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Oceaneering (OII) Wins Deals Worth $250M for IMDS Unit in Q4

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Oceaneering International, Inc. (OII - Free Report) registered quite a few multi-million dollar deal wins in the fourth quarter of 2020 for its Integrity Management and Digital Solutions unit (IMDS). These contracts, valued at more than $250 million, are obtained from major clients and operators and are mostly for a period of three to five years. Nearly 55% of the total contracts represent the extension of the existing deals while the remaining 45% reflects the brand-new businesses.

Per the agreements, the terms of activity involve software, data services, monitoring and diagnostic services, integrity management and remote integrity engineering. It also engages in remote and onsite assessment services for both onshore and offshore brownfield and greenfield projects. These contracts will cover places like Qatar, Angola, Azerbaijan, the United States and Australia with the sites including vessels, LNG plants, LNG storage facilities, terminals and production facilities.

Last September, Oceaneering split its business units into five operating segments, namely subsea robotics, manufactured products, offshore projects group, integrity management & digital solutions, and aerospace and defense technologies. This streamlining was done with a view to help the company improve its cost-minimization efforts, position it well to focus on the customer needs more efficiently and maximise its shareholder value.

Various deals from this IMDS segment managed to win the trust of those contracted operators who understand the significance of running operations at reasonable costs that Oceaneering already lives up to. Notably, the IMDS platform mainly constitutes the company’s Asset Integrity unit along with its global data solutions business (GDS) and is headed by senior vice president Kishore Sundararajan.

Company Summary & Price Performance

Founded in 1964, Oceaneering is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. Headquartered in Houston, TX, the company provides specialized products and services for all phases of the offshore oilfield lifecycle — from exploration to decommissioning — with a focus on deep water.

Shares of the company have outperformed the industry in the past three months. The stock has gained 150.4% compared with the industry’s 23.2% growth.

Zacks Rank & Key Picks

Oceaneering currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are DCP Midstream Partners, LP (DCP - Free Report) , Plains Group Holdings, L.P. (PAGP - Free Report) and Altus Midstream Company (ALTM - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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