Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced today that its monthly report of drilling rig status and contract information has been updated as of November 21, 2013.
The Company continues to expect out of service time to be 9% and 10% of available rig days for the fourth quarter of 2013 and full year 2013, respectively. For the full year 2014 the Company continues to expect jack-up out of service time to be between 7% and 9% of available rig days. The Company does not expect any out of service days in 2014 for the drillships, and is expecting operational downtime to be less than 5% after some break-in period, when operational downtime could be somewhat higher.
Out-of-service days include days for which no revenues are recognized other than operational downtime and cold-stacked days. The Company may be compensated for certain out-of-service days, such as for shipyard stays or for transit periods preceding a contract. However, recognition of any such compensation received is deferred and recognized over the period of drilling operations. Operational downtime is when a rig is under contract and unable to conduct planned operations due to equipment breakdowns or procedural failures. No operational downtime is included in projected out-of-service days, but the company estimates operational downtime to account for approximately 2.5% of in-service days in current and future quarters.
This summary is provided as a courtesy and is not intended to replace a detailed review of the Monthly Fleet Status Report. While the Company has attempted to include items it believes are significant, we encourage you to review the Monthly Fleet Status Report in detail.
Rowan Companies plc is a major provider of international and domestic contract drilling services with a leading position in high-specification jack-up rigs. The Company's fleet of 30 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Egypt, Southeast Asia and the Gulf of Mexico. Additionally, Rowan has four ultra-deepwater drillships under construction with three of the four drillships under three-year contracts. The Company's Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol "RDC".
