Fighting the downturn
In 4Q17, Rowan Companies didn’t retire any debt. In 2017, the total debt retired was $170 million. Since the downturn started in 4Q15, Rowan Companies has retired $780 million of debt.
As of December 31, 2017, Rowan Companies has long-term debt of $2.5 billion. The company doesn’t have any debt maturities in 2018. In 2019, Rowan Companies has $201 million of debt maturity. For Rowan Companies, 67% of the debt maturities come after 2022.
Rowan Companies has liquidity of $2.8 billion—including $1.3 billion in the form of cash and $1.5 billion in the form of revolving credit.
Rowan Companies has a credit rating of “B2,” which is lower than Diamond Offshore’s (DO) credit rating of “Ba3” and higher than most of the other offshore drillers (OIH). Noble (NE) has a “B3” rating—the same as Ensco (ESV). Moody’s confirmed a “Caa2” rating on Seadrill Partners (SDLP) and changed the outlook to “stable” from “negative.”