* Commitment for a three-year contract
* Co sees rig's effective daily rate at $614,000-$624,000
* Second quarter adj EPS $0.51 vs est $0.50
* Second quarter rev up 57 pct at $351 mln
Aug 2 Contract driller Rowan Cos Plc
reported a better-than-expected quarterly profit and said it has
received a commitment for a three-year contract for the first of
its three under-construction ultradeepwater rigs.
Signalling rising demand for ultradeepwater rigs, Norwegian
offshore rig operator Seadrill Ltd last week won a
deal potentially worth $4 billion for three of its drillships.
"We continue to be encouraged by customer interest in these
very high specification rigs," Chief Executive Matt Ralls said
in a statement.
He said the ultradeepwater rig Rowan Renaissance would
receive an effective daily rate of between $614,000 and
The rig will be moved to West Africa for the first year of
the contract and likely be shifted to the Gulf of Mexico for the
remaining two years, said Mark Keller, vice president-business
development, on a conference call with analysts.
Rowan, which owns 31 shallow-water rigs and is awaiting the
delivery of three ultradeepwater rigs starting late 2013, said
higher utilization and daily rates helped its second-quarter
Rig utilization rates rose to 79 percent from 70 percent a
year earlier and average daily rates for rigs rose 15 percent,
the company said.
Second-quarter net income fell to $49.4 million, or 40 cents
per share, from $465.9 million, or $3.65 per share, a year
earlier. The prior-year quarter included gains from Rowan's sale
of its drilling and mining equipment unit and its land rig
Excluding items, the company earned 51 cents per share in
the June quarter.
Revenue rose 57 percent to $351 million.
Analysts had expected earnings of 50 cents per share on
revenue of $341.15 million, according to Thomson Reuters
Rowan shares were down 2 percent at $35.08 in early trading
on Thursday on the New York Stock Exchange.