HOUSTON -- Despite solid demand for equipment and services, offshore drilling rig operators and industry servicing companies are reporting mixed financial results to their investors.

Day rates are high and getting stronger, and revenues for most have markedly increased from previous months. But high labor costs, equipment downtime and a short closure of some eastern Gulf of Mexico activity from a tropical storm have conspired to eat into some companies' earnings.

One example is Atwood Oceanics Inc., which last week said its overall revenues increased by 14 percent over a nine-month period ending June 2012, from $467.5 million over a previous period ending in June 2011 to $534.9 million this year. But the company recorded an 11 percent decline in net income, from $198.7 million to $176.6 million.

For the second quarter of 2012, Atwood says it pulled in $51.7 million in net income, down from $59.5 million in earnings during the first three months of this year. The company's quarterly report suggests a $10 million tax hit accounts for why profitability decreased in the second quarter even as its revenues expanded by a little more than 4 percent from the first quarter of 2012.

Others, however, turned in stronger financial performances during the quarter, crediting the growing demand for deepwater and ultra-deepwater equipment from major oil and gas companies eager to open new offshore areas to development.

On Thursday, executives at Hornbeck Offshore Services Inc. said they turned a $7 million net loss suffered in the second quarter of 2011 into a $12 million profit this year. Improving market conditions have the company sitting on a healthy backlog of orders for its offshore service vessels, even as four of its vessels are being demobilized out of Brazil after Hornbeck failed to win contract renewals with the Brazilian oil and gas giant Petrobras.

"We were able to increase our upstream operating margin to 29.2 percent in line with our expectations and considerably better than what we've seen amongst others in the general market," CEO Todd Hornbeck told analysts. "All in all, a good quarter."

Hornbeck said his firm had reason to be optimistic for the rest of the year because of "demand drivers" it sees in the Gulf of Mexico and Brazil. But in the gulf, Hornbeck cautioned that the business environment, though getting better, could still be upset by permit delays or other bureaucratic obstacles put forth by regulators.

"This steady improvement will continue to be marked by periods of unevenness," he said.

Noble Corp., which is adding advanced ultra-deepwater drill ships to its fleet, reported one of the best earnings increases among companies competing in that space.

Its second-quarter 2012 earnings grew by a third in the first three months of this year, from $120 million to $160 million. Revenue from Noble's contract drilling grew by 14 percent in the period as the company says it was able to command higher day rates for its offshore drilling rigs.

Last week Rowan Cos. PLC reported fairly strong earnings growth for the same reasons. Its net income grew by almost 15 percent in the quarter year-over-year, to about $51 million. The company boasted that it's able to charge day rates of up to $624,000 for use of its most advanced ultra-deepwater equipment.

CEO Matt Ralls said a three-year contract recently completed for one his company's newest drill ships put its contract backlog to $4 billion, "a new high-water mark for Rowan," he said.

Ralls added that the current business environment leaves him confident that the company will win contracts for three other ships being built. He also announced that Rowan has taken out an option for the possibility to commission a fourth drill ship to be built, a further sign of the optimistic mood building at the firm.

"We're encouraged, though not surprised, by the high interest we're getting for these very high specification rigs from the operators," Ralls said.

Gulf spill still a factor for Transocean

The impact from the 2010 Macondo well blowout and oil spill continues to reverberate.

Transocean Ltd., the company that owned the Deepwater Horizon drilling rig involved in the fatal accident that spilled 5 million barrels of crude oil into the Gulf of Mexico, says its business is turning around quickly as demand for advanced offshore equipment grows globally. Nevertheless, the company posted a net loss of $304 million in the second quarter of 2012 as executives there increased the amount they believe they'll be held liable for in the spill.

Still, that company appears headed toward better financial days. Transocean CEO Steven Newman said his company has so far secured $4.7 billion worth of new contracts. Rising revenue from stronger day rates and active rig use point to the firm quickly emerging from the shadow of the Macondo accident, Transocean executives say.

The $4.7 billion in new contracts "represents a tremendous accomplishment," Newman said. "More importantly, we have seen an improvement in contract terms, particularly in the area of enhanced subsea-related maintenance and repair provisions."

Newman sought to reassure investors and market analysts worried about what court proceedings over the 2010 spill could mean for the company's future. He said Transocean is making progress toward a possible out-of-court settlement over the incident. But he added that the company was equally prepared to fight it out if necessary in a civil trial, now rescheduled to commence in January 2013.

"I assure you that we are well-prepared to defend the company in court if necessary," Newman said.