The jack-up Rowan Viking, an N-Class ultra-harsh environment jack-up rig, has been awarded a five-well program by Shell UK Limited for plugging and abandonment work.
Rowan Companies (RDC) is one of the first offshore drillers that presents a rock-solid balance sheet and has managed to overcome the negative ripples of an offshore drilling recession driven by an oil crash that started three years ago.
Rowan’s rig fleet is very versatile, and the company owns a primarily large Jack-up fleet, which represents about 90% of the total backlog, including the long-term effect of the new JV 50/50 created with Saudi Aramco.
RDC rallied a whopping 60% the last quarter of 2017 when the stock experienced a decisive break out of the descending channel pattern in September. Unfortunately, after reaching $17 early 2018, the stock has retraced significantly and presents a great buying opportunity again in the low $11’s assuming a slow recovery starting in H2 2018.