Hornbeck Offshore, Atwood Oceanics lead dismal day for drilling contractors

|About: Atwood Oceanics Inc. (ATW)|By:, SA News Editor

Offshore drilling contractors are lower across the board after Hornbeck Offshore (HOS -8%) and Atwood Oceanics (ATW -4.5%) report disappointing Q1 results (I, II).

On HOS, Howard Weil says Q1 operating metrics for offshore support vessels took a larger step back than expected, as average dayrates posted their first Q/Q decline since 2011; this, along with an increase in the amount of planned dry dock days, likely will move near-term earnings estimates lower.

On ATW, Cowen analysts say contract drilling revenues of $273M fell short of expectations, while better than expected revenues from the jackup segment were more than offset by weaker than expected revenues from the ultra-deepwater and deepwater segments.

Also: DO -1.8%, ESV -1.2%, TDW -2.4%, GLF -1.8%, CKH -1.6%.

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