Atwood's future looks OK, the present not so much, Morgan Stanley says

Bearish talk about offshore drillers has abounded recently (I, II, III, IV), and Atwood Oceanics (ATW) latest quarterly results won’t ease those concerns, Morgan Stanley says.

The firm is now modeling a rollover at $400K/day on ATW’s next rig to rollover in Equatorial Guinea in Aug. 2014, down substantially from the rig’s current dayrate of $516K/day (fixed in July 2013), as it sees increased competition in securing new work.

ATW does remain positioned to deliver steady earnings growth, the firm says, and beyond well-documented near-term floater market choppiness it still forecasts marketed utilization to pick up in 2015.

ATW (-2.1%) results pulled down other offshore players: HERO -7.9%, DO -3.2%, NE -2%, RIG -1.9%, SDRL -1.8%, ESV -1.6%, RDC -0.9%.

From other sites
Comments (9)
  • DorkDude00
    , contributor
    Comments (17) | Send Message
    There seems to be no bottom to this selloff in the drillers. I'm wondering if I should bail on ESV. Usually when I think like that we are near a bottom. I hope so. This is getting tough to hold on.
    5 Feb 2014, 06:42 PM Reply Like
  • Average Dividend Yield
    , contributor
    Comments (97) | Send Message
    I'm looking to add to my ESV position should it drop to $47. ESV is priced like it's going out of business.
    5 Feb 2014, 07:54 PM Reply Like
  • eylanderb
    , contributor
    Comments (5) | Send Message
    I'm with you on that. I thought ESV had high prospects as well. However, generally when people sell they tend to oversell, so people could be selling more than necessary. Unless of course the company tanks, in which case they are right.
    5 Feb 2014, 07:58 PM Reply Like
  • tennis44
    , contributor
    Comments (70) | Send Message
    D o not bail on sdrl, at thisr price load up
    5 Feb 2014, 07:03 PM Reply Like
  • Thewaltzy
    , contributor
    Comments (1399) | Send Message
    ATW have a large current backlog of contracts. I see no reason to bail pre 2015. Yes, the mkt may be tougher - in which case they may not increase shareholder share /retained earnings over a few months in 2015. But over any reasonable time period I still see ATW as a purchase. I bought today.
    5 Feb 2014, 07:54 PM Reply Like
  • FlaYankee
    , contributor
    Comments (133) | Send Message
    When the sentiment is this bad with the doomsayers coming out of the woodwork to bash the deep water drillers like its the end of their business model then we are very close to the bottom. Looking forward to Seadrill's earnings announcement as their stock price has been unduly and severely punished and the company has done nothing but pay out hefty dividends and provide forward guidance about the lucrative environment for the most modern and technologically advanced rigs which they own. When investors are this nervous and hesitant to commit to a purchase of shares then you know the time is right to begin to initiate a position of your favorite deep water driller. Long SDRL and NADL.
    6 Feb 2014, 08:14 AM Reply Like
  • goolneb
    , contributor
    Comments (192) | Send Message
    I stay put or buy
    6 Feb 2014, 11:26 AM Reply Like
  • C,Ican
    , contributor
    Comments (8) | Send Message
    Think of this- Xom, BP Rds.a disappoint ,stating harder to find enough oil ,all had lower
    volumes- if they don't find more supply their stock will tank-hence they must all drill more to increase the supply -D.O is now a screaming BUY- 7 PE-least amount of debt ,and the highest credit rating of all the drillers -buy it now before Carl IIcan does -just do it
    Tell em Buck sent ya
    7 Feb 2014, 05:30 PM Reply Like
  • C,Ican
    , contributor
    Comments (8) | Send Message
    Think of This!!! B.P ,Xom, Rds.a all disappoint -why volumes Down- they all stated harder to find supply- So if they don't drill their stock gets killed-they don't want to get killed, so they have to increase drilling- D.O is a Screaming Buy now-Diamond Offshore has the Best credit rating of all drillers, also the least amount of debt ,and the most Cash on hand, and
    4 new rigs this year, that will have a higher day rates-Bam Better buy it Quick-You see how I helped Rig-Just Do it -Now, Carl
    7 Feb 2014, 05:31 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs