Offshore Driller Rowan Narrows Quarterly Loss

The company shares are gaining 3% following the report.
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Offshore drilling company



narrowed its second-quarter loss, saying average day rates improved from a year ago.

The company lost $6.6 million, or 7 cents a share, compared with a loss $8.7 million, or 9 cents a share, in the previous-year quarter. Analysts expected a loss of 4 cents a share. Revenue was $158.1 million, up from $148.5 million last year.

"During the second quarter, our revenues grew by 20%, and our losses were reduced by two-thirds. Our drilling and aviation divisions were profitable in June, and the outlook for the manufacturing division is improving," said Bob Palmer, the company's chairman. "With all 23 Rowan offshore rigs currently under contract, we believe our operating results will continue to improve during the third quarter."

The company said its offshore rig utilization rate was 88% during the quarter, compared with 87% in last year's quarter. The company's average offshore day rate of $39,400 increased by $8,900, or 29%, from the year-earlier period. Land-rig utilization was 76% during the quarter, vs. 68% a year ago.

Shares of Rowan, which is based in Houston, were recently up 3.2% at $22.11.