Offshore drilling contractor Atwood Oceanics Inc. provided early earnings guidance for the December quarter because of "unusual market volatility" as its stock price has been cut in half since November.

Atwood said it expects first-quarter profits of between $70 million to $78 million, or $1.05 to $1.20 per share, on revenue of about $300 million to $310 million. Last year, it reported earnings of $1.68 per share and revenue of $352 million.

Analysts polled by Thomson Reuters had expected per-share earnings of 98 cents and revenue of $294 million.

The Houston-based company cautioned that its estimates exclude a potential $50 million to $70 million impairment on the valuation of one of its 11 offshore drilling units as its contract expires. The company also said it could collect insurance proceeds of between $10 million and $15 million related to mooring system repairs on another one of its rigs.

Like many commodity companies, Atwood shares have been battered because of low energy prices. On Thursday, Atwood stock fell 1% to $7.73. The stock closed on Nov. 30 at $15.88.

The company will report its finalized quarterly results on Feb. 2.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

January 13, 2016 11:05 ET (16:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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