Driller Rowan Writes Down Assets By $438.4M In 4Q

Reuters

Feb 27 (Reuters) - Contract driller Rowan Cos Plc wrote down the value of 12 of its oldest jackup rigs by $438.4 million, joining rivals such as Transocean Ltd in recording big asset impairment charges.

Global crude oil prices have more than halved since June, forcing oil producers to scale back spending and drilling activity, which is weighing on demand for rigs.

Rowan swung to a quarterly loss on the impairment charge, although the company's revenue rose 41 percent to $556.2 million due to two ultra-deepwater rigs coming into service in the quarter.

The company's fleet utilization rate - a measure of the number of rigs deployed - rose to 86 percent in the quarter, from 83 percent a year earlier due to the new rig additions.

Rowan reported a net loss from continuing operations of $326.9 million, or $2.63 per share, in the fourth quarter ended Dec. 31, compared with a profit of $49.7 million, or 40 cents per share, a year earlier.

Excluding the impairment charge, Rowan reported a quarterly net profit of 89 cents per share, matching the average analyst estimate, according to Thomson Reuters I/B/E/S.

Up to Thursday's close of $20.69, Rowan's shares had fallen nearly 37 percent over the past year, while the S&P 500 oil & gas drilling index fell 49 percent over the same period.

(Reporting By Kanika Sikka in Bengaluru; Editing by Simon Jennings)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Directional Driller - South Texas
Expertise: Driller
Location: San Antonio, TX
 
United States Houston: Sr Advising Engineer - Tech Development
Expertise: Business Development|IT - Software Development
Location: Houston, TX
 
Business Development Manager
Expertise: Business Development|Construction Manager|Marketing
Location: Salt Lake City, UT
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours