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Oceaneering (OII) Q3 Earnings Beat Estimates, Sales Lag
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Oceaneering (OII - Free Report) reported a third-quarter 2022 adjusted profit of 23 cents per share, beating the Zacks Consensus Estimate of a profit of 13 cents. This outperformance was largely due to robust results in certain segments.
Moreover, the bottom line strengthened considerably compared to the year-ago quarter’s loss of 1 cent per share. This can be attributed to greater year-over-year revenues from the Subsea Robotics, Manufactured Products and Offshore Projects Group segments.
However, Oceaneering’s total quarterly revenues of $559.7 million marginally lagged the Zacks Consensus Estimate of $561 million due to a decrease in year-over-year sales in a couple of OII’s units. However, revenues increased by approximately 19.9% from the year-ago sales of $466.8 million.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Subsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues of $169.4 million compared favorably with $143.7 million in the third quarter of 2021. Moreover, the segment reported an operating income of $37 million, greater than the year-ago quarter’s $19.5 million. Days on hire rose 6.5% year over year to 15,408, while ROV utilization increased to 67%.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues were $94 million, up substantially from the prior-year figure of $75.4 million. Moreover, the segment posted an operating profit of about $4.3 million in the third quarter, up considerably compared to the year-ago quarter’s profit of $809,000. Meanwhile, the backlog rose to $365 million as of Sep 30, 2022.
Offshore Projects Group: This involves Oceaneering’s former Subsea Projects segment, excluding survey services and global data solutions, and the service and rental business, excluding ROV tooling.
Revenues increased by about 60% to $152.9 million from $95.6 million in the year-ago quarter. The uptick in revenues led the unit’s operating income of $20.3 million to compare favorably with the $7.6 million income reported in the third quarter of 2021.
Integrity Management & Digital Solutions:This segment mainly covers Oceaneering’s Asset Integrity segment along with its global data solutions business.
Revenues of $58.5 million went down from the year-ago figure of $62.8 million. Moreover, the segment reported an operating income of $3 million, comparing unfavorably with the prior-year quarter’s $5.4 million as a result of operational issues.
Aerospace and Defense Technologies:The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $84.7 million, down from $89.3 million in the third quarter of 2021. As a result, the operating income of $13 million fell from $14.2 million in the year-ago quarter.
Capital Expenditure & Balance Sheet
The capital expenditure in the third quarter, including acquisitions, summed at $19.3 million. As of Sep 30, 2022, OII had cash and cash equivalents worth $427.5 million and $538.1 million respectively, along with long-term debt of about $701.2 million. The debt-to-total capital was 59.5%.
Outlook
Per Oceaneering, its fourth-quarter 2022 EBITDA will decline on relatively flat revenues compared to third-quarter results. In the fourth quarter of 2022, while the company anticipates a seasonal slowdown, it expects relatively good activity in offshore markets.
For the fourth quarter of 2022, Oceaneering predicts unallocated expenses in the mid-$30 million range.
For 2022, Oceaneering now projects its consolidated EBITDA in the $215 million-$240 million range and continued significant free cash flow generation in the revised range of $25-$75 million.
Some stocks from the energy space that are coming up with their earnings include Occidental Petroleum (OXY - Free Report) , ConocoPhillips (COP - Free Report) and Marathon Oil (MRO - Free Report) .
In the United States, Occidental Petroleum is among the largest oil producers. Occidental Petroleum is likely to post third-quarter results on Nov 8.
The Zacks Consensus Estimate for OXY’s earnings in the current quarter stands at $2.48 per share.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. ConocoPhillips is likely to post third-quarter results on Nov 3.
The Zacks Consensus Estimate for COP’s earnings in the current quarter stands at $3.41 per share.
Marathon Oil is a leading oil and natural gas exploration and production company. Marathon Oil is likely to post third-quarter results on Nov 2.
The Zacks Consensus Estimate for MRO’s earnings in the current quarter is pegged at $1.19 per share.
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Oceaneering (OII) Q3 Earnings Beat Estimates, Sales Lag
Oceaneering (OII - Free Report) reported a third-quarter 2022 adjusted profit of 23 cents per share, beating the Zacks Consensus Estimate of a profit of 13 cents. This outperformance was largely due to robust results in certain segments.
Moreover, the bottom line strengthened considerably compared to the year-ago quarter’s loss of 1 cent per share. This can be attributed to greater year-over-year revenues from the Subsea Robotics, Manufactured Products and Offshore Projects Group segments.
However, Oceaneering’s total quarterly revenues of $559.7 million marginally lagged the Zacks Consensus Estimate of $561 million due to a decrease in year-over-year sales in a couple of OII’s units. However, revenues increased by approximately 19.9% from the year-ago sales of $466.8 million.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Oceaneering International, Inc. price-consensus-eps-surprise-chart | Oceaneering International, Inc. Quote
Segmental Information
Subsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues of $169.4 million compared favorably with $143.7 million in the third quarter of 2021. Moreover, the segment reported an operating income of $37 million, greater than the year-ago quarter’s $19.5 million. Days on hire rose 6.5% year over year to 15,408, while ROV utilization increased to 67%.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues were $94 million, up substantially from the prior-year figure of $75.4 million. Moreover, the segment posted an operating profit of about $4.3 million in the third quarter, up considerably compared to the year-ago quarter’s profit of $809,000. Meanwhile, the backlog rose to $365 million as of Sep 30, 2022.
Offshore Projects Group: This involves Oceaneering’s former Subsea Projects segment, excluding survey services and global data solutions, and the service and rental business, excluding ROV tooling.
Revenues increased by about 60% to $152.9 million from $95.6 million in the year-ago quarter. The uptick in revenues led the unit’s operating income of $20.3 million to compare favorably with the $7.6 million income reported in the third quarter of 2021.
Integrity Management & Digital Solutions: This segment mainly covers Oceaneering’s Asset Integrity segment along with its global data solutions business.
Revenues of $58.5 million went down from the year-ago figure of $62.8 million. Moreover, the segment reported an operating income of $3 million, comparing unfavorably with the prior-year quarter’s $5.4 million as a result of operational issues.
Aerospace and Defense Technologies: The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $84.7 million, down from $89.3 million in the third quarter of 2021. As a result, the operating income of $13 million fell from $14.2 million in the year-ago quarter.
Capital Expenditure & Balance Sheet
The capital expenditure in the third quarter, including acquisitions, summed at $19.3 million. As of Sep 30, 2022, OII had cash and cash equivalents worth $427.5 million and $538.1 million respectively, along with long-term debt of about $701.2 million. The debt-to-total capital was 59.5%.
Outlook
Per Oceaneering, its fourth-quarter 2022 EBITDA will decline on relatively flat revenues compared to third-quarter results. In the fourth quarter of 2022, while the company anticipates a seasonal slowdown, it expects relatively good activity in offshore markets.
For the fourth quarter of 2022, Oceaneering predicts unallocated expenses in the mid-$30 million range.
For 2022, Oceaneering now projects its consolidated EBITDA in the $215 million-$240 million range and continued significant free cash flow generation in the revised range of $25-$75 million.
Zacks Rank & Upcoming Releases
Oceaneering currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some stocks from the energy space that are coming up with their earnings include Occidental Petroleum (OXY - Free Report) , ConocoPhillips (COP - Free Report) and Marathon Oil (MRO - Free Report) .
In the United States, Occidental Petroleum is among the largest oil producers. Occidental Petroleum is likely to post third-quarter results on Nov 8.
The Zacks Consensus Estimate for OXY’s earnings in the current quarter stands at $2.48 per share.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. ConocoPhillips is likely to post third-quarter results on Nov 3.
The Zacks Consensus Estimate for COP’s earnings in the current quarter stands at $3.41 per share.
Marathon Oil is a leading oil and natural gas exploration and production company. Marathon Oil is likely to post third-quarter results on Nov 2.
The Zacks Consensus Estimate for MRO’s earnings in the current quarter is pegged at $1.19 per share.