1 Aug

A Snapshot of Rowan Companies’ Q2 2018 Results

WRITTEN BY Sue Goodridge

Second-quarter results

Rowan Companies (RDC) released its second-quarter results on August 1 before the markets opened. The company reported a net loss of $76.7 million, or $0.06 per share, compared to a net loss of $28.7 million or $0.23 per share in Q2 2017.

A Snapshot of Rowan Companies’ Q2 2018 Results

The offshore drilling contractor earned revenue of $241 million, beating Reuters’ consensus estimate by 15.9%. The second quarter’s revenue was 14.25% higher sequentially and 24.6% lower year-over-year. The company posted EBITDA of $39.2 million—more than 100% higher than Reuters estimate of $16.9 million. RDC’s EBITDA was 53% higher sequentially and 70% lower year-over-year.

New contract

On July 31, Rowan Companies announced that ARO Drilling secured six three-year contracts with Saudi Aramco for Rowan’s jackup rigs currently operating in Saudi Arabia. The contracts are to commence later this year, once the rigs are free from their current contract.

Offshore drilling market

According to Rowan Companies, offshore drilling market conditions remain challenging. However, demand for rigs has improved year-to-date.


Since the beginning of the second quarter, Rowan has secured contracts both for drillships and jack-up rigs. The company has also commenced operations in the North Sea and Trinidad. Based on tendering activity and improvements in market fundamentals Rowan is confident that it will add further backlog during the second half of 2018 for both its drillships and jackups. The company’s joint venture with ARO Drilling has secured 11 new three-year drilling contracts.

Stock performance

As of July 3, Rowan Companies’ stock price gave a negative return of -7.54% from the start of the year. The year-to-date returns of peers Seadrill (SDRL), Transocean (RIG), Diamond Offshore (DO), and Ensco (ESV) are -67.5%, 20.5%, 3.28%, and 25.7%.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.