Oceaneering International(OII) - 2023 Q4 - Annual Results

Financial Performance - Net income for Q4 2023 was $44.5 million, or$0.43 per share, on revenue of $655 million, representing a 22$654.6 million, a 22% increase from $536.2 million in Q4 2022[26]. - For the year ended December 31, 2023, total revenue reached$2,424,706 thousand, representing an increase from $2,066,084 thousand in 2022, which is a growth of approximately 17.3$97.4 million, compared to $25.9 million in 2022, representing a significant increase[26]. - For the three months ended December 31, 2023, the net income was$44,529 thousand with a diluted EPS of $0.43, compared to a net income of$23,128 thousand and diluted EPS of $0.23 for the same period in 2022, representing an increase of 92$81,949 thousand with a diluted EPS of $0.80, compared to$31,111 thousand and $0.31 diluted EPS for 2022, indicating a significant increase of 163$75.1 million, slightly above the midpoint of the guidance range, with a consolidated adjusted EBITDA margin of approximately 11.5%[6][9]. - Adjusted EBITDA for the year ended December 31, 2023, was $289,046 thousand, compared to$232,638 thousand for the previous year, reflecting a year-over-year growth of 24%[39]. - The EBITDA margin for the three months ended December 31, 2023, was 12%, compared to 11% for the same period in 2022, showing a slight improvement in profitability[39]. - The EBITDA margin for 2023 was 12%, consistent with the previous year, demonstrating stable operational efficiency[52]. - The adjusted EBITDA margin remained stable at 12% for both 2023 and 2022, reflecting consistent operational performance[52]. Cash Flow and Capital Expenditures - Free cash flow for 2023 increased to $109 million, compared to$39.8 million in 2022, contributing to a reduction in long-term debt from $700 million at the end of 2022 to$500 million at the end of 2023[8][6]. - Capital expenditures for 2023 were $101 million, up from$81 million in 2022, with expectations for 2024 capital expenditures to be between $110 million and$130 million[8][12]. - The projected free cash flow for the year ending December 31, 2024, is estimated to be between $110,000 thousand and$150,000 thousand, reflecting continued strong cash flow generation[46]. Segment Performance - Subsea Robotics segment revenue increased to $199.5 million, a 19$167.4 million in Q4 2022[28]. - The revenue from the SSR segment was $752,521 thousand in 2023, showing a strong performance compared to$621,921 thousand in 2022, an increase of approximately 20.9%[52]. - The IMDS segment revenue was $546,366 thousand in 2023, up from$489,317 thousand in 2022, indicating a growth of about 11.7%[52]. - The MP segment's revenue for Q4 2023 was $132.994 million, up from$100.174 million in Q4 2022, marking a growth of approximately 32.8%[48]. Operational Metrics - The company reported a book-to-bill ratio of 1.31 for the full year of 2023, indicating strong demand relative to revenue[11]. - The average revenue per day on hire for Remotely Operated Vehicles (ROV) was $9,618 in Q4 2023, a 3$37.9 million, lower than in the previous quarter, reflecting improved cost management[15]. - The total unallocated expenses for Q4 2023 were $37.949 million, compared to$33.575 million in Q4 2022, indicating an increase in overhead costs[48]. - The company experienced foreign currency losses of $2.275 million in Q4 2023, which impacted the overall adjusted EBITDA[48]. - The company experienced foreign currency losses of$1,359 thousand in 2023, compared to minimal losses in 2022, which may impact future earnings[52].