Atwood Oceanics (ATW) the quality deep water driller
Atwood Oceanics recently issued stellar results above consensus expectations and is a business that consistently delivers at the operating level
Quarterly earnings of US$1.28/share were above consensus estimates of $1.23/share supported by higher revenues and lower drilling costs – can one ask for more! Total revenues were US$253m, contract drilling expenses US$108m and operating income of US$104m. ATW received upgrades on the back of the numbers with some observing that the Ultra Deep Water (‘UDW’) market is becoming very tight due to the recent number of contract signings and increasing demand in the Gulf of Mexico (GOM) and West Africa. Over the last few years the group has consistently delivered operating margins of well over 40%, demonstrating its ability to…