X
<

How Atwood Oceanics Looks Following Fiscal 4Q16

PART:
1 2 3 4 5 6
Part 2
How Atwood Oceanics Looks Following Fiscal 4Q16 PART 2 OF 6

Is Atwood Oceanics’ Backlog Cause for Worry?

Contract backlog

On September 30, 2016, Atwood Oceanics (ATW) had a backlog of $0.8 billion, ~50% less than the $1.6 billion reported a year ago. Knowing a drilling company’s backlog helps us to gauge its maximum revenue based on its current contracts.

Is Atwood Oceanics&#8217; Backlog Cause for Worry?

Interested in ATW? Don't miss the next report.

Receive e-mail alerts for new research on ATW

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Backlog for 2017–18

The backlog for fiscal 2017 stands at $431 million, which is 43% of Atwood Oceanics’ fiscal 2016 revenue. If the company isn’t able to secure new contracts, revenue for fiscal 2017 will be only 43% of the 2016 revenue. Among the current contracts, only one of ATW’s contracts extends beyond fiscal 2017.

The backlog for 2018 stands at $233 million, which is 23% of the revenue for the past four quarters. Based on ATW’s backlog in the coming years, a steep fall in the company’s revenue is expected.

Backlog distribution

Atwood Oceanics’ backlog comes through ultra-deepwater, deepwater and jack-up rigs. About 99% of the backlog belongs to its ultra-deepwater rigs.

Peer backlog

Atwood Oceanics’ total backlog-to-trailing-12-month-revenue ratio stands at 80%, among the lowest in its peer group. Here’s where peers’ ratios stand:

  • Ensco (ESV): 122%
  • Noble (NE): 171%
  • Diamond Offshore Drilling (DO): 231%
  • Transocean (RIG): 242%
X

Please select a profession that best describes you: