Atwood Oceanics, Inc. (NYSE:ATW) Reports New Deal With Australian Offshore Employees


Atwood Oceanics, Inc. (NYSE:ATW) reported that the offshore staff of its Australian operating subsidiary have allowed a new 4 year Enterprise Bargaining Agreement. Among other provisions, the Enterprise Bargaining Agreement offers clarity on working conditions for company’s Australian offshore staff and resets wage levels to align with prevailing offshore drilling industry market conditions.

The Enterprise Bargaining Agreement will become effective upon the expiry of the nominal term of the prevailing EBA on 24 November 2017, once it is permitted by the Australian Fair Work Commission, which is expected to occur in September.

The details

Rob Saltiel, the CEO and President of Atwood Oceanics, reported that they are extremely delighted that their Australian offshore staff have approved the new EBA. This is a deal which has been advanced after constructive talks with the staff directly affected, as happened with company’s previous Enterprise Bargaining Agreements.

Through application of cost reduction measures and unique ways to offshore employment, this deal will lower offshore personnel costs by over 19% in its first year and will permit Atwood Oceanics to offer their clients in Australia with superior drilling services at increasingly competitive day rates in the next years. They have been active in Australia since 1972, and they anticipate a bright future in this significant offshore energy market.

Atwood Oceanics is a major offshore drilling contractor involved in the drilling and completion of developmental and exploratory wells for the international oil and gas industry. The firm owns ten mobile offshore drilling divisions and is establishing 2 ultra-deepwater drill ships. It was established in 1968 and has headquarters in Houston, Texas. The company’s common stock is listed on the NYSE under the ticker “ATW.”

In the last trading session, the stock price of Atwood Oceanics jumped more than 13% to close the day at $7.17. The market cap of firm stands around $576 million.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.