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Jun 30, 2022
Oceaneering Q2 2022 Earnings Report
Reported net income and increased offshore activity.
Key Takeaways
Oceaneering reported a net income of $3.7 million on revenue of $524 million for Q2 2022. The resurgence of offshore activity is materializing, particularly in the Subsea Robotics and Offshore Projects Group segments, which recorded their highest operating incomes since the beginning of 2018.
Offshore activity is recovering, with Subsea Robotics and Offshore Projects Group segments reaching their highest operating income levels since 2018.
Consolidated Adjusted EBITDA was $53.5 million.
Consolidated Operating Income was $22.9 million.
Cash position decreased by $69.6 million, from $438 million to $368 million.
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
The company anticipates increased revenue and operating results in the SSR and OPG segments, with Adjusted EBITDA in the range of $60 million to $70 million on increased revenue for Q3 2022. For the full year 2022, the company forecasts improved operating results for SSR and Manufactured Products, and expects continued higher activity for OPG.
Positive Outlook
- Increased revenue and operating results are expected in SSR and OPG segments for Q3 2022.
- SSR EBITDA margin is expected to average in the high 20% range for the full year.
- Manufactured Products is forecasted to have higher operating results on a significant increase in revenue compared to 2021.
- OPG expects continued higher activity, especially for installation and IMR activity in the GoM, sustaining operating margins in the mid-teens range for the remainder of the year.
- ADTech operating income margin is expected to improve in the fourth quarter of 2022.
Challenges Ahead
- IMDS is forecast to have lower operating results on higher revenue, with operating margin to decline slightly compared to 2021.
- ADTech is expected to have lower operating results on relatively flat revenue for the full year.
- Unallocated Expenses are expected to average in the low- to mid-$30 million range per quarter for the remainder of 2022.
- Free cash flow generation is revised to a guidance range of $25 million to $75 million for the full year.
- Timing uncertainties within the ADTech segment may mute strong market dynamics in offshore markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income