Rowan Reports Improved Operating Results
For the three months ended September 30, 2002, the Company achieved net income of $10.2 million, or $.11 per share, on revenues of $184.2 million, compared to a net loss of $8.7 million, or $.09 per share, on revenues of $148.5 million in the second quarter of 2002, and net income of $20.6 million, or $.22 per share, on revenues of $191.3 million in the third quarter of 2001.
Rowan's offshore rig utilization was 93% during the third quarter of 2002, versus 87% in the second quarter and 70% in the year-earlier period, and our average offshore day rate of $42,000 increased by $11,400, or 37%, from the second quarter but declined by $16,000, or 28%, from the year-earlier period. Land rig utilization was 76% during the third quarter of 2002, versus 71% in the year-earlier period, and our average land rig day rate of $9,600 decreased by $700, or 7%, from the second quarter and by $6,000, or 39%, from the year- earlier period. Bob Palmer, Chairman and Chief Executive Officer, commented, "Earlier this year, we believed that either day rates would continue to improve or utilization would decline. While our Gulf of Mexico utilization has remained strong, the rate of increase in day rates has recently slowed. Nonetheless, third quarter earnings from operations are the best they have been in a year.
"The major uncertainties in the near term are the utilization of Gorilla V offshore eastern Canada and Gorilla VII in the North Sea. The recently- announced long-term contract for Gorilla VII is certainly an important milestone for the Company."