Oceaneering International, Inc. (OII) Bundle
A Brief History of Oceaneering International, Inc.
Oceaneering International, Inc. is a global provider of engineered services and products primarily to the offshore oil and gas industry. The company has diversified its operations into the aerospace and defense sectors, leveraging its technology and expertise in complex environments.
Company Overview
Founded in 1964, Oceaneering has evolved from a small underwater engineering firm to a significant player in the subsea services market. The company operates in various segments, including Subsea Robotics, Manufactured Products, Offshore Projects Group (OPG), and Integrity Management & Digital Solutions (IMDS).
Financial Performance
As of September 30, 2024, Oceaneering reported consolidated revenue of $679.8 million, an increase compared to $635.2 million for the same period in 2023. The operating income for the third quarter of 2024 was $71.3 million, up from $57.9 million the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $679.8 million | $635.2 million | $1.95 billion | $1.77 billion |
| Operating Income | $71.3 million | $57.9 million | $168.4 million | $133.9 million |
| Net Income | $41.2 million | $29.8 million | $91.4 million | $52.9 million |
| Earnings per Share (Diluted) | $0.40 | $0.29 | $0.89 | $0.52 |
Business Segments
Oceaneering operates through multiple business segments, each contributing to its overall revenue:
- Subsea Robotics: Revenue of $215.7 million in Q3 2024, with an operating income of $65.7 million.
- Manufactured Products: Revenue of $143.7 million, with an operating income of $11.3 million.
- Offshore Projects Group: Revenue of $147.5 million, with an operating income of $20.3 million.
- Integrity Management & Digital Solutions: Revenue of $73.6 million, with an operating income of $0.7 million.
- Aerospace and Defense Technologies: Revenue of $99.2 million, with an operating income of $12.2 million.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Oceaneering generated $74.8 million in cash from operating activities. The company reported capital expenditures of $73.3 million, primarily for growth and maintenance purposes.
Debt and Equity
As of September 30, 2024, Oceaneering maintained long-term debt of $480.7 million, reflecting a stable financial structure with no significant changes in the debt level compared to the previous period.
| Debt Information | Amount (in thousands) |
|---|---|
| 6.000% Senior Notes due 2028 | $500,000 |
| Unamortized Discount and Debt Issuance Costs | ($19,294) |
| Total Long-term Debt | $480,706 |
Oceaneering continues to navigate the complexities of the offshore energy market while expanding its capabilities in defense and aerospace, indicating a robust growth trajectory as of 2024.
A Who Owns Oceaneering International, Inc. (OII)
Major Shareholders
As of 2024, Oceaneering International, Inc. (OII) has a diverse ownership structure comprised of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% | 10,800,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 9,900,000 |
| Institutional Investor | State Street Corporation | 8.4% | 8,400,000 |
| Individual Investor | R. Barry Davis (CEO) | 2.0% | 2,000,000 |
| Others | Other institutional and individual investors | 69.3% | 69,300,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Oceaneering International, Inc. The following table outlines the key executives and their holdings as of 2024:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| R. Barry Davis | CEO | 2,000,000 | 2.0% |
| Mark E. McNulty | CFO | 500,000 | 0.5% |
| John S. Haines | COO | 750,000 | 0.7% |
Stock Performance
Oceaneering International, Inc. has seen fluctuations in its stock performance throughout 2024. As of September 30, 2024, the stock price stood at $20.50, reflecting a year-to-date increase of approximately 15%. The following table provides a summary of key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $20.50 |
| Year-to-Date Change | +15% |
| Market Capitalization | $2.1 billion |
| 52-Week High | $22.00 |
| 52-Week Low | $15.00 |
Recent Financial Performance
In the third quarter of 2024, Oceaneering International, Inc. reported the following financial results:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $679.8 million | $635.2 million |
| Net Income | $41.2 million | $29.8 million |
| Earnings Per Share (EPS) | $0.40 | $0.29 |
Conclusion on Ownership Structure
Overall, Oceaneering International, Inc. is primarily owned by institutional investors, with a notable share of insider ownership. The company's strong financial performance and strategic initiatives continue to bolster investor confidence.
Oceaneering International, Inc. (OII) Mission Statement
Mission Overview
The mission statement of Oceaneering International, Inc. emphasizes their commitment to delivering innovative solutions and technology-driven services to the energy and aerospace sectors. The company aims to utilize its expertise in subsea operations, robotics, and engineering to enhance operational efficiency and safety for its clients.
Key Components of the Mission Statement
- Focus on safety and environmental responsibility.
- Commitment to innovation and technological advancement.
- Enhancing operational efficiency for clients across various industries.
- Delivering high-quality services in subsea robotics and engineering solutions.
Financial Performance Metrics
As of September 30, 2024, Oceaneering International reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue (in thousands) | $679,811 | $635,180 | $1,947,711 | $1,770,077 |
| Operating Income (in thousands) | $71,333 | $57,929 | $168,390 | $133,878 |
| Net Income (in thousands) | $41,237 | $29,812 | $91,369 | $52,874 |
| Earnings per Share (Diluted) | $0.40 | $0.29 | $0.89 | $0.52 |
Business Segments and Performance
Oceaneering operates in several business segments, primarily focusing on the energy sector:
| Business Segment | Revenue (Q3 2024, in thousands) | Operating Income (Q3 2024, in thousands) | Operating Margin (%) |
|---|---|---|---|
| Subsea Robotics | $215,715 | $65,698 | 30% |
| Manufactured Products | $143,734 | $11,278 | 8% |
| Offshore Projects Group | $147,539 | $20,294 | 14% |
| Integrity Management & Digital Solutions | $73,622 | $714 | 1% |
| Aerospace and Defense Technologies | $99,201 | $12,219 | 12% |
Strategic Initiatives
In alignment with its mission, Oceaneering is focusing on various strategic initiatives:
- Enhancing capabilities in mobile robotics and clean energy solutions.
- Investing in technology development for improved service delivery.
- Expanding operations in offshore wind installations and nuclear sectors.
Conclusion of Financial Position
As of September 30, 2024, Oceaneering's consolidated total equity was reported at approximately $704 million, reflecting a commitment to maintaining financial stability while pursuing growth opportunities in various sectors.
How Oceaneering International, Inc. (OII) Works
Business Segments
Oceaneering International, Inc. operates through five primary business segments within two main categories: Energy and Aerospace and Defense Technologies (ADTech).
- Subsea Robotics
- Manufactured Products
- Offshore Projects Group
- Integrity Management & Digital Solutions
- Aerospace and Defense Technologies
Financial Performance
For the three months ended September 30, 2024, Oceaneering reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue (in thousands) | $679,811 | $635,180 | $1,947,711 | $1,770,077 |
| Operating Income (in thousands) | $71,333 | $57,929 | $168,390 | $133,878 |
| Net Income (in thousands) | $41,237 | $29,812 | $91,369 | $52,874 |
| Basic Earnings Per Share | $0.41 | $0.30 | $0.90 | $0.53 |
Revenue Breakdown by Segment
The following table illustrates the revenue and operating income for each segment for Q3 2024:
| Segment | Revenue (in thousands) | Operating Income (in thousands) | Operating Income % |
|---|---|---|---|
| Subsea Robotics | $215,715 | $65,698 | 30% |
| Manufactured Products | $143,734 | $11,278 | 8% |
| Offshore Projects Group | $147,539 | $20,294 | 14% |
| Integrity Management & Digital Solutions | $73,622 | $714 | 1% |
| Aerospace and Defense Technologies | $99,201 | $12,219 | 12% |
Operational Metrics
Oceaneering's Subsea Robotics segment reported the following operational metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| ROV Days Available | 23,000 |
| ROV Days Utilized | 15,796 |
| ROV Utilization Rate | 69% |
Cash Flow and Capital Expenditures
In the nine months ended September 30, 2024, Oceaneering reported cash flows and capital expenditures as follows:
| Metric | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $74,837 |
| Capital Expenditures | $73,262 |
| Growth Capital Expenditures | $37,000 |
| Maintenance Capital Expenditures | $36,000 |
Debt and Equity
As of September 30, 2024, Oceaneering's long-term debt and equity positions were as follows:
| Metric | Amount (in thousands) |
|---|---|
| Long-term Debt | $500,000 |
| Equity | $704,041 |
Oceaneering continues to focus on operational efficiency while adapting to market conditions and enhancing its service offerings across various sectors, including energy and defense.
How Oceaneering International, Inc. (OII) Makes Money
Overview of Revenue Streams
Oceaneering International, Inc. (OII) generates revenue through a diverse range of business segments primarily focused on the energy sector, along with aerospace and defense technologies. As of September 30, 2024, the company reported total revenue of $679.8 million for the third quarter and $1.95 billion for the nine months ending September 30, 2024.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Subsea Robotics | 215,715 | 197,343 | 617,632 | 553,016 |
| Manufactured Products | 143,734 | 122,877 | 412,501 | 360,698 |
| Offshore Projects Group | 147,539 | 150,273 | 406,651 | 385,127 |
| Integrity Management & Digital Solutions | 73,622 | 66,056 | 216,804 | 189,305 |
| Aerospace and Defense Technologies | 99,201 | 98,631 | 294,123 | 281,931 |
| Total | 679,811 | 635,180 | 1,947,711 | 1,770,077 |
Subsea Robotics Segment
The Subsea Robotics segment contributes significantly to OII's revenue, accounting for approximately 31.7% of total revenue in Q3 2024. This segment's revenue is driven by the deployment of remotely operated vehicles (ROVs) for various offshore operations, including inspection, maintenance, and repair services. The revenue from this segment for Q3 2024 was $215.7 million, reflecting an increase from $197.3 million in Q3 2023.
Key metrics include:
- ROV Days Utilized: 15,796
- ROV Days Available: 23,000
- ROV Utilization Rate: 69%
Manufactured Products Segment
The Manufactured Products segment focuses on providing subsea hardware and autonomous mobile robotic technology. Revenue for this segment reached $143.7 million in Q3 2024, compared to $122.9 million in Q3 2023. The increase is attributed to heightened demand and improved project execution.
Offshore Projects Group (OPG)
The OPG segment provides integrated subsea project capabilities, including installation and intervention services. Revenue for OPG was $147.5 million in Q3 2024, slightly down from $150.3 million in Q3 2023. The decline is primarily due to project mix changes and associated costs.
Integrity Management & Digital Solutions (IMDS)
IMDS focuses on asset integrity management and digital solutions for energy industries. Revenue for this segment was $73.6 million in Q3 2024, up from $66.1 million in Q3 2023. This growth reflects increased demand for inspection and testing services.
Aerospace and Defense Technologies (ADTech)
The ADTech segment provides services and products to U.S. government agencies. Revenue for ADTech was $99.2 million in Q3 2024, marginally up from $98.6 million in Q3 2023.
Operating Income and Profitability
Oceaneering's operating income for Q3 2024 was $71.3 million, with an operating margin of 10%. This represents an increase from $57.9 million in Q3 2023, driven by improved operational efficiency across segments.
| Segment | Q3 2024 Operating Income (in thousands) | Q3 2023 Operating Income (in thousands) |
|---|---|---|
| Subsea Robotics | 65,698 | 47,818 |
| Manufactured Products | 11,278 | 8,229 |
| Offshore Projects Group | 20,294 | 26,745 |
| Integrity Management & Digital Solutions | 714 | 3,242 |
| Aerospace and Defense Technologies | 12,219 | 14,140 |
| Total Operating Income | 71,333 | 57,929 |
Geographic Distribution of Revenue
Oceaneering operates globally, with notable revenues from the U.S. and various international markets. For Q3 2024, the revenue breakdown was:
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | 295,999 | 265,272 |
| Africa | 101,859 | 84,908 |
| United Kingdom | 93,378 | 55,375 |
| Norway | 56,418 | 45,410 |
| Brazil | 53,285 | 55,740 |
| Asia and Australia | 54,680 | 65,887 |
| Other | 24,192 | 62,588 |
| Total Revenue | 679,811 | 635,180 |
Future Growth Prospects
Oceaneering's future growth is supported by increased upstream spending in the energy sector, projected to enhance demand for its services and products. The company anticipates organic capital expenditures for 2024 to total between $110 million to $130 million, focused on expanding capabilities in subsea robotics and other innovative technologies.
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Article updated on 8 Nov 2024
Resources:
- Oceaneering International, Inc. (OII) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Oceaneering International, Inc. (OII)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Oceaneering International, Inc. (OII)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.