NYSE$OII

Oceaneering International · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Oceaneering's financial performance improved, driven by increased activity levels in energy-related businesses and improved operating income in Subsea Robotics and Manufactured Products.

Oceaneering reported net income of $35.0 million, or $0.34 per share, on revenue of $669 million for the second quarter of 2024. The company's adjusted EBITDA was in line with guidance and consensus estimates. They anticipate continued high levels of activity in offshore markets throughout the remainder of the year.

  • Net income was $35.0 million and consolidated adjusted EBITDA was $85.9 million.
  • Consolidated operating income was $60.4 million.
  • Cash flow provided by operating activities was $52.6 million and free cash flow was $29.8 million, with an ending cash position of $383 million.
  • Remotely Operated Vehicles (ROV) utilization was 70% and average revenue per day utilized was $10,528.

Headline financials

Total Revenue

$669M

Previous: $598M+11.9%
EPS (adj)

$0.28

Previous: $0.18+55.6%
Capital Expenditures

-$48.4M

Previous: -$40.7M-18.8%
Free Cash Flow

-$13.4M

Previous: -$21.7M+38.4%
Net Income

$35M

Previous: $19M+84.2%
Operating Income

$60.4M

Previous: $49.2M+22.7%
Gross Profit

$120M

Previous: $101M+18.9%
Total Assets

$2.3B

Previous: $2.16B+6.5%
Stock-Based Comp

$2.98M

Previous: $3.49M-14.6%

Revenue & EPS history

Oceaneering · Revenue · Quarterly

$669M

Q2 2024+11.9%vs Q2 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Oceaneering · $635M total across 5 segments · Q3 2023

  • Subsea Robotics
    $197M+16.5%
  • Offshore Projects Group
    $150M-1.8%
  • Manufactured Products
    $123M+30.7%
  • Aerospace and Defense Technologies
    $98.6M+16.4%
  • Integrity Management & Digital Solutions
    $66.1M+13.0%

Forward guidance

Oceaneering expects third quarter 2024 operating results to continue to improve sequentially, with EBITDA in the range of $95 million to $105 million on a low- to mid-single digit percentage increase in revenue. Full-year 2024 consolidated adjusted EBITDA is expected in the range of $340 million to $370 million, and net income is expected in the range of $130 million to $150 million.

Tailwinds

  • SSR activity levels and operating profitability are expected to improve slightly.
  • Manufactured Products revenue is forecasted to be higher.
  • OPG revenue is expected to be similar to the second quarter of 2024 while generating significantly higher operating profitability.
  • IMDS activity levels and operating profitability are expected to be relatively flat.
  • ADTech revenue is projected to be flat with significantly higher operating profitability.

Headwinds

  • Manufactured Products operating profitability is forecasted to be lower.
  • ADTech operating income and margins are expected to be lower as compared to 2023.
  • Unallocated Expenses are forecasted to be in the $40 million range.
  • Lower expectations in Aerospace and Defense Technologies (ADTech) segment
  • Timing of pre-contract award costs that were expensed during the quarter and changes in project mix negatively impacted Offshore Projects Group (OPG) operating income.

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 2024

Historical avgQ2 2024

-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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