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Oil Contractor Rowan Reports Improved 1Q Profit

The Associated Press

HOUSTON (AP) — Oil drilling contractor Rowan Cos. Inc. said its first-quarter profit rose due to boosted drilling and manufacturing income combined with cost reductions.

Rowan's net profit rose to $131.7 million, or $1.16 per share, compared with $98.6 million, or 88 cents per share in the same quarter a year ago.

The results included $4.7 million, or 2 cents a share, for gains on asset disposals, compared with $5.4 million or 4 cents per share in the first quarter of 2008.

Revenue was $494.8 million, up from compared to $485.5 million a year ago.

Analysts, who typically excluded one-time items, surveyed by Thomson Reuters expected 94 cents a share on revenue of $517.9 million.

Drilling revenue rose 12 percent to $380 million and income from drilling rose 30 percent to $187 million.

Manufacturing revenue fell to $114 million from $145 million but income rose to $11.1 million from $4.1 million primarily due to reduced costs, which has become a focus as weakening demand for drilling services and equipment pressures revenue, said Chief Executive Matt Ralls.

"While all of our jack-ups are under contract today, we are likely to have idle time on jack-ups in both the Gulf of Mexico and the Middle East in the near future," he said in a statement. "Nonetheless, we continue to believe that the quality of our rigs and our operational reputation will enable us to maintain above average utilization of our available jack-ups."