Rowan Reports First Quarter 2012 Operating Results

HOUSTON, May 2, 2012 /PRNewswire/ -- For the three months ended March 31, 2012, Rowan Companies, Inc. ("Rowan" or the "Company") (NYSE: RDC) generated net income from continuing operations of $55.5 million or $0.45 per share, compared to $26.8 million or $0.21 per share in the first quarter of 2011.  Net income totaled $49.5 million or $0.40 per share in the first quarter of 2012, compared to $32.1 million or $0.25 per share in the first quarter of 2011.

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Rowan's revenues were $333.5 million in the first quarter of 2012, up by 62% over the prior-year quarter due primarily to incremental activity from fleet additions and higher utilization of existing rigs between periods.  The Company's operating income was $64.8 million in the first quarter of 2012, up by 81% over the prior-year quarter.

Costs and expenses during the first quarter of 2012 included $4.6 million of unusual or one-time items, or $0.02 per share after tax, from a write-down of the carrying value of steel remaining from a jack-up rig construction project cancelled in 2009 and transactional costs of the Company's corporate redomestication.

Matt Ralls, President and Chief Executive Officer, commented, "During the first quarter, we continued to see solid demand and increasing day rates for high specification jack-ups in most markets.  We were pleased to increase our Southeast Asia presence with commitments for two additional rigs, which will bring us to four rigs in the region.  Despite the short-term impact of rig relocations on operating results, we will continue to opportunistically redeploy our assets to maximize long-term returns.

"On the ultra-deepwater front, we are receiving very positive reactions from potential customers to our deepwater management team and the design of our drillships.  Recent ultra deepwater contract fixtures have been very encouraging, and we remain confident in our decision to enter this market and in our ability to obtain attractive term contracts with customers seeking the superior operating capabilities these rigs will offer."

Rowan will conduct its earnings conference call on Wednesday, May 2, 2012, at 10:00 a.m. Central Time.  Interested parties are invited to listen to the call by telephone or over the Internet.  Individuals who wish to participate on the conference call by telephone can dial (877) 869-3847, or internationally (201) 689-8261. You should dial-in approximately five to 10 minutes prior to the scheduled start time.  Alternatively, to access the online simulcast and rebroadcast of the conference call, please visit Rowan's website at www.rowancompanies.com.  You should connect to our website at least 15 minutes prior to the conference call to register, download and install any necessary software.

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services with a leading position in high-specification jack-up rigs.  The Company's fleet of 31 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico.  Rowan will enter the ultra-deepwater market with three high-specification drillships expected to be delivered starting in late 2013.  Rowan's stock is traded on the New York Stock Exchange under the symbol "RDC". For more information on Rowan, please visit 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, energy demand, the general economy, including inflation, weather conditions in the Company's principal operating areas and environmental and other laws and regulations, including changes in tax laws, whether our stockholders approve the merger (and related transactions) and whether we achieve the benefits we expect from the proposed change in our corporate structure.  Other relevant factors have been disclosed in the Company's filings with the U.S. Securities and Exchange Commission.

SOURCE Rowan Companies, Inc.