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Mar 31, 2024
Oceaneering Q1 2024 Earnings Report
Oceaneering's financial performance improved, driven by higher activity levels across most business segments and increased operating income.
Key Takeaways
Oceaneering reported a net income of $15.1 million, or $0.15 per share, on revenue of $599 million for Q1 2024. The company's adjusted EBITDA was higher than guided due to better-than-expected activity levels. Consolidated operating income increased by 37% compared to the same quarter last year, driven by higher revenue in all business segments except for Offshore Projects Group.
Net income was $15.1 million and consolidated adjusted EBITDA was $61.7 million.
Consolidated operating income was $36.7 million.
Cash flow used in operating activities was $69.7 million and free cash flow was $(95.2) million, with an ending cash position of $355 million.
Manufactured Products backlog was $597 million.
Oceaneering
Oceaneering
Forward Guidance
Oceaneering anticipates improved operating results in the second quarter of 2024, with EBITDA expected in the range of $80 million to $90 million on a mid-teens percentage increase in revenue. Full-year 2024 consolidated and segment guidance remains unchanged from the fourth quarter 2023 earnings release, with clarifications for SSR revenue and Manufactured Products book-to-bill ratio.
Positive Outlook
- OPG activity levels and operating profitability are expected to be significantly higher.
- SSR and Manufactured Products activity levels and operating profitability are expected to be higher.
- Second quarter 2024 operating results are expected to improve.
- EBITDA in the range of $80 million to $90 million on a mid-teens percentage increase in revenue.
- SSR revenue increase is expected to be in the low- to mid-teens percentage range
Challenges Ahead
- IMDS and ADTech activity levels are expected to be flat and operating profitability is expected to be slightly lower.
- Unallocated Expenses are forecasted to be in the $40 million range, consistent with prior guidance.
- Capital expenditures are expected in the range of $110 million to $130 million
- Net income is expected in the range of $125 million to $155 million
- Consolidated EBITDA is expected in the range of $330 million to $380 million