Driller Rowan $RDC Loss Shrinks But Caution Remains as Rigs Fall

Drilling company $RDC reported better than expected third quarter earnings with a smaller loss Wednesday initially sending the stock up 10%. However after the conference call it reversed to be down 5%. The move reflects caution as rig counts have fallen.

Drilling company $RDC reported better than expected third quarter earnings with a smaller loss Wednesday initially sending the stock up 10%. However after the conference call it reversed to be down 5% The move reflects caution as rig counts have fallen.

Rowan Companies Drill Ship

Image: Rowan is a joint venture with Aramaco 

Earnings: EPS: -$0.16 in Q3 vs. $0.30 in the same period last year ahead of analysts projected -$0.41 per share . Lost -$20.4 million in Q3 vs. $38.4 million in the same period last year. Revenue $291.6 million in Q3 vs. $379.4 million in the same period last year.

Reaction: Rowan Companues $RDC NYSE: RDC Nov 1, 11:59 $14.09 -0.24 (-1.67%)

Dr Tom Burke, President and Chief Executive Officer, commented, “Our third quarter financial results reflect our ability to successfully manage through this challenging cycle by executing safe, efficient and reliable operations, while continuing to focus on control of costs. The recent launch of ARO Drilling is a milestone for Rowan Companies. We believe this joint venture will provide us with solid visible earnings growth throughout the next decade. We are pleased that the start-up of ARO Drilling had a positive impact on our liquidity as evidenced by the receipt of an $88 million cash distribution in October.”

About Rowan

Rowan is a global provider of contract drilling services with a fleet of 26 mobile offshore drilling units, comprised of 22 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 and Trinidad.

Additionally, the Company is a partner in a 50/50 joint venture with Saudi Aramco, named ARO Drilling, that owns a fleet of four 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.”

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