ATWOOD OCEANICS ANNOUNCES FIRST QUARTER EARNINGS GUIDANCE
January 13 2016 - 9:16AM
FOR IMMEDIATE RELEASE
HOUSTON, January 13, 2016 --
Atwood Oceanics, Inc. (NYSE: ATW) provided earnings guidance today
for its fiscal year 2016 first quarter ended December 31, 2015 due
to unusual market volatility.
The Company expects first quarter
earnings to be in the range of approximately $70 million to $78
million ($1.05 to $1.20 per diluted share) on revenues of
approximately $300 million to $310 million, prior to consideration
of two pending items which are under review and discussed
below. Fleet revenue efficiency for the first quarter was
approximately 99%. Contract drilling costs are expected to
total approximately $135 million to $145 million for the first
quarter.
The Company is evaluating a
potential impairment adjustment to the valuation of the Atwood Falcon and its associated inventory of materials
and supplies as the rig approaches its scheduled contract end
date. This impairment, if implemented, is estimated to be
approximately $50 million to $70 million. In addition, the
Company expects collection of insurance proceeds of approximately
$10 million to $15 million related to mooring system repairs on the
Atwood Osprey. Final results for the
first quarter will depend on the outcome of the review of these two
items.
The Company plans to release its
fiscal 2016 first quarter financial results after the market closes
on Tuesday, February 2, 2016. The Company will hold its
conference call and webcast in conjunction with its 2016 first
quarter earnings release on Wednesday, February 3, 2016, and will
provide conference call details the week of January 18, 2016.
Atwood Oceanics, Inc. is a leading
offshore drilling contractor engaged in the drilling and completion
of exploratory and developmental wells for the global oil and gas
industry. The Company currently owns 11 mobile offshore drilling
units and is constructing two ultra-deepwater drillships. The
Company was founded in 1968 and is headquartered in Houston,
Texas. Atwood Oceanics, Inc. common stock is traded on the
New York Stock Exchange under the symbol "ATW."
As part of our ongoing commitment
to our shareholders, Atwood Oceanics uses a variety of Social
Networks sites to disseminate company information. For a full
list of the official Social Media pages for Atwood Oceanics, please
visit the Social Media Disclaimer page of our IR site at:
http://ir.atwd.com/GenPage.aspx?IID=4010374&GKP=210376.
Contact: Mark W. Smith
Senior Vice President and CFO
(281) 749-7840
Forward Looking
Statements and Other Legal Disclosure
Because the 2016
first fiscal quarter has recently ended, the unaudited financial
information presented above reflects estimates based only upon
preliminary information available to the Company as of the date
hereof, is not a comprehensive statement of the Company's financial
results or position as of or for the quarter ended December 31,
2015, and has not been audited or reviewed by the Company's
independent registered public accounting firm. The Company's
consolidated financial statements and operating data as of and for
the quarter ended December 31, 2015 may vary from the preliminary
financial information provided herein due to the completion of the
Company's financial closing procedures, final adjustments and other
developments that may arise between now and the time the financial
results for the quarter are finalized. Such variation may be
material; accordingly, investors should not place undue reliance on
these preliminary estimates.
Statements
contained in this press release with respect to the future,
including expected earnings and anticipated adjustments, are
forward-looking statements. These statements reflect management's
reasonable judgment with respect to future events. Forward-looking
statements are subject to numerous risks, uncertainties and
assumptions and actual results could differ materially from those
anticipated as a result of various factors including: uncertainties
related to the level of activity in offshore oil and gas
exploration and development; oil and gas prices; competition and
market conditions in the contract drilling industry; our ability to
enter into and the terms of future contracts; possible cancelation
or suspension of drilling contracts; the availability of qualified
personnel; labor relations; operating hazards and risks; terrorism
and political and other uncertainties inherent in foreign
operations (including risk of war, civil disturbances, seizure or
damage to equipment and exchange and currency fluctuations); the
impact of governmental and industry laws and regulations; and
environmental matters. These factors and others are described and
discussed in our most recently filed annual report on Form 10-K, in
our Forms 10-Q for subsequent periods and in our other filings with
the Securities and Exchange Commission which are available on the
SEC's website at www.sec.gov. Each forward looking statement speaks
only as of the date of the particular statement and we undertake no
duty to provide guidance in the future, or update the content of
this press release or any forward-looking statement contained
herein to conform the statement to actual results or to reflect
changes in our expectations.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Atwood Oceanics, Inc. via Globenewswire
HUG#1978636
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