Rowan posts loss; pledges turnaround

Petroleum News Houston staff

Rowan Cos., although incurring another loss in the 2003 second quarter, said the quarter represented a “dramatic turnaround” in its effort to return the drilling company to profitability.

The Houston-based contractor weighed in July 15 with a second-quarter loss of $6.6 million or 7 cents per share on revenues of $158.1 million. That compares to a loss of $17.2 million or 18 cents per share on revenues of 131.4 million in the first quarter and a loss of $8.7 million or 9 cents per share on revenues of $148.5 million for the year-ago period.

Despite the red ink, revenues in the second quarter grew by 20 percent over the first quarter and losses were cut by two-thirds, the company pointed out.

With all 23 Rowan offshore rigs now under contract, “we believe our operating results will continue to improve during the third quarter,” Rowan Chairman Bob Palmer said.

Offshore rig utilization was 88 percent during the second quarter versus 82 percent in the first quarter and 87 percent in the year-ago period, Rowan said. The average day rate of $39,400 in the second quarter increased 13 percent from the first quarter.

Land rig utilization was 76 percent in the second quarter compared to 68 percent in the year-ago period, and the company’s average day rate of $10,600 increased 8 percent from the first quarter and 4 percent from last year’s second quarter, Rowan said.