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Dec 31, 2020
Oceaneering Q4 2020 Earnings Report
Oceaneering's Q4 2020 results reflected sequential improvement in adjusted operating income and adjusted EBITDA across all five operating segments, with free cash flow generation and a stronger cash position.
Key Takeaways
Oceaneering reported a net loss of $25.0 million, or $(0.25) per share, on revenue of $424 million for Q4 2020. Adjusted net income was $1.8 million, or $0.02 per share. The company's consolidated fourth quarter adjusted EBITDA of $47.1 million exceeded guidance and consensus estimates. Free cash flow generated during the fourth quarter 2020 was $89.4 million, and the cash position increased by $93.2 million during the quarter, reaching $452 million.
Consolidated fourth quarter adjusted EBITDA was sequentially higher than the third quarter 2020 and exceeded both guidance and consensus estimates.
Each of the five operating segments recorded sequential improvement in adjusted operating income and adjusted EBITDA, despite lower revenue in three out of the five segments.
Free cash flow generated during the fourth quarter 2020 was $89.4 million.
Cash position increased by $93.2 million during the fourth quarter 2020.
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 its full year 2021 to yield positive free cash flow in excess of the amount generated in 2020, and the midpoint of the consolidated adjusted EBITDA range to approximate 2020 consolidated adjusted EBITDA.
Positive Outlook
- Higher revenue in ADTech and IMDS to offset substantially lower revenue from our Manufactured Products segment.
- Forecast relatively flat revenue in our SSR and OPG segments.
- Generating $160 million to $210 million of adjusted EBITDA, with positive operating income and adjusted EBITDA contributions from each of our operating segments.
- Improved annual operating results in our SSR, OPG, IMDS, and ADTech segments.
- Expect to generate positive free cash flow in excess of the amount generated in 2020.
Challenges Ahead
- Substantially lower revenue from our Manufactured Products segment.
- Lower operating results in our Manufactured Products segment.
- Expect Manufactured Products segment performance to decline, primarily as a result of the decreased order intake in our energy businesses during 2020.
- Anticipate Unallocated Expenses to average in the low- to mid-$30 million range per quarter.
- Interest expense, net of interest income, is expected to be approximately $40 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income