LONDON, UK / ACCESSWIRE / August 3, 2016 / Active Wall St. announces its post-earnings coverage on Atwood Oceanics Inc. (NYSE: ATW). The company announced its third quarter fiscal 2016 results after market close on August 01, 2016. The offshore drilling company reported earnings above Wall Street's expectations. Atwood Oceanics also announced the purchase of $145.8 million of its senior notes on an average discount of 34.8%. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For the quarter ended on June 30, 2016, Atwood reported earnings of $99.5 million, on a per-share basis. The Houston, Texas headquartered company had earnings of $1.53 per share. On an adjusted basis, the company reported earnings of $0.98 per share, beating analysts' consensus forecast of $0.78 per share. The offshore drilling contractor posted revenue of $227.8 million in Q3 FY16, which surpassed market expectations for revenue of $225.3 million.
Buying Debt
During Q3 FY16, Atwood Oceanics purchased $145.8 million of its senior notes for $97.4 million, including $2.4 million of accrued interest, representing an average discount of 34.8%. The company had earlier purchased $42 million worth of notes through a Dutch auction in July 2016.
Following the repurchases the company has $448.7 million of senior notes outstanding. The credit facility has $1.374 billion of long term debt.
Atwood Oceanics finished the second quarter with $199 million in cash on its balance sheet. Given the fact that the company spent $33 million on repurchasing its bonds through a Dutch auction, it may delay debt repurchases for some time considering the small amount of cash in hand.
Contract Status
On July 27, 2016, Atwood disclosed its latest fleet status report. The company reported two new contracts bringing the total backlog to $890 million.
The Atwood Osprey secured a 20-22 months contract with Woodside Energy, with the work scheduled to commence in January 2018 at a contract day rate of $190K/d down from $450k/d.
Atwood Advantage is working for Noble Energy (NYSE: NBL) until August 2017 with adjusted day rate of $240,000 commencing mid-July and is estimated to conclude in mid-September 2016.
On the other hand, the company's Atwood Achiever is scheduled to work the whole of 2017 for Kosmos Energy (NYSE: KOS) with the contract expiring in November 2018. However, the rig has been placed on standby. Atwood's ATWOOD MAKO and ATWOOD MANTA rigs are idled and being actively marketed, while its ATWOOD BEACON which is located in Malta is scheduled to be idled in mid-August and is also actively marketed.
Stock Performance
On August 02, 2016, Atwood's shares tumbled 4.66%, closing the day at $9.81 with a total of 9.01 million shares changing hands. The company's stock has gained 10.72% in the past three month and has advanced 84.40% in the past six months.
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