Rowan Companies (RDC) has two main operating segments: ultra-deepwater drillships and jack-up drilling rigs. Its total revenue for fiscal 2Q16 was $611 million, which is 22% higher than $500 million in 1Q16 and 20% higher than $508 million in 2Q15.
In 2Q16, almost 55% of the company’s revenue came from the floater segment. The spike in revenue was especially due to revenue from the contract termination of Rowan Relentless.
Jack-up and floater revenue
Rowan’s jack-up revenue in 2Q16 fell to $264 million, from $272 million in 1Q16. Its jack-up fleet had 108 higher operating days, but the average day rate for the fleet declined to $164,900 from $182,000 in the previous quarter.
Floater revenue increased by $118 million to $339 million in 2Q16, from $221 million in 1Q16.
The contract for Rowan Gorilla will expire in August 2016. The contract on Rowan California will expire in September 2016. These contract terminations will have a negative effect on revenues in the third quarter and after.
Other offshore drilling (IYE) companies are yet to release their 2Q16 results. Below are Wall Street analysts’ expectations: