Oceaneering's (OII) Q3 Earnings And Revenues Miss Estimates
Zacks Investment Research | Nov 04, 2019 11:38PM ET
Oceaneering International, Inc. (NYSE:OII) incurred third-quarter 2019 adjusted loss per share of 30 cents, wider than the Zacks Consensus Estimate of a loss of 23 cents and also the year-ago loss of 14 cents. This underperformance could be attributed to disappointing results from the ‘Asset Integrity’ and the ‘Advanced Technologies’ units.
Moreover, the company’s revenues of $498 million missed the Zacks Consensus Estimate of $527 million and also declined 4.04% year over year from $519 million.
Segmental Information
Remotely Operated Vehicles (ROV): Revenues were $113.1 million compared with $105 million in third-quarter 2018. Operating income was $10.1 million, up from $0.7 million in the year-ago quarter. Days on hire rose 6.3% year over year to 15,146 while vessel utilization increased to 60% compared with 56% a year ago.
Subsea Products: Revenues came in at $150.8 million, up from the prior-year figure of $137 million. Meanwhile, operating income registered year-over-year growth of 146.3% to $13 million. Robust backlog contributed to stronger results. The backlog surged to $609 million as of Sep 30, 2019 from the year-ago backlog of $333 million.
Subsea Projects: Revenues declined 27.6% to $76 million from $105 million in the year-ago quarter on lower-than-expected call-out work. However, the unit reported operating loss of $0.6 million, narrower than $6 million in third-quarter 2018 owing to better-than-expected income from the service and rental business.
Asset Integrity: Revenues of $59.2 million were lower than the year-ago figure of $62.3 million. Due to persistent pricing competitiveness for Inspection Services, the segment incurred an operating loss of $2.4 million against the prior-year income of $2.2 million.
Advanced Technologies: Revenues from this non-energy segment totalled $98.4 million, slightly lower than $109.8 million in third-quarter 2018 as Oceaneering faced delays and cost overruns on various projects.
Meanwhile, operating income fell to $3 million from $9 million in the year-ago quarter due to lower accruals for incentive-based compensation.
Capital Expenditure & Balance Sheet
Capital expenditure in the third quarter including acquisitions summed $58 million. As of Sep 30, Oceaneering had cash and cash equivalents of $340.3 million, and long-term debt of around $799.8 million. The debt-to-capitalization ratio was 38.03%.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.