Rowan Reports Improved Operating Results
For the three months ended June 30, 2002, the Company incurred a net loss of $8.7 million, or $.09 per share, on revenues of $148.5 million, compared to net income $87.7 million, or $.92 per share, on revenues of $137.8 million in the first quarter of 2002, and net income of $34.3 million, or $.36 per share, on revenues of $210.4 million in the second quarter of 2001. First quarter 2002 results included net proceeds from the settlement of the Gorilla V contract dispute, which increased net income by approximately $102 million, or $1.07 per share. Excluding the effects of the settlement, the Company's first quarter 2002 results would have been a net loss of approximately $14 million, or $.15 per share.
Rowan's offshore rig utilization was 87% during the second quarter of 2002, versus 80% in the first quarter and 90% in the year-earlier period, and our average offshore day rate of $30,500 decreased by $2,400, or 7%, from the first quarter and by $30,600, or 50%, from the year-earlier period. Land rig utilization was 68% during the second quarter of 2002, versus 84% in the year- earlier period, and our average land rig day rate of $10,200 decreased by $400, or 4%, from the first quarter and by $4,100, or 29%, from the year- earlier period.
Bob Palmer, Chairman and Chief Executive Officer, commented, "Second quarter financial results were about as expected. Rig utilization improved, average day rates bottomed and began heading back up, the aviation division's seasonal increase in activity began and the manufacturing division's backlog grew.
"With all 24 Rowan offshore rigs under contract and day rates on the increase, we look forward to delivering positive financial results for the third quarter. Beyond the next 90 days, our crystal ball remains cloudy -- as we watch with intense interest the fluctuations in natural gas prices and our customers' reactions and ever-changing spending plans that are so crucial to our financial performance.
"Longer-term, we remain optimistic and have not lost sight of our goal of achieving earnings of $4.50 per share -- someday -- and I hope it is in my lifetime."