NYSE$OII

Oceaneering International · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported net income and increased offshore activity.

Oceaneering reported a net income of $3.7 million on revenue of $524 million for Q2 2022. The resurgence of offshore activity is materializing, particularly in the Subsea Robotics and Offshore Projects Group segments, which recorded their highest operating incomes since the beginning of 2018.

  • Offshore activity is recovering, with Subsea Robotics and Offshore Projects Group segments reaching their highest operating income levels since 2018.
  • Consolidated Adjusted EBITDA was $53.5 million.
  • Consolidated Operating Income was $22.9 million.
  • Cash position decreased by $69.6 million, from $438 million to $368 million.

Headline financials

Total Revenue

$524M

Previous: $498M+5.2%
EPS (adj)

$0.07

Previous: $0.10-30.0%
Adjusted EBITDA

$53.5M

Previous: $60.6M-11.7%
Capital Expenditures

-$35.8M

Previous: -$23.3M-53.5%
Free Cash Flow

-$32.1M

Previous: -$17.1M-87.8%
Net Income

$3.72M

Previous: $6.24M-40.4%
Operating Income

$22.9M

Previous: $22.8M+0.1%
Gross Profit

$76M

Previous: $68.4M+11.2%
Cash & Equivalents

$368M

Previous: $456M-19.2%
Total Assets

$1.87B

Previous: $2.06B-9.2%
Stock-Based Comp

$2.48M

Previous: $2.03M+22.4%

Revenue & EPS history

Oceaneering · Revenue · Quarterly

$524M

Q2 2022+5.2%vs Q2 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Oceaneering · $524M total across 5 segments · Q2 2022

  • Subsea Robotics
    $157M+11.1%
  • Offshore Projects Group
    $116M+7.9%
  • Manufactured Products
    $105M+33.3%
  • Aerospace and Defense Technologies
    $85.6M-19.0%
  • Integrity Management & Digital Solutions
    $59.4M-7.2%

Forward guidance

The company anticipates increased revenue and operating results in the SSR and OPG segments, with Adjusted EBITDA in the range of $60 million to $70 million on increased revenue for Q3 2022. For the full year 2022, the company forecasts improved operating results for SSR and Manufactured Products, and expects continued higher activity for OPG.

Tailwinds

  • Increased revenue and operating results are expected in SSR and OPG segments for Q3 2022.
  • SSR EBITDA margin is expected to average in the high 20% range for the full year.
  • Manufactured Products is forecasted to have higher operating results on a significant increase in revenue compared to 2021.
  • OPG expects continued higher activity, especially for installation and IMR activity in the GoM, sustaining operating margins in the mid-teens range for the remainder of the year.
  • ADTech operating income margin is expected to improve in the fourth quarter of 2022.

Headwinds

  • IMDS is forecast to have lower operating results on higher revenue, with operating margin to decline slightly compared to 2021.
  • ADTech is expected to have lower operating results on relatively flat revenue for the full year.
  • Unallocated Expenses are expected to average in the low- to mid-$30 million range per quarter for the remainder of 2022.
  • Free cash flow generation is revised to a guidance range of $25 million to $75 million for the full year.
  • Timing uncertainties within the ADTech segment may mute strong market dynamics in offshore markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.4%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.3%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+22.5%

Q3 2022

Best reaction

-20.6%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-2.4%+0.7%
Q4 2025+9.2%+17.3%+5.7%
Q3 2025-3.6%-6.1%-2.2%
Q2 2025+0.2%+0.9%+8.6%
Q1 2025+3.8%+7.1%+10.0%
Q4 2024-4.1%-11.8%-14.6%
Q3 2024+3.2%+4.3%+25.8%
Q2 2024+10.5%+10.9%+2.4%
Q1 2024+5.8%+5.0%+0.2%
Q4 2023+0.2%-2.5%+3.3%
Q3 2023-10.9%-9.1%-15.7%
Q2 2023-10.9%-5.1%-9.3%
Q1 2023+0.9%+0.8%-4.4%
Q4 2022+6.9%+12.9%-12.5%
Q3 2022+22.5%+31.0%+39.0%
Q2 2022-4.3%-2.2%-11.1%
Q1 2022-8.2%-11.3%-0.3%
Q4 2021-3.3%-4.1%+10.9%
Q3 2021-9.6%-11.1%-28.9%
Q2 2021+6.5%-0.2%-2.1%
Q1 2021+5.4%+6.1%+35.0%
Q4 2020+13.7%+26.3%+15.5%
Q3 2020-0.3%+9.6%+74.1%
Q2 2020-1.0%-4.0%-5.2%
Q1 2020-2.3%+18.0%+43.2%
Q4 2019-14.3%-18.7%-69.9%
Q3 2019+1.2%+6.4%-4.1%
Q2 2019-17.1%-20.6%-33.5%
Q1 2019+11.4%+11.1%-1.9%
Q4 2018+5.6%+9.1%+3.6%
Q3 2018-14.1%-20.9%-25.8%
Q2 2018-2.0%+2.6%+3.7%
Q1 2018+1.9%+3.1%+11.2%
Q4 2017+6.5%+0.0%+3.3%
Q3 2017-20.6%-19.1%-22.0%
Q2 2017+0.9%+4.1%-9.6%
Q1 2017+0.2%-1.4%-6.1%
Q4 2016-0.3%+1.8%-3.2%
Q3 2016-6.0%-5.3%+1.1%
Q2 2016-4.6%-8.6%-2.1%
Q1 2016-7.5%
Q4 2015-6.3%
Q3 2015-3.5%
Q2 2015-2.7%
Q1 2015+0.8%
Q4 2014-8.9%
Q3 2014+2.7%
Q2 2014-3.7%
Q1 2014+3.4%
Q4 2013+0.6%
Q3 2013+3.3%
Q2 2013+3.0%
Q1 2013+9.8%
Q4 2012+2.9%
Q3 2012-0.2%
Q2 2012+1.7%
Q1 2012-0.5%
Q4 2010-2.7%
Q4 2011-2.7%
Q3 2011+7.5%
Q2 2011-8.9%
Q1 2010-2.1%
Q1 2011+2.7%
Q4 2008+7.4%
Q3 2009+1.3%
Q3 2010+1.3%
Q4 2009-1.4%
Q2 2009-1.4%
Q2 2010-1.4%

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