Rowan Companies (RDC) has reported 91.61 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $10.30 million, or $0.07 a share in the quarter, compared with $122.80 million, or $0.98 a share for the same period last year. Revenue during the quarter dropped 25.17 percent to $374.30 million from $500.20 million in the previous year period. Gross margin for the quarter contracted 447 basis points over the previous year period to 54.58 percent. Total expenses were 79.21 percent of quarterly revenues, up from 66.53 percent for the same period last year. That has resulted in a contraction of 1268 basis points in operating margin to 20.79 percent.
Operating income for the quarter was $77.80 million, compared with $167.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $176.90 million compared with $266.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 598 basis points in the quarter to 47.26 percent from 53.24 percent in the last year period.
Tom Burke, president and chief executive officer, commented, "While our revenues were down significantly year-over-year as a result of poor market conditions, I am pleased with our continued strong operating performance and sustained cost reduction efforts. We are preparing to start up our new joint venture with Saudi Aramco in the second quarter and look forward to the long term growth of this new company with our partner."
Operating cash flow drops significantlyRowan Companies has generated cash of $81.50 million from operating activities during the quarter, down 49.97 percent or $ 81.40 million, when compared with the last year period. The company has spent $30.80 million cash to meet investing activities during the quarter as against cash outgo of $32.60 million in the last year period. It has incurred net capital expenditure of $30.80 million on net basis during the quarter, down 5.52 percent or $1.80 million from year ago period.
The company has spent $133 million cash to carry out financing activities during the quarter as against cash outgo of $19.30 million in the last year period.
Cash and cash equivalents stood at $1,173.20 million as on Mar. 31, 2017, up 97.11 percent or $578 million from $595.20 million on Mar. 31, 2016.
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