Rowan Reports First Quarter Financial Results
For the three months ended March 31, 2002, the Company generated net income of $87.7 million, or $.92 per share, on revenues of $137.8 million, compared to net income of $31.7 million, or $.33 per share, on revenues of $193.5 million in the first 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 80% during the first quarter of 2002, versus 60% in the fourth quarter of 2001 and 97% in the year-earlier period, and our average offshore day rate of $32,900 decreased by $12,900, or 28%, from the fourth quarter of 2001 and by $25,400, or 44%, from the year-earlier period. Land rig utilization was 58% during the first quarter of 2002, versus 76% in the year-earlier period, and our average land rig day rate of $10,700 decreased by $2,000, or 16%, from the fourth quarter of 2001 and by $500, or 4%, from the year-earlier period.
Bob Palmer, Chairman and Chief Executive Officer, commented, "For the past nine months, we have cautioned that the future would be uncertain. It was and continues to be. But, it appears that the imbalance between natural gas supply and demand is changing, and the change is being reflected by an increase in the price of natural gas, which is up about 50% in recent months.
"For the moment, our Gulf of Mexico jack-up fleet is at 100% utilization and day rates appear to have stabilized, offering the possibility that our financial results in the second quarter could begin to improve. But, on the other hand..."