Oceaneering Posts Fall in Profits

Subsea engineering specialist Oceaneering has reported profit of $2.1 million, or 2 cents per share, on revenue of $515 million for the three months ended June 30, 2017.

During the corresponding period in 2016, the company reported net income of $22.3 million, or $0.23 per share, on revenue of $625.5 million.

To remind, during the prior quarter ended March 31, 2017, Oceaneering reported a net loss of $7.5 million, or 8 cents per share, on revenue of $446 million, and adjusted net loss of $4 million. Improved quarter-over-quarter result was contributed by all business segments, except for Subsea Products, which was slightly lower.

For the first six months of 2017, the company booked a net loss of $5.4 million, on revenue of $961 million, against a profit of $47.4 million, on revenue of $1.23 billion.

The company said it added one new ROV to its fleet and retired four, ending the quarter with a total of 279 vehicles. Fleet utilization for the second quarter was 48%.

Subsea products backlog at June 30, 2017 was $328 million, compared backlog of $407 million at the end of Q1 2017. The backlog decline was primarily related to umbilicals, the company noted.

“For the third quarter of 2017, we are expecting a sequential increase in our overall quarterly operating income. This improvement should be led by Subsea Products and Subsea Projects, with slight declines in profit contributions from our other operating segments and flat Unallocated Expenses.

“Relative to the first half of 2017, during the second half we expect to generate higher consolidated operating income on relatively flat revenue. Subsea Products profit contribution is expected to be higher, as projected increases in service and rental activity more than offset lower manufactured products throughput. We continue to project our Subsea Products operating margins to be in the mid- to high-single digit range. We expect operating income contributions from ROV and Asset Integrity during the second half to be similar to the first half. For Subsea Projects, we anticipate our results to be considerably lower due to the completion of vessel work offshore Angola, projected low levels of vessel activity, and vessel oversupply. With respect to Advanced Technologies, we expect improved operating income due to a projected uptick in our commercial businesses.

“Our overall outlook for the full year of 2017 has not changed. We continue to project that we will be marginally profitable at the operating income line on a consolidated basis,” said Roderick A. Larson, president and CEO of Oceaneering.

Oceaneering declared a regular quarterly dividend of $0.15 per common share. The dividend is payable September 15, 2017 to shareholders of record at the close of business on August 25, 2017.

Subsea World News Staff

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