Rowan Increases Income, Revenue During 1st Quarter 2009

For the three months ended March 31, 2009, Rowan Companies, Inc. generated net income of $131.7 million or $1.16 per share, compared to $98.6 million or $0.88 per share in the first quarter of 2008 and $94.3 million or $0.83 per share in the fourth quarter of 2008. Revenues were $494.8 million in the first quarter of 2009, compared to $485.5 million in the first quarter of 2008 and $613.0 million in the fourth quarter of 2008.

The first quarter 2009 results included $4.7 million of gains on asset disposals or $0.02 per share, compared to $5.4 million or $0.04 per share in the first quarter of 2008 and $39.5 million, or $0.23 per share in the fourth quarter of 2008. The fourth quarter 2008 results also included $111.2 million, or $0.68 per share of impairment charges and other expenses; there were no such charges in the first quarter of 2009.

Rowan's drilling operations generated revenues of $380.4 million in the first quarter of 2009, up by 12% over the prior-year quarter due primarily to rigs added in the fourth quarter, but down by 2% from the fourth quarter of 2008 due primarily to lower utilization. The Company's income from drilling operations was $187.1 million in the first quarter of 2009, up by 30% over the first quarter of 2008 but down by 7% from the fourth quarter of 2008. The Company's income from manufacturing operations was $11.1 million in the first quarter of 2009.

Matt Ralls, President and Chief Executive Officer, commented, "We are very pleased with the strong performance of both our drilling and manufacturing operations in the first quarter of 2009, particularly in the area of cost reduction. This is an area of considerable focus for Rowan, especially as weakening demand for drilling services and equipment continues to put downward pressure on our revenues.

"While all of our jack-ups are under contract today, we are likely to have idle time on jack-ups in both the Gulf of Mexico and the Middle East in the near future. Nonetheless, we continue to believe that the quality of our rigs and our operational reputation will enable us to maintain above average utilization of our available jack-ups."
 

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