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Mar 31, 2021
Oceaneering Q1 2021 Earnings Report
Reported a net loss with revenue surpassing expectations due to operational efficiency and value-based solutions.
Key Takeaways
Oceaneering reported a net loss of $9.4 million, or $(0.09) per share, on revenue of $438 million for the three months ended March 31, 2021. Adjusted net income was $2.8 million, or $0.03 per share. Consolidated Adjusted EBITDA was $52.8 million.
Consolidated Adjusted EBITDA was $52.8 million.
Consolidated Adjusted Operating Income was $15.1 million.
ROV fleet utilization was 53% and average revenue per day on hire was $7,874.
The company is narrowing its expected adjusted EBITDA range to $180 million to $210 million for 2021.
Oceaneering
Oceaneering
Oceaneering Revenue by Segment
Revenue by Segment
Subsea Robotics Revenue
CapyFin.comManufactured Products Revenue
CapyFin.comOffshore Projects Group Revenue
CapyFin.comIMDS Revenue
CapyFin.comAerospace & Defense Tech Revenue
CapyFin.com Forward Guidance
Oceaneering anticipates higher activity levels and operating profitability improvement in its SSR and OPG segments, higher activity levels and relatively flat operating profitability in its IMDS and ADTech segments, and lower activity levels and lower operating profitability in its Manufactured Products segment. Unallocated Expenses are forecast to be in the low- to mid-$30 million range. On a consolidated basis, the company expects second quarter 2021 results to improve, with adjusted EBITDA in the range of $55 million to $60 million on sequentially higher revenue.
Positive Outlook
- SSR operating results to improve on slightly higher revenue, and adjusted EBITDA margin to remain relatively flat.
- ROV fleet utilization is expected to be in the upper 50% range for the year.
- OPG is expected to have increased vessel utilization and the continuation of the Angola riserless light well intervention project.
- IMDS is expected to have improved operating results on higher revenue with adjusted operating margin in the high single-digit range for the year.
- ADTech is expected to have improved operating results on increased revenue with an annual operating margin approximately the same as that achieved in 2020.
Challenges Ahead
- Manufactured Products is forecasted to have lower operating results as compared to 2020.
- Income tax payments are expected to be in the range of $40 million to $45 million.
- Organic capital expenditures are expected to total between $50 million and $70 million.
- Second quarter Manufactured Products segment will see lower activity levels and lower operating profitability.
- Unallocated Expenses are forecast to be in the low- to mid-$30 million range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income