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.
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.