SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2012

SHAREHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 10 – SHAREHOLDERS' EQUITY

Limitation on Payments of Dividends

Restrictive provisions in the Company's debt agreements require the Company to maintain a minimum level of shareholders' equity equal to no less than the 100% of the book value of outstanding debt.  The payment of future dividends, if any, may only be paid at the discretion of the Board.  Factors which the Board may consider include the Company's earnings, financial condition and cash requirements, opportunities for reinvesting earnings, and general business conditions, among other factors.  No dividends were paid by the Company in 2012, 2011 or 2010.

Share Repurchase Program

On July 25, 2012, the Board of Rowan UK, as successor issuer to Rowan Delaware, approved the continuation of Rowan Delaware's $150 million share repurchase program, of which approximately $25 million remained available.  The Company did not acquire any shares under its share repurchase program in 2012.  Share repurchases may be commenced or suspended from time to time without prior notice.  Any shares acquired under the share repurchase program would be canceled.