<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM_____TO_____
ROWAN COMPANIES, INC.
---------------------
(Exact name of registrant as specified in its charter)
Delaware 1-5491 75-0759420
- --------------------------------- ----------------- ----------------------
(State or other jurisdiction of Commission File (I.R.S. Employer
incorporation or organization) Number Identification No.)
5450 Transco Tower, 2800 Post Oak Boulevard, Houston, Texas 77056-6196
- ----------------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(713) 621-7800
------------------------------------------------------
Registrant's telephone number, including area code
Inapplicable
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- ----
The number of shares of common stock, $.125 par value, outstanding at July 31,
1996 was 85,481,872.
<PAGE> 2
ROWAN COMPANIES, INC.
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <C>
PART I. Financial Information:
Consolidated Balance Sheet --
June 30, 1996 and December 31, 1995 . . . . . . . . . . 2
Consolidated Statement of Operations --
Three and Six Months Ended June 30, 1996
and 1995 . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statement of Cash Flows --
Six Months Ended June 30, 1996 and 1995 . . . . . . . . 5
Notes to Consolidated Financial Statements . . . . . . 6
Management's Discussion and Analysis
of Financial Condition and Results
of Operations . . . . . . . . . . . . . . . . . . . . . 8
PART II. Other Information:
Exhibits and Reports on Form 8-K . . . . . . . . . . . 12
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
ROWAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents................... $ 63,595 $ 90,338
Receivables - trade and other............... 109,043 87,811
Inventories - at cost:
Raw materials and supplies................ 57,916 51,898
Work-in-progress.......................... 27,632 23,015
Finished goods............................ 2,617 708
Prepaid expenses............................ 13,272 11,430
Cost of turnkey drilling contracts
in progress............................... 3,490 8,259
---------- ----------
Total current assets.................. 277,565 273,459
---------- ----------
INVESTMENT IN AND ADVANCES TO 49%
OWNED COMPANIES............................. 28,654 29,770
---------- ----------
PROPERTY, PLANT AND EQUIPMENT - at cost:
Drilling equipment.......................... 952,320 944,021
Aircraft and related equipment.............. 187,379 189,954
Manufacturing plant and equipment........... 27,142 25,037
Other property and equipment................ 93,883 91,089
Construction in progress.................... 22,866
---------- ----------
Total................................. 1,283,590 1,250,101
Less accumulated depreciation
and amortization.......................... 785,986 763,062
---------- ----------
Property, plant and equipment - net... 497,604 487,039
---------- ----------
OTHER ASSETS AND DEFERRED CHARGES............. 11,829 12,220
---------- ----------
TOTAL................................. $ 815,652 $ 802,488
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
-2-
<PAGE> 4
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- ------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable and current maturities of long-term debt................. $ 670 $ 7,039
Accounts payable - trade.............................................. 25,268 21,774
Other current liabilities............................................. 55,880 44,058
-------- --------
Total current liabilities........................................ 81,818 72,871
-------- --------
LONG-TERM DEBT - less current maturities............................... 247,585 247,744
-------- --------
OTHER LIABILITIES...................................................... 23,768 36,227
-------- --------
DEFERRED CREDITS:
Income taxes.......................................................... 4,543 4,146
Gain on sale/leaseback transactions................................... 10,759 12,345
-------- --------
Total deferred credits........................................... 15,302 16,491
-------- --------
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par value:
Authorized 5,000,000 shares issuable in series:
Series I Preferred Stock, authorized 6,500 shares, none issued
Series II Preferred Stock, authorized 6,000 shares, none issued
Series III Preferred Stock, authorized 10,300 shares, none issued
Series A Junior Preferred Stock, authorized
1,500,000 shares, none issued
Common stock, $.125 par value:
Authorized 150,000,000 shares; issued 86,910,429
shares at June 30, 1996 and 86,353,792 shares
at December 31, 1995............................................... 10,864 10,794
Additional paid-in capital............................................. 399,024 396,092
Retained earnings...................................................... 39,776 24,754
Less cost of 1,457,919 treasury shares................................. 2,485 2,485
-------- --------
Total stockholders' equity....................................... 447,179 429,155
-------- --------
TOTAL............................................................ $815,652 $802,488
======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
-3-
<PAGE> 5
ROWAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
For The Three Months For The Six Months
Ended June 30, Ended June 30,
---------------------- -----------------------
1996 1995 1996 1995
-------- -------- -------- ---------
(Unaudited)
<S> <C> <C> <C> <C>
REVENUES:
Drilling services.................................... $ 77,022 $ 61,921 $148,073 $108,791
Manufacturing sales and services..................... 31,719 33,083 67,667 63,058
Aircraft services.................................... 28,425 22,378 48,234 38,330
-------- -------- -------- --------
Total................................ 137,166 117,382 263,974 210,179
-------- -------- -------- --------
COSTS AND EXPENSES:
Drilling services.................................... 50,040 48,288 102,804 96,046
Manufacturing sales and services..................... 29,050 30,694 61,522 58,495
Aircraft services.................................... 24,268 20,194 43,478 38,334
Depreciation and amortization........................ 11,983 12,945 24,030 25,680
General and administrative........................... 3,896 3,633 7,917 7,222
-------- -------- -------- --------
Total................................ 119,237 115,754 239,751 225,777
-------- -------- -------- --------
INCOME (LOSS) FROM OPERATIONS................................ 17,929 1,628 24,223 (15,598)
-------- -------- -------- --------
OTHER INCOME (EXPENSE):
Interest expense..................................... (6,904) (6,926) (13,811) (13,838)
Less: interest capitalized........................... 352 559
Gain on disposals of property, plant and equipment... 411 336 2,006 1,077
Interest income...................................... 1,040 1,261 2,249 2,754
Other - net.......................................... 174 136 258 238
-------- -------- -------- --------
Other income (expense) - net......... (4,927) (5,193) (8,739) (9,769)
-------- -------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES............................ 13,002 (3,565) 15,484 (25,367)
Provision for income taxes........................... 337 141 462 74
-------- -------- -------- --------
NET INCOME (LOSS)............................................ $ 12,665 $ (3,706) $ 15,022 $(25,441)
======== ======== ======== ========
EARNINGS (LOSS) PER COMMON SHARE (Note 4).................... $ .15 $ (.04) $ .18 $ (.30)
======== ======== ======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
-4-
<PAGE> 6
ROWAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
For The Six Months
Ended June 30,
-------------------------------
1996 1995
-------- ---------
(Unaudited)
<S> <C> <C>
CASH PROVIDED BY (USED IN):
Operations:
Net income (loss)............................................ $ 15,022 $(25,441)
Noncash charges (credits) to net income (loss):
Depreciation and amortization.............................. 24,030 25,680
Gain on disposals of property, plant and equipment......... (2,006) (1,077)
Compensation expense....................................... 2,232 2,162
Change in sale/leaseback payable........................... (7,034) (5,481)
Amortization of sale/leaseback gain........................ (1,586) (1,585)
Provision for pension and postretirement benefits.......... 4,411 3,535
Other - net................................................ 1,706 (653)
Changes in current assets and liabilities:
Receivables - trade and other.............................. (21,232) (13,111)
Inventories................................................ (12,544) (11,963)
Other current assets....................................... 2,927 (14,637)
Current liabilities........................................ 5,726 8,209
Net changes in other noncurrent assets and liabilities....... 32 463
-------- --------
Net cash provided by (used in) operations...................... 11,684 (33,899)
-------- --------
Investing activities:
Property, plant and equipment additions.................... (40,006) (16,156)
Repayments from affiliates................................. 32 535
Proceeds from disposals of property, plant and equipment... 3,046 1,857
-------- --------
Net cash used in investing activities.......................... (36,928) (13,764)
-------- --------
Financing activities:
Repayments of borrowings................................... (2,019) (142)
Other - net................................................ 520 389
-------- --------
Net cash provided by (used in) financing activities............ (1,499) 247
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS........................... (26,743) (47,416)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD.................. 90,338 111,070
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD........................ $ 63,595 $ 63,654
======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
-5-
<PAGE> 7
ROWAN COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements of the Company included herein
have been prepared without audit pursuant to generally accepted
accounting principles and the rules and regulations of the Securities
and Exchange Commission. Certain information and notes have been
condensed or omitted pursuant to such rules and regulations and the
Company believes that the disclosures included herein are adequate. It
is suggested that these condensed financial statements be read in
conjunction with the financial statements and related notes included in
the Company's 1995 Annual Report to Stockholders incorporated by
reference in the Form 10-K for the year ended December 31, 1995.
2. In the opinion of the Company, the accompanying unaudited consolidated
financial statements contain all adjustments and reclassifications,
which are of a normal recurring nature, necessary to present fairly
its financial position as of June 30, 1996 and December 31, 1995, and
the results of its operations for the three and six months ended June
30, 1996 and 1995 and its cash flows for the six months ended June
30, 1996 and 1995.
3. The results of operations for the three and six months ended June 30,
1996 are not necessarily indicative of the results to be expected for
the full year.
-6-
<PAGE> 8
4. Computation of primary and fully diluted earnings (loss) per share is as
follows (in thousands except per share amounts):
<TABLE>
<CAPTION>
For The For The
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
1996 1995 1996 1995
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Weighted average shares of common
stock outstanding ................................ 85,301 84,519 85,143 84,411
Stock options and related (treasury stock method)... 2,042 (A) 494 (A) 1,692 (A)
------- ------- ------- --------
Weighted average shares for primary
earnings (loss) per share calculation............. 87,343 85,013 86,835 84,411
Stock options and related (treasury stock method)... 5 (A) 375 (A) 266 (A) 585 (A)
Shares issuable from assumed conversion
of the Series II Convertible Subordinated
Debenture ........................................ 400 (A) 400 (A) 400 (A) 400 (A)
------- ------- ------- --------
Weighted average shares for fully diluted
earnings (loss) per share calculation ............ 87,748 85,788 87,501 85,396
======= ======= ======= ========
Net income (loss) for primary calculation........... $12,665 $(3,706) $15,022 $(25,441)
Subordinated debenture interest, net of
income tax effect ................................ 80 92 162 183
------- ----- ------- --------
Net income (loss) for fully diluted
calculation ...................................... $12,745 $(3,614) $15,184 $(25,258)
======= ======= ======= ========
Earnings (loss) per share:
Primary .......................................... $ .15 $ (.04) $.17 $ (.30)
======= ======= ======= ========
Fully diluted .................................... $ .15 $ (.04) $ .17 $ (.30)
======= ======= ======= ========
</TABLE>
(A) Included in accordance with Regulation S-K Item 601 (b) (11) although
not required to be provided by Accounting Principles Board ("APB")
Opinion No. 15 because the effect is insignificant. Earnings (loss) per
share computed under APB Opinion No. 15 is as set forth on the
Consolidated Statement of Operations.
-7-
<PAGE> 9
ROWAN COMPANIES, INC. AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
RESULTS OF OPERATIONS
Six Months Ended June 30, 1996 Compared to
Six Months Ended June 30, 1995
The Company achieved net income of $15.0 million in the first
half of 1996 compared to a net loss of $25.4 million in the same
period of 1995. The improvement in financial results was primarily
due to increased drilling day rates and fleet utilization, in
addition to the enhanced contributions made by the Company's
manufacturing and aviation operations.
A comparison of the revenues and operating profit (loss) from
drilling, manufacturing, aviation and consolidated operations for the
first half of 1996 and 1995, respectively, is reflected below (dollars
in thousands):
<TABLE>
<CAPTION>
Drilling Manufacturing Aviation Consolidated
-------------- --------------- -------------- ----------------
1996 1995 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $148,073 $108,791 $ 67,667 $ 63,058 $ 48,234 $ 38,330 $263,974 $210,179
Percent of Consolidated
Revenues 56% 52% 26% 30% 18% 18% 100% 100%
Operating Profit (Loss)(1) $ 27,972 $ (6,254) $ 5,066 $ 3,769 $ (898) $ (5,891) $ 32,140 $ (8,376)
</TABLE>
_____________
(1) Income (loss) from operations before deducting general and administrative
expenses.
As reflected above, the Company's consolidated operating
results improved by $40.5 million when the first half of 1996 is
compared to the first half of 1995. Day rate drilling revenues
increased by $51.1 million between periods as the Company's offshore
fleet achieved a 32% increase in average rates, or about $8,250 per
day, while overall utilization improved from 85% to 97%. Offshore day
rates began to improve in the second quarter of 1995 due to increasing
demand for drilling services brought on by strengthening natural gas
prices. Day rate drilling expenses increased by $16.9 million between
periods. Turnkey drilling generated first half 1996 revenues of $8.2
million and an incremental operating loss of $1.6 million, compared to
$20.0 million and a $.1 million profit, respectively, for the first
half of 1995.
The increases between periods in manufacturing revenues and
operating profits of 7% and 34%, respectively, reflect improved
business conditions in the intermodal, mining and timber industries
and the Company's increased emphasis on marketing, product reliability
and on-time deliveries. Manufacturing operations exclude
approximately $11 million of products and services provided to the
Company's drilling division during the first half of 1996, as compared
to $3 million in the first half of 1995.
The Company's aviation operating results in both periods
reflect the normal reduced flying activity in Alaska throughout much
of the first four months of the year, although the 1996 results were
improved as demand for the Company's flying services increased in all
markets.
-8-
<PAGE> 10
Three Months Ended June 30, 1996 Compared to
Three Months Ended June 30, 1995
The Company achieved net income of $12.7 million in the second
quarter of 1996 compared to a net loss of $3.7 million in the same
period of 1995. The improvement in financial results was primarily
due to increased drilling day rates coupled with continued strong
fleet utilization, in addition to the positive contributions made by
the Company's manufacturing and aviation operations.
A comparison of the revenues and operating profit (loss) from
drilling, manufacturing, aviation and consolidated operations for the
second quarter of 1996 and 1995, respectively, is reflected below
(dollars in thousands):
<TABLE>
<CAPTION>
Drilling Manufacturing Aviation Consolidated
------------------ --------------------- --------------------- --------------------
1996 1995 1996 1995 1996 1995 1996 1995
------- ------ ------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $77,022 $61,921 $31,719 $33,083 $ 28,425 $ 22,378 $137,166 $117,382
Percent of Consolidated
Revenues 56% 53% 23% 28% 21% 19% 100% 100%
Operating Profit (Loss) $18,420 $ 4,038 $ 2,076 $ 1,977 $ 1,329 $ (754) $ 21,825 $ 5,261
</TABLE>
As reflected above, the Company's consolidated operating results
improved by $16.6 million when the second quarter of 1996 is compared to the
second quarter of 1995. Day rate drilling revenues increased by $24.1 million
between periods as the Company's offshore fleet achieved a 40% increase in
average rates, or about $10,500 per day, while overall utilization improved from
95% to 98%. Offshore day rates began to improve in the second quarter of 1995
due to increasing demand for drilling services brought on by strengthening
natural gas prices. Day rate drilling expenses increased by $10.0 million
between periods. Turnkey drilling yielded no completions and therefore no
revenues or operating results in the second quarter of 1996 as compared to $9.0
million in revenues and an incremental operating profit of $.8 million for the
second quarter of 1995.
The Company's manufacturing operations achieved slightly less volume
between quarters as significant construction of Rowan Gorilla V began.
Manufacturing operations exclude approximately $11.0 million of products and
services provided to the Company's drilling division during the second quarter
of 1996, as compared to $.3 million in the second quarter of 1995.
The Company's aviation operations experienced the normal seasonal
improvement in flying activity in Alaska during both periods but second quarter
1996 operating results were enhanced as demand for the Company's flying services
increased in all markets.
-9-
<PAGE> 11
Perceptible trends in the offshore drilling markets in which the Company
is currently operating and the number of Company-operated rigs in each of those
markets are as follows:
<TABLE>
<CAPTION>
AREA RIGS PERCEPTIBLE INDUSTRY TRENDS
- ------------------ ---------- ----------------------------------
<S> <C> <C>
Gulf of Mexico 16 Continuing high levels of exploration and development
activity
North Sea 4 Continuing high levels of drilling activity for jack-up
rigs
Eastern Canada 1 Improving demand
</TABLE>
The preceding table reflects the relocation currently underway of
Rowan Gorilla IV to the Gulf of Mexico from eastern Canada.
Perceptible trends in the aviation markets in which the Company is
currently operating and the number of Company aircraft based in each of those
markets are as follows:
<TABLE>
<CAPTION>
COMPANY-OWNED
AREA AIRCRAFT (1) PERCEPTIBLE INDUSTRY TRENDS
- ----------------- ------------- --------------------------------------
<S> <C> <C>
Alaska 63 Normal seasonal improvement
Gulf of Mexico 43 Moderately improving market conditions
China 2 Generally stable flight support activity
North Sea (Dutch) 10 Generally stable flight support activity
North Sea (U.K.) 5 Generally stable flight support activity
</TABLE>
- ----------------------------
(1) Includes 13 units which are 49% owned.
The drilling and aviation markets in which the Company
competes frequently experience significant changes in supply and
demand. Drilling utilization and day rates achievable in offshore
markets are a function of the demand for drilling services, as
measured by the level of exploration and development expenditures, and
the supply of capable drilling equipment. These expenditures, which
often fluctuate between markets, are affected by many factors such as
existing and newly discovered oil and natural gas reserves, political
and regulatory policies, seasonal weather patterns, contractual
requirements under leases or concessions and, probably most
influential, oil and natural gas prices. The Company's aviation
operations are also affected by such factors, as flying in support of
offshore energy operations remains a major source of business and
Alaska operations are hampered each winter. The volatile nature of
such factors prevents the Company from being able to predict whether
existing market conditions or the perceptible market trends reflected
in the preceding tables will continue. Assuming such conditions and
trends prevail, however, the Company should remain profitable
throughout 1996. The Company can, as it has done in the past,
relocate its drilling rigs and aircraft from one geographic area to
another in response to such changing market fundamentals, but only
when these moves are economically justified.
The Company's manufacturing operations are considerably less
volatile than its drilling and aviation operations and, given current
backlog levels and barring unforeseen circumstances, should continue
to contribute positive operating results throughout the remainder of
1996.
-10-
<PAGE> 12
LIQUIDITY AND CAPITAL RESOURCES
A comparison of key balance sheet figures and ratios as of
June 30, 1996 and December 31, 1995 is as follows (dollars in
thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- ------------
<S> <C> <C>
Cash and cash equivalents $ 63,595 $ 90,338
Current assets $277,565 $273,459
Current liabilities $ 81,818 $ 72,871
Current ratio 3.39 3.75
Note payable and current maturities of long-term debt $ 670 $ 7,039
Long-term debt $247,585 $247,744
Stockholders' equity $447,179 $429,155
Long-term debt/total capitalization .36 .37
</TABLE>
Reflected in the comparison above are the effects in the
first half of 1996 of net cash provided by operations of $11.7 million
and capital expenditures of $40.0 million. The operating cash surplus
was constrained by investments in receivables and inventories
consistent with expanding operations.
During the first half of 1996, the Company completed the
design and began the construction of Rowan Gorilla V, an enhanced
version of the Company's Gorilla Class jack-ups, which will be the
world's largest bottom supported mobile offshore drilling unit. The
rig is being constructed at the Company's Vicksburg, Mississippi
shipyard and should be completed by mid-1998 at an estimated cost of
$170 million. The Company expects to finance a significant portion of
the construction cost and is currently evaluating credit alternatives.
The reactivation of the Company's marine construction capability,
principally through rebuilding of the Vicksburg shipyard, is expected
to cost approximately $20 million.
Capital expenditures during the first half of 1996 were
primarily related to construction of Gorilla V and the reactivation of
the Vicksburg shipyard. The Company estimates remaining 1996 capital
expenditures will be between $40 million and $45 million, including
approximately $25 million and $10 million, respectively, for Gorilla V
and the Vicksburg shipyard. The Company may also spend amounts to
acquire additional aircraft as market conditions justify and to
upgrade existing offshore rigs.
Based upon current operating levels and the previously
discussed market trends, management believes that remaining 1996
operations, together with existing working capital, will generate
sufficient cash flow to sustain planned capital expenditures and debt
service requirements for the remainder of 1996.
Under the terms of its 11 7/8% Senior Notes, the Company is
prohibited from paying a cash dividend on its common stock.
-11-
<PAGE> 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the
Registrant during the second quarter of
fiscal year 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
ROWAN COMPANIES, INC.
(Registrant)
Date: August 14, 1996 /s/ E. E. THIELE
-------------------------------
E. E. Thiele
Senior Vice President-Finance,
Administration and Treasurer
(Chief Financial Officer)
Date: August 14, 1996 /s/ W. H. WELLS
-------------------------------
W. H. Wells
Controller
(Chief Accounting Officer)
-12-
<PAGE> 14
INDEX TO EXHIBITS
27 -- Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF ROWAN COMPANIES, INC. FOR THE SIX MONTHS
ENDED JUNE 30, 1996 INCLUDED IN ITS FORM 10-Q FOR THE QUARTERLY PERIOD THEN
ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 63,595
<SECURITIES> 0
<RECEIVABLES> 109,043
<ALLOWANCES> 0
<INVENTORY> 88,165
<CURRENT-ASSETS> 277,565
<PP&E> 1,283,590
<DEPRECIATION> 785,986
<TOTAL-ASSETS> 815,652
<CURRENT-LIABILITIES> 81,818
<BONDS> 247,585
<COMMON> 10,864
0
0
<OTHER-SE> 436,315
<TOTAL-LIABILITY-AND-EQUITY> 815,652
<SALES> 64,282
<TOTAL-REVENUES> 263,974
<CGS> 51,957
<TOTAL-COSTS> 239,751
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,252
<INCOME-PRETAX> 15,484
<INCOME-TAX> 462
<INCOME-CONTINUING> 15,022
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,022
<EPS-PRIMARY> 0.18
<EPS-DILUTED> 0.18
</TABLE>
