Rowan Companies plc (NYSE:RDC) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 10:00 am ET

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Rowan Companies plc (NYSE:RDC) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to Valaris PLC's Third Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I will now turn the call over to Mr. Nick Georgas, Senior Director of Investor Relations, who will moderate the call. Please go ahead, sir.

Executive
Nick Georgas

Welcome, everyone, to the Valaris third quarter 2019 conference call. With me today are President and CEO, Tom Burke; Executive Vice President and CFO, Jon Baksht; and other members of our Executive Management team. We issued our press release, which is available on our website at valaris.com. Any comments we make today about expectations are forward-looking statements and are subject to risks and uncertainties. Many factors could cause actual results to differ materially from our expectations. Please refer to our press release and SEC filings on our website that define forward-looking statements and list risk factors and other events that could impact future results. Also, please note that the company undertakes no duty to update forward-looking statements.

During this call, we refer to GAAP and non-GAAP financial measures. Please see the press release on our website for additional information and required reconciliations. As a reminder, we issued our most recent Fleet Status Report, which provides details on contracts across our rig fleet on October 25th. An updated investor presentation is also available on our website.

Now, let me turn the call over to Tom Burke, President and CEO.

Executive
Thomas Burke

Thanks, Nick, and good morning, everyone. Welcome to the call and thank you for your interest in Valaris. I'm going to speak to three main topics in my prepared remarks today. I will briefly comment on the company's third quarter results, then provide an update on the company's four main priorities before discussing the broader market for offshore rigs and specific contract wins. I will then hand the call over to Jon for his comments.

In terms of our financial results for the third quarter, we reported adjusted EBITDA of $35 million, approximately $26 million better than the outlook we provided on our second quarter conference call. These results reflect robust execution and our ongoing focus on operational excellence and disciplined cost management, including aggressively realizing merger synergies. While we have a lot going on with integration, we remain focused on delivering safe and reliable operations to our customers.

On our last conference call, I highlighted four priorities for the company following the combination in April. These are integration and synergy capture, delivering value from ARO Drilling, proactively managing our balance sheet and fleet management, which encompasses our contracting strategy. With respect to our integration and synergy capture priority, we reached the six-month mark as a combined company in mid-October. During this time, we've made significant headway on our integration plan, which is now approximately 65% complete. This plan includes the standardization of operational policies and procedures across our fleet, which will drive a