October 27, 2024
Oceaneering International Inc (OII) Q3 2024 Earnings Call Highlights: Strong Financial … #UKFinance

Oceaneering International Inc (OII) Q3 2024 Earnings Call Highlights: Strong Financial … #UKFinance

CashNews.co

  • Adjusted EBITDA: $98.1 million, in line with guidance and consensus estimates.

  • Free Cash Flow: $67 million generated in the third quarter.

  • Net Income: $41.2 million or $0.40 per share.

  • Adjusted Net Income: $37.2 million or $0.36 per share.

  • Revenue: $680 million for the third quarter.

  • SSR EBITDA Margin: Expanded to 36% from 31% year-over-year.

  • Operating Income Increase: 23% increase compared to the third quarter of 2023.

  • Revenue Increase: 7% increase compared to the third quarter of 2023.

  • Share Repurchase: 422,229 shares repurchased for approximately $10 million.

  • Ending Cash Balance: $452 million at the end of the third quarter.

  • Manufactured Products Backlog: $671 million, an increase of $115 million year-over-year.

  • Book to Bill Ratio: 1:2 for the trailing 12 months.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Oceaneering International Inc (NYSE:OII) delivered $98.1 million in adjusted EBITDA, aligning with guidance and consensus estimates.

  • The company generated a healthy free cash flow of $67 million during the third quarter.

  • SSR EBITDA margins expanded to 36%, showcasing improved pricing and execution performance.

  • Oceaneering repurchased 422,229 shares for approximately $10 million, indicating confidence in the company’s value.

  • The company reported a 23% increase in operating income compared to the third quarter of 2023, driven by strong performance in SSR and manufactured product segments.

  • Oceaneering’s offshore projects group (OPG) experienced a decline in revenue, operating income, and operating income margin due to changes in project mix and vessel downtime.

  • Integrity management and digital solutions (IMDS) saw a decline in operating income and margin due to a one-time non-cash charge from the divestiture of the Maritime Intelligence division.

  • Aerospace and defense technologies (ADTECH) reported flat revenue with decreased operating income and margins due to increased project proposal costs.

  • The company faced challenges from two large hurricanes impacting offshore operations and onshore facilities, resulting in an approximate $3 million loss.

  • Manufactured products segment is expected to see lower operating income and margins in the fourth quarter due to lower plan absorption related to holiday schedules and delivery of lower-margin products.

Q: How does Oceaneering International Inc. view the impact of potential white space in offshore drilling on their operations? A: Roderick Larson, President and CEO, stated that they are not seeing significant white space and expect strong performance due to pricing improvements, cost control, and efficiency. SSR is expected to deliver notable year-over-year improvements, with vessels staying strong and better performance anticipated in tooling and survey operations.

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