Rowan Reports Record Operating Results
For the three months ended June 30, 2006, Rowan Companies, Inc. generated record net income of $109.7 million, or 98(cents) per share, compared to $42.3 million, or 39(cents) per share, in the same period of 2005 and $59.1 million, or 53(cents) per share, in the first quarter of 2006. Revenues were a record $382.9 million in the second quarter of 2006, compared to $244.6 million in the second quarter of 2005 and $299.8 million in the first quarter of 2006.
Current quarter results included $24.4 million, or 14(cents) per share, of gains on asset sales, compared to $11.4 million, or 7(cents) per share, in the second quarter of 2005 and $2.5 million, or 2(cents) per share, in the first quarter of 2006. The second quarter 2005 results also included $0.9 million, or less than 1(cent) per share, of after-tax loss from discontinued operations.
For the six months ended June 30, 2006, Rowan generated net income of $168.8 million, or $1.51 per share, compared to $85.7 million, or 78(cents) per share, in the same period of 2005. Revenues were $682.7 million during the first half of 2006 compared to $467.0 million in the first half of 2005. The 2005 results included $12.0 million, or 11(cents) per share, of after-tax income from discontinued operations.
Rowan's offshore rig utilization was 93% during the second quarter of 2006, down from 96% in the comparable 2005 period, as the company's four rigs in Saudi Arabia did not commence operations until well into April. The utilization of Rowan's other available 15 offshore rigs was 96% during the second quarter of 2006. The company's average offshore day rate was a record $143,900 during the second quarter of 2006, up $15,300, or 12%, from the first quarter of 2006 and up $74,100, or 106%, from the second quarter of 2005.
Rowan's land rig utilization was 100% during the second quarter of 2006, up from 89% in the comparable 2005 period. The company's average land rig day rate was $22,400 during the second quarter of 2006, up $200, or 1%, from the first quarter of 2006 and up $5,300, or 31%, from the second quarter of 2005.
The company's external manufacturing backlog was a record $567 million at June 30, and included $330 million in the marine group, $139 million in the drilling products group and $53 million in the equipment group.
“Our second quarter operating results were the best in the company's 83-year history,” said Danny McNease, Rowan’s chairman and CEO. “With half of our offshore fleet contracted well into 2007 or beyond, and a manufacturing backlog that stretches into 2008, our prospects for future revenues and earnings have never been brighter. Additions to capacity carried out during 2006 and planned over the next three years should enhance opportunities for further growth in our drilling and manufacturing businesses.
"We believe that worldwide demand for competitive jack-up rigs will continue to exceed the available supply, that the migration of rigs from the Gulf of Mexico to international markets will continue and, as a result, that overall drilling day rates will remain firm. Barring a collapse in oil, natural gas or other commodity prices, we expect worldwide demand for new rigs and rig kits, related drilling products and mining and timber equipment to remain strong."
Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The company also owns and operates a manufacturing division that produces equipment for the drilling, mining, and timber industries.