Upcoming AWS Coverage on RSP Permian Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 22, 2016 / Active Wall St. announces its post-earnings coverage on Atwood Oceanics, Inc. (NYSE: ATW). The company reported its financial results for fourth quarter fiscal 2016 (Q4 FY16) on November 10, 2016. The offshore drilling contractor reported a decline in earnings and revenue after the contracts of several drilling rigs either expired or was reduced to adjust on lower dayrates. The company also reported a number of impairment charges which impacted profitability. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Atwood Oceanics' competitors within the Oil & Gas Drilling & Exploration space, RSP Permian, Inc. (NYSE: RSPP), reported on November 01, 2016, financial and operating results for the quarter ended September 30, 2016. AWS will be initiating a research report on RSP Permian in the coming days.
Today, AWS is promoting its earnings coverage on ATW; touching on RSPP. Get our free coverage by signing up to:
For the three months ended on October 01st, 2016, Atwood Oceanics reported net income of $4.2 million, or $0.07 per diluted share, on revenues of $188.7 million, compared to net income of $99.5 million, or $1.53 per diluted share, on revenues of $227.8 million for Q2 2016 and compared to net income of $150.7 million, or $2.32 per diluted share, on revenues of $363.2 million for Q3 2015. The earnings number was above analysts' expectations of $0.58 per share, while revenue number was below analysts' forecasts of $191.8 million.
During Q4 FY16, the company recorded non-cash impairment charge of $38.6 million in asset impairment related to its fleet wide drilling equipment. The company also recorded a non-cash charge of $3.9 million in drilling costs to increase its reserve for excessive and/or obsolete materials and supplies, and recognized a gain on the purchase of debt of $10.2 million in Gains on Extinguishment of Debt related to consummation of our modified "Dutch Auction" on July 25, 2016, whereby the company acquired $42.0 million aggregate principal amount of the Senior Notes.
Quarterly revenue declined primarily due to the Atwood Advantage, which operated for 65 days at the reduced rate of $240,000 per day for Noble plug, and abandonment work and incurred 13 days at zero rates for the mobilization from the Gulf of Mexico to Israel along with revenue decline due to the Atwood Beacon which was idled in August. Revenue efficiency for Q4 2016 was 97% compared to 95% in Q3. The fleet operated 573 days versus 634 days in the previous quarter, totaling 2,776 days for FY16 compared to 4,015 days for FY15.
Cash Flow & Balance Sheet
During Q4 2016, Atwood's Oceanic's Capital expenditures totaled $26 million versus $24 million for Q3 2016. Capital expenditures for FY16 totaled $224 million of which $156 million, including capitalized interest, relates to its new-build drill ships. Year-end accounts receivable and accounts payable balances were substantially less than the prior year due to reduced rig activity. Total debt reduced to $1.2 billion in Q4 FY16 from $1.4 billion at the end of Q3 FY16.
During the course of FY16, Atwood Oceanics repurchased 201.4 million aggregate principal amount of its senior notes. This, along with credit facility payments of $215 million throughout the year, reduced total debt from $1.7 billion at September 30, 2015, to $1.2 billion at September 30, 2016, resulting in 27% debt reduction on a y-o-y basis.
On Monday, November 21, 2016, Atwood Oceanics' shares climbed 4.38% from its previous closing price of $8.00, finishing the day at $8.35. A total volume of 3.58 million shares have exchanged hands. Shares of the company have a PE ratio of 2.04. The stock currently has a market cap of $529.64 million.
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SOURCE: Active Wall Street