
|
|
|
514.1
|
|
|
194.0
|
|
|
—
|
|
|
876.7
|
|
|
(194.0)
|
|
|
682.7
|
|
Depreciation and
amortization
|
108.5
|
|
|
278.3
|
|
|
67.4
|
|
|
2.1
|
|
|
456.3
|
|
|
(67.4)
|
|
|
388.9
|
|
Selling, general and
administrative
|
—
|
|
|
—
|
|
|
27.0
|
|
|
96.1
|
|
|
123.1
|
|
|
(27.0)
|
|
|
96.1
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
—
|
|
|
(65.8)
|
|
|
—
|
|
|
—
|
|
|
(65.8)
|
|
|
—
|
|
|
(65.8)
|
|
Other operating items
- expense
|
1.6
|
|
|
5.3
|
|
|
1.4
|
|
|
5.2
|
|
|
13.5
|
|
|
(1.4)
|
|
|
12.1
|
|
Merger and related
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
|
8.9
|
|
|
—
|
|
|
8.9
|
|
Equity in earnings of
unconsolidated subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|
10.3
|
|
Income (loss) from
operations
|
$
|
(120.6)
|
|
|
$
|
(99.0)
|
|
|
$
|
59.0
|
|
|
$
|
(78.5)
|
|
|
$
|
(239.1)
|
|
|
$
|
(48.7)
|
|
|
$
|
(287.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
467.9
|
|
|
$
|
807.5
|
|
|
$
|
48.6
|
|
|
$
|
7.4
|
|
|
$
|
1,331.4
|
|
|
$
|
(48.6)
|
|
|
$
|
1,282.8
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs (excluding items below)
|
151.4
|
|
|
533.6
|
|
|
22.2
|
|
|
—
|
|
|
707.2
|
|
|
(22.2)
|
|
|
685.0
|
|
Depreciation and
amortization
|
111.6
|
|
|
289.4
|
|
|
12.9
|
|
|
2.7
|
|
|
416.6
|
|
|
(12.9)
|
|
|
403.7
|
|
Selling, general and
administrative
|
—
|
|
|
—
|
|
|
6.1
|
|
|
104.6
|
|
|
110.7
|
|
|
(6.1)
|
|
|
104.6
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
—
|
|
|
(157.4)
|
|
|
—
|
|
|
—
|
|
|
(157.4)
|
|
|
—
|
|
|
(157.4)
|
|
Other operating items
- expense (income)
|
0.1
|
|
|
9.3
|
|
|
(0.1)
|
|
|
—
|
|
|
9.3
|
|
|
0.1
|
|
|
9.4
|
|
Equity in earnings of
unconsolidated subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
0.9
|
|
Income (loss) from
operations
|
$
|
204.8
|
|
|
$
|
132.6
|
|
|
$
|
7.5
|
|
|
$
|
(99.9)
|
|
|
$
|
245.0
|
|
|
$
|
(6.6)
|
|
|
$
|
238.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) ARO commenced
operations October 17, 2017.
|
ROWAN COMPANIES
PLC
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
RIG DAYS
(1)
|
|
|
|
|
|
|
|
|
|
Deepwater:
|
|
|
|
|
|
|
|
|
|
Revenue-producing
(2)
|
180
|
|
|
102
|
|
|
125
|
|
|
442
|
|
|
783
|
|
Available
|
368
|
|
|
368
|
|
|
368
|
|
|
1,460
|
|
|
1,460
|
|
|
|
|
|
|
|
|
|
|
|
Jack-up:
|
|
|
|
|
|
|
|
|
|
Revenue-producing
(3) (4)
|
1,429
|
|
|
1,293
|
|
|
1,448
|
|
|
4,844
|
|
|
6,144
|
|
Available
(3)
|
1,564
|
|
|
1,748
|
|
|
1,883
|
|
|
6,751
|
|
|
8,162
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
Revenue-producing
(2) (3) (4)
|
1,609
|
|
|
1,395
|
|
|
1,573
|
|
|
5,286
|
|
|
6,927
|
|
Available
(3)
|
1,932
|
|
|
2,116
|
|
|
2,251
|
|
|
8,211
|
|
|
9,622
|
|
|
|
|
|
|
|
|
|
|
|
UTILIZATION
(1)
|
|
|
|
|
|
|
|
|
|
Deepwater
(2)
|
49
|
%
|
|
28
|
%
|
|
34
|
%
|
|
30
|
%
|
|
54
|
%
|
Jack-up
(3)
|
91
|
%
|
|
74
|
%
|
|
77
|
%
|
|
72
|
%
|
|
75
|
%
|
Total (2)
(3)
|
83
|
%
|
|
66
|
%
|
|
70
|
%
|
|
64
|
%
|
|
72
|
%
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAY
RATES (5) (in thousands)
|
|
|
|
|
|
|
|
|
|
Deepwater (2) (6)
|
$
|
138.1
|
|
|
$
|
135.0
|
|
|
$
|
767.1
|
|
|
$
|
351.2
|
|
|
$
|
594.8
|
|
Jack-up
(3)
|
$
|
84.2
|
|
|
$
|
115.9
|
|
|
$
|
123.3
|
|
|
$
|
114.8
|
|
|
$
|
127.7
|
|
Total
(2) (3) (6)
|
$
|
90.2
|
|
|
$
|
117.3
|
|
|
$
|
174.5
|
|
|
$
|
134.6
|
|
|
$
|
180.5
|
|
|
|
|
|
|
|
|
|
|
|
REBILLABLES
(7) (in millions)
|
|
|
|
|
|
|
|
|
|
Deepwater
|
$
|
1.4
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
$
|
2.7
|
|
|
$
|
2.2
|
|
Jack-up (3)
(8)
|
24.2
|
|
|
18.3
|
|
|
13.8
|
|
|
70.9
|
|
|
21.2
|
|
Total (3)
(8)
|
$
|
25.6
|
|
|
$
|
18.4
|
|
|
$
|
14.0
|
|
|
$
|
73.6
|
|
|
$
|
23.4
|
|
|
|
|
|
|
|
|
|
|
|
(1) Available rig
days and utilization exclude cold-stacked days. For rigs leased to
ARO, the number of available days is based on the number of days
available for hire under the Bareboat Charter lease to ARO.
Utilization for rigs leased to ARO, includes the number of days on
hire under Bareboat Charter to ARO divided by the number of
available days.
|
(2) Revenue-producing
days for the three and twelve months ended December 31, 2017
includes 33 days and 125 days, respectively, for the Deepwater
drillship Rowan Reliance when it was not operating. The
drillship did not operate in the third and fourth quarter of 2017,
but was available for Cobalt through November 2, 2017 per the 2016
contract amendment. Revenue of $41 million and $70 million,
previously deferred in 2016, was recognized during the three and
twelve months ended December 31, 2017, respectively, related to
these days for which the rig was available to Cobalt but was not
operating as well as the recognition of any remaining deferred
revenue at November 2, 2017 as Cobalt did not exercise their right
to use the rig.
|
(3) All revenue and
performance metrics exclude the results of rigs owned by ARO
beginning on October 17, 2017 and October 1, 2018, the dates such
rigs were sold to ARO.
|
(4) For rigs leased
to ARO, revenue-producing days includes the number of days on hire
under Bareboat Charter lease to ARO.
|
(5) Average day rates
exclude other revenue, which is revenue received for rebillabiles,
secondment, transition services and other miscellaneous. Day rate
revenue includes contractual rates, Bareboat Charter lease revenue
from ARO and amounts for rig mobilization, unconstrained
demobilization or capital improvements, which are amortized over
the expected recognition period of the contract.
|
(6) For the twelve
months ended December 31, 2018, revenue for this calculation
includes $27.8 million related to the Anadarko early contract
termination fee to which there are no associated revenue-producing
days.
|
(7) Rebillable
operating costs equally offset with rebillable revenue.
|
(8) Includes
secondment revenue from ARO.
|
ROWAN COMPANIES
PLC
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In millions, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2018
|
|
Three months ended
December 31, 2017
|
|
|
Pretax
|
|
Tax
|
|
Net
|
|
Diluted
EPS*
|
|
Pretax
|
|
Tax
|
|
Net
|
|
Diluted
EPS*
|
GAAP NET INCOME
(LOSS)
|
|
$
|
(71.7)
|
|
|
$
|
57.4
|
|
|
$
|
(14.3)
|
|
|
$
|
(0.11)
|
|
|
$
|
109.3
|
|
|
$
|
2.7
|
|
|
$
|
112.0
|
|
|
$
|
0.89
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
|
(65.8)
|
|
|
—
|
|
|
(65.8)
|
|
|
(0.52)
|
|
|
(157.4)
|
|
|
5.7
|
|
|
(151.7)
|
|
|
(1.18)
|
|
Merger and related
costs
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
|
0.06
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Discrete tax
item
|
|
—
|
|
|
(68.4)
|
|
|
(68.4)
|
|
|
(0.54)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NON-GAAP NET INCOME
(LOSS)
|
|
$
|
(129.9)
|
|
|
$
|
(11.0)
|
|
|
$
|
(140.9)
|
|
|
$
|
(1.11)
|
|
|
$
|
(48.1)
|
|
|
$
|
8.4
|
|
|
$
|
(39.7)
|
|
|
$
|
(0.31)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2018
|
|
Twelve months ended
December 31, 2017
|
|
|
Pretax
|
|
Tax
|
|
Net
|
|
Diluted
EPS*
|
|
Pretax
|
|
Tax
|
|
Net
|
|
Diluted
EPS*
|
GAAP NET INCOME
(LOSS)
|
|
$
|
(399.0)
|
|
|
$
|
51.6
|
|
|
$
|
(347.4)
|
|
|
$
|
(2.74)
|
|
|
$
|
99.3
|
|
|
$
|
(26.6)
|
|
|
$
|
72.7
|
|
|
$
|
0.57
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
|
(65.8)
|
|
|
—
|
|
|
(65.8)
|
|
|
(0.52)
|
|
|
(157.4)
|
|
|
5.7
|
|
|
(151.7)
|
|
|
(1.19)
|
|
Gain on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
|
(1.7)
|
|
|
(0.01)
|
|
Merger and related
costs
|
|
8.9
|
|
|
—
|
|
|
8.9
|
|
|
0.07
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Discrete tax
item
|
|
—
|
|
|
(68.4)
|
|
|
(68.4)
|
|
|
(0.54)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NON-GAAP NET
LOSS
|
|
$
|
(455.9)
|
|
|
$
|
(16.8)
|
|
|
$
|
(472.7)
|
|
|
$
|
(3.72)
|
|
|
$
|
(59.8)
|
|
|
$
|
(20.9)
|
|
|
$
|
(80.7)
|
|
|
$
|
(0.64)
|
|
* Per share amounts
may not sum due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(EBITDA):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME
(LOSS)
|
|
$
|
(14.3)
|
|
|
$
|
112.0
|
|
|
$
|
(347.4)
|
|
|
$
|
72.7
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
94.6
|
|
|
99.7
|
|
|
388.9
|
|
|
403.7
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated subsidiary
|
|
(6.9)
|
|
|
(0.9)
|
|
|
(10.3)
|
|
|
(0.9)
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense and other, net
|
|
27.8
|
|
|
36.4
|
|
|
111.2
|
|
|
140.8
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(57.4)
|
|
|
(2.7)
|
|
|
(51.6)
|
|
|
26.6
|
|
|
|
|
|
|
|
|
|
Gain on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets to unconsolidated subsidiary
|
|
(65.8)
|
|
|
(157.4)
|
|
|
(65.8)
|
|
|
(157.4)
|
|
|
|
|
|
|
|
|
|
Loss on disposals of
property and equipment
|
|
7.1
|
|
|
0.1
|
|
|
12.1
|
|
|
9.4
|
|
|
|
|
|
|
|
|
|
Merger and related
costs
|
|
7.6
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
|
|
|
|
|
|
|
|
NON-GAAP ADJUSTED
EBITDA
|
|
$
|
(7.3)
|
|
|
$
|
87.2
|
|
|
$
|
46.0
|
|
|
$
|
493.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO
DRILLING
|
SUPPLEMENTAL
FINANCIAL INFORMATION
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Current
assets
|
$
|
348.9
|
|
|
$
|
108.6
|
|
Non-current
assets
|
727.0
|
|
|
459.7
|
|
Total
assets
|
$
|
1,075.9
|
|
|
$
|
568.3
|
|
|
|
|
|
Current
liabilities
|
$
|
112.2
|
|
|
$
|
29.2
|
|
Non-current
liabilities
|
949.1
|
|
|
545.1
|
|
Total
liabilities
|
$
|
1,061.3
|
|
|
$
|
574.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
October 17, 2017
to
|
|
December 31,
2018
|
|
December 31,
2018
|
|
December 31,
2017
|
Revenue
|
$
|
130.5
|
|
|
$
|
348.8
|
|
|
$
|
48.6
|
|
Direct operating
costs (excluding items below)
|
73.5
|
|
|
194.0
|
|
|
22.2
|
|
Depreciation and
amortization
|
17.0
|
|
|
67.4
|
|
|
12.9
|
|
Selling, general and
administrative
|
7.0
|
|
|
27.0
|
|
|
6.1
|
|
(Gain) loss on
disposals of property and equipment
|
1.4
|
|
|
1.4
|
|
|
(0.1)
|
|
Income from
Operations
|
31.6
|
|
|
59.0
|
|
|
7.5
|
|
Interest
expense
|
(9.3)
|
|
|
(26.2)
|
|
|
(4.2)
|
|
Provision for income
taxes
|
8.7
|
|
|
12.3
|
|
|
1.6
|
|
Net Income
|
$
|
13.6
|
|
|
$
|
20.5
|
|
|
$
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
October 17, 2017
to
|
|
December 31,
2018
|
|
December 31,
2018
|
|
December 31,
2017
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION(EBITDA):
|
|
|
|
|
|
GAAP NET
INCOME
|
$
|
13.6
|
|
|
$
|
20.5
|
|
|
$
|
1.7
|
|
Depreciation and
amortization
|
17.0
|
|
|
67.4
|
|
|
12.9
|
|
(Gain)
loss on disposals of property and equipment
|
1.4
|
|
|
1.4
|
|
|
(0.1)
|
|
Interest
expense
|
9.3
|
|
|
26.2
|
|
|
4.2
|
|
Provision for income
taxes
|
8.7
|
|
|
12.3
|
|
|
1.6
|
|
NON-GAAP ADJUSTED
EBITDA
|
$
|
50.0
|
|
|
$
|
127.8
|
|
|
$
|
20.3
|
|
View original
content:http://www.prnewswire.com/news-releases/rowan-reports-fourth-quarter-and-full-year-2018-results-300802808.html
SOURCE Rowan Companies plc