Rowan Companies Inc. (RDC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Rowan Companies Plc Class A Ordinary Shares has a market cap of $4.36 billion; its shares were traded at around $35.03 with a P/E ratio of 22.65 and P/S ratio of 4.64. Rowan Companies Plc Class A Ordinary Shares had an annual average earning growth of 18.2% over the past 10 years.
For the three and six months ended June 30, 2012, we recognized income tax benefits of $5.2 million and $5.7 million, respectively, primarily due to the amortization of tax benefit related to outbounding certain rigs into our non-U.S. subsidiaries in prior years. For the three and six months ended June 30, 2011, we recorded tax provisions of less than 1% and 3.9%, respectively. The effective tax rates for continuing operations for 2011 were substantially lower than the 35% U.S. statutory rate primarily due to amortization of tax benefit related to outbounding rigs into non-U.S. subsidiaries in prior years, the 2011 sales of the Company s manufacturing and land drilling operations, whose earnings were subject to a 35% U.S. statutory rate, and a significant proportion of income earned in lower-tax jurisdictions. For the full year 2012, we are currently projecting an effective tax rate benefit of less than 6%.
Our operating margin (revenues in excess of operating costs, other than depreciation, selling, general and administrative expenses and material charges) was approximately 46% of revenues in 2012 compared to 53% in the second quarter of 2011. Margins for the second quarter of 2012 were negatively impacted by higher rig personnel and maintenance costs, increased shorebase costs associated with expanded international operations and the impact of rigs in shipyards or in transit. Depreciation increased by $20.5 million or 50% compared to the second quarter of 2011 due to rig additions. Selling, general and administrative expenses increased by $3.4 million or 16% due primarily to increases in personnel and related costs.
Our operating margin (revenues in excess of operating costs, other than depreciation, selling, general and administrative expenses and material charges) was approximately 46% of revenues in the first six months of 2012 compared to 50% in the first six months of 2011. Margins for the 2012 period were negatively impacted by higher rig personnel and maintenance costs, increased shorebase costs associated with expanded international operations and the impact of rigs in shipyards or in transit. Depreciation increased by $41.3 million or 52% over the 2011 period due to the rig additions. Selling, general and administrative expenses increased by $5.7 million or 13% due primarily to increases in personnel and related costs.
Our collective shipyard and transit time was approximately 11% of our available rig days during the second quarter of 2012, comparable to first quarter levels. We currently expect shipyard and transit time to approximate 14% and 20% in the third and fourth quarters of 2012, respectively, due primarily to repair work on the EXL 1 following its collision with a tanker in May and unexpected shipyard time for the Cecil Provine. As a result, despite projected higher average day rates following the startup of operations in Norway and Egypt, we expect our operating days and revenues in the third and fourth quarter to decline from second quarter levels.
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Rowan Companies Plc Class A Ordinary Shares has a market cap of $4.36 billion; its shares were traded at around $35.03 with a P/E ratio of 22.65 and P/S ratio of 4.64. Rowan Companies Plc Class A Ordinary Shares had an annual average earning growth of 18.2% over the past 10 years.
Highlight of Business Operations:
Net income from continuing operations increased to $50.8 million in the second quarter of 2012 from $44.4 million in the second quarter of 2011. For the six months ended June 30, 2012, net income from continuing operations increased to $106.3 million from $71.2 million in the comparable prior-year period. Included in earnings for the quarter and six months ended June 30, 2012, was a pretax loss on debt extinguishment of $11.8 million ($7.6 million after tax).For the three and six months ended June 30, 2012, we recognized income tax benefits of $5.2 million and $5.7 million, respectively, primarily due to the amortization of tax benefit related to outbounding certain rigs into our non-U.S. subsidiaries in prior years. For the three and six months ended June 30, 2011, we recorded tax provisions of less than 1% and 3.9%, respectively. The effective tax rates for continuing operations for 2011 were substantially lower than the 35% U.S. statutory rate primarily due to amortization of tax benefit related to outbounding rigs into non-U.S. subsidiaries in prior years, the 2011 sales of the Company s manufacturing and land drilling operations, whose earnings were subject to a 35% U.S. statutory rate, and a significant proportion of income earned in lower-tax jurisdictions. For the full year 2012, we are currently projecting an effective tax rate benefit of less than 6%.
Our operating margin (revenues in excess of operating costs, other than depreciation, selling, general and administrative expenses and material charges) was approximately 46% of revenues in 2012 compared to 53% in the second quarter of 2011. Margins for the second quarter of 2012 were negatively impacted by higher rig personnel and maintenance costs, increased shorebase costs associated with expanded international operations and the impact of rigs in shipyards or in transit. Depreciation increased by $20.5 million or 50% compared to the second quarter of 2011 due to rig additions. Selling, general and administrative expenses increased by $3.4 million or 16% due primarily to increases in personnel and related costs.
Our operating margin (revenues in excess of operating costs, other than depreciation, selling, general and administrative expenses and material charges) was approximately 46% of revenues in the first six months of 2012 compared to 50% in the first six months of 2011. Margins for the 2012 period were negatively impacted by higher rig personnel and maintenance costs, increased shorebase costs associated with expanded international operations and the impact of rigs in shipyards or in transit. Depreciation increased by $41.3 million or 52% over the 2011 period due to the rig additions. Selling, general and administrative expenses increased by $5.7 million or 13% due primarily to increases in personnel and related costs.
Our collective shipyard and transit time was approximately 11% of our available rig days during the second quarter of 2012, comparable to first quarter levels. We currently expect shipyard and transit time to approximate 14% and 20% in the third and fourth quarters of 2012, respectively, due primarily to repair work on the EXL 1 following its collision with a tanker in May and unexpected shipyard time for the Cecil Provine. As a result, despite projected higher average day rates following the startup of operations in Norway and Egypt, we expect our operating days and revenues in the third and fourth quarter to decline from second quarter levels.
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