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Oceaneering (OII) Secures $50 Million Umbilical Contract
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Oceaneering International, Inc.'s (OII - Free Report) Manufactured Products division has secured a major contract from a U.S. independent energy company. The contract is valued at roughly $50 million and involves supplying a specialized underwater cable for a project in the Gulf of Mexico. This deal highlights OII's strong reputation in the industry and its capacity to deliver high-quality products in a timely manner.
Scope of the Contract
The contract involves the supply of an electro-hydraulic, steel tube dynamic umbilical. This specialized product will be utilized in a project located in the Gulf of Mexico. The total length of the umbilical is approximately 27 kilometers (17 miles). Such a substantial length indicates the scale and complexity of the project, highlighting OII's technical expertise and manufacturing capabilities.
Manufacturing Details
Manufacturing of the umbilical is scheduled to take place at OII's facility in Panama City, FL. The production is set to commence in 2025, with the final delivery expected in the second quarter of 2026. This timeline reflects a well-planned and methodically executed project, ensuring that all stages, from production to delivery, meet the highest standards of quality and safety.
Significance of the Contract
Boosting Revenues and Market Position: Securing this contract is a notable milestone for OII. The anticipated revenues from this contract, approximately $50 million, should significantly boost the company's financial performance. This influx of revenues is expected to enhance OII's market position, providing a competitive edge in the highly dynamic and competitive energy sector.
Strengthening Customer Trust: Shaun R. Roedel, senior vice president of Manufactured Products at OII, expressed his satisfaction with the contract award. He emphasized that this achievement reflects the trust customers place in OII's capabilities to deliver high-quality manufactured products safely and efficiently. Roedel's statement highlights the company's commitment to maintaining high standards and building strong customer relationships.
Manufacturing Excellence in Panama City
State-of-the-Art Facility: OII's Panama City facility is renowned for its state-of-the-art manufacturing capabilities. Equipped with advanced technology and staffed by highly skilled professionals, this facility is well-prepared to undertake the production of the electro-hydraulic steel tube dynamic umbilical.
Commitment to Quality and Safety: The Panama City facility adheres to stringent quality and safety standards. From the initial stages of production to the final delivery, every aspect of the manufacturing process is meticulously monitored to ensure that the final product meets the highest standards of excellence.
Impact on the Gulf of Mexico Project
Enhancing Project Efficiency: The delivery of the electro-hydraulic steel tube dynamic umbilical is expected to significantly enhance the efficiency and reliability of the Gulf of Mexico project. By providing a robust and reliable means of transmitting power and control, the umbilical is expected to play a key role in the successful operation of subsea equipment.
Supporting Energy Production: This project in the Gulf of Mexico is a critical component of the broader energy production strategy. The successful implementation of this project will contribute to the overall energy output, supporting domestic and potentially international energy demands.
Prospects for Oceaneering
Continued Growth and Innovation: This contract is a testament to OII's commitment to growth and innovation. By securing such significant contracts, the company continues to solidify its position as a leader in the engineered services and products sector. Looking ahead, this engineered services and products provider company is well-positioned to leverage its technical expertise and strong customer relationships to secure further contracts and drive sustained growth.
Expansion of Manufacturing Capabilities: With the Panama City facility playing a critical role in this contract, there is potential for further expansion of OII's manufacturing capabilities. Investing in advanced technology and increasing production capacity should enable the company to meet the growing demands of the energy sector and maintain its competitive edge.
Conclusion
Oceaneering has once again demonstrated its leadership in the engineered services and products industry by securing a major contract worth approximately $50 million. The supply of an electro-hydraulic, steel tube dynamic umbilical for a project in the Gulf of Mexico highlights the company's technical prowess and manufacturing excellence. As the project grows, Oceaneering's commitment to quality, safety and customer satisfaction will undoubtedly reinforce its reputation as a trusted partner in the energy sector. This contract not only boosts OII's financial performance but also sets the stage for continued growth and innovation in the years to come.
Archrock is valued at $2.98 billion. The company currently pays a dividend of 66 cents per share, or 3.46%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Sunoco is valued at $5.5 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income and the Brownsville terminal expansion should add to its revenue diversification.
Denver, CO-based SM Energyis valued at $5.46 billion. The company currently pays a dividend of 72 cents per share, or 1.52%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
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Oceaneering (OII) Secures $50 Million Umbilical Contract
Oceaneering International, Inc.'s (OII - Free Report) Manufactured Products division has secured a major contract from a U.S. independent energy company. The contract is valued at roughly $50 million and involves supplying a specialized underwater cable for a project in the Gulf of Mexico. This deal highlights OII's strong reputation in the industry and its capacity to deliver high-quality products in a timely manner.
Scope of the Contract
The contract involves the supply of an electro-hydraulic, steel tube dynamic umbilical. This specialized product will be utilized in a project located in the Gulf of Mexico. The total length of the umbilical is approximately 27 kilometers (17 miles). Such a substantial length indicates the scale and complexity of the project, highlighting OII's technical expertise and manufacturing capabilities.
Manufacturing Details
Manufacturing of the umbilical is scheduled to take place at OII's facility in Panama City, FL. The production is set to commence in 2025, with the final delivery expected in the second quarter of 2026. This timeline reflects a well-planned and methodically executed project, ensuring that all stages, from production to delivery, meet the highest standards of quality and safety.
Significance of the Contract
Boosting Revenues and Market Position: Securing this contract is a notable milestone for OII. The anticipated revenues from this contract, approximately $50 million, should significantly boost the company's financial performance. This influx of revenues is expected to enhance OII's market position, providing a competitive edge in the highly dynamic and competitive energy sector.
Strengthening Customer Trust: Shaun R. Roedel, senior vice president of Manufactured Products at OII, expressed his satisfaction with the contract award. He emphasized that this achievement reflects the trust customers place in OII's capabilities to deliver high-quality manufactured products safely and efficiently. Roedel's statement highlights the company's commitment to maintaining high standards and building strong customer relationships.
Manufacturing Excellence in Panama City
State-of-the-Art Facility: OII's Panama City facility is renowned for its state-of-the-art manufacturing capabilities. Equipped with advanced technology and staffed by highly skilled professionals, this facility is well-prepared to undertake the production of the electro-hydraulic steel tube dynamic umbilical.
Commitment to Quality and Safety: The Panama City facility adheres to stringent quality and safety standards. From the initial stages of production to the final delivery, every aspect of the manufacturing process is meticulously monitored to ensure that the final product meets the highest standards of excellence.
Impact on the Gulf of Mexico Project
Enhancing Project Efficiency: The delivery of the electro-hydraulic steel tube dynamic umbilical is expected to significantly enhance the efficiency and reliability of the Gulf of Mexico project. By providing a robust and reliable means of transmitting power and control, the umbilical is expected to play a key role in the successful operation of subsea equipment.
Supporting Energy Production: This project in the Gulf of Mexico is a critical component of the broader energy production strategy. The successful implementation of this project will contribute to the overall energy output, supporting domestic and potentially international energy demands.
Prospects for Oceaneering
Continued Growth and Innovation: This contract is a testament to OII's commitment to growth and innovation. By securing such significant contracts, the company continues to solidify its position as a leader in the engineered services and products sector. Looking ahead, this engineered services and products provider company is well-positioned to leverage its technical expertise and strong customer relationships to secure further contracts and drive sustained growth.
Expansion of Manufacturing Capabilities: With the Panama City facility playing a critical role in this contract, there is potential for further expansion of OII's manufacturing capabilities. Investing in advanced technology and increasing production capacity should enable the company to meet the growing demands of the energy sector and maintain its competitive edge.
Conclusion
Oceaneering has once again demonstrated its leadership in the engineered services and products industry by securing a major contract worth approximately $50 million. The supply of an electro-hydraulic, steel tube dynamic umbilical for a project in the Gulf of Mexico highlights the company's technical prowess and manufacturing excellence. As the project grows, Oceaneering's commitment to quality, safety and customer satisfaction will undoubtedly reinforce its reputation as a trusted partner in the energy sector. This contract not only boosts OII's financial performance but also sets the stage for continued growth and innovation in the years to come.
Zacks Rank and Key Picks
Currently, OII carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. (AROC - Free Report) , Sunoco LP (SUN - Free Report) and SM Energy Company (SM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is valued at $2.98 billion. The company currently pays a dividend of 66 cents per share, or 3.46%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Sunoco is valued at $5.5 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income and the Brownsville terminal expansion should add to its revenue diversification.
Denver, CO-based SM Energyis valued at $5.46 billion. The company currently pays a dividend of 72 cents per share, or 1.52%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.