If this is what a trough quarter looks like, then
Rowan Companies (NYSE: RDC) ought to have a
bright future indeed.
The contract driller and manufacturer, which is quite
levered to the shallow water drilling market, naturally had
some less-than-stellar results to report for the period ended
September 30. In the drilling business, revenue dropped 28%
from the prior year, margins eroded a touch, and income was
cut in half.
How does that stack up to peers? Well, we saw
Hercules Offshore 's (Nasdaq: HERO) domestic
offshore revenue
plungeby 83%, contributing to a loss for the quarter.
Pride International (NYSE: PDE) turned in a
subpar performanceof its own, with revenue off 17% and
earnings from operations down 46%.
Ensco International (NYSE: ESV) saw revenue
drop more than 30% and per-share earnings
nearly halved.
Hercules, working for relative table scraps for Gulf of
Mexico operators like
Chevron (NYSE: CVX) and
Stone Energy (NYSE: SGY), is an easy mark,
but the Pride and Ensco comparisons are rather interesting.
Pride, with a fleet stuffed full of deepwater rigs, barely
fared any better than Rowan. Ensco, which I've championed for
a long time now, only ever-so-slightly bested Rowan's 59%
offshore utilization.
So well done there, Rowan. I knew you had
great depth. Whenever the market turns (recent increased
bidding activity for premium jackups in the UK North Sea is a
good start), you'll benefit handsomely. In the meantime, it's
nice to see that Rowan can do better than just tread
water.
This article was originally published as
This Driller Stacks Up Nicelyon
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