This summary is based on the second quarter fiscal 2007 earnings call conducted by Rowan Companies Inc. (RDC: chart) on August 2, 2007.

Chairman, President and Chief Executive Officer: Daniel F. McNease

VP of Finance, Chief Financial Officer and Treasurer: William H. Wells

Vice President of Investor Relations: William C. Provine

Key Investors Issues

- The earnings per share rose to $1.14 compared to 98 cents in the previous year.
- The quarterly revenue grew to $507 million from $382.9 million in last year.
- Revenue of drilling division was a record $353.1 million, a sequential increase of 22%.

Second Quarter Fiscal 2007 Financial Highlights

In the second quarter 2007, net income was a record $128.1 million or $1.14 per share.

This represents a sequential increase of 48% compared to $86.4 million or 77 cents per share in the first quarter of 2007 and a year-over-year increase of 17% compared to $109.7 million or 98 cents per share in the second quarter of 2006.

The consolidated revenues were a record $507 million, a sequential increase of $44.7 million or 10% and a year-over-year increase of $124.1 million or 32%.

The current period results included $14.6 million or 8 cents per share of gains on asset sales compared to $24.1 million or 14 cents per share in the first quarter of 2007 and $24.5 million or 14 cents per share in the prior year period. The current period gains are primarily attributable to the sale of the firm’s Alaska drilling camps in June. The second quarter 2007 results also included an additional $4.5 million or about 2 cents per share of loss recognized on its external rig construction project, which was completed in June.

The Q2 2007 manufacturing revenues were $153.9 million, a year-over-year increase of $51.1 million or 50%, though a sequential decrease of $20.1 million or 12%.

The year-over-year growth in revenues was primarily attributable to the company’s drilling products and system segment, which includes its Offshore Products, Drilling Systems and Power Systems groups.

The Drilling Systems revenues were $57.9 million, a sequential increase of $22.3 million or 63% and a year-over-year increase of $48.2 million or almost 500%.

Current period revenues included shipments of 17 mud pumps and another $40.7 million of land rigs and drilling equipment packages sold through the SourceOne Marketing Alliance compared to 18 pumps and $16.5 million of rig packages in the first quarter. There were 11 pumps but no rig package revenues in the year ago period.

The Offshore Products revenues were $46.5 million, a year-over-year increase of $6.5 million or 16%, though a sequential decrease of $20.6 million or 31%.

Current period revenues included the remaining $15.7 million recognized on its external rig construction project compared to $26 million in the first quarter and $16.9 million in the year ago period. Current period revenues also included $25.4 million related to four of the seven rig kit projects in process compared to $31 million in the first quarter and $12.6 million in the year ago period.

The Power Systems revenues were $8.2 million, a year increase of $4.8 million or 128%, though a sequential decrease of $9.2 million or 53%.

Current period revenues included shipments of 85 motors and another $2.6 million of primarily AC drive and control system packages compared to 106 motors and $9.9 million of system packages in the first quarter.

The Mining Products revenues were $29.1 million, a sequential decrease of $11.3 million or 28% and a year-over-year decrease of $11.4 million or 28%.