U.S. Markets closed

Rowan 3Q net income drops on tax expense

HOUSTON (AP) -- Rowan said Wednesday that its net income dropped 86 percent in the third quarter, dragged down by a higher-than-expected tax expense and other costs.

For the period ended Sept. 30, the oil and gas drilling contractor earned $27.6 million, or 22 cents per share, down from $193.8 million, or $1.53 per share, a year earlier.

The year-ago period included a $155 million gain on the sale of land drilling operations, and income from discontinued manufacturing and land drilling operations of $1.28 per share.

Rowan Cos. PLC took an additional tax expense in the current quarter related to an increase in its full-year estimated tax rate, which resulted in an increased third-quarter tax expense of 9 cents per share.

Excluding pension settlement-related cost and other one-time items, earnings from continuing operations were 39 cents per share.

Revenue rose 51 percent to $353.9 million, mostly due to fleet additions and higher utilization and day rates for existing rigs between periods.

Analyst expected 50 cents per share on $342.3 million in revenue, according to FactSet.

Rowan shares fell 4 cents to $32.76 in morning trading.