Back to top

Image: Bigstock

Rowan Companies (RDC) Posts Narrower-Than-Expected Q2 Loss

Read MoreHide Full Article

Rowan Companies plc reported adjusted second-quarter 2018 loss from continuing operations of 60 cents per share, narrower than the Zacks Consensus Estimate of 93 cents, thanks to the surge in dayrate of deepwater rigs.  

However, the quarterly loss came wider than the year-ago quarter loss of 23 cents per share, owing to lower rig utilization.

Total revenues were $241.3 million in the second quarter, down from $320.2 million in the prior-year quarter due to fall in total revenue-producing rig days. On the flip side, the top line beat the Zacks Consensus Estimate of $204 million.

Rowan Companies PLC Price, Consensus and EPS Surprise

Rowan Companies PLC Price, Consensus and EPS Surprise | Rowan Companies PLC Quote

Dayrates and Utilization

The company's deepwater rigs recorded an average dayrate of $929,000, surged from $599,600 in the year-ago quarter. Moreover, jackup rigs saw a dayrate of $131,400, increased from $129,900 in the prior-year quarter.

The overall dayrate of all the rigs was $176,300 compared with $186,000 in second-quarter 2017. Also, average utilization of the company's rigs was 59% compared with 69% in the comparable quarter last year.

Total revenue-producing rig days declined 27.2% year over year to 1,243 in the second quarter.

Total Expenses

In the second quarter, the company reported $301.1 million in total costs, higher than $295.6 million in the year-ago quarter. The primary reason behind the increase in total costs was 4.4% higher direct operating expenses (from $168.8 million to $176.3 million).

Financials

As of Mar 31, 2018, the company's cash balance was $1.1 billion and long-term debt was $2.5 billion. The long-term debt-to-capitalization ratio of the company was 32.4%.

Zacks Rank & Key Picks

Currently, Fort Worth, TX-based Range Resources has a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like Canadian Natural Resources Limited (CNQ - Free Report) , ConocoPhillips (COP - Free Report) and Cheniere Energy, Inc. (LNG - Free Report) . While Canadian Natural Resources sports a Zacks Rank #1 (Strong Buy), ConocoPhillips and Cheniere Energy both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 35.3% year over year, while its bottom line is expected to increase more than 168%.

Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 14.1% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 27.6%.

Houston, TX-based Cheniere Energy mainly focuses on liquefied natural gas-related businesses. The company’s top line for 2018 is anticipated to improve 25.9% year over year, while its bottom line is expected to increase more than 225%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ConocoPhillips (COP) - free report >>

Canadian Natural Resources Limited (CNQ) - free report >>

Cheniere Energy, Inc. (LNG) - free report >>

Published in