Rowan Companies Q2 Profit Falls - Quick Facts

(RTTNews) - Rowan Companies plc (RDC) reported that its second-quarter net income from continuing operations fell to $32.8 million or $0.26 per share, from $82.8 million or $0.67 per share in the second quarter of 2013.

The latest-quarter reflected a noncash asset impairment charge which reduced net income from continuing operations by $8.3 million, or $0.07 per share. The prior-year quarter included a $12.5 million after-tax gain, or $0.10 per share on the sale of a jack-up rig (Rowan - Paris).

Excluding the impacts of these items, net income from continuing operations was $41.2 million or $0.33 per share in the second quarter of 2014 and $70.3 million, or $0.57 per share in the second quarter of 2013.

Tom Burke, President and Chief Executive Officer, said, "The second quarter was negatively impacted by additional out-of-service days for certain jack-ups as well as start-up issues for the Renaissance. We expect our out-of-service time for our jack-up fleet to decrease significantly beginning in the third quarter."

Rowan's revenues were $422.9 million in the second quarter of 2014, up 3% over the prior-year quarter due primarily to the commencement, in late April 2014, of the company's first ultra-deepwater drillship. However, its second quarter 2014 revenues and operating results were significantly impacted by previously disclosed out-of-service periods which resulted in 13% out-of-service time during the second quarter of 2014, compared to 8% in the prior-year quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share and revenues of $416.20 million for the quarter. Analysts' estimates typically exclude special items.