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Offshore E&P: Mixed Q1 Performance Revealed
2 Jun
Summary
- Mixed/offshore upstream E&P stocks missed revenue estimates by 0.8%.
- Tidewater beat revenue expectations but missed EPS and EBITDA targets.
- Seadrill exceeded revenue expectations with strong EPS and EBITDA growth.
The first quarter financial results for mixed and offshore upstream E&P companies presented a varied picture. As a group, these specialized firms saw their collective revenues fall short of analyst expectations by 0.8%, contributing to an average stock price decrease of 6.6% since their latest earnings reports.
Tidewater (NYSE:TDW), a major player in offshore service vessels with a fleet of over 200 ships, reported revenues of $326.2 million, a 2.2% year-on-year decrease. While this figure surpassed analyst forecasts by 1.2%, the company experienced significant misses in earnings per share (EPS) and EBITDA estimates. Consequently, Tidewater's stock has fallen 15.6% post-earnings.
In contrast, Seadrill (NYSE:SDRL), which operates deepwater drilling rigs, announced revenues of $358 million, a 6.9% year-on-year increase. Seadrill not only outperformed revenue expectations by 7.2% but also achieved strong beats on EPS and EBITDA. Despite these positive operational metrics, Seadrill's stock has seen a 4.9% decline since its earnings release.
