Contract drilling provider, Rowan Companies Inc., posted fourth quarter 2003 net income of $4.4 million, or $0.05 per share, on revenues of $195.8 million, compared to a net loss of $2.8 million, or $0.03 per share, on revenues of $146.8 million in the fourth quarter of 2002. However, for full-year 2003, Rowan incurred a net loss of $7.8 million, or $0.08 per share, compared to net income of $86.3 million, or $0.90 per share in 2002. The company noted that prior year results included net proceeds from the settlement of the Gorilla V contract dispute, which increased net income by approximately $102 million, or $1.07 per share. Excluding that special item, the company’s 2002 results would have been a net loss of approximately $16 million, or $0.17 per share. Rowan’s offshore rig utilization was 92% during the fourth quarter of 2003, versus 94% in the third quarter and 88% in the year-earlier period. For the fourth quarter, the company’s average Gulf of Mexico day rate of $42,400 increased by $3,300, or 9%, from the third quarter and by $6,900, or 19%, from the year-earlier period. “We are optimistic that 2004 will continue this trend and are confident that Rowan rigs will continue to lead deep-shelf drilling efforts in the ever-tightening Gulf of Mexico market,” said CEO Danny McNease. “Our optimism is supported by recent reports of declining domestic natural gas production and increased estimates of deep-shelf gas reserves. With continuing high oil and natural gas prices, drilling activity should increase. A recent survey of independent operators indicated that 2004 exploration and production activities will exceed 2003 levels by nearly 25%.”

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