Rowan triples second quarter earnings

Rowan Cos. Inc. reported second quarter earnings of $34.3 million, triple second quarter 2000 earnings of $11.1 million. Revenue for those quarters was $210.4 million and $143.2 million respectively.

July 12, 2001

By the OGJ Online Staff

HOUSTON, July 12 -- Rowan Cos. Inc. reported second quarter earnings of $34.3 million, triple second quarter 2000 earnings of $11.1 million.

Revenue for those quarters was $210.4 million and $143.2 million respectively.

C.R. Palmer, chairman and CEO, said, "Second quarter financial results were within the range of our revised expectation of 35-40¢ per share.

"While offshore utilization of 90% was less than hoped for, nonetheless average day rates were $61,100 during the period, up by $2,800, or 5%, over the first quarter and up by $18,400, or 43%, over the same period a year earlier.

"Land rig utilization was 84%, up from 76% in the first quarter, with day rates averaging $14,300, an increase of $3,200, or 28%, over the first quarter and an increase of $6,800, or 90%, over the prior-year period."

Palmer said the company believes earnings for the third quarter will be 30-40¢/share, depending on rig utilization and day rates.

Palmer also said final arguments on its dispute with BP PLC over the Gorilla V contract are set to conclude in October in London. "The Harris County, Tex., litigation remains in the discovery phase with a tentative trial date of Nov. 26, 2001."