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Oceaneering
🇺🇸 NYSE:OII
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Mar 31, 2023

Oceaneering Q1 2023 Earnings Report

Oceaneering's Q1 2023 results exceeded expectations, driven by revenue increases in Manufactured Products and IMDS segments, offsetting a seasonal decline in OPG. The company maintains its full-year adjusted EBITDA guidance.

Key Takeaways

Oceaneering reported net income of $4.1 million, or $0.04 per share, on revenue of $537 million for Q1 2023. The results came in higher than guided, on better-than-expected revenue. The company is maintaining its original adjusted EBITDA guidance range for the year.

Net income was $4.1 million and consolidated adjusted EBITDA was $55 million.

Consolidated operating income was $27 million.

Cash position decreased by $64 million, from $569 million to $505 million.

First quarter 2023 revenue was up more than 20% as compared to first quarter 2022.

Total Revenue
$537M
Previous year: $446M
+20.4%
EPS
$0.05
Previous year: -$0.06
-183.3%
Adjusted EBITDA
$55M
Previous year: $31.5M
+74.7%
Gross Profit
$77.6M
Previous year: $45.5M
+70.5%
Cash and Equivalents
$505M
Previous year: $438M
+15.3%
Free Cash Flow
-$61.2M
Previous year: -$99.8M
-38.7%
Total Assets
$2.04B
Previous year: $1.9B
+7.4%

Oceaneering

Oceaneering

Oceaneering Revenue by Segment

Forward Guidance

Oceaneering anticipates significantly higher activity levels and operating profitability improvement in its OPG, SSR, and ADTech segments for the second quarter of 2023. Unallocated Expenses are forecast to be in the mid- to high-$30 million range. The company affirms its forecast for full-year 2023 adjusted EBITDA in the range of $260 million to $310 million and free cash flow in the range of $75 million to $125 million.

Positive Outlook

  • Significantly higher activity levels and operating profitability improvement in OPG segment.
  • Higher activity levels and significant operating profitability improvement in SSR segment.
  • Higher activity levels and significant operating profitability improvement in ADTech segment.
  • Higher activity levels and lower operating profitability in Manufactured Products segment.
  • Relatively flat activity levels and operating profitability in IMDS business.

Challenges Ahead

  • Cash tax payments are expected to be in the range of $60 million to $65 million.
  • Organic capital expenditures to total between $90 million and $110 million.
  • Unallocated Expenses are expected to average in the mid- to high-$30 million range per quarter for the remainder of 2023.
  • Manufactured Products segment is expected to have lower operating profitability.
  • IMDS business is expected to have relatively flat activity levels and operating profitability.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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