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Rowan Companies (RDC) Posts Narrower-Than-Expected Q3 Loss
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Rowan Companies plc reported adjusted third-quarter 2018 loss from continuing operations of $1.13 per share, narrower than the Zacks Consensus Estimate loss of $1.15. However, the quarterly loss was wider than the year-ago quarter's loss of 16 cents.
Total revenues were $193 million in the third quarter, down from $292 million in the prior-year quarter. On the flip side, the top line beat the Zacks Consensus Estimate of $179 million.
The decline in total revenue-producing rig days, fall in average dayrates and lower average utilization were responsible for the decline.
Rowan Companies PLC Price, Consensus and EPS Surprise
The company's deepwater rigs recorded an average dayrate of $135,000, down from $476,600 in the year-ago quarter. Moreover, jackup rigs saw a dayrate of $115,900, down from $122,100 in the prior-year quarter.
The overall dayrate of all the rigs was $117,300 compared with $157,700 in third-quarter 2017. Also, average utilization of the company's rigs was 66% compared with 74% in the comparable quarter last year.
Total revenue-producing rig days declined 23.8% year over year to 1,395 in the third quarter.
Total Expenses
In the third quarter, the company reported $309.4 million in total costs, higher than $299.8 million in the year-ago quarter. The primary reason behind the increase in costs was 8.1% higher direct operating expenses (from $168.7 million to $182.3 million).
Financials
As of Sep 30, 2018, the company's cash balance was $1.0 billion and long-term debt was $2.3 billion. The long-term debt-to-capitalization ratio of the company was 31.2%.
Zacks Rank & Key Picks
Currently, Fort Worth, TX-based Rowan Companies has a Zacks Rank #3 (Hold).
New York-based Hess is a global integrated energy company. It delivered an average positive earnings surprise of 230.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. In the trailing four quarters, the company delivered an average positive earnings surprise of 33.2%.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Rowan Companies (RDC) Posts Narrower-Than-Expected Q3 Loss
Rowan Companies plc reported adjusted third-quarter 2018 loss from continuing operations of $1.13 per share, narrower than the Zacks Consensus Estimate loss of $1.15. However, the quarterly loss was wider than the year-ago quarter's loss of 16 cents.
Total revenues were $193 million in the third quarter, down from $292 million in the prior-year quarter. On the flip side, the top line beat the Zacks Consensus Estimate of $179 million.
The decline in total revenue-producing rig days, fall in average dayrates and lower average utilization were responsible for the decline.
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 $135,000, down from $476,600 in the year-ago quarter. Moreover, jackup rigs saw a dayrate of $115,900, down from $122,100 in the prior-year quarter.
The overall dayrate of all the rigs was $117,300 compared with $157,700 in third-quarter 2017. Also, average utilization of the company's rigs was 66% compared with 74% in the comparable quarter last year.
Total revenue-producing rig days declined 23.8% year over year to 1,395 in the third quarter.
Total Expenses
In the third quarter, the company reported $309.4 million in total costs, higher than $299.8 million in the year-ago quarter. The primary reason behind the increase in costs was 8.1% higher direct operating expenses (from $168.7 million to $182.3 million).
Financials
As of Sep 30, 2018, the company's cash balance was $1.0 billion and long-term debt was $2.3 billion. The long-term debt-to-capitalization ratio of the company was 31.2%.
Zacks Rank & Key Picks
Currently, Fort Worth, TX-based Rowan Companies has a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Hess Corporation (HES - Free Report) , Enbridge Inc (ENB - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
New York-based Hess is a global integrated energy company. It delivered an average positive earnings surprise of 230.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. In the trailing four quarters, the company delivered an average positive earnings surprise of 33.2%.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>