Core Insights - Oceaneering International (OII) reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.37 per share, but showing an increase from $0.18 per share a year ago, resulting in an earnings surprise of -24.32% [1] - The company posted revenues of $668.81 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.55% and increasing from $597.91 million year-over-year [3] - Oceaneering International's stock has gained approximately 23.2% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $673.98 million, and for the current fiscal year, it is $1.40 on revenues of $2.62 billion [7] - The company is expected to post quarterly earnings of $0.10 per share in its next report, reflecting a year-over-year change of -23.1% [8] Industry Context - Oceaneering International belongs to the Zacks Oil and Gas - Field Services industry, which is currently ranked in the bottom 13% of over 250 Zacks industries [10] - The industry outlook can significantly impact stock performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [10]

Financial Performance - For Q2 2024, Oceaneering reported revenue of $668.8 million, a 12% increase from $597.9 million in Q2 2023[11] - Net income for Q2 2024 was $35.0 million, or $0.34 per share, compared to $19.0 million, or $0.19 per share in Q2 2023[11] - Adjusted net income for Q2 2024 was $28.6 million, reflecting a $1.0 million impact from foreign exchange gains and $5.5 million in discrete tax adjustments[11] - Total revenue for the six months ended June 30, 2024, was $48,376 thousand, compared to $40,736 thousand for the same period in 2023, marking a growth of 18.4%[28] - Total revenue for the company was $668,808 thousand, an increase from $597,910 thousand year-over-year, reflecting a growth of 12%[47] - Revenue for the Subsea Robotics segment increased to $214,985 thousand, up from $186,512 thousand year-over-year, representing a growth of 15%[47] - Revenue from the Manufactured Products segment increased to $139,314 thousand, up from $124,882 thousand, marking a growth of 11%[47] - Revenue for the three months ended June 30, 2024, reached $668,808,000, up from $597,910,000 in the prior year, reflecting an increase of about 11.8%[63] Cash Flow and Financial Guidance - The cash flow provided by operating activities was $52.6 million, with free cash flow of $29.8 million, and an ending cash position of $383 million[12] - Oceaneering expects to generate positive free cash flow in 2024, estimated between $110 million to $150 million[13] - Free cash flow for the second quarter of 2024 was $29,765 thousand, a significant recovery from a negative cash flow of $(1,977) thousand in the same quarter of 2023[32] - Free Cash Flow is projected to be between $95,000 thousand and $105,000 thousand for the upcoming quarter[56] - The company expects full-year 2024 revenue guidance to be between $340,000 thousand and $370,000 thousand[33] Operating Performance - Oceaneering's consolidated adjusted EBITDA for Q2 2024 was $85.9 million, with a guidance range for full-year 2024 adjusted EBITDA narrowed to $340 million to $370 million[12][13] - The overall operating income for the company was $60,364 thousand, with an operating margin of 9%, compared to 8% in the same quarter last year[47] - Operating income for the Subsea Robotics segment rose to $61,750 thousand, with an operating margin of 29%, compared to 23% in the same quarter last year[47] - Operating income for the Aerospace and Defense Technologies segment was $7,244 thousand, with an operating margin of 7%, down from 12% year-over-year[47] - The Offshore Projects Group (OPG) operating income declined by 23% despite a 10% increase in revenue, resulting in a margin drop from 13% to 9%[15] Backlog and Order Intake - The backlog for Manufactured Products reached $713 million as of June 30, 2024, an increase of $295 million year-over-year[35] - The book-to-bill ratio for the 12-month period ending June 30, 2024, was 1.56, compared to 1.19 for the same period last year, indicating improved order intake[35] Depreciation and Expenses - Total depreciation and amortization for the second quarter of 2024 was $25,980 thousand, slightly down from $26,046 thousand in the same quarter of 2023[32] - Unallocated expenses for the quarter were $39.7 million, in line with guidance but higher than the same period last year[5] Future Outlook - The company anticipates improved SSR activity levels and operating profitability, with a forecast for Manufactured Products revenue to be higher but with lower operating profitability[6] - The company plans to discuss detailed guidance for the full year and third quarter of 2024 in a conference call scheduled for July 25, 2024[39] - Net income for 2024 is anticipated to be between $130 million and $150 million[72] - ADTech operating income and margins are projected to be lower compared to 2023[72]

Highlights of Q1 Earnings Trend in Estimate Revision OII's revenues are likely to have improved in the quarter to be reported. Our model predicts second-quarter revenues to increase to $676.4 million from the year-ago quarter's level of $597.9 million. This can be attributed to the robust performance of the energy services and products, including Subsea Robotics, Manufactured Products, Offshore Projects Group and Integrity Management & Digital Solutions segments. What Does Our Model Say? Stocks to Consider ...

First Contract: Scope and Commitment He also reaffirmed OII's position as a premier provider of vessel services in the Gulf of Mexico, highlighting the company's pride in its industry leadership and ongoing commitment to promoting strong client partnerships. Denver, CO-based SM Energyis valued at $5.57 billion. The company currently pays a dividend of 72 cents per share, or 1.49%, on an annual basis. Conclusion Oceaneering International, Inc. (OII) , a leading supplier of offshore equipment and technology s ...

Oceaneering International, Inc.'s (OII) 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. Manufacturing Details Manufacturing of the umbilical is scheduled to take place at OII's facility in Pan ...

Core Viewpoint - Oceaneering International, Inc. has secured two significant contracts with Petrobras, expected to generate net revenues between $120 million and $183 million, highlighting its strong position in the offshore energy sector [1][5]. Overview of the Contracts - The contracts involve the supply of up to 362 kilometers (approximately 225 miles) of steel tube and thermoplastic electro-hydraulic umbilicals, essential for subsea production systems [3]. - Manufacturing will occur at Oceaneering's facility in Niteroi, Brazil, with final delivery expected in the fourth quarter of 2027, indicating a long-term commitment [4]. Significance of the Contracts - The anticipated revenues will provide a substantial economic boost for Oceaneering, supporting further innovations and expansions [5]. - The contracts showcase Oceaneering's advanced technological capabilities, reinforcing its reputation in subsea technology and engineering [6]. Strategic Importance for Oceaneering - The contracts strengthen Oceaneering's market position, reflecting confidence in the deepwater markets and enhancing its reliability as an offshore energy provider [7]. - Successful bidding demonstrates the capability of Oceaneering's manufacturing operations in Brazil, highlighting the strategic importance of its Niteroi facility [8]. Commitment to Quality and Safety - Oceaneering's success in securing these contracts underscores its commitment to delivering quality work and meeting high industry standards [9]. - The company prioritizes safety through rigorous protocols, ensuring project completion without compromising workforce or environmental well-being [10]. Prospects and Market Trends - The award of these contracts indicates a resurgence in deepwater market activities, essential for meeting growing global energy demand [10]. - Oceaneering is well-positioned for future opportunities in the offshore energy sector, with a proven track record and commitment to technological advancement [11]. Conclusion - Securing these contracts marks a milestone for Oceaneering, showcasing its technological prowess and strategic capabilities in the growing offshore energy sector [12].

Core Viewpoint - The collaboration between Oceaneering International, Inc. (OII) and TotalEnergies SE (TTE) has led to the development of the Freedom Autonomous Underwater Vehicle (AUV), which is set to transform pipeline inspection technology and promote sustainable commercial missions [1][14]. Pipeline Inspection Standards - The Freedom AUV represents a significant advancement in pipeline inspection capabilities, aligning with TTE's goals to minimize environmental impacts while ensuring pipeline integrity [2]. Unparalleled Capabilities - Freedom AUV demonstrates a 50% improvement in inspection efficiency compared to existing methods, while maintaining high standards of inspection quality [3]. Milestone Achievements - In a pilot program in the North Sea, Freedom AUV successfully inspected over 120 kilometers of sub-marine pipelines, following an earlier demonstration of 60 kilometers of near-shore pipelines, showcasing its reliability and versatility [4]. Cutting-Edge Technology - The success of Freedom AUV is attributed to its advanced instrumentation, including laser scanning and multibeam sonar technology, which provide detailed external inspections and precise pipeline tracking [5]. Industry Implications - Freedom AUV streamlines inspection processes and reduces reliance on traditional Remotely Operated Vehicle methods, offering a cost-effective and environmentally friendly solution for pipeline operators globally [6]. Enhanced Efficiency - The automation of data collection and processing by Freedom AUV significantly reduces the time needed for pipeline integrity assessments, facilitating quicker decision-making [7]. Environmental Sustainability - Freedom AUV minimizes the ecological footprint of underwater inspections by reducing the need for large vessels and lowering emissions, aligning with the sustainability objectives of OII and TTE [8]. Industry Recognition & Prospects - The deployment of Freedom AUV has received positive feedback from industry stakeholders, with TTE exploring new applications, including in offshore wind projects [9]. Collaboration & Innovation - The development of Freedom AUV was a collaborative effort involving OII, TTE, Chevron Corporation (CVX), and Equinor ASA (EQNR), leveraging their combined expertise to address underwater inspection challenges [10]. Expansion Into New Markets - Freedom AUV is expected to expand into new markets beyond traditional oil and gas pipelines, particularly in renewable energy sectors such as offshore wind farms [13].

Core Viewpoint - Oceaneering International's recent earnings report showed a mixed performance, with adjusted profits missing estimates but overall revenues increasing year-over-year, indicating potential growth despite current challenges [2][3]. Financial Performance - The first-quarter 2024 adjusted profit was 14 cents per share, missing the Zacks Consensus Estimate of 30 cents, primarily due to lower operating income from the Offshore Projects Group [2]. - Total revenues reached $599.1 million, missing the Zacks Consensus Estimate of $614 million, but representing an 11.6% increase from $537 million in the same quarter last year [3]. Segmental Information - **Subsea Robotics**: Revenues were $186.9 million, up from $169.2 million year-over-year, but below the projection of $195.4 million. Operating income was $44.2 million, compared to $33.7 million a year ago [5]. - **Manufactured Products**: Revenues increased to $129.5 million from $112.9 million, exceeding projections. Operating profit rose to $13.2 million from $11.3 million [6]. - **Offshore Projects Group**: Revenues increased by 10.4% to $115.1 million, but operating income fell significantly to $844,000 from $5.5 million year-over-year [8]. - **Integrity Management & Digital Solutions**: Revenues rose to $69.7 million from $60.1 million, with operating income slightly increasing to $3.6 million [9]. - **Aerospace and Defense Technologies**: Revenues grew to $98 million from $90.5 million, with operating income rising to $12.8 million from $8.5 million [10]. Capital Expenditure & Balance Sheet - Capital expenditure for the first quarter totaled $25 million. As of March 31, 2024, cash and cash equivalents were $354.7 million, with long-term debt at approximately $478.2 million, resulting in a debt-to-total capital ratio of 43.2% [11]. Outlook - Oceaneering anticipates significant increases in activity levels and operating profitability for the Offshore Projects Group, Subsea Robotics, and Manufactured Products in the second quarter of 2024 [12]. - Integrity Management & Digital Solutions and Aerospace and Defense Technologies are expected to remain flat, with slight declines in operating profitability [13]. - The company projects second-quarter 2024 EBITDA in the range of $80-$90 million, reflecting a mid-teens percentage increase in revenues [13][14]. Industry Performance - Oceaneering International is part of the Zacks Oil and Gas - Field Services industry, which has seen mixed performance. Liberty Oilfield Services, a peer in the industry, reported a revenue decline of 15% year-over-year [18][19].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-10945 ____________________________________________ OCEANEERING INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) (S ...

Oceaneering International (OII) reported first-quarter 2024 adjusted profit of 14 cents per share, which missed the Zacks Consensus Estimate of 30 cents. This underperformance was due to lower-than-expected operating income from the Offshore Projects Group segment.However, the bottom line outpaced the year-ago quarter’s reported figure of 5 cents.  This can be attributed to year-over-year strong operating income from certain segments — Subsea Robotics, Manufactured Products, Integrity Management & Digital S ...