Post Earnings Coverage as Atwood Tops Market Expectations

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/.

Today, AWS is promoting its earnings coverage on ATW. Get our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=ATW.

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.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 443200

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.