May 7, 2009 / 2:09 PM / 10 years ago

UPDATE 1-Rowan Q1 profit up, shares rise

* Q1 EPS $1.16 vs $0.88 year-ago

* Q1 drilling operations rev up 12 pct

* Q1 manufacturing operations rev up 29 pct

* Likely to idle jack-up rigs in Mexico Gulf, Middle East

* Shares up 9 percent May 7 (Reuters) - Rowan Cos Inc’s (RDC.N) first-quarter profit rose 34 percent, boosted by higher drilling revenue, but said weakening demand for drilling services and equipment continued to pressure revenue.

“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,” Chief Executive Matt Ralls said in a statement.

First quarter net income was $131.7 million, or $1.16 a share, including 2 cents a share gain related to asset disposals. The company earned $98.6 million, or 88 cents a share, a year earlier.

Selling, general and administrative expenses dropped 10 percent to $24.6 million.

Revenue at the company grew marginally to $494.8 million. Revenue at its drilling operations segment rose 12 percent to $380.4 million, while its manufacturing operations unit revenue rose 29 percent to $187.9 million. [ID:nWNAB5404]

Shares of the Houston-based contract drilling services provider rose as much as 9 percent, and were trading up 96 to $19.24 in morning trade on the New York Stock Exchange. (Reporting by Shradhha Sharma in Bangalore; Editing by Savio D’Souza)

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