8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 1, 2006

ROWAN COMPANIES, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-5491	75-0759420
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	file Number)	Identification No.)

2800 POST OAK BOULEVARD
SUITE 5450
HOUSTON, TEXAS	77056-6127
(Address of principal executive offices)	(zip code)

(713) 621-7800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Item 2.02 - Results of Operations and Financial Condition

The following information is disclosed pursuant to Item 2.02 - Results of Operations and Financial Condition:

On March 1, 2006, Rowan Companies, Inc. issued a press release announcing its operating results for the fourth quarter of 2005. The press release is attached as Exhibit 99.1.

Item 8.01 - Other Events

The following information is disclosed pursuant to Item 8.01- Other Events:

On March 1, 2006, Rowan Companies, Inc. issued a press release announcing a two-year ultra deep shelf drilling contract. The press release is attached as Exhibit 99.2.

Item 9.01 - Financial Statements and Exhibits

(c) Exhibits

Exhibit
Number	Exhibit Description
99.1	Press release of Rowan Companies, Inc. dated March 1, 2006 announcing its operating results for the fourth quarter of 2005
99.2	Press release of Rowan Companies, Inc. dated March 1, 2006 announcing a two-year ultra deep shelf drilling contract

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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 hereunto duly authorized.

       ROWAN COMPANIES, INC.

                              By: /s/ W. H. WELLS_________________

        W. H. Wells,

        Vice President - Finance and Treasurer (Principal Financial Officer)

Dated: March 1, 2006

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INDEX TO EXHIBITS

Exhibit
Number	Exhibit Description
99.1	Press release of Rowan Companies, Inc. dated March 1, 2006 announcing its operating results for the fourth quarter of 2005
99.2	Press release of Rowan Companies, Inc. dated March 1, 2006 announcing a two-year ultra deep shelf drilling contract

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EX-99.1

EXHIBIT 99.1

News Release

Rowan Companies, Inc.

2800 Post Oak Boulevard, Suite 5450

   Houston, Texas 77056 (713) 621-7800

FOR IMMEDIATE RELEASE                 & #160;      March 1, 2006

ROWAN REPORTS RECORD QUARTERLY REVENUES AND

IMPROVED OPERATING RESULTS; 2005 REVENUES EXCEED $1 BILLION

HOUSTON, TEXAS -- For the three months ended December 31, 2005, Rowan Companies, Inc. (RDC - NYSE) generated income from continuing operations of $69.5 million, or 63¢ per share, compared to $16.4 million, or 15¢ per share, in the same period of 2004. Revenues were a record $317.4 million in the fourth quarter of 2005, compared to $190.7 million in the fourth quarter of 2004. The current period results included gains on asset sales and insurance recoveries in excess of hurricane losses that together contributed approximately 14¢ per share, net of tax.

The Company generated income from continuing operations of $217.8 million, or $1.97 per share, on revenues of $1,068.8 million during the year ended December 31, 2005, compared to income from continuing operations of $27.5 million, or 26¢ per share, on revenues of $679.7 million during 2004. Net income was $229.8 million, or $2.08 per share, in 2005, compared to a net loss of $1.3 million, or 1¢ per share, in 2004.

Rowan’s offshore rig utilization decreased to 93% during the fourth quarter of 2005, from 99% during the comparable 2004 period, as three rigs entered the shipyard in December in preparation for their relocation to Saudi Arabia. The Company’s average Gulf of Mexico day rate was a record $92,100 during the fourth quarter of 2005, up $17,700, or 24%, from the third quarter of 2005 and up $41,400, or 82%, from the fourth quarter of 2004. Rowan’s land rig utilization was 89% during the fourth quarter of 2005, up from 83% in the comparable 2004 period. The Company’s average land rig day rate was $21,100 during the fourth quarter of 2005, up $2,300, or 12%, from the third quarter of 2005 and up $7,300, or 53%, from the fourth quarter of 2004.

As previously reported, during Hurricanes Katrina and Rita, Rowan lost four jack-up rigs and had one jack-up severely damaged. During the fourth quarter, the Company recognized the excess of insurance proceeds received over the carrying value of the lost equipment of approximately $23 million.

The Company experienced 71 fewer rig operating days in December as a result of shipyard modifications made to three rigs contracted to Saudi Aramco prior to their January 2006 departure for Saudi Arabia. Rowan will receive $44.7 million in fees for shipyard time, modifications and mobilization of the three rigs. Such fees will be recognized as revenues over the three-year contract period, beginning when the rigs commence drilling operations in March or April 2006. Labor and other routine operating costs related to these rigs are being expensed as incurred.

Danny McNease, Chairman and Chief Executive Officer, commented, “Our drilling and manufacturing businesses continue to reach new heights and our near-term outlook remains very favorable. Our drilling fleet is effectively fully utilized and our backlog of contracts continues to grow. Nine of our 20 offshore rigs currently have commitments that extend into 2007 or beyond, and we are aggressively pursuing additional long-term drilling assignments at favorable rates.

“Rowan’s average offshore day rate worldwide is currently around $134,000 or more than 28% higher than our average during the fourth quarter. Absent a significant change in market fundamentals, we believe that the global competition for quality rigs will intensify in 2006 and that the upward pressure on day rates will continue.

“Expansion of our drilling fleet continues at a rapid pace. By the end of 2006, we should have completed construction of 12 additional 2000 horsepower land rigs, nine of which are committed under long-term contracts. The Hank Boswell, our third Tarzan Class jack-up, will also have been delivered. At that time, our fourth Tarzan Class rig should be approximately 50% complete and we will have made significant progress toward building the first of our newest jack-up design, the 240C.

“Of course, none of this would be possible without our manufacturing division, which implements our construction program while also developing innovative oilfield and other products and generating record revenues. At year end, our external backlog of orders was a record $388 million and included work remaining on one jack-up rig and five rig kits that should provide approximately $225 million in additional revenues over the next two to three years. Also included were orders for 19 mining loaders and log stackers and 63 mud pumps that will be delivered in 2006.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange and the Pacific Exchange - Stock & Options. Common Stock trading symbol: RDC. Contact: William C. Provine, Vice-President - Investor Relations, 713-960-7575. Website: www.rowancompanies.com 

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company’s principal operating areas and environmental and other laws and regulations. Other relevant factors have been disclosed in the Company’s filings with the U.S. Securities and Exchange Commission.

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Thousands)
		DECEMBER 31
		2005		2004
ASSETS
Cash and cash equivalents	$	675,903	$	465,977
Accounts receivable		253,194		132,445
Inventories		196,010		164,113
Other current assets		83,025		32,910
Assets of discontinued operations		-		11,652
Total current assets		1,208,132		807,097
Property, plant and equipment - net		1,720,734		1,669,494
Other assets		46,317		15,695
TOTAL	$	2,975,183	$	2,492,286
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt	$	64,922	$	64,922
Other current liabilities		275,691		165,814
Liabilities of discontinued operations		-		4,064
Total current liabilities		340,613		234,800
Long-term debt		550,326		574,350
Other liabilities		464,505		274,252
Stockholders' equity		1,619,739		1,408,884
TOTAL	$	2,975,183	$	2,492,286

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Thousands Except Per Share Amounts)
		FOR THE THREE MONTHS						FOR THE TWELVE MONTHS
		ENDED DECEMBER 31						ENDED DECEMBER 31
		2005			2004			2005			2004
REVENUES:
Drilling services	$	215,059		$	126,022		$	775,356		$	472,103
Manufacturing sales and services		102,373			64,703			293,426			207,573
TOTAL		317,432			190,725			1,068,782			679,676
COSTS AND EXPENSES:
Drilling services		105,784			73,735			394,595			326,687
Manufacturing sales and services		87,377			55,659			253,688			177,041
Depreciation and amortization		20,983			20,103			81,204			78,489
Selling, general and administrative		17,805			12,217			65,092			40,721
Gain on sales of property and equipment		(1,486	)		(533	)		(52,449	)		(1,747	)
Gain on hurricane-related events		(22,855	)		-			(13,948	)		-
TOTAL		207,608			161,181			728,182			621,191
INCOME FROM OPERATIONS		109,824			29,544			340,600			58,485
OTHER INCOME (EXPENSE):
Interest expense		(6,934	)		(5,478	)		(25,802	)		(20,911	)
Less interest capitalized		762			533			3,803			2,195
Interest income		6,383			1,721			16,843			4,408
Gain on sales of investments		-			-			9,553			-
Other - net		(55	)		128			473			416
OTHER INCOME (EXPENSE) - NET		156			(3,096	)		4,870			(13,892	)
INCOME BEFORE INCOME TAXES		109,980			26,448			345,470			44,593
Provision for income taxes		40,493			10,062			127,633			17,108
INCOME FROM CONTINUING OPERATIONS		69,487			16,386			217,837			27,485
Income (loss) from discontinued operations, net of tax		-			(14,158	)		11,963			(28,758	)
NET INCOME (LOSS)	$	69,487		$	2,228		$	229,800		$	(1,273	)
PER DILUTED SHARE AMOUNTS:
Income from continuing operations	$	.63		$	.15		$	1.97		$	.26
Income (loss) from discontinued operations, net of tax	$	-		$	(.13	)	$	.11		$	(.27	)
Net income (loss)	$	.63		$	.02		$	2.08		$	(.01	)
AVERAGE DILUTED SHARES		110,967			108,519			110,316			107,133

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In Thousands)
		FOR THE TWELVE MONTHS
		ENDED DECEMBER 31
		2005			2004
CASH PROVIDED BY (USED IN):
Operations:
Net income (loss)	$	229,800		$	(1,273	)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization		81,291			95,650
Deferred income taxes		121,660			866
Contributions to pension plans		(89,207	)		(19,494	)
Net (gain) loss on asset disposals		(50,238	)		17,596
Other - net		26,310			37,804
Net changes in current assets and liabilities		19,486			(14,857	)
Net changes in other noncurrent assets and liabilities		(5,932	)		815
Net cash provided by operations		333,170			117,107
Investing activities:
Property, plant and equipment additions		(199,798	)		(136,886	)
Proceeds from asset disposals		120,713			131,694
Net cash used in investing activities		(79,085	)		(5,192	)
Financing activities:
Proceeds from borrowings		37,909			70,842
Repayments of borrowings		(61,933	)		(55,904	)
Proceeds from stock option and convertible debenture plans		34,008			15,945
Payments of cash dividends		(54,143	)		-
Proceeds from common stock offering, net of issue costs		-			264,952
Net cash provided by (used in) financing activities		(44,159	)		295,835
INCREASE IN CASH AND CASH EQUIVALENTS		209,926			407,750
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		465,977			58,227
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	675,903		$	465,977

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EX-99.2

EXHIBIT 99.2

News Release

Rowan Companies, Inc.

2800 Post Oak Boulevard, Suite 5450

Houston, Texas 77056 (713) 621-7800

FOR IMMEDIATE RELEASE                 & #160;      March 1, 2006

ROWAN IS AWARDED TWO-YEAR ULTRA DEEP SHELF DRILLING CONTRACT

HOUSTON, TEXAS -- Rowan Companies, Inc. (RDC-NYSE) announced today that it has been awarded a two-year drilling contract by a major integrated oil and gas company to drill one or more ultra deep wells in the Gulf of Mexico.

Rowan has committed the Super Gorilla class jack-up rig Bob Palmer to the project, which should commence during the first quarter of 2007. Rowan estimates revenues from this contract will be approximately $160-170 million.

Danny McNease, Chairman and Chief Executive Officer, commented, “This contract reaffirms the market for drilling high pressure/high temperature wells deeper than 25,000 feet and provides the highest rate ever for a jack-up rig in the Gulf of Mexico.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange and the Pacific Exchange - Stock & Options. Common Stock trading symbol: RDC. Contact: William C. Provine, Vice-President - Investor Relations, 713-960-7575. Website: www.rowancompanies.com 

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company’s principal operating areas and environmental and other laws and regulations. Other relevant factors have been disclosed in the Company’s filings with the U. S. Securities and Exchange Commission.