Rowan Announces 2001 Net Income
For the year ended December 31, 2001, Rowan generated net income of $77.0 million, or $.80 per share, compared to $70.2 million, or $.74 per share, in 2000. The Company incurred a net loss of $9.7 million, or $.10 per share, on revenues of $135.8 million during the fourth quarter of 2001, compared to net income of $27.5 million, or $.29 per share, on revenues of $184.2 million during the fourth quarter of 2000 and net income of $20.6 million, or $.22 per share, on revenues of $191.3 million during the third quarter of 2001.
Bob Palmer, Chairman and Chief Executive Officer, commented, "During the fourth quarter, the Gulf of Mexico market for offshore drilling rigs continued a downward spiral. Fourth quarter utilization was 60% and our average day rate was $45,800.
"Currently, day rates remain depressed. But, 'first you need a job before you can get a raise.' With some luck, financial results for the first quarter of 2002 could be slightly better than the fourth quarter -- depending principally upon utilization and day rates of our offshore rigs. It is just possible that we are in the early stages of a recovery. At least there is a glimmer of hope, since all 21 of our Gulf of Mexico jack-up rigs should be employed within the next ten days.
"Please note that the $88.6 million received from the Gorilla V judgment, while increasing our cash and cash equivalents, is offset by an increase in current liabilities. The investment income on the $88.6 million is similarly deferred while ongoing litigation costs are being expensed as incurred."