Atwood Oceanics Reports Q4 and a Record Year

  • Posted by
  • on November 17th, 2011

The Houston-based offshore driller smokes estimates, but Q4 income is slightly down yr over yr.

 

Atwood Falcon

 

Atwood Oceanics ($ATW). Such a cool name…Oceanics. Love the way it rolls off the tongue. Probably the coolest name of all the companies we own.

Pulling down a lucky #13 in the BeanScreen this month, ATW reported after the bell today with their Q4 and fiscal year 2011 earnings. It was their 6th year in a row of record earnings.

After their much bigger rival and local competitor Diamond Offshore ($DO) released strong earnings last month, we figured Atwood had a good chance to do the same.

It was a pretty decent report as EPS beat most estimates by about 14 cents. Revenues came in around $4 mil ahead of consensus.

Here’s the Q4 YoY figures:

  • Revenues +10.6% to $177.6 mil
  • Net income -3.1% to $72.9 mil

Fiscal 2011:

  • Revenues -0.8% to $645.1 mil
  • Net income +5.7% to $271.7 mil

 

From the CEO and President:

“Atwood’s 2011 fiscal year witnessed the delivery and start-up of our first ultra-deepwater rig, expansion of our high-specification rig construction program, completion of our new credit facility and significant growth in our contract revenue backlog.  We also achieved our sixth consecutive year of record earnings, made possible by the strong performance of our offshore rig teams and our onshore support organization, making this one of our most successful years in Atwood’s history.”

 

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2 year chart (Y! Finance)

 

We’ve owned shares in ATW for about 20 months now, buying and selling a few times around a core position of about $33 per share. Our last purchase was on 9/22/11 at $36 even.

If the price of crude continues to rise, along with the cost of getting it out of deeper and more remote aquatic regions, Atwood stands to profit. This was a solid report in our view, especially when considering the lingering after-effects of the BP Leak fallout, and the political storm it has caused.

 

sources:  Atwood Oceanics Announces Earnings for Fourth Quarter Fiscal Year 2011 – PR-Newswire

ATWOOD OCEANICS Receives 2011 Shell Floater Rig of the Year Award – Yahoo! Finance

Briefing.comY! Finance

Diamond Offshore Announces Third Quarter 2011 Results – Y! Finance

ATWD.com

disclosure:  we currently own shares in ATW and DO

 


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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