OREANDA-NEWS. 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."