Rowan Reports Record Quarterly Revenues and Improved Operating Results
For the three months ended June 30, 2005, Rowan Companies, Inc. (NYSE: RDC) generated net income of $42.3 million, or 39 cents per share, compared to a loss of $2.1 million, or 2 cents per share, in the same period of 2004. Income from continuing operations was $43.2 million, or 39 cents per share, on record revenues of $244.6 million in the second quarter of 2005, compared to income from continuing operations of $4.0 million, or 4 cents per share, on revenues of $162.8 million in the second quarter of 2004. The current period results from continuing operations included gains on asset sales that contributed approximately 6 cents per share, net of tax.
The Company generated income from continuing operations of $73.7 million, or 67 cents per share, on revenues of $467.0 million during the six months ended June 30, 2005, compared to a loss from continuing operations of $1.2 million, or 1 cent per share, on revenues of $307.4 million during the same period of 2004. Net income was $85.7 million, or 78 cents per share, for the six months ended June 30, 2005, compared to a net loss of $13.4 million, or 13 cents per share, for the six months ended June 30, 2004.
Rowan's offshore rig utilization was 96% during the second quarter of 2005, versus 88% in the comparable prior period. Our average Gulf of Mexico day rate was a record $66,500 during the second quarter, up by $8,500, or 15%, from the first quarter and by $24,300, or 58%, from the comparable prior period. Land rig utilization was 89% during the second quarter of 2005, versus 82% in the comparable prior period. Our average land rig day rate was $17,100 during the second quarter, up by $800, or 5%, from the first quarter and by $5,700, or 50%, from the comparable prior period.
Danny McNease, Chairman and Chief Executive Officer, commented, "The near-term prospects for our drilling operations have never been better. Our fleet utilization has remained near optimal levels for most of the past 12 months, and many of our 25 offshore and 16 land rigs are earning all-time high day rates. Demand for premium drilling equipment is strong throughout the world, and most jack-up markets, including the Gulf of Mexico, are competing for rigs. We believe that this competition will intensify in the months ahead, and that jack-up day rates will continue to increase and contracts will continue to lengthen.
"We have recently experienced several positive developments on the international front. As announced today, we have obtained a three-year contract for five jack-ups in the Middle East to begin in early 2006. Gorilla VII has concluded abandonment activities on the North Sea's Ardmore Field, and should commence its one-year contract in Denmark this month. Total recently exercised their one-year option for Gorilla V in the North Sea, which will extend the commitment into the third quarter of 2006. Gorilla VI is drilling the first of two wells offshore eastern Canada, the first jack-up drilling ever in the Grand Banks area, and should remain there for the remainder of this year. We are continuing to aggressively pursue additional opportunities for our jack-ups in these and other overseas markets.
"Over the past three months, our manufacturing division has obtained orders for one jack-up rig and two rig kits that we expect will provide approximately $182 million in revenues during 2006 and 2007. Total backlog is approximately $280 million and includes 15 mining loaders and 29 mud pumps."
Rowan Companies, Inc. is a major provider of international and
domestic contract drilling services. The Company also operates a
mini-steel mill, a manufacturing facility that produces heavy
equipment for the mining and timber industries, and a drilling
products division that has designed or built about one-third of all
mobile offshore jack-up drilling rigs, including all 24 operated by
the Company. The Company's stock is traded on the New York Stock
Exchange and the Pacific Stock Exchange. Common Stock trading symbol: