Rowan Reports Net Income of $86 Million for 2002
For the year ended December 31, 2002, Rowan generated net income of $86.3 million, or $.90 per share, compared to $77.0 million, or $.80 per share, in 2001. The 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 2002 results would have been a net loss of approximately $16 million, or $.17 per share. The Company incurred a net loss of $2.8 million, or $.03 per share, on revenues of $146.8 million during the fourth quarter of 2002, compared to a loss of $9.7 million, or $.10 per share, on revenues of $135.8 million during the fourth quarter of 2001 and net income of $10.2 million, or $.11 per share, on revenues of $184.2 million during the third quarter of 2002.
Rowan's offshore rig utilization was 88% during the fourth quarter of 2002, versus 93% in the third quarter and 60% in the year-earlier period, and our average offshore day rate of $38,700 declined by $3,300, or 8%, from the third quarter and by $7,200, or 16%, from the year-earlier period. Land rig utilization was 68% during the fourth quarter of 2002, versus 76% in the third quarter and 56% in the year-earlier period, and our average land rig day rate of $9,500 decreased by less than $100, or 1%, from the third quarter and by $3,200, or 25%, from the year-earlier period.
Bob Palmer, Chairman and Chief Executive Officer, commented, "While fourth quarter financial results did not live up to our expectations, the outlook for 2003 is certainly better than 2002. I believe that Rowan's commitment to natural gas in the Gulf of Mexico, coupled with anticipated projects offshore eastern Canada and in the North Sea, will result in a strong recovery for our drilling division. Further, we believe our manufacturing and aviation divisions will add to the improved financial results.
"Keep thinking $5.00 mcf gas!"