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Oceaneering International(OII) - 2024 Q3 - Quarterly Report
OIIOceaneering International(OII)2024-10-25 20:54
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Earnings and Operating Income - Diluted earnings per share for Q3 2024 were 0.40,upfrom0.40, up from 0.29 in the same period last year, and 0.89forthenine−monthperiod,upfrom0.89 for the nine-month period, up from 0.52[91] - Operating income increased by 23% in Q3 2024 on a 7% revenue increase, and by 26% for the nine-month period on a 10% revenue increase[91] Segment Performance - Subsea Robotics segment revenue for Q3 2024 was 215.7million,withoperatingincomeat215.7 million, with operating income at 65.7 million, representing a 30% operating income margin[97] - Manufactured Products segment revenue for Q3 2024 was 143.7million,withoperatingincomeat143.7 million, with operating income at 11.3 million, representing an 8% operating income margin[97] - Offshore Projects Group segment revenue for Q3 2024 was 147.5million,withoperatingincomeat147.5 million, with operating income at 20.3 million, representing a 14% operating income margin[97] - Total Energy business revenue for Q3 2024 was 580.6million,withoperatingincomeat580.6 million, with operating income at 98 million, representing a 17% operating income margin[97] - IMDS segment revenue increased but operating income declined due to a one-time non-cash charge of 24millionrelatedtothedivestitureoftheMaritimeIntelligencedivisioninSeptember2024[104]−ADTechsegmentrevenueforthethree−monthperiodendedSeptember30,2024,was24 million related to the divestiture of the Maritime Intelligence division in September 2024[104] - ADTech segment revenue for the three-month period ended September 30, 2024, was 99.2 million, a slight increase from 98.6millioninthesameperiodin2023,butoperatingincomedecreasedto98.6 million in the same period in 2023, but operating income decreased to 12.2 million from 14.1million[105]CapitalExpendituresandShareRepurchases−Cashusedformaintenancecapitalexpenditureswas14.1 million[105] Capital Expenditures and Share Repurchases - Cash used for maintenance capital expenditures was 36 million, and growth capital expenditures were 37millionforthenine−monthperiodendedSeptember30,2024[92]−Thecompanyrepurchasedsharesofcommonstockforapproximately37 million for the nine-month period ended September 30, 2024[92] - The company repurchased shares of common stock for approximately 10 million during the first nine months of 2024[92] - The company repurchased 0.4 million shares of its common stock for approximately 10millioninthethreemonthsendedSeptember30,2024[119]−Thecompanyrepurchased0.4millionsharesforapproximately10 million in the three months ended September 30, 2024[119] - The company repurchased 0.4 million shares for approximately 10 million in the three-month period ended September 30, 2024[121] Financial Position and Cash Flow - As of September 30, 2024, the company had net working capital of 611million,includingcashandcashequivalentsof611 million, including cash and cash equivalents of 452 million, and 215millionofunusedcommitmentsunderitsRevolvingCreditFacility[113]−Cashflowsfromoperatingactivitiesforthenine−monthperiodendedSeptember30,2024,were215 million of unused commitments under its Revolving Credit Facility[113] - Cash flows from operating activities for the nine-month period ended September 30, 2024, were 74.8 million, up from 57.1millioninthesameperiodin2023[115]−Capitalexpendituresforthenine−monthperiodendedSeptember30,2024,were57.1 million in the same period in 2023[115] - Capital expenditures for the nine-month period ended September 30, 2024, were 73 million, with over half allocated to the Subsea Robotics segment[117] Backlog and Utilization Rates - Manufactured Products backlog as of September 30, 2024, was 671million,upfrom671 million, up from 556 million in the same period last year[97] - ROV utilization rate was 69% for both Q3 2024 and Q3 2023, with 15,796 ROV days utilized out of 23,000 available days in Q3 2024[97] Expenses and Income - Unallocated expenses for the three-month period ended September 30, 2024, decreased to 38.9millionfrom38.9 million from 42.2 million in the same period in 2023, primarily due to lower professional fees[106] - Interest income for the three-month period ended September 30, 2024, decreased to 3.3millionfrom3.3 million from 3.7 million in the same period in 2023 due to lower cash balances[109] - Foreign currency transaction gains for the nine-month period ended September 30, 2024, were 3.7millioncomparedtoalossof3.7 million compared to a loss of 3.6 million in the same period in 2023[110] - Estimated income tax payments for the full year of 2024 are projected to be between 85millionand85 million and 95 million[112] Equity and Foreign Currency Adjustments - The company recorded net adjustments to equity accounts of 13millionand13 million and (11) million in the three-month periods ended September 30, 2024 and 2023, respectively[126] - Foreign currency gains (losses) were 0.4millionand0.4 million and 0.9 million in the three-month periods ended September 30, 2024 and 2023, respectively[127] Investments and Bonds - The company purchased 7.0millionofU.S.dollarequivalentAngolanbondsinthethirdquarterof2024,maturinginFebruary2031[128]−ThefairmarketvalueoftheAngolanbondswasestimatedtobe7.0 million of U.S. dollar equivalent Angolan bonds in the third quarter of 2024, maturing in February 2031[128] - The fair market value of the Angolan bonds was estimated to be 7.0 million as of September 30, 2024[129] - The company had 6.2millionofU.S.dollarequivalentAngolanbondsthatmaturedonSeptember1,2023,andreceivedcashproceedsof6.2 million of U.S. dollar equivalent Angolan bonds that matured on September 1, 2023, and received cash proceeds of 6.2 million[129] Internal Controls and Reporting - The company concluded that its disclosure controls and procedures were effective as of September 30, 2024[131] - There was no change in the company's internal control over financial reporting during the three months ended September 30, 2024[132]