Oceaneerin's (OII) Q4 Earnings And Revenues Beat Estimates
Zacks Investment Research | Feb 25, 2020 10:11PM ET
Oceaneering International, Inc. (NYSE:OII) delivered better-than-expected earnings in fourth-quarter 2019. The company reported adjusted earnings per share of 3 cents, attributable to higher activity levels. While the Zacks Consensus Estimate was of a loss of 16 cents.
However, the bottom line fell 57.1% from the year-ago earnings of 7 cents. This underperformance could be attributed to disappointing results from the ‘Asset Integrity’ and the ‘Subsea Projects’ units.
The company’s revenues of $561 million surpassed the Zacks Consensus Estimate of $526 million and also improved 13.3% year over year from $495 million.
Segmental Information
Remotely Operated Vehicles (ROV): Revenues were $116.02 million compared with $96.7 million in fourth-quarter 2018. Operating loss was $18.66 million, widening from $1.27 million loss in the year-ago quarter on costs incurred by the company in anticipation of robust activity this year. Meanwhile, days on hire rose 12.8% year over year to 14,836 while vessel utilization increased to 58% compared with 52% a year ago.
Subsea Products: Revenues came in at $183.7 million, up from the prior-year figure of $129.5 million. Meanwhile, operating loss came in at $10.32 million compared with the year-ago loss of $3.8 million. The deterioration could be attributed to seasonal decline in service and rental sales. However, the backlog surged to $630 million as of Dec 31, 2019 from the year-ago backlog of $332 million.
Subsea Projects: Revenues dipped 2.9% to $86.7 million from $89.3 million in the year-ago quarter. Moreover, the unit suffered an operating loss of $148.07 million, wider than $79.4 million loss in fourth-quarter 2018 due to lower-than-expected income from the service and rental business.
Asset Integrity: Revenues of $61.8 million were marginally lower than the year-ago figure of $62.8million. Due to persistent pricing woes, the segment incurred an operating loss of $48.9 million against the prior-year income of $1.3 million.
Advanced Technologies: Revenues from this non-energy segment totalled $112.6 million, lower than $116.7 million in fourth-quarter 2018 as Oceaneering faced delays and cost overruns on various projects.
Meanwhile, operating income fell to $5.3 million from $15.4 million in the year-ago quarter due to lower-than-expected improvement in entertainment business operating margins.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
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