Rowan Reports Record Revenues and Profits
Thursday February 28, 8:45 am ET
HOUSTON--(BUSINESS WIRE)--For the three months ended December 31, 2007, Rowan Companies, Inc. (NYSE:RDC $41.01 - News) generated record net income of $138.5 million or $1.23 per share, compared to $62.4 million or 56¢ per share in the fourth quarter of 2006 and $130.8 million or $1.16 per share in the third quarter of 2007. Revenues were a record $623.6 million in the fourth quarter of 2007, compared to $410.9 million in the fourth quarter of 2006 and $502.2 million in the third quarter of 2007.
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The fourth quarter 2007 results included $0.7 million or less than 1¢ per share of gains on asset sales, compared to $1.1 million or 1¢ per share in the third quarter of 2007. There were no significant asset sales in the fourth quarter of 2006, though that period included $12.8 million or 10¢ per share of charges related to environmental matters.
For the year ended December 31, 2007, the Company generated record net income of $483.8 million or $4.31 per share on record revenues of $2.1 billion, compared to net income of $318.2 million or $2.85 per share on revenues of $1.5 billion during 2006. The prior-year results included approximately $1.2 million, or 1¢ per share, of after-tax income from the Company’s discontinued aviation operations which were sold in 2004.
Rowan’s offshore rig utilization was 97% during the fourth quarter of 2007, compared to 81% in the fourth quarter of 2006 and 99% in the third quarter of 2007. The Company’s average offshore day rate was $164,300 during the fourth quarter of 2007, up by $19,900 or 14% from the fourth quarter of 2006 and by $6,100 or 4% from the third quarter of 2007. Rowan’s land rig utilization was 94% during the fourth quarter of 2007, compared to 95% in the fourth quarter of 2006 and 96% in the third quarter of 2007, though the number of rig operating days increased between periods. The Company’s average land rig day rate was $23,000 during the fourth quarter of 2007, up by $300 or 1% from the fourth quarter of 2006, but down by $300 or 1% from the third quarter of 2007.
Rowan’s drilling operations generated record revenues of $372.4 million during the fourth quarter of 2007, up by $91.8 million or 33% from the fourth quarter of 2006 and by $3.6 million or 1% from the third quarter of 2007. The Company’s income from drilling operations was $170.6 million or 46% of revenues during the fourth quarter of 2007, up by 91% from the fourth quarter of 2006, but down by 7% from the third quarter of 2007. The Company’s current backlog of drilling contracts is estimated to be approximately $2.1 billion.
Rowan’s combined manufacturing operations generated record revenues of $251.2 million during the fourth quarter of 2007, up by $120.9 million or 93% from the fourth quarter of 2006 and by $117.8 million or 88% from the third quarter of 2007. The Company’s income from manufacturing operations improved to $38.3 million or 15% of revenues during the fourth quarter of 2007, up by 312% from the fourth quarter of 2006 and by 162% from the third quarter of 2007.
Danny McNease, Chairman and Chief Executive Officer, commented, “Rowan’s fourth quarter operating results concluded another record year for the Company. By just about any financial measure, our performance in 2007 was the best in the Company’s 85-year history. Our backlog of business, which currently approaches $2.5 billion, together with our aggressive strategic growth plan, suggest that even better times are ahead for Rowan.”
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. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.
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