The 243 floater rig count demand in second quarter 2015 fell similarly to first quarter, the firm stated.
Additionally, there have been a stacking/scrapping slowdown of rigs, which appear to be rig type and location-driven, as second quarter rig roll-offs were dominated by 5th G+ (DP) rigs, including several rigs in Brazil, analysts said.
Analysts expect the fall in demand to continue to outpace the stacking/scrapping pace near-term.
Atwood Oceanics is an offshore drilling contractor that engages in the drilling and completion of exploratory and developmental oil and gas wells worldwide.
On Thursday, shares dropped 3.76% to $26.37.
Separately, TheStreet Ratings team rates ATWOOD OCEANICS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ATWOOD OCEANICS (ATW) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."