Revenue in 1Q18
Rowan Companies (RDC) has two main operating segments—Ultra-Deepwater Drillships and Jack-Up Drilling Rigs. The company’s total drilling revenue in 1Q18 was $211.2 million—28.7% lower its 4Q17 revenue of $296 million. Excluding rebillables, its 1Q18 revenue was $194 million, down $89 million from the previous quarter.
Rowan Companies’ 1Q18 revenue decrease was driven by completion of its Reliance contract with Cobalt in 4Q17 and a 35% decline in operating days for the company’s jack-up fleet due to the sale of three rigs to ARO Drilling and reduced utilization.
Jack-up and floater revenue
In 1Q18, ~71% of the company’s revenue came from the jack-up segment. Rowan’s jack-up revenue fell to $150 million in 1Q18 from $193 million in 4Q17. Its jack-up fleet had fewer revenue-producing days. On the other hand, the average day rate for the fleet was $139,000 in 1Q18, 13% higher than in the previous quarter.
Rowan Companies’ deepwater revenue dropped to $52.1 million from $96.1 million in 4Q17, and its deepwater utilization rate declined to 25% from 34%. Rowan Companies’ average day rates dropped from $767,000 to $574,600.
Several offshore drilling companies (OIH) have released their 1Q18 results.