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