Rowan Companies plc (RDC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $24.40 million, or $ 0.19 a share in the quarter, against a net profit of $124.40 million, or $0.99 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $9.20 million, or $0.08 a share compared with $119.10 million or $0.95 a share, a year ago. Revenue during the quarter plunged 34.34 percent to $351.80 million from $535.80 million in the previous year period. Gross margin for the quarter contracted 713 basis points over the previous year period to 48.86 percent. Total expenses were 88.29 percent of quarterly revenues, up from 66.37 percent for the same period last year. That has resulted in a contraction of 2192 basis points in operating margin to 11.71 percent.
Operating income for the quarter was $41.20 million, compared with $180.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $142.90 million compared with $272.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1028 basis points in the quarter to 40.62 percent from 50.90 percent in the last year period.
Tom Burke, president and chief executive officer, commented, "In the past year, we displayed outstanding operational and safety performance, exercised financial discipline, improved our liquidity and strengthened our balance sheet, and announced a groundbreaking partnership with Saudi Aramco. While we are cognizant that 2017 still presents many challenges, we are hopeful that the commodity price improvement and increase in potential drilling activity will guide our industry toward recovery. Through our continued focus on safe, reliable and efficient operations, we will seek to take advantage of any market recovery."
Operating cash flow declines
Rowan Companies plc has generated cash of $900.60 million from operating activities during the year, down 9.66 percent or $96.30 million, when compared with the last year. The company has spent $111.40 million cash to meet investing activities during the year as against cash outgo of $703.50 million in the last year. It has incurred net capital expenditure of $111.40 million on net basis during the year, down 84.16 percent or $592.10 million from year ago.
The company has spent $17.90 million cash to carry out financing activities during the year as against cash outgo of $148.40 million in the last year period.
Cash and cash equivalents stood at $1,255.50 million as on Dec. 31, 2016, up 159.29 percent or $771.30 million from $484.20 million on Dec. 31, 2015.
Working capital increases sharply
Rowan Companies plc has recorded an increase in the working capital over the last year. It stood at $1,096.50 million as at Dec. 31, 2016, up 85.03 percent or $503.90 million from $592.60 million on Dec. 31, 2015. Current ratio was at 3.27 as on Dec. 31, 2016, up from 2.80 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Rowan Companies plc remained almost stable for the quarter at $2,680.20 million, when compared with the last year period. Short-term debt stood at $126.80 million as on Dec. 31, 2016. Total debt was 30.89 percent of total assets as on Dec. 31, 2016, compared with 32.25 percent on Dec. 31, 2015. Debt to equity ratio was at 0.52 as on Dec. 31, 2016, down from 0.56 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.06 for the quarter from 4.46 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
