Oceaneering Reports Third Quarter 2024 Results

Rhea-AI Summary

Oceaneering International (NYSE:OII) reported Q3 2024 net income of $41.2 million, or $0.40 per share, on revenue of $680 million. Adjusted net income was $37.2 million. The company achieved consolidated operating income of $71.3 million and adjusted EBITDA of $98.1 million. Operating cash flow was $91.9 million with free cash flow of $67.0 million.

The company updated its 2024 guidance with consolidated adjusted EBITDA expected between $340-350 million, and provided initial 2025 guidance of $400-430 million EBITDA. Notable improvements were seen in Subsea Robotics and Manufactured Products segments, with ROV fleet utilization at 69% and a backlog of $671 million.

Positive

• Net income increased 38% YoY to $41.2 million
• Operating income grew 23% YoY to $71.3 million
• ROV revenue per day increased 13% YoY to $10,576
• Manufactured Products backlog rose by $115 million YoY
• Book-to-bill ratio remained strong at 1.21
• 2025 EBITDA guidance projects 20% growth from 2024

Negative

• Offshore Projects Group operating income declined 24% YoY
• ADTech operating income decreased 14% due to increased costs
• IMDS operating income decreased despite revenue growth
• Manufactured Products expected to show significantly lower Q4 operating profitability

Insights

Financial Analyst

Oceaneering delivered strong Q3 2024 results with $41.2 million net income and $98.1 million adjusted EBITDA. Key highlights include 23% higher operating income year-over-year on 7% revenue growth. The company's ROV segment showed impressive performance with 13% higher revenue per day, while Manufactured Products backlog grew to $671 million.

The 2025 guidance of $400-430 million EBITDA represents significant growth potential. Strong free cash flow generation and a healthy balance sheet with $452 million cash position provide financial flexibility. The resumption of share buybacks after 9 years signals management's confidence in the company's outlook.

Energy Industry Analyst

The robust performance in energy-focused segments, particularly Subsea Robotics with 37% higher operating income and improved EBITDA margins of 36%, reflects strong offshore market fundamentals. The 69% ROV fleet utilization and growing vessel-based activities indicate healthy offshore drilling and subsea construction markets.

The book-to-bill ratio of 1.21 for Manufactured Products suggests continued strong order intake, though slightly lower than previous periods. The company's diversification across energy sectors and increasing focus on renewable energy projects positions it well for sustainable growth in the evolving energy landscape.

HOUSTON--(BUSINESS WIRE)-- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $41.2 million, or $0.40 per share, on revenue of $680 million for the three months ended September 30, 2024. Adjusted net income was $37.2 million, or $0.36 per share, reflecting the impact of $(0.4) million of pre-tax adjustments associated with foreign exchange gains recognized during the quarter, $0.6 million tax effect on adjustments associated with foreign exchange gains, and $(4.2) million of discrete tax adjustments.

Summary of Results
(in thousands, except per share amounts)
		For the Three Months Ended									For the Nine Months Ended
		Sep 30,						Jun 30,			Sep 30,
			2024			2023			2024			2024			2023
Revenue		$	679,811		$	635,180		$	668,808		$	1,947,711		$	1,770,077
Operating Income (Loss)			71,333			57,929			60,364			168,390			133,878
Net Income (Loss)			41,237			29,812			34,997			91,369			52,874
Diluted Earnings (Loss) Per Share		$	0.40		$	0.29		$	0.34		$	0.89		$	0.52

For the third quarter of 2024:

• Net income was $41.2 million and adjusted EBITDA was $98.1 million
• Consolidated operating income was $71.3 million
• Cash flow provided by operating activities was $91.9 million and free cash flow was $67.0 million, with an ending cash position of $452 million
• The company repurchased 422,229 shares for approximately $10 million

As of September 30, 2024:

• Remotely Operated Vehicles (ROV): fleet count was 250; Q3 utilization was 69%; and Q3 average revenue per day utilized was $10,576
• Manufactured Products backlog was $671 million

Revised full-year 2024 guidance and initial full-year 2025 guidance:

• 2024 consolidated adjusted EBITDA in the range of $340 million to $350 million
• 2025 consolidated EBITDA in the range of $400 million to $430 million
• 2025 free cash flow to exceed that generated in 2024

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, “During the quarter, we saw consistent activity levels in our energy-focused businesses, with notable operating performance improvements year-over-year in our Subsea Robotics (SSR) and Manufactured Products segments. Compared to the same quarter last year, our consolidated third quarter operating income was 23% higher on a 7% increase in revenue. We also repurchased shares during the quarter for the first time since 2015.

“We have updated our full-year 2024 consolidated adjusted EBITDA range, which at the midpoint of $345 million represents a 19% increase over our 2023 adjusted EBITDA. Our initial consolidated EBITDA guidance for 2025, at the $415 million midpoint, represents a 20% year-over-year increase to the guided full-year 2024 midpoint.”

Third Quarter 2024 Segment Results v. Third Quarter 2023 Segment Results

As compared to the third quarter of 2023:

• SSR third quarter 2024 operating income of $65.7 was 37% higher. EBITDA margin was 36%, as compared to 31% for the same period last year.
  ROV revenue per day utilized of $10,576 was 13% higher and fleet utilization was essentially flat at 69%. ROV fleet use during the quarter was 66% in drill support and 34% in vessel-based activity, compared to 61% and 39%.
• Manufactured Products operating income improved 37% on a 17% increase in revenue, with operating income margin improving to 8%. Backlog was $671 million on September 30, 2024, an increase of $115 million, compared to the same period in 2023. The book-to-bill ratio was 1.21 for the 12-month period ending September 30, 2024, as compared to 1.41 for the trailing 12-month period ending September 30, 2023.
• Offshore Projects Group (OPG) operating income declined 24% on a 2% decrease in revenue due to changes in project mix in our international markets, vessel crane repair costs, and associated vessel downtime. Operating income margin declined to 14% from 18%.
• Integrity Management and Digital Solutions (IMDS) operating income and operating income margin decreased on a 11% increase in revenue. The decline in operating income was due to the one-time, non-cash charge associated with the divestiture of the Maritime Intelligence division in September 2024.
• Aerospace and Defense Technologies (ADTech) revenue was relatively flat. Operating income declined 14% due to increased project proposal costs and changes in project mix.
• At the corporate level, Unallocated Expenses of $38.9 million were in line with guidance for the quarter and lower than for the same period last year.

Fourth Quarter 2024 Guidance v. Third Quarter 2024 Guidance

On a consolidated basis, fourth quarter 2024 revenue is expected to increase slightly as compared to the third quarter of 2024, and fourth quarter 2024 adjusted EBITDA is expected to be in line with third quarter 2024 results. At the segment level, for the fourth quarter of 2024, as compared to the third quarter of 2024:

• SSR revenue and operating profitability are forecasted to decrease slightly due to normal seasonality;
• Manufactured Products operating profitability is expected to be significantly lower on higher revenue;
• OPG revenue is projected to increase and generate significantly higher operating profitability;
• IMDS operating profitability is expected to improve on a decline in revenue;
• ADTech revenue and operating profitability are expected to decrease; and
• Unallocated Expenses are expected to be in the $40 million range.

Initial 2025 Guidance

For 2025, year over year, Oceaneering anticipates increased revenue and improved operating performance across all segments, led by gains from SSR, Manufactured Products, and ADTech. Consolidated EBITDA for 2025 is forecasted to be in the range of $400 million to $430 million. Oceaneering currently expects to generate positive free cash flow in excess of that forecasted for 2024. Oceaneering will provide more specific guidance on its expectations for 2025 in its fourth quarter 2024 earnings release and conference call.

Non-GAAP Financial Measures

Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA on a consolidated and on a segment basis (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 Consolidated Adjusted EBITDA and Free Cash Flow Estimates, 2025 Consolidated EBITDA 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, October 24, 2024 at 10:00 a.m. Central Time, to discuss its results for the third quarter of 2024, as well as more detailed guidance for the full year and fourth quarter of 2024 and initial guidance for the full year of 2025. 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; fourth-quarter 2024 guidance for consolidated revenue, consolidated adjusted EBITDA, operating segment revenue and operating profitability, and Unallocated Expenses; full-year 2025 guidance for consolidated EBITDA and expectation that 2025 will generate positive free cash flow in excess of that generated in 2024; expectations for improved financial performance in 2025, led by gains in SSR, Manufactured Products, and ADTech; 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 utilized, 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. 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
																					Sep 30, 2024				Dec 31, 2023
																					(in thousands)
ASSETS
	Current assets (including cash and cash equivalents of $451,858 and $461,566)																				$	1,411,099			$	1,305,659
	Net property and equipment																					423,579				424,293
	Other assets																					521,815				509,054
			Total Assets																		$	2,356,493			$	2,239,006
LIABILITIES AND EQUITY
	Current liabilities																				$	800,143			$	732,476
	Long-term debt																					480,706				477,058
	Other long-term liabilities																					371,603				395,389
	Equity																					704,041				634,083
			Total Liabilities and Equity																		$	2,356,493			$	2,239,006
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
									For the Three Months Ended												For the Nine Months Ended
									Sep 30, 2024				Sep 30, 2023				Jun 30, 2024				Sep 30, 2024				Sep 30, 2023
									(in thousands, except per share amounts)
	Revenue								$	679,811			$	635,180			$	668,808			$	1,947,711			$	1,770,077
	Cost of services and products									548,849				520,483				548,597				1,604,154				1,476,735
		Gross margin								130,962				114,697				120,211				343,557				293,342
	Selling, general and administrative expense									59,629				56,768				59,847				175,167				159,464
		Operating income (loss)								71,333				57,929				60,364				168,390				133,878
	Interest income									3,275				3,724				2,402				8,717				12,344
	Interest expense									(9,456	)			(9,802	)			(9,516	)			(28,176	)			(28,602	)
	Equity in income (losses) of unconsolidated affiliates									323				498				295				787				1,616
	Other income (expense), net									3,133				968				1,759				6,372				(4,800	)
		Income (loss) before income taxes								68,608				53,317				55,304				156,090				114,436
	Provision (benefit) for income taxes									27,371				23,505				20,307				64,721				61,562
		Net Income (Loss)							$	41,237			$	29,812			$	34,997			$	91,369			$	52,874
Weighted average diluted shares outstanding										102,613				102,206				102,472				102,445				102,086
Diluted earnings (loss) per share									$	0.40			$	0.29			$	0.34			$	0.89			$	0.52
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 Nine Months Ended
					Sep 30, 2024				Sep 30, 2023				Jun 30, 2024				Sep 30, 2024				Sep 30, 2023
				($ in thousands)
Subsea Robotics
		Revenue			$	215,715			$	197,343			$	214,985			$	617,632			$	553,016
Operating income (loss)					$	65,698			$	47,818			$	61,750			$	171,685			$	123,699
Operating income (loss) %						30	%			24	%			29	%			28	%			22	%
ROV days available						23,000				23,000				22,750				68,500				68,250
ROV days utilized						15,796				15,932				15,839				46,171				46,192
ROV utilization						69	%			69	%			70	%			67	%			68	%
Manufactured Products
		Revenue			$	143,734			$	122,877			$	139,314			$	412,501			$	360,698
Operating income (loss)					$	11,278			$	8,229			$	14,369			$	38,837			$	30,116
Operating income (loss) %						8	%			7	%			10	%			9	%			8	%
Backlog at end of period					$	671,000			$	556,000			$	713,000			$	671,000			$	556,000
Offshore Projects Group
		Revenue			$	147,539			$	150,273			$	144,058			$	406,651			$	385,127
Operating income (loss)					$	20,294			$	26,745			$	13,248			$	34,386			$	49,391
Operating income (loss) %						14	%			18	%			9	%			8	%			13	%
Integrity Management & Digital Solutions
		Revenue			$	73,622			$	66,056			$	73,492			$	216,804			$	189,305
Operating income (loss)					$	714			$	3,242			$	3,473			$	7,802			$	10,168
Operating income (loss) %						1	%			5	%			5	%			4	%			5	%
Aerospace and Defense Technologies
		Revenue			$	99,201			$	98,631			$	96,959			$	294,123			$	281,931
Operating income (loss)					$	12,219			$	14,140			$	7,244			$	32,271			$	33,993
Operating income (loss) %						12	%			14	%			7	%			11	%			12	%
Unallocated Expenses
Operating income (loss)					$	(38,870	)		$	(42,245	)		$	(39,720	)		$	(116,591	)		$	(113,489	)
Total
		Revenue			$	679,811			$	635,180			$	668,808			$	1,947,711			$	1,770,077
Operating income (loss)					$	71,333			$	57,929			$	60,364			$	168,390			$	133,878
Operating income (loss) %						10	%			9	%			9	%			9	%			8	%
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 Nine Months Ended
						Sep 30, 2024			Sep 30, 2023			Jun 30, 2024			Sep 30, 2024			Sep 30, 2023
						(in thousands)
Capital Expenditures, including Acquisitions						$	24,886		$	25,945		$	22,858		$	73,262		$	66,681
Depreciation and Amortization:
Energy Services and Products
	Subsea Robotics					$	12,076		$	12,805		$	11,981		$	36,867		$	41,101
	Manufactured Products						3,061			3,067			3,237			9,473			9,124
	Offshore Projects Group						5,399			6,931			5,584			17,418			21,035
	Integrity Management & Digital Solutions						1,348			909			1,803			4,410			2,706
Total Energy Services and Products							21,884			23,712			22,605			68,168			73,966
Aerospace and Defense Technologies							696			600			616			1,915			1,885
Unallocated Expenses							2,683			1,284			2,759			8,218			3,612
	Total Depreciation and Amortization					$	25,263		$	25,596		$	25,980		$	78,301		$	79,463

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, 2024 Consolidated Adjusted EBITDA and Free Cash Flow, and 2025 Consolidated EBITDA Estimates, 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.

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
					For the Three Months Ended
					Sep 30, 2024							Sep 30, 2023							Jun 30, 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					$	41,237			$	0.40		$	29,812			$	0.29		$	34,997			$	0.34
Pre-tax adjustments for the effects of:
	Foreign currency (gains) losses					(424	)						(944	)						(1,034	)
Total pre-tax adjustments						(424	)						(944	)						(1,034	)
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods						603							615							70
Discrete tax items:
Share-based compensation						(2	)						—							(48	)
Uncertain tax positions						(1,178	)						13,076							1,706
Valuation allowances						(1,759	)						9,353							520
Other						(1,247	)						(13,430	)						(7,645	)
	Total discrete tax adjustments					(4,186	)						8,999							(5,467	)
	Total of adjustments					(4,007	)						8,670							(6,431	)
Adjusted Net Income (Loss)					$	37,230			$	0.36		$	38,482			$	0.38		$	28,566			$	0.28
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)										102,613							102,206							102,472
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
												For the Nine Months Ended
												Sep 30, 2024							Sep 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												$	91,369			$	0.89		$	52,874			$	0.52
Pre-tax adjustments for the effects of:
	Foreign currency (gains) losses												(3,655	)						3,634
Total pre-tax adjustments													(3,655	)						3,634
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods													1,463							(1,688	)
Discrete tax items:
Share-based compensation													(1,976	)						(1,370	)
Uncertain tax positions													379							17,477
Valuation allowances													3,332							4,251
Other													(11,228	)						(12,660	)
	Total discrete tax adjustments												(9,493	)						7,698
	Total of adjustments												(11,685	)						9,644
Adjusted Net Income (Loss)												$	79,684			$	0.78		$	62,518			$	0.61
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)																	102,445							102,086

EBITDA and Adjusted EBITDA and Margins
					For the Three Months Ended												For the Nine Months Ended
					Sep 30, 2024				Sep 30, 2023				Jun 30, 2024				Sep 30, 2024				Sep 30, 2023
					($ in thousands)
Net income (loss)					$	41,237			$	29,812			$	34,997			$	91,369			$	52,874
Depreciation and amortization						25,263				25,596				25,980				78,301				79,463
	Subtotal					66,500				55,408				60,977				169,670				132,337
Interest expense, net of interest income						6,181				6,078				7,114				19,459				16,258
Amortization included in interest expense						(1,537	)			51				(1,504	)			(4,520	)			114
Provision (benefit) for income taxes						27,371				23,505				20,307				64,721				61,562
	EBITDA					98,515				85,042				86,894				249,330				210,271
Adjustments for the effects of:
	Foreign currency (gains) losses					(424	)			(944	)			(1,034	)			(3,655	)		$	3,634
		Total of adjustments				(424	)			(944	)			(1,034	)			(3,655	)			3,634
	Adjusted EBITDA				$	98,091			$	84,098			$	85,860			$	245,675			$	213,905
Revenue					$	679,811			$	635,180			$	668,808			$	1,947,711			$	1,770,077
EBITDA margin %						14	%			13	%			13	%			13	%			12	%
Adjusted EBITDA margin %						14	%			13	%			13	%			13	%			12	%

Free Cash Flow
			For the Three Months Ended												For the Nine Months Ended
			Sep 30, 2024				Sep 30, 2023				Jun 30, 2024				Sep 30, 2024				Sep 30, 2023
			(in thousands)
Net Income (loss)			$	41,237			$	29,812			$	34,997			$	91,369			$	52,874
Non-cash adjustments:
	Depreciation and amortization			25,263				25,596				25,980				78,301				79,463
	Other non-cash			7,440				6,381				1,744				11,866				9,116
Other increases (decreases) in cash from operating activities				17,991				17,819				(10,098	)			(106,699	)			(84,313	)
Cash flow provided by (used in) operating activities				91,931				79,608				52,623				74,837				57,140
Purchases of property and equipment				(24,886	)			(25,945	)			(22,858	)			(73,262	)			(66,681	)
Free Cash Flow			$	67,045			$	53,663			$	29,765			$	1,575			$	(9,541	)
2024 Consolidated Adjusted EBITDA Estimate
															For the Year Ending
															December 31, 2024
															Low				High
															(in thousands)
Income (loss) before income taxes															$	219,000			$	225,000
Depreciation and amortization																100,000				103,000
	Subtotal															319,000				328,000
Interest expense, net of interest income																25,000				26,000
Foreign currency (gains) losses																(4,000	)			(4,000	)
	Consolidated Adjusted EBITDA														$	340,000			$	350,000
2024 Free Cash Flow Estimate
															For the Year Ending
															December 31, 2024
															Low				High
															(in thousands)
Net income (loss)															$	130,000			$	132,000
Depreciation and amortization																100,000				103,000
Other increases (decreases) in cash from operating activities																(10,000	)			45,000
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
2025 Consolidated EBITDA Estimate
															For the Year Ending
															December 31, 2025
															Low				High
															(in thousands)
Income (loss) before income taxes															$	285,000			$	307,000
Depreciation and amortization																95,000				100,000
	Subtotal															380,000				407,000
Interest expense, net of interest income																20,000				23,000
	Consolidated EBITDA														$	400,000			$	430,000

EBITDA and Adjusted EBITDA and Margins by Segment
				For the Three Months Ended September 30, 2024
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	65,698			$	11,278			$	20,294			$	714			$	12,219			$	(38,870	)		$	71,333
Adjustments for the effects of:
	Depreciation and amortization				12,076				3,061				5,399				1,348				696				2,683				25,263
	Other pre-tax				—				—				—				—				—				1,919				1,919
	EBITDA				77,774				14,339				25,693				2,062				12,915				(34,268	)			98,515
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				(424	)			(424	)
		Total of adjustments			—				—				—				—				—				(424	)			(424	)
Adjusted EBITDA				$	77,774			$	14,339			$	25,693			$	2,062			$	12,915			$	(34,692	)		$	98,091
Revenue				$	215,715			$	143,734			$	147,539			$	73,622			$	99,201							$	679,811
Operating income (loss) % as reported in accordance with GAAP					30	%			8	%			14	%			1	%			12	%							10	%
EBITDA Margin					36	%			10	%			17	%			3	%			13	%							14	%
Adjusted EBITDA Margin					36	%			10	%			17	%			3	%			13	%							14	%
				For the Three Months Ended September 30, 2023
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	47,818			$	8,229			$	26,745			$	3,242			$	14,140			$	(42,245	)		$	57,929
Adjustments for the effects of:
	Depreciation and amortization				12,805				3,067				6,931				909				600				1,284				25,596
	Other pre-tax				—				—				—				—				—				1,517				1,517
	EBITDA				60,623				11,296				33,676				4,151				14,740				(39,444	)			85,042
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				(944	)			(944	)
		Total of adjustments			—				—				—				—				—				(944	)			(944	)
Adjusted EBITDA				$	60,623			$	11,296			$	33,676			$	4,151			$	14,740			$	(40,388	)		$	84,098
Revenue				$	197,343			$	122,877			$	150,273			$	66,056			$	98,631							$	635,180
Operating income (loss) % as reported in accordance with GAAP					24	%			7	%			18	%			5	%			14	%							9	%
EBITDA Margin					31	%			9	%			22	%			6	%			15	%							13	%
Adjusted EBITDA Margin					31	%			9	%			22	%			6	%			15	%							13	%

				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	%

EBITDA and Adjusted EBITDA and Margins by Segment
				For the Nine Months Ended September 30, 2024
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	171,685			$	38,837			$	34,386			$	7,802			$	32,271			$	(116,591	)		$	168,390
Adjustments for the effects of:
	Depreciation and amortization				36,867				9,473				17,418				4,410				1,915				8,218				78,301
	Other pre-tax				—				—				—				—				—				2,639				2,639
	EBITDA				208,552				48,310				51,804				12,212				34,186				(105,734	)			249,330
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				(3,655	)			(3,655	)
		Total of adjustments			—				—				—				—				—				(3,655	)			(3,655	)
Adjusted EBITDA				$	208,552			$	48,310			$	51,804			$	12,212			$	34,186			$	(109,389	)		$	245,675
Revenue				$	617,632			$	412,501			$	406,651			$	216,804			$	294,123							$	1,947,711
Operating income (loss) % as reported in accordance with GAAP					28	%			9	%			8	%			4	%			11	%							9	%
EBITDA Margin					34	%			12	%			13	%			6	%			12	%							13	%
Adjusted EBITDA Margin					34	%			12	%			13	%			6	%			12	%							13	%
				For the Nine Months Ended September 30, 2023
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	123,699			$	30,116			$	49,391			$	10,168			$	33,993			$	(113,489	)		$	133,878
Adjustments for the effects of:
	Depreciation and amortization				41,101				9,124				21,035				2,706				1,885				3,612				79,463
	Other pre-tax				—				—				—				—				—				(3,070	)			(3,070	)
	EBITDA				164,800				39,240				70,426				12,874				35,878				(112,947	)			210,271
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				3,634				3,634
		Total of adjustments			—				—				—				—				—				3,634				3,634
Adjusted EBITDA				$	164,800			$	39,240			$	70,426			$	12,874			$	35,878			$	(109,313	)		$	213,905
Revenue				$	553,016			$	360,698			$	385,127			$	189,305			$	281,931							$	1,770,077
Operating income (loss) % as reported in accordance with GAAP					22	%			8	%			13	%			5	%			12	%							8	%
EBITDA Margin					30	%			11	%			18	%			7	%			13	%							12	%
Adjusted EBITDA Margin					30	%			11	%			18	%			7	%			13	%							12	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023731451/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) Q3 2024 revenue?

Oceaneering reported revenue of $680 million for Q3 2024.

What is Oceaneering's (OII) ROV fleet utilization rate in Q3 2024?

Oceaneering's ROV fleet utilization rate was 69% in Q3 2024.

What is Oceaneering's (OII) 2025 EBITDA guidance?

Oceaneering provided initial 2025 EBITDA guidance of $400-430 million.

How much was Oceaneering's (OII) Manufactured Products backlog as of September 30, 2024?

Oceaneering's Manufactured Products backlog was $671 million as of September 30, 2024.