Dissecting Rowan Companies’ Backlog



Rowan Companies’ backlog

Backlogs help us gauge what’s in store for an offshore drilling company in the future. As of February 13, 2018, Rowan Companies (RDC) had a backlog of $456 million—down from $1.7 billion in February 2017. The company’s backlog excludes the backlog associated with ARO Drilling. Rowan Companies’ current backlog consists of $366 million for floaters and $89 million for jack-up rigs.

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Backlog for 2018–2019

Rowan Companies’ backlog for 2018 stands at $452 million, which is equal to ~35% of its 2017 revenues. If Rowan Companies isn’t able to secure new contracts, its revenue for 2018 could be 35% of its 2017 revenue. The company’s revenue was $1.2 billion in 2017.

Rowan Companies’ backlog for 2019 is $31 million, which is 2.5% of its revenue in 2017 revenue. Rowan Companies doesn’t have a backlog beyond 2019.

Backlog distribution

Rowan Companies’ backlog comes through contracts in the US Gulf of Mexico, the Middle East, the North Sea, Central America, and South America. About 39% of Rowan Companies’ backlog belongs to the Middle East, while 22% belongs to US Gulf of Mexico.


Below are the backlog details of other offshore drillers (XLE):


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