Active Stocks in Review: Rowan Companies plc (NYSE:RDC)


Rowan Companies plc (NYSE:RDC) added 14.97% and closed its last session at $17.82. The stock has the market capitalization of $2.24 Billion with the total outstanding shares of 125.44 Million. Rowan Companies plc. has Analysts’ Mean Recommendation of 2.7 between the scale of 1 to 5 (1 represents Strong Buy and 5 means Sell). The stock currently has P/E of 4.81 for trailing twelve months while its Forward P/E is 0.

Rowan Companies plc (NYSE:RDC) touched its 52-Week High of $20.37 on Dec 3, 2015 while it’s 52-Week Low of $10.67 on Feb 11, 2016. The company currently has Return on Assets of 5.5 percent, Return on Equity of 9.4% and Return on Investment of 3.2 percent. The stock currently showing Weekly Volatility of 4.02%% and Monthly Volatility of 4.38% Percent with Average True Range of 0.79 and Beta of 1.69.

The 33 analysts offering 12-month price forecasts for Rowan Companies PLC have a median target of 15.00, with a high estimate of 21.00 and a low estimate of 10.00. The median estimate represents a -15.82% decrease from the last price of 17.82.

Press Release:

The Company on 21 November reported it have signed, through their subsidiaries, an agreement to create a 50/50 joint venture to own, operate, and manage offshore drilling rigs in Saudi Arabia.

The new joint venture company will use Rowan’s established business in Saudi Arabia as its base with a scope of operations covering Saudi Arabia’s existing and future offshore oil and gas fields. The new company is anticipated to commence operations in the second quarter of 2017.

Tom Burke, President and Chief Executive Officer, stated, “Rowan has had a long and mutually beneficial relationship with Saudi Aramco and we welcome this opportunity to further strengthen our partnership and extend our commitment to the region. The new company will uniquely position Rowan to participate in the growing Saudi Arabian offshore drilling market, and provide Rowan with a compelling opportunity for a long-term partnership with the world’s leading oil and gas company, and create a long-term, profitable growth platform with firm rig commitments.”

At commencement of operations of the new company, Rowan will contribute three of its jack-up drilling rigs and Saudi Aramco will contribute two of its jack-up drilling rigs. Rowan will contribute an additional two jack-up rigs as they complete their current Saudi Aramco contracts in late 2018.  The new company will also manage the operations of five Rowan jack-up rigs currently in Saudi Arabia, until their associated drilling contracts expire, which then may be released, leased by or contributed to the new company thereafter. Rowan and Saudi Aramco have committed the new company to purchase future newbuild rigs that will be constructed in Saudi Arabia.

Company Profile:

Rowan Companies plc provides international and domestic offshore contract drilling services. The Company’s primary focus is on high-specification and premium jack-up rigs, used for exploratory and development drilling. It conducts offshore drilling operations particularly in the North Sea, Middle East, Southeast Asia and U.S. Gulf of Mexico. Rowan Companies plc, formerly known as Rowan Companies, Inc., is headquartered in Houston, Texas.