Rowan, a Houston, Texas-based driller has announced plans to move home base to the UK. The company has said that relocating to the UK would make communication with its rigs more efficient, as 74% are located outside the United States including Egypt and the North Sea and Rowan would also be able to take advantage of better tax rates.
Already having substantial operations in the UK, switching its registration will consolidate its position as a global contract driller and help Rowan compete with the global tax rates of its peers. The company has assured that the move will not impact jobs or American clients and that the change in corporate structure should be completed by late spring.
The announcement of the decision to move followed the posting of Rowan’s net income coming in at nearly half those of 2010, down to US135.7 million and annual revenues fell to US939.2 million from US1.017 billion in 2010. The company sold manufacturing and land drilling operations this year to expand offshore drilling activities this year. Rowan sold its drilling and mining equipment unit and its onshore rig fleet last year, as part of its planned expansion into deepwater drilling. Rowan plans to enter the ultra-deepwater market with three new drillships starting in late 2013.