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Digging into Rowan Companies’ 1Q18 Revenue

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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.

Revenue
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.

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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.

Peers’ revenue

Several offshore drilling companies (OIH) have released their 1Q18 results.

  • Diamond Offshore’s (DO) 1Q18 revenue was $295.5 million, marking a 14.6% fall from 4Q17.
  • Transocean’s (RIG) 1Q18 revenue was $664 million, 9.9% higher than in 4Q17.
  • Ensco’s (ESV) 1Q18 revenue was $417 million, marking an 8.1% fall from 4Q17.
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