Rowan earnings come in at $.01. The reason it opened down is they are doing a secondary of 10 million shares.
Here is a nice quote taken from the middle of the report for those that don't want to review the whole thing:
<< "I do not want to tempt fate by predicting the future, but the facts are these: demand for oil and natural gas is increasing and
production of oil and gas is decreasing through depletion and reduced drilling activity.
"Demand for rigs in the U.S., particularly offshore jack-ups, has been increasing for the past several weeks. The fundamentals
are in place for a marked improvement in Rowan's economic performance.
"We are ready!" >>>
HOUSTON, Oct. 13 /PRNewswire/ -- For the three months ended September 30, 1999, the Company
achieved net income of $0.6 million, or $.01 per share, on revenues of $119.9 million compared to $32.5 million, or $.38 per
share, on revenues of $183.5 million in the third quarter of 1998. The average day rate for the Company's offshore rigs was
$38,800 during the third quarter of 1999, or 14% below the second quarter of 1999 and 34% less than the prior year quarter.
The Company's offshore rig utilization was 71% during the third quarter of 1999 compared to 68% in the second quarter of 1999
and 84% in the third quarter of 1998.
C. R. Palmer, Chairman and Chief Executive Officer, commented, "Results for the third quarter were improved over the second
quarter, largely due to the contributions of the drilling and aviation divisions. The contract dispute with Amoco (UK) Exploration
Company continues to reduce quarterly revenues and pre-tax income by approximately $16 million. Currently, all 15 available
Rowan rigs in the Gulf of Mexico are committed, and one additional rig is preparing to relocate there from the North Sea.
"I do not want to tempt fate by predicting the future, but the facts are these: demand for oil and natural gas is increasing and
production of oil and gas is decreasing through depletion and reduced drilling activity.
"Demand for rigs in the U.S., particularly offshore jack-ups, has been increasing for the past several weeks. The fundamentals
are in place for a marked improvement in Rowan's economic performance.
"We are ready!"
Rowan Companies, Inc. (NYSE: RDC) is a major provider of international and domestic offshore contract drilling and aviation
services. The Company also operates a mini-steel mill, a manufacturing facility that produces heavy equipment for the mining,
timber and transportation industries, and a marine division that has designed and built over one-third of all mobile offshore
jack-up drilling rigs, including all 21 operated by the Company. The Company's stock is traded on the New York Stock Exchange
and the Pacific Stock Exchange. Common Stock trading symbol: RDC. Contact: William C. Provine, Vice-President - Investor
Relations, 713-960-7575. Website: www.rowancompanies.com.
This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the
Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause
actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ
materially include oil and natural gas prices, the level of offshore expenditures by energy companies, the general economy,
including inflation, weather conditions in the Company's principal operating areas and environmental and other laws and
regulations. Other relevant factors have been disclosed in the Company's filings with the U. S. Securities and Exchange
Commission.
ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited (In Thousands)
SEPTEMBER 30
1999 1998
ASSETS
Cash and short-term investments $60,047 $112,775
Accounts receivable 91,142 114,474
Inventories 112,464 128,815
Other current assets 28,518 22,948
Total current assets 292,171 379,012
Property, plant and equipment - net 1,001,211 824,526
Other assets 5,277 5,931
TOTAL $1,298,659 $1,209,469
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt $18,433 $12,756
Other current liabilities 63,157 84,181
Total current liabilities 81,590 96,937
Long-term debt 368,154 250,335
Other liabilities 128,820 127,048
Stockholders' equity 720,095 735,149
TOTAL $1,298,659 $1,209,469
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited (In Thousands Except Per Share Amounts)
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
1999 1998 1999 1998
REVENUES:
Drilling services $60,883 $103,543 $189,670 $359,192
Manufacturing sales
and services 22,007 36,727 69,653 119,431
Aviation services 37,033 43,200 79,822 93,001
TOTAL 119,923 183,470 339,145 571,624
COSTS AND EXPENSES:
Drilling services 50,802 56,822 160,672 162,240
Manufacturing sales
and services 21,335 32,484 66,371 102,131
Aviation services 26,917 29,728 71,572 78,520
Depreciation and
amortization 13,964 12,571 40,856 36,847
General and
administrative 4,572 4,376 14,061 13,645
TOTAL 117,590 135,981 353,532 393,383
INCOME (LOSS)
FROM OPERATIONS 2,333 47,489 (14,387) 178,241
OTHER INCOME (EXPENSE):
Interest expense (5,773) (4,362) (16,057) (12,753)
Less interest capitalized 3,020 4,297 7,554 11,682
Gain on disposals of
property, plant
and equipment 246 2,394 1,024 3,066
Interest income 866 1,729 3,565 5,179
Other - net 199 70 476 276
OTHER INCOME
(EXPENSE) - NET (1,442) 4,128 (3,438) 7,450
INCOME (LOSS) BEFORE
INCOME TAXES 891 51,617 (17,825) 185,691
Provision (credit)
for income taxes 290 19,122 (5,802) 66,048
NET INCOME (LOSS) $601 $32,495 $(12,023) $119,643
EARNINGS (LOSS) PER COMMON SHARE:
Basic $.01 $.38 $(.14) $1.39
Diluted $.01 $.38 $(.14) $1.36
DILUTED SHARES 84,833 85,940 84,371 88,265 |
