U.S. offshore driller Rowan Companies sank to a loss during this year’s second quarter with its revenues nearly halved during the period.
The driller on Wednesday reported a net loss of $28.7 million for the second quarter of 2017 compared to net income of $216.7 million in the second quarter of 2016.
The net loss for the current quarter included a $2.4 million (after tax) gain on early extinguishment of $35.8 million of debt. The net income for the prior-year quarter included a $120 million (after tax) increase to net income for the Rowan Relentless contract termination.
The $120 million reflects the incremental revenue in excess of the Rowan Relentless drillship’s dayrate for the quarter ended June 30, 2016. Additionally, net income for the prior-year quarter included a $1.8 million (after tax) gain on early extinguishment of debt.
The driller’s revenues for the period almost halved totaling $320.2 million, versus $611.8 million revenues in the prior-year quarter.
Tom Burke, President and Chief Executive Officer, commented, “Amidst challenging market conditions, we are encouraged by recent contract awards for the Rowan jack-up fleet.”
Burke was referring to the company’s contract awards revealed in July fleet status report when several of its rigs got new contracts and extensions in the UK, Norway, Saudi Arabia and Trinidad.
“Our balance sheet remains solid and we believe positions us well in a slow industry recovery,” Burke added.
Rowan’s deepwater rig utilization dropped to 56% during the quarter from 89% in the prior-year period. The jack-up segment saw a small drop of one percent totaling 72% for this year’s second quarter.
This brings the company’s total rig utilization rate at 69%, a drop from the prior-year quarter’s utilization of 76%.
Offshore Energy Today Staff