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Atwood Oceanics' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: ATW

We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements if one of these risks or uncertainties were to occur or assumptions prove incorrect. Undue reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof.

Now let me turn the call over to Rob for opening comments.

Robert J. Saltiel

Thank you, Mark. Good day to all of you joining us for our discussion of Atwood's fiscal 2012 first quarter results. I will make a few comments on the significant developments since our last call and then provide some color on Atwood's market outlook and contracting activities before turning it back to Mark for the financial details.

The first quarter saw our company achieved another record for quarterly revenue at $184.7 million, which resulted in earnings of $65.5 million or $1 per diluted share. Because we experienced higher than normal downtime on 2 of our highest revenue rigs, the Atwood Hunter and the Atwood Osprey, our revenue recognition was significantly lower than we are used to achieving.

In addition, our quarterly drilling costs were impacted negatively by certain repair and maintenance items that were more concentrated in this quarter. The net effect of these 2 factors, which I will discuss further, was to reduce our earnings below what we had expected for the quarter. The issuing of our first public debt offering in early January, $450 million of 8-year 6.5% coupon bonds, was a major milestone for Atwood Oceanics in diversifying our debt profile and enhancing our financial flexibility. We are very pleased to have completed this offering during the prevailing market uncertainty, especially in Europe. With this initial bond issue behind us, Atwood now has the capability to access the public debt markets in the future on an expedited basis should we decide to do so.

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