Rowan Companies’ 2017 cash flow
Rowan Companies’ (RDC) operating cash flows represent cash flows from its core operations. In 2017, Rowan Companies saw cash flows from operations of $299.8 million—compared to $905 million in 2016.
Rowan’s capital expenditure
In 4Q17, Rowan Companies’ (RDC) capital expenditure or capex was $22 million. The capex was lower than the previous estimate due to lower-than-estimated capital spending on rigs—Rowan Mississippi and Gorilla VII. Some of the expenditures were shifted to 1Q18. For fiscal 2017, Rowan Companies’ capex was $101 million
Rowan Companies expects its 2018 capex to be $100 million–$110 million. The capex excludes the final payment of $69 million that the company made in January 2018 to acquire the P-59 and P-60.
Free cash flow
In fiscal 2017, Rowan Companies operating cash flow was higher than its capex, which leads to positive free cash flow. Free cash flow is calculated as the operating cash flow minus capex. Free cash flow measures a company’s financial performance. Free cash flow represents the cash that a company is able to generate after spending money to maintain or expand its asset base.
In 2017, Rowan Companies’ free cash flow was $199 million. Ensco’s (ESV) free cash flow was -$277.0 million. Diamond Offshore (DO) had positive free cash flow of $354.0 million in 2017. Noble’s (NE) free cash flow was $342 million in 2017. In 2017, Transocean (RIG) had positive free cash flow of $647.0 million.