Rowan Companies (NYSE:RDC) slipped more than 7% after revealing a lower third-quarter profit from the prior year on worse-than-expected revenues, driven by decreased lease rates for offshore rigs.
The Houston-based company posted net income of $67.2 million, or 57 cents a share, down 14% compared with $78.4 million, or 69 cents a share, in the same quarter last year, ahead of average analyst estimates of 51 cents.
Revenue for the provider of onshore and offshore contract drillings services was $437.9 million, up from $393.4 million a year ago, missing the Street’s view of $442.66 million.
The contractor gained from its drilling operations, up 12% from the year-earlier period to $289.9 million, assisted by offshore fleet additions and higher rig utilization, offset by a 19% decrease in offshore average day rates.
“Our contract drilling operations provided solid results in the third quarter, tracking closely with consensus expectations,” Rowan CEO Matt Ralls said in a statement.
Rates fell in all of the company’s offshore rigs, hardly offset by a slight increase in land rig rates.