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Rowan Companies (RDC) Beats on Q3 Earnings & Revenues

HLX RDC EQM UPLMQ

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Global provider of contract drilling services, Rowan Companies plc (RDC - Free Report) reported adjusted third-quarter 2016 earnings from continuing operations of 30 cents per share, which comfortably surpassed the Zacks Consensus Estimate of 1 cent. The outperformance was supported by a considerable fall in total expenses, partially offset by lower rig utilization. However, the bottom line deteriorated significantly from the year-ago quarter profit of 89 cents per share.

Total revenues were $379.4 million in the third quarter as against $545.4 million in the prior-year quarter. The top line, however, surpassed the Zacks Consensus Estimate of $363 million.

Dayrates and Utilization  

The company's deepwater rigs had a dayrate of $490,000 compared with $610,900 in the year-ago quarter. Jackup rigs saw a dayrate of $158,800 as against $164,900 in the prior year.

The overall dayrate of all rigs was $210,100 compared with $234,500 in third-quarter 2015. Average utilization of the company's rigs was 69% as against 82% in the comparable quarter last year.

Total Expenses

During the quarter, the company reported $345.8 million in costs as against $716 million in the year-ago comparable period.

Financials

As of Sep 30, 2016, the company's cash balance was $1,037.5 million and long-term debt (including current maturities) was $2,645.6 million. The long term debt-to-capitalization ratio was 33.9%.  

ROWAN COS PLC Price, Consensus and EPS Surprise

 

ROWAN COS PLC Price, Consensus and EPS Surprise | ROWAN COS PLC Quote

Zacks Rank and Key Stock Picks 

Rowan currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. (UPLMQ - Free Report) , EQT Midstream Partners, LP (EQM - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) .   

Ultra Petroleum is likely to witness year-over-year earnings growth of 351.6% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EQT Midstream is projected to witness year-over-year earnings growth of almost 12% in the current year. It has a Zacks Rank #2 (Buy).

Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.

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