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Rowan (RDC) To Resume Construction of Fourth EXL Class Jack-up Rig On Better Liquidity

October 5, 2009 8:55 AM EDT
RDC Hot Sheet
Overall Analyst Rating:
    BUY (= Flat)

Revenue Growth %: -8.5%

Rowan Companies, Inc. (NYSE: RDC) will resume construction of its fourth EXL class jack-up rig at the Keppel AmFELS, Inc. shipyard in Brownsville, Texas, with delivery expected in the first quarter of 2012.


 President and CEO Matt Ralls said, "In early 2009, we suspended construction of this rig due to liquidity concerns and a weakening jack-up drilling market, pending a decision in the third quarter about whether to complete or cancel this rig. We have now decided to resume construction based on substantial positive changes in our liquidity outlook through 2010 and our expectation of generating an attractive return on the $120 million of net capital remaining to complete construction on this rig."


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