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Jun 30, 2024
Oceaneering Q2 2024 Earnings Report
Oceaneering's financial performance improved, driven by increased activity levels in energy-related businesses and improved operating income in Subsea Robotics and Manufactured Products.
Key Takeaways
Oceaneering reported net income of $35.0 million, or $0.34 per share, on revenue of $669 million for the second quarter of 2024. The company's adjusted EBITDA was in line with guidance and consensus estimates. They anticipate continued high levels of activity in offshore markets throughout the remainder of the year.
Net income was $35.0 million and consolidated adjusted EBITDA was $85.9 million.
Consolidated operating income was $60.4 million.
Cash flow provided by operating activities was $52.6 million and free cash flow was $29.8 million, with an ending cash position of $383 million.
Remotely Operated Vehicles (ROV) utilization was 70% and average revenue per day utilized was $10,528.
Oceaneering
Oceaneering
Oceaneering Revenue by Segment
Revenue by Segment
Subsea Robotics Revenue
CapyFin.comManufactured Products Revenue
CapyFin.com Forward Guidance
Oceaneering expects third quarter 2024 operating results to continue to improve sequentially, with EBITDA in the range of $95 million to $105 million on a low- to mid-single digit percentage increase in revenue. Full-year 2024 consolidated adjusted EBITDA is expected in the range of $340 million to $370 million, and net income is expected in the range of $130 million to $150 million.
Positive Outlook
- SSR activity levels and operating profitability are expected to improve slightly.
- Manufactured Products revenue is forecasted to be higher.
- OPG revenue is expected to be similar to the second quarter of 2024 while generating significantly higher operating profitability.
- IMDS activity levels and operating profitability are expected to be relatively flat.
- ADTech revenue is projected to be flat with significantly higher operating profitability.
Challenges Ahead
- Manufactured Products operating profitability is forecasted to be lower.
- ADTech operating income and margins are expected to be lower as compared to 2023.
- Unallocated Expenses are forecasted to be in the $40 million range.
- Lower expectations in Aerospace and Defense Technologies (ADTech) segment
- Timing of pre-contract award costs that were expensed during the quarter and changes in project mix negatively impacted Offshore Projects Group (OPG) operating income.
Revenue & Expenses
Visualization of income flow from segment revenue to net income