Oceaneering Reports Second Quarter 2024 Results

Rhea-AI Summary

Oceaneering International (NYSE:OII) reported Q2 2024 results with net income of $35.0 million ($0.34 per share) on revenue of $669 million. Adjusted net income was $28.6 million ($0.28 per share). Key highlights include:

- Consolidated adjusted EBITDA: $85.9 million
- Operating income: $60.4 million
- Cash flow from operations: $52.6 million
- Free cash flow: $29.8 million
- Ending cash position: $383 million

The company narrowed its 2024 consolidated adjusted EBITDA guidance to $340-$370 million and expects free cash flow of $110-$150 million. Subsea Robotics (SSR) and Manufactured Products segments showed improved performance, while Aerospace and Defense Technologies (ADTech) faced challenges.

Positive

• Q2 2024 net income increased to $35.0 million from $19.0 million in Q2 2023
• Revenue grew 12% year-over-year to $669 million
• Consolidated adjusted EBITDA reached $85.9 million
• SSR operating income increased 46% compared to Q2 2023
• Manufactured Products backlog grew to $713 million, up $295 million year-over-year
• Book-to-bill ratio improved to 1.56 for the 12-month period ending June 30, 2024

Negative

• ADTech operating income declined significantly due to a contract dispute reserve and lower space systems activity
• Offshore Projects Group operating income declined 23% despite a 10% revenue increase
• Integrity Management and Digital Solutions operating income and margin decreased despite revenue growth
• Unallocated Expenses were higher than the same period last year

Insights

Financial Analyst

Oceaneering International's Q2 2024 results demonstrate solid financial performance and positive momentum in the offshore energy sector. The company reported $35.0 million in net income, or $0.34 per share, on revenue of $669 million. This represents a 12% year-over-year increase in revenue and a 23% increase in operating income.

Key highlights include:

• Adjusted EBITDA of $85.9 million, in line with guidance and consensus estimates
• Strong performance in the Subsea Robotics (SSR) segment, with a 46% increase in operating income and improved EBITDA margin of 34%
• Manufactured Products backlog of $713 million, a significant year-over-year increase
• Positive free cash flow of $29.8 million and a healthy cash position of $383 million

The company's narrowed full-year 2024 adjusted EBITDA guidance range of $340 million to $370 million suggests confidence in continued strong performance. However, investors should note the expected lower performance in the Aerospace and Defense Technologies (ADTech) segment, which could impact overall results.

The book-to-bill ratio of 1.56 for Manufactured Products indicates strong future revenue potential, but the decline in ADTech operating income and the reserve taken for a contract dispute warrant attention. Overall, Oceaneering's results reflect the ongoing recovery in offshore energy markets, balanced by challenges in other segments.

Oil & Gas Industry Expert

Oceaneering's Q2 2024 results underscore the robust recovery in offshore energy markets. The Subsea Robotics (SSR) segment's performance is particularly noteworthy, with a 16% increase in ROV revenue per day utilized to $10,528. This indicates strong demand for subsea services and potentially higher day rates in the offshore sector.

The shift in ROV fleet utilization towards drill support (64% vs. 61% last year) suggests an uptick in offshore drilling activities. This aligns with the broader industry trend of increased offshore exploration and production as energy companies seek to bolster reserves and production.

The Manufactured Products segment's growing backlog ($713 million) and impressive book-to-bill ratio of 1.56 point to sustained demand for offshore equipment and technologies. This could be indicative of operators' long-term commitment to offshore projects, despite short-term market volatility.

However, the decline in Offshore Projects Group (OPG) operating income margin from 13% to 9%, despite revenue growth, warrants attention. This could reflect increased competition or cost pressures in the sector.

Overall, Oceaneering's results suggest a positive outlook for the offshore energy sector, with potential for continued growth in subsea robotics and equipment manufacturing. The company's ability to capitalize on this trend while managing challenges in other segments will be important for its future performance.

HOUSTON--(BUSINESS WIRE)-- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $35.0 million, or $0.34 per share, on revenue of $669 million for the three months ended June 30, 2024. Adjusted net income was $28.6 million, or $0.28 per share, reflecting the impact of $(1.0) million of pre-tax adjustments associated with foreign exchange gains recognized during the quarter, along with $(5.5) million of expenses related to discrete tax adjustments.

Summary of Results
(in thousands, except per share amounts)
		For the Three Months Ended									For the Six Months Ended
		Jun 30,						Mar 31,			Jun 30,
			2024			2023			2024			2024			2023
Revenue		$	668,808		$	597,910		$	599,092		$	1,267,900		$	1,134,897
Income (Loss) from Operations			60,364			49,199			36,693			97,057			75,949
Net Income (Loss)			34,997			19,002			15,135			50,132			23,062
Diluted Earnings (Loss) Per Share		$	0.34		$	0.19		$	0.15		$	0.49		$	0.23

For the second quarter of 2024:

• 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

As of June 30, 2024:

• Remotely Operated Vehicles (ROV): fleet count was 250; Q2 utilization was 70%; and Q2 average revenue per day utilized was $10,528
• Manufactured Products backlog was $713 million

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Activity levels in our energy-related businesses, led by Subsea Robotics (SSR), increased and outperformed our expectations. Our adjusted EBITDA was in line with our guidance and consensus estimates. Compared to the same quarter last year, our consolidated second quarter operating income was 23% higher on a 12% increase in revenue, with higher revenue in all of our business segments and improved operating income in SSR and Manufactured Products.

"As evidenced by our recently announced contract awards, we anticipate continued high levels of activity in our offshore markets throughout the remainder of the year, partially offset by lower expectations in our Aerospace and Defense Technologies (ADTech) segment. As a result, we are narrowing our consolidated adjusted EBITDA guidance range to $340 million to $370 million. We continue to expect positive free cash flow generation for 2024 in the range of $110 million to $150 million."

Second Quarter 2024 Segment Results v. Second Quarter 2023 Segment Results

SSR second quarter 2024 operating income of $61.8 million was 46% higher than the second quarter of 2023. EBITDA margin improved to 34%, as compared to the 30% margin for the same period in 2023.

ROV revenue per day utilized of $10,528 was 16% higher, utilization was flat at 70%, and ROV days utilized were relatively flat at 15,839. ROV fleet use during the quarter was 64% in drill support and 36% in vessel-based activity, compared to 61% and 39%, respectively, in the second quarter of 2023.

Manufactured Products operating income for the second quarter improved 35% on a 12% increase in revenue, with operating income margin improving to 10%. Backlog was $713 million on June 30, 2024, an increase of $295 million year-over-year. The book-to-bill ratio was 1.56 for the 12-month period ending June 30, 2024, as compared to the book-to-bill ratio of 1.19 for the same period last year.

Offshore Projects Group (OPG) operating income for the second quarter declined 23% on a 10% increase in revenue compared to the second quarter of 2023, due to the timing of pre-contract award costs that were expensed during the quarter and changes in project mix. Operating income margin declined to 9% from 13% in the same period in 2023.

As compared to the second quarter of 2023, Integrity Management and Digital Solutions (IMDS) operating income and operating income margin decreased on a 16% increase in revenue.

While ADTech experienced a 4% increase in revenue in the second quarter, operating income declined significantly as compared to the same period last year, due to a reserve taken during the quarter for a contract dispute as well as lower activity levels in our space systems business.

At the corporate level, Unallocated Expenses of $39.7 million were in line with guidance for the quarter but higher than the same period last year.

Third Quarter 2024 Guidance

On a consolidated basis, third quarter 2024 operating results are expected 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. At the segment level, for the third quarter of 2024, as compared to the second quarter 2024:

• SSR activity levels and operating profitability are expected to improve slightly;
• Manufactured Products revenue is forecasted to be higher with lower operating profitability;
• 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; and
• Unallocated Expenses are forecasted to be in the $40 million range.

Updated Full-Year 2024 Guidance

Full-year 2024 consolidated and segment guidance remains the same as previously provided, except as follows:

• Consolidated adjusted EBITDA is expected in the range of $340 million to $370 million,
• Net income is expected in the range of $130 million to $150 million; and
• ADTech operating income and margins are expected to be lower as compared to 2023.

Non-GAAP Financial Measures

Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2024 Adjusted EBITDA and Free Cash Flow Estimates, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Conference Call Details

Oceaneering has scheduled a conference call and webcast on Thursday, July 25, 2024 at 10:00 a.m. Central Time, to discuss its results for the second quarter of 2024, as well as more detailed guidance for the full year and third quarter of 2024. Interested parties may listen to the call through a webcast link posted in the Investor Relations section of Oceaneering's website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.

This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business, and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: full-year 2024 guidance range for consolidated adjusted EBITDA, free cash flow, net income, and ADTech operating income and margins; third-quarter 2024 guidance for consolidated EBITDA, operating segment revenues, operating results, operating profitability, segment activity levels, and Unallocated Expenses; expectation that 2024 will generate positive free cash flow; expectations for improved financial performance and conditions in 2024, including activity levels by segment; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamic, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days utilized, average ROV revenue per day on hire, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, healthy or significant (which is used herein to indicate a change of 20% or greater).

The forward-looking statements included in this release are based on Oceaneering's current expectations and are subject to certain risks, assumptions, trends, and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; the indirect consequences of climate change and climate-related business trends; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; cancellations of contracts, change orders and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in data privacy and security laws, regulations and standards; changes in tax laws, regulations, and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering’s latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.

For more information on Oceaneering, please visit www.oceaneering.com.

- Tables follow on next page -

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
													Jun 30, 2024				Dec 31, 2023
													(in thousands)
ASSETS
Current assets (including cash and cash equivalents of $382,873 and $461,566)													$	1,337,130			$	1,305,659
Net property and equipment														416,490				424,293
Other assets														551,246				509,054
Total Assets													$	2,304,866			$	2,239,006
LIABILITIES AND EQUITY
Current liabilities													$	776,945			$	732,476
Long-term debt														479,378				477,058
Other long-term liabilities														391,448				395,389
Equity														657,095				634,083
Total Liabilities and Equity													$	2,304,866			$	2,239,006
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Three Months Ended												For the Six Months Ended
	Jun 30, 2024				Jun 30, 2023				Mar 31, 2024				Jun 30, 2024				Jun 30, 2023
	(in thousands, except per share amounts)
Revenue	$	668,808			$	597,910			$	599,092			$	1,267,900			$	1,134,897
Cost of services and products		548,597				496,830				506,708				1,055,305				956,252
Gross margin		120,211				101,080				92,384				212,595				178,645
Selling, general and administrative expense		59,847				51,881				55,691				115,538				102,696
Income (loss) from operations		60,364				49,199				36,693				97,057				75,949
Interest income		2,402				4,154				3,040				5,442				8,620
Interest expense		(9,516	)			(9,517	)			(9,204	)			(18,720	)			(18,800	)
Equity in income (losses) of unconsolidated affiliates		295				479				169				464				1,118
Other income (expense), net		1,759				(5,846	)			1,480				3,239				(5,768	)
Income (loss) before income taxes		55,304				38,469				32,178				87,482				61,119
Provision (benefit) for income taxes		20,307				19,467				17,043				37,350				38,057
Net Income (Loss)	$	34,997			$	19,002			$	15,135			$	50,132			$	23,062
Weighted average diluted shares outstanding		102,472				102,004				102,250				102,361				102,017
Diluted earnings (loss) per share	$	0.34			$	0.19			$	0.15			$	0.49			$	0.23
The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

SEGMENT INFORMATION
			For the Three Months Ended												For the Six Months Ended
			Jun 30, 2024				Jun 30, 2023				Mar 31, 2024				Jun 30, 2024				Jun 30, 2023
		($ in thousands)
Subsea Robotics
	Revenue		$	214,985			$	186,512			$	186,932			$	401,917			$	355,673
Operating income (loss)			$	61,750			$	42,227			$	44,237			$	105,987			$	75,881
Operating income (loss) %				29	%			23	%			24	%			26	%			21	%
ROV days available				22,750				22,750				22,750				45,500				45,250
ROV days utilized				15,839				16,032				14,536				30,375				30,260
ROV utilization				70	%			70	%			64	%			67	%			67	%
Manufactured Products
	Revenue		$	139,314			$	124,882			$	129,453			$	268,767			$	237,821
Operating income (loss)			$	14,369			$	10,607			$	13,190			$	27,559			$	21,887
Operating income (loss) %				10	%			8	%			10	%			10	%			9	%
Backlog at end of period			$	713,000			$	418,000			$	597,000			$	713,000			$	418,000
Offshore Projects Group
	Revenue		$	144,058			$	130,547			$	115,054			$	259,112			$	234,854
Operating income (loss)			$	13,248			$	17,132			$	844			$	14,092			$	22,646
Operating income (loss) %				9	%			13	%			1	%			5	%			10	%
Integrity Management & Digital Solutions
	Revenue		$	73,492			$	63,166			$	69,690			$	143,182			$	123,249
Operating income (loss)			$	3,473			$	3,844			$	3,615			$	7,088			$	6,926
Operating income (loss) %				5	%			6	%			5	%			5	%			6	%
Aerospace and Defense Technologies
	Revenue		$	96,959			$	92,803			$	97,963			$	194,922			$	183,300
Operating income (loss)			$	7,244			$	11,357			$	12,808			$	20,052			$	19,853
Operating income (loss) %				7	%			12	%			13	%			10	%			11	%
Unallocated Expenses
Operating income (loss)			$	(39,720	)		$	(35,968	)		$	(38,001	)		$	(77,721	)		$	(71,244	)
Total
	Revenue		$	668,808			$	597,910			$	599,092			$	1,267,900			$	1,134,897
Operating income (loss)			$	60,364			$	49,199			$	36,693			$	97,057			$	75,949
Operating income (loss) %				9	%			8	%			6	%			8	%			7	%
The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.

SELECTED CASH FLOW INFORMATION
					For the Three Months Ended									For the Six Months Ended
					Jun 30, 2024			Jun 30, 2023			Mar 31, 2024			Jun 30, 2024			Jun 30, 2023
					(in thousands)
Capital Expenditures, including Acquisitions					$	22,858		$	22,428		$	25,518		$	48,376		$	40,736
Depreciation and Amortization:
Energy Services and Products
Subsea Robotics					$	11,981		$	13,356		$	12,810		$	24,791		$	28,296
Manufactured Products						3,237			3,013			3,175			6,412			6,057
Offshore Projects Group						5,584			6,976			6,435			12,019			14,104
Integrity Management & Digital Solutions						1,803			939			1,259			3,062			1,797
Total Energy Services and Products						22,605			24,284			23,679			46,284			50,254
Aerospace and Defense Technologies						616			632			603			1,219			1,285
Unallocated Expenses						2,759			1,130			2,776			5,535			2,328
Total Depreciation and Amortization					$	25,980		$	26,046		$	27,058		$	53,038		$	53,867

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under certain rules and regulations promulgated by the Securities and Exchange Commission). We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2023 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA Margins and Free Cash Flow are widely used by investors for valuation purposes and for comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA Margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
		For the Three Months Ended
		Jun 30, 2024							Jun 30, 2023							Mar 31, 2024
		Net Income (Loss)				Diluted EPS			Net Income (Loss)				Diluted EPS			Net Income (Loss)				Diluted EPS
		(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP		$	34,997			$	0.34		$	19,002			$	0.19		$	15,135			$	0.15
Pre-tax adjustments for the effects of:
Foreign currency (gains) losses			(1,034	)						4,845							(2,197	)
Total pre-tax adjustments			(1,034	)						4,845							(2,197	)
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods			70							(2,387	)						790
Discrete tax items:
Share-based compensation			(48	)						(3	)						(1,926	)
Uncertain tax positions			1,706							4,312							(149	)
Valuation allowances			520							(8,678	)						4,571
Other			(7,645	)						1,563							(2,336	)
Total discrete tax adjustments			(5,467	)						(2,806	)						160
Total of adjustments			(6,431	)						(348	)						(1,247	)
Adjusted Net Income (Loss)		$	28,566			$	0.28		$	18,654			$	0.18		$	13,888			$	0.14
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)							102,472							102,004							102,250
									For the Six Months Ended
									Jun 30, 2024							Jun 30, 2023
									Net Income (Loss)				Diluted EPS			Net Income (Loss)				Diluted EPS
									(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP									$	50,132			$	0.49		$	23,062			$	0.23
Pre-tax adjustments for the effects of:
Foreign currency (gains) losses										(3,231	)						4,578
Total pre-tax adjustments										(3,231	)						4,578
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods										860							(2,303	)
Discrete tax items:
Share-based compensation										(1,974	)						(1,370	)
Uncertain tax positions										1,557							4,401
Valuation allowances										5,091							(5,102	)
Other										(9,981	)						770
Total discrete tax adjustments										(5,307	)						(1,301	)
Total of adjustments										(7,678	)						974
Adjusted Net Income (Loss)									$	42,454			$	0.41		$	24,036			$	0.24
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)														102,361							102,017

EBITDA and Adjusted EBITDA and Margins
		For the Three Months Ended												For the Six Months Ended
		Jun 30, 2024				Jun 30, 2023				Mar 31, 2024				Jun 30, 2024				Jun 30, 2023
		($ in thousands)
Net income (loss)		$	34,997			$	19,002			$	15,135			$	50,132			$	23,062
Depreciation and amortization			25,980				26,046				27,058				53,038				53,867
Subtotal			60,977				45,048				42,193				103,170				76,929
Interest expense, net of interest income			7,114				5,363				6,164				13,278				10,180
Amortization included in interest expense			(1,504	)			37				(1,479	)			(2,983	)			63
Provision (benefit) for income taxes			20,307				19,467				17,043				37,350				38,057
EBITDA			86,894				69,915				63,921				150,815				125,229
Adjustments for the effects of:
Foreign currency (gains) losses			(1,034	)			4,845				(2,197	)			(3,231	)			4,578
Total of adjustments			(1,034	)			4,845				(2,197	)			(3,231	)			4,578
Adjusted EBITDA		$	85,860			$	74,760			$	61,724			$	147,584			$	129,807
Revenue		$	668,808			$	597,910			$	599,092			$	1,267,900			$	1,134,897
EBITDA margin %			13	%			12	%			11	%			12	%			11	%
Adjusted EBITDA margin %			13	%			13	%			10	%			12	%			11	%

Free Cash Flow
		For the Three Months Ended												For the Six Months Ended
		Jun 30, 2024				Jun 30, 2023				Mar 31, 2024				Jun 30, 2024				Jun 30, 2023
		(in thousands)
Net Income (loss)		$	34,997			$	19,002			$	15,135			$	50,132			$	23,062
Non-cash adjustments:
Depreciation and amortization			25,980				26,046				27,058				53,038				53,867
Other non-cash			1,744				2,923				2,682				4,426				2,735
Other increases (decreases) in cash from operating activities			(10,098	)			(27,520	)			(114,592	)			(124,690	)			(102,132	)
Cash flow provided by (used in) operating activities			52,623				20,451				(69,717	)			(17,094	)			(22,468	)
Purchases of property and equipment			(22,858	)			(22,428	)			(25,518	)			(48,376	)			(40,736	)
Free Cash Flow		$	29,765			$	(1,977	)		$	(95,235	)		$	(65,470	)		$	(63,204	)
2024 Adjusted EBITDA Estimates
														For the Three Months Ending
														September 30, 2024
														Low				High
														(in thousands)
Income (loss) before income taxes														$	65,000			$	70,000
Depreciation and amortization															24,000				28,000
Subtotal															89,000				98,000
Interest expense, net of interest income															6,000				7,000
Adjusted EBITDA														$	95,000			$	105,000
														For the Year Ending
														December 31, 2024
														Low				High
														(in thousands)
Income (loss) before income taxes														$	215,000			$	232,000
Depreciation and amortization															100,000				110,000
Subtotal															315,000				342,000
Interest expense, net of interest income															25,000				28,000
Adjusted EBITDA														$	340,000			$	370,000
2024 Free Cash Flow Estimate
														For the Year Ending
														December 31, 2024
														Low				High
														(in thousands)
Net income (loss)														$	130,000			$	150,000
Depreciation and amortization															100,000				110,000
Other increases (decreases) in cash from operating activities															(10,000	)			20,000
Cash flow provided by (used in) operating activities															220,000				280,000
Purchases of property and equipment															(110,000	)			(130,000	)
Free Cash Flow														$	110,000			$	150,000

EBITDA and Adjusted EBITDA and Margins by Segment
		For the Three Months Ended June 30, 2024
		SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
		($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP		$	61,750			$	14,369			$	13,248			$	3,473			$	7,244			$	(39,720	)		$	60,364
Adjustments for the effects of:
Depreciation and amortization			11,981				3,237				5,584				1,803				616				2,759				25,980
Other pre-tax			—				—				—				—				—				550				550
EBITDA			73,731				17,606				18,832				5,276				7,860				(36,411	)			86,894
Adjustments for the effects of:
Foreign currency (gains) losses			—				—				—				—				—				(1,034	)			(1,034	)
Total of adjustments			—				—				—				—				—				(1,034	)			(1,034	)
Adjusted EBITDA		$	73,731			$	17,606			$	18,832			$	5,276			$	7,860			$	(37,445	)		$	85,860
Revenue		$	214,985			$	139,314			$	144,058			$	73,492			$	96,959							$	668,808
Operating income (loss) % as reported in accordance with GAAP			29	%			10	%			9	%			5	%			7	%							9	%
EBITDA Margin			34	%			13	%			13	%			7	%			8	%							13	%
Adjusted EBITDA Margin			34	%			13	%			13	%			7	%			8	%							13	%
		For the Three Months Ended June 30, 2023
		SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
		($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP		$	42,227			$	10,607			$	17,132			$	3,844			$	11,357			$	(35,968	)		$	49,199
Adjustments for the effects of:
Depreciation and amortization			13,356				3,013				6,976				939				632				1,130				26,046
Other pre-tax			—				—				—				—				—				(5,330	)			(5,330	)
EBITDA			55,583				13,620				24,108				4,783				11,989				(40,168	)			69,915
Adjustments for the effects of:
Foreign currency (gains) losses			—				—				—				—				—				4,845				4,845
Total of adjustments			—				—				—				—				—				4,845				4,845
Adjusted EBITDA		$	55,583			$	13,620			$	24,108			$	4,783			$	11,989			$	(35,323	)		$	74,760
Revenue		$	186,512			$	124,882			$	130,547			$	63,166			$	92,803							$	597,910
Operating income (loss) % as reported in accordance with GAAP			23	%			8	%			13	%			6	%			12	%							8	%
EBITDA Margin			30	%			11	%			18	%			8	%			13	%							12	%
Adjusted EBITDA Margin			30	%			11	%			18	%			8	%			13	%							13	%

		For the Three Months Ended March 31, 2024
		SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
		($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP		$	44,237			$	13,190			$	844			$	3,615			$	12,808			$	(38,001	)		$	36,693
Adjustments for the effects of:
Depreciation and amortization			12,810				3,175				6,435				1,259				603				2,776				27,058
Other pre-tax			—				—				—				—				—				170				170
EBITDA			57,047				16,365				7,279				4,874				13,411				(35,055	)			63,921
Adjustments for the effects of:
Foreign currency (gains) losses			—				—				—				—				—				(2,197	)			(2,197	)
Total of adjustments			—				—				—				—				—				(2,197	)			(2,197	)
Adjusted EBITDA		$	57,047			$	16,365			$	7,279			$	4,874			$	13,411			$	(37,252	)		$	61,724
Revenue		$	186,932			$	129,453			$	115,054			$	69,690			$	97,963							$	599,092
Operating income (loss) % as reported in accordance with GAAP			24	%			10	%			1	%			5	%			13	%							6	%
EBITDA Margin			31	%			13	%			6	%			7	%			14	%							11	%
Adjusted EBITDA Margin			31	%			13	%			6	%			7	%			14	%							10	%

EBITDA and Adjusted EBITDA and Margins by Segment
		For the Six Months Ended June 30, 2024
		SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
		($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP		$	105,987			$	27,559			$	14,092			$	7,088			$	20,052			$	(77,721	)		$	97,057
Adjustments for the effects of:
Depreciation and amortization			24,791				6,412				12,019				3,062				1,219				5,535				53,038
Other pre-tax			—				—				—				—				—				720				720
EBITDA			130,778				33,971				26,111				10,150				21,271				(71,466	)			150,815
Adjustments for the effects of:
Foreign currency (gains) losses			—				—				—				—				—				(3,231	)			(3,231	)
Total of adjustments			—				—				—				—				—				(3,231	)			(3,231	)
Adjusted EBITDA		$	130,778			$	33,971			$	26,111			$	10,150			$	21,271			$	(74,697	)		$	147,584
Revenue		$	401,917			$	268,767			$	259,112			$	143,182			$	194,922							$	1,267,900
Operating income (loss) % as reported in accordance with GAAP			26	%			10	%			5	%			5	%			10	%							8	%
EBITDA Margin			33	%			13	%			10	%			7	%			11	%							12	%
Adjusted EBITDA Margin			33	%			13	%			10	%			7	%			11	%							12	%
		For the Six Months Ended June 30, 2023
		SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
		($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP		$	75,881			$	21,887			$	22,646			$	6,926			$	19,853			$	(71,244	)		$	75,949
Adjustments for the effects of:
Depreciation and amortization			28,296				6,057				14,104				1,797				1,285				2,328				53,867
Other pre-tax			—				—				—				—				—				(4,587	)			(4,587	)
EBITDA			104,177				27,944				36,750				8,723				21,138				(73,503	)			125,229
Adjustments for the effects of:
Foreign currency (gains) losses			—				—				—				—				—				4,578				4,578
Total of adjustments			—				—				—				—				—				4,578				4,578
Adjusted EBITDA		$	104,177			$	27,944			$	36,750			$	8,723			$	21,138			$	(68,925	)		$	129,807
Revenue		$	355,673			$	237,821			$	234,854			$	123,249			$	183,300							$	1,134,897
Operating income (loss) % as reported in accordance with GAAP			21	%			9	%			10	%			6	%			11	%							7	%
EBITDA Margin			29	%			12	%			16	%			7	%			12	%							11	%
Adjusted EBITDA Margin			29	%			12	%			16	%			7	%			12	%							11	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724752461/en/

investorrelations@oceaneering.com

Hilary Frisbie

Senior Director, Investor Relations

Oceaneering International, Inc.

713-329-4755

Source: Oceaneering International, Inc.

FAQ

What was Oceaneering's (OII) revenue for Q2 2024?

Oceaneering International (OII) reported revenue of $669 million for Q2 2024.

How did Oceaneering's (OII) Q2 2024 net income compare to Q2 2023?

Oceaneering's Q2 2024 net income was $35.0 million, compared to $19.0 million in Q2 2023, showing significant year-over-year growth.

What is Oceaneering's (OII) adjusted EBITDA guidance for 2024?

Oceaneering narrowed its 2024 consolidated adjusted EBITDA guidance to a range of $340 million to $370 million.

How did Oceaneering's (OII) Subsea Robotics (SSR) segment perform in Q2 2024?

Oceaneering's SSR segment showed strong performance with a 46% increase in operating income compared to Q2 2023, and an improved EBITDA margin of 34%.

What was Oceaneering's (OII) Manufactured Products backlog as of June 30, 2024?

Oceaneering's Manufactured Products backlog was $713 million as of June 30, 2024, representing a $295 million increase year-over-year.