NYSE$OII

Oceaneering International · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported an increase in net income and revenue driven by improved activity and pricing in Offshore Projects Group and Subsea Robotics segments.

Oceaneering reported net income of $29.8 million, or $0.29 per share, on revenue of $635 million for the three months ended September 30, 2023. The results were primarily due to increased activity and improved pricing in the Offshore Projects Group (OPG) and Subsea Robotics (SSR) segments, as well as improvements in Aerospace and Defense Technologies (ADTech).

  • Net income was $29.8 million and consolidated adjusted EBITDA was $84.1 million.
  • Consolidated operating income was $57.9 million.
  • Cash position increased by $52.4 million, from $504 million to $556 million.
  • Manufactured Products backlog increased to $556 million from $418 million.

Headline financials

Total Revenue

$635M

Previous: $560M+13.5%
EPS (adj)

$0.38

Previous: $0.23+65.2%
Adjusted EBITDA

$84.1M

Previous: $77.6M+8.4%
Capital Expenditures

-$66.7M

Previous: -$55.1M-21.0%
Free Cash Flow

-$36.9M

Previous: -$36.8M-0.2%
Net Income

$29.8M

Previous: $18.3M+62.9%
Operating Income

$57.9M

Previous: $46.9M+23.6%
Gross Profit

$115M

Previous: $95.8M+19.8%
Cash & Equivalents

$556M

Previous: $428M+30.2%
Total Assets

$2.31B

Previous: $1.92B+20.3%
Stock-Based Comp

$2.43M

Previous: $2.36M+2.7%

Revenue & EPS history

Oceaneering · Revenue · Quarterly

$635M

Q3 2023+13.5%vs Q3 2022
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 forecasts fourth quarter 2023 EBITDA to decline on relatively flat revenue as compared to third quarter results. For the full year of 2023, Oceaneering expects to generate adjusted EBITDA within the narrowed range of $275 million to $295 million. For 2024, year over year, Oceaneering anticipates increased revenue and improved operating performance across each of its operating segments, led by gains from SSR and OPG. Oceaneering forecasts 2024 EBITDA to be in the range of $330 million to $380 million, driving meaningful levels of cash flow from operations.

Tailwinds

  • Increased revenue and improved operating performance across each of its operating segments
  • Gains from SSR and OPG
  • Meaningful levels of cash flow from operations
  • Adjusted EBITDA within the narrowed range of $275 million to $295 million for full year 2023
  • Positive free cash flow generation remains in the range of $90 million to $130 million for the full year of 2023

Headwinds

  • Fourth quarter 2023 EBITDA to decline on relatively flat revenue as compared to third quarter results
  • Relatively flat operating income on slightly lower revenue from SSR
  • Higher revenue and significantly lower operating profitability from Manufactured Products
  • Slightly lower revenue and significantly lower operating income from OPG
  • Lower revenue and operating income from IMDS

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 Q3 2023

Historical avgQ3 2023

-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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