OREANDA-NEWS. For the three months ended March 31, 2016, Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) reported net income of $122.8 million, or $0.98 per share, compared to $123.7 million, or $0.99 per share in the first quarter of 2015.

Rowan's revenues were $500.2 million in the first quarter of 2016, down by 9% from the prior-year quarter due primarily to lower utilization of jack-up rigs. The lower jack-up utilization was partially offset by contributions from the Company's third and fourth newbuild ultra-deepwater drillships, which began operating in February and June of 2015, respectively.

Tom Burke, President and Chief Executive Officer, commented, "Our first quarter results reflect our focus on safe and reliable operations with particular attention to careful cost control as we navigate a challenging 2016. Our offshore crews are striving to continuously improve our operational efficiency.  Additionally, I'm pleased with our ability to secure some new contracts in a difficult market."

Rowan is a global provider of contract drilling services with a fleet of 31 mobile offshore drilling units, comprised of 27 jack-up rigs and four ultra-deepwater drillships.  The Company's fleet operates worldwide, including the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, and Trinidad.  

ROWAN  COMPANIES  PLC

CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

Unaudited  (in  millions  except  per  share  amounts)
         
   

THREE  MONTHS
   

ENDED  MARCH  31
   

2016

  

2015
         

REVENUES

  

$  500.2

  

$  547.0
         

COSTS  AND  EXPENSES:

        

Operations

  

204.8

  

255.7

Depreciation and amortization

  

98.9

  

89.7

Selling, general and administrative

  

26.9

  

27.6

Loss (gain) on disposals of property and equipment

  

2.2

  

(0.5)

Total

  

332.8

  

372.5

INCOME FROM  OPERATIONS

  

167.4

  

174.5

Net interest and other income (expense)

  

(40.5)

  

(33.6)

INCOME FROM  CONTINUING  OPERATIONS  BEFORE  INCOME  TAXES

  

126.9

  

140.9

Provision for income taxes

  

4.1

  

17.2

NET INCOME

  

$  122.8

  

$  123.7
         

NET INCOME PER SHARE

  

$    0.98

  

$    0.99
         

AVERAGE SHARES

  

125.8

  

125.1
         

NOTE:  See page 7 for supplemental operating information.

        

ROWAN  COMPANIES  PLC

CONDENSED  CONSOLIDATED  BALANCE  SHEETS

Unaudited  (in  millions)
         
         
         
   

March 31,

  

December 31,
   

2016

  

2015
         

ASSETS

        
         

Cash and cash equivalents

  

$     595.2

  

$              484.2

Accounts receivable

  

426.9

  

410.5

Other current assets

  

19.7

  

26.6

  Total current assets

  

1,041.8

  

921.3

Property, plant and equipment - net

  

7,332.1

  

7,405.8

Other assets

  

18.2

  

20.2

  TOTAL

  

$  8,392.1

  

$          8,347.3
         
         

LIABILITIES  AND  STOCKHOLDERS'  EQUITY

        
         

Short-term debt

  

$        21.3

  

$                      -

Accounts payable

  

87.1

  

109.6

Other current liabilities

  

190.9

  

219.1

  Total current liabilities

  

299.3

  

328.7

Long-term debt

  

2,655.0

  

2,692.4

Other liabilities

  

537.8

  

553.7

Stockholders' equity

  

4,900.0

  

4,772.5

  TOTAL

  

$  8,392.1

  

$          8,347.3

ROWAN  COMPANIES  PLC

CONDENSED  CONSOLIDATED   STATEMENTS  OF  CASH  FLOWS

Unaudited  (in  millions)
         
         
   

THREE  MONTHS
   

ENDED  MARCH  31
   

2016

  

2015
         

CASH PROVIDED BY (USED IN) OPERATIONS:

        

Net income

  

$  122.8

  

$  123.7

Adjustments to reconcile net income to net cash provided by operations:

        

  Depreciation and amortization

  

98.9

  

90.6

  Deferred income taxes

  

(12.6)

  

(7.5)

  Gain on disposal of assets

  

2.2

  

(0.5)

  Other, net

  

6.9

  

11.4

Net changes in current assets and liabilities

  

(55.0)

  

19.7

Net changes in other noncurrent assets and liabilities

  

(3.1)

  

7.4

  Net cash provided by operations

  

160.1

  

244.8
         

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:

        

Property, plant and equipment additions

  

(32.9)

  

(514.3)

Proceeds from disposals of property, plant and equipment

  

0.3

  

1.7

  Net cash used in investing activities

  

(32.6)

  

(512.6)
         

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:

        

Reductions in long-term debt

  

(16.5)

  

-

Payment of cash dividends

  

-

  

(12.6)

Other, net

  

-

  

(2.0)

  Net cash provided by (used in) financing activities

  

(16.5)

  

(14.6)
         

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

  

111.0

  

(282.4)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

  

484.2

  

339.2

CASH AND CASH EQUIVALENTS, END OF PERIOD

  

$  595.2

  

$    56.8

ROWAN  COMPANIES  PLC

SUPPLEMENTAL  OPERATING  SEGMENT  INFORMATION

Unaudited (in millions)
       
 

Three months ended March 31,
 

2016

  

2015

Deepwater:

      

Revenues

$  222.5

  

$  146.9

Operating expenses:

      

  Direct operating costs 

67.0

  

59.0

  Depreciation and amortization

27.3

  

17.7

  Selling, general and administrative

-

  

-

  Other operating items

0.3

  

-

Income (loss) from operations

$  127.9

  

$    70.2
       

Jack-ups:

      

Revenues

$  277.7

  

$  400.1

Operating expenses:

      

  Direct operating costs 

137.8

  

196.7

  Depreciation and amortization

68.4

  

69.0

  Selling, general and administrative

-

  

-

  Other operating items

1.9

  

-

Income (loss) from operations

$    69.6

  

$  134.4
       

Unallocated costs and other:

      

Revenues

$          -

  

$          -

Operating expenses:

      

  Direct operating costs 

-

  

-

  Depreciation and amortization

3.1

  

3.0

  Selling, general and administrative

26.9

  

27.6

  Material charges and other

-

  

(0.5)

Income (loss) from operations

$  (30.0)

  

$  (30.1)
       

Consolidated:

      

Revenues

$  500.2

  

$  547.0

Operating expenses:

      

  Direct operating costs 

204.8

  

255.7

  Depreciation and amortization

98.9

  

89.7

  Selling, general and administrative

26.9

  

27.6

  Material charges and other

2.2

  

(0.5)

Income (loss) from operations

$  167.4

  

$  174.5

ROWAN  COMPANIES  PLC

SUPPLEMENTAL  OPERATING  INFORMATION

Unaudited
   

THREE  MONTHS  ENDED
   

March 31,

  

December 31,

  

March 31,
   

2016

  

2015

  

2015

RIG DAYS:

            

  Operating

  

1,858

  

2,105

  

2,411

  Out of service (shipyard/transit/inspections/other)

  

145

  

73

  

82

  Idle (uncontracted)

  

533

  

404

  

139

  Operational downtime (off rate during rig operations)

  

12

  

36

  

47

  Cold-stacked

  

273

  

306

  

260

    Total available

  

2,821

  

2,924

  

2,939
             

UTILIZATION

  

66%

  

72%

  

82%

UTILIZATION (excluding cold-stacked rigs)

  

73%

  

80%

  

90%
             

AVERAGE DAY RATES (in  thousands):

            

  Jack-ups:

            

    North Sea

  

$     287.1

  

$              278.2

  

$     295.8

    Middle East

  

130.7

  

131.6

  

138.5

    Gulf of Mexico

  

73.2

  

66.7

  

115.4

    All jack-up rigs

  

182.3

  

176.3

  

180.2

  Drillships

  

$     612.4

  

$              623.3

  

$     631.9
             

OPERATIONS COSTS AND EXPENSES (in millions):

            

  Personnel (a)

  

$     144.8

  

$              155.7

  

$     181.9

  Repairs and maintenance

  

28.8

  

38.2

  

31.5

  All other

  

26.6

  

34.0

  

32.0

    Subtotal (excluding rebillables)

  

200.2

  

227.9

  

245.4

  Rebillables (equally offset with rebillable revenue)

  

4.6

  

7.9

  

10.3

    Total

  

$     204.8

  

$              235.8

  

$     255.7
             

(a)  Includes labor, fringes, training, travel and catering costs.

ROWAN COMPANIES PLC

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Unaudited (in millions)
         
   

THREE  MONTHS
   

ENDED  MARCH  31
   

2016

  

2015
         

ADJUSTED EARNINGS BEFORE INTEREST, TAXES AND DEPRECIATION (EBITDA):

    

GAAP NET INCOME

  

$  122.8

  

$  123.7

  Depreciation and amortization

  

98.9

  

89.7

  Interest (income) expense and other, net

  

41.1

  

33.6

  Income tax expense (benefit)

  

4.1

  

17.2

  Gain on debt extinguishment

  

(0.6)

  

-

NON-GAAP ADJUSTED EBITDA

  

$  266.3

  

$  264.2