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Rowan Companies plc Message Board

  • sjllll sjllll Aug 25, 1998 7:46 PM Flag

    I Give!

    RDC is a piece of shit! I finally sold everything today and took the loss. You guys that stick it out are pretty smart. You have 12 dollars today and probably about 5 dollars in a month. Later!

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    • that there are not too many people in your
      situation. If there are and the market continues to trend
      down in the coming weeks, things could get really
      ugly. I sure hope that the USA market holds strong. I
      am an American but live overseas. The market in the
      country in which I live is down almost 80% in US$ terms.
      Not very pretty.

    • As far as the break even point for day rates,
      that depends on alot of different things. Location of
      the rig is the biggest variable. Rigs in the Gulf of
      Mexico are the cheapest to operate, therefore have the
      lowest break even point w/ day rates. I would GUESS that
      the break even point for these rigs to be $10K - 15K
      a day. The rigs that are in the N.Sea have a much
      higher break even point, I would say $20K - 30K a day.
      THIS IS ONLY MY GUESS.
      As far as when day rates
      move to a money losing position, at this time, I don't
      see RDC, or any other drilling contractor for that
      matter, working their rigs on a money losing
      contract.
      When RDC stacks their rigs, they do not (or haven't in
      the past) laid off any of their personnel. They were
      the only drilling contractor in buisness that kept
      their workforce on the rigs, upgrading & maintaining
      them. When the rig market turned around in the mid
      '90's, their rigs & people were ready to go work right
      then. Guess where the other drilling contrators &
      service co.'s came to try to lure skilled personnel for
      their rigs, RDC. They didn't have to go into a shipyard
      for major refurbishment like alot of other co.'s rigs
      did. This also developed a tremendous amount of
      loyalty from their workforce. When things turned around,
      RDC didn't have the problems finding skilled workers
      to man their rigs like other co.'s. Remember this,
      it takes alot of skilled labor to operate a rig,
      without it you might as well sink it.
      As far as the
      building of the Gorilla rigs, it is a very smart move. The
      niche market for these rigs is great. These rigs will
      be the big money makers for RDC for many years to
      come. The Gorilla's can work in the hashest of
      environments, as well as places like the Gulf of Mexico. Right
      now, there are 3 seismic vessels doing work off the
      East Coast of Canada. From what I have read, this will
      be a HOT area for oil & gas development in the
      coming years. RDC has been drilling off the east coast
      of Canada since the early '80's. Gorilla 3 has been
      drilling & producing oil up there for about the last 5
      years. The other major area for these rigs to operate in
      is in the central North Sea & off the coast of
      Norway.
      The aviation division, ERA Aviation, has not
      been much of a money maker for the co. lately. With
      the slowdown of drilling activity on the North Slope
      of Alaska in the past few years, it has hurt the
      buisness. This is where ERA has virtually no competition.
      They also operate a fixed wing operation doing charter
      & sightseeing work in Alaska. They also do alot of
      forest fire work. If you watch the news, you will see
      their white, red, & black helicopters fighting the
      fires. On the Gulf Coast, ERA has just put into
      operation (3) Sikorsky 61 helicopters to service the deep
      water areas of the Gulf. These aircraft will be money
      makers. Hopefully they can put more of them into
      operation in the future as the deepwater development in the
      Gulf grows.
      If this doesn't answer your questions
      about RDC, look back & reveiw some of my other posts on
      this board.

    • my information does not state why the aviation
      div lost money in 1st half of 98. It does say the 3rd
      qtr ea yr is best quarter. Sd now tourism up 23%,
      forest fire control in Fl & Tx up dramatically using 21
      helicopters & 3 aircraft. States aviation div will partially
      offset reduction in drilling revenues.
      Offshore rig
      utilizatin chart shows rigs in Canada (2), North Sea (5), &
      Gulf of Mexico (14). This is all types of
      rigs.

      Of the 12 stocks I own, Rowan provides me with the
      most information!

    • What is the day rate for rigs to break even?
      I
      see RDC got a 15% increase in the day rate for its
      Gorilla rig in Canada. What does this company do when day
      rates move to a money losing position? What about
      personnel?
      From my analysis, this is one of the best rig
      companies in the business. The Building of these Gorilla
      Rigs is a smart move. Niche market, specialized rigs
      that can both drill and produce oil on the same rig.
      Are there any other parts of the world where these
      Gorillas can work besides the North Sea and Canada?

      What are your thoughts on why this company continues
      to keep the aviation business?
      Hope Palmer does
      not retire.

    • As a stockholder received a 6 mth interim report
      dated 7/22/98. States Gorilla II is commencing a 600
      day contract in the North Sea will arrive 11/98 and
      wil start operations immediately. Gorilla VI
      construction schedule revised to 2nd qtr, 2000 but will be
      lower labor costs, financing costs. Gorilla V & VI cost
      $550 to $600m. Manufacturing Div Revenues inc 31% in
      2nd qtr, 98. Aviation div had a operating loss.
      states drilling div outlook uncertain, aviation div will
      increase, maufacturing wl remain level. Last paragraph
      states 1998 revenue & earnings should be all-time record
      levels!In past year long-term debt inc less than $500,00,
      net property & equip inc $170m & stockhldr equity inc
      $200m. We believe we ae once gain on road to prosperity,
      but watching he chug-holes.Signed by C.R.Palmer,
      chairman of Brd/President. I like the company, mgmt. Plan
      to buy more stock! My only concern is Mr. Palmer
      retiring. He is 62 and vital to the success of this
      company.Best wishes to you all.

    • you bonehead, don't tell people to wait until
      they see upward price momentum. tell them to buy now
      to create some momentum. i'm dying here (forgive my
      emotional outburst, I was within $50 today of a margin
      call, great deals abound and I don't have a red cent to
      take advantage of them, I am at the mercy of the
      market on Monday and I don't even have enough money to
      buy a friggin bullet).

    • RDC paid off the 11% notes in two steps over a 10
      month period. They also started to draw down gradually
      on a financing agreement as the completion
      progressed on Gorilla V (this happened over about a 2 year
      period). RDC indicated that they were only going to buy up
      to 5% of their stock back.

    • that FY 1999 earnings are goin to be $ 2.33. Quite obviously, those who vote with their money clearly don't agree with that estimate. Count on it being revised shortly.

    • The lifespan of Gorilla 2, 3, 4, or any other rig
      is many years. RDC has many rigs in it's fleet that
      were built in the 1970's, the oldest being built in
      1970, which is still working today. RDC is known for
      having "good iron" in the oil patch. During the bust in
      the '80's, it was probably the only co. in the
      buisness that kept it's workforce in place, refurbishing
      it's rigs, while waiting on the next upturn in this
      cyclical buisness. From what I have heard about Gorilla 6,
      it will be coming out 4Q99 - 1Q2000. Right now, the
      biggest problem in the rig building buisness is (1)
      finding enough skilled labor, (2) getting equipment to
      put on these rigs. The workforce & equipment
      manufacturers have not forgotten the 80's bust.

      My
      feeling on deepwater rigs is that I hope oil co.'s make
      some significant discoveries over the years, so the
      owners of these rigs can keep them working to pay for
      them. So far, they seem to be making enough of them to
      support the building of these rigs. Remember this, there
      is an awful lot of deep water in this world that
      could harbor huge oil & gas reserves. New technology is
      finally making it economically feasible for oil co.'s to
      harvest this oil & sell it for a profit. Let's hope that
      this new technology proves itself over the years & we
      don't have any major catastrophies.

      TDW is a
      good co. They have the largest fleet in the world of
      oilfield supply vessels ( I believe like 700 - 800).
      Haven't heard if they are building any new vessels. They
      have good management. Like all co.'s, they are having
      hell keeping a workforce to man their
      vessels.

      ESV is a good co. Good management, good iron, solid
      balance sheet. (See my other posts on this board)

    • MRHIGHBETA (post 719) gave an excellent summary
      of the fundamental soundness of Rowan, while
      ratfink99 98 (post 720) gave us the technical side of the
      story. I'm long on Rowan. My signals were to sell it at
      32 but I ignored them because of Rowan's good
      fundamentals and the fact that I thought the downturn would be
      short-lived. My advice for those who are considering this
      stock is to hold off until upward price momentum is
      exhibited. Meanwhile, I and my money sit here
      unproductively, waiting for the inevitable, but unpredictable,
      price recovery.

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RDC
24.70+0.30(+1.23%)Nov 21 4:05 PMEST

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