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Oceaneering to Provide ROV Services to Leading Firm in Canada
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Oil field services player Oceaneering International Inc. (OII - Free Report) recently signed a deal with a leading energy firm to offer remotely operated vehicle services for the development of offshore projects in Newfoundland and Labrador in Canada. The identity of the company receiving services from Oceaneering was not disclosed.
Contract Details
Oceaneering is likely to provide two ROV units on a multi-function platform support vessel. The company is anticipated to offer its services to the customer up to 2026.
It is to be noted that the oil field services player will be responsible for subsea construction, maintenance and repair works and inspection activities on obtainable and future infrastructure.
Benefits
The aforesaid contract reflects Oceaneering’s ability to accomplish projects for valuable customers with minimal cost by utilizing highly advanced equipment as well as an experienced and trained workforce.
Also, the deal has expanded the company’s businesses in the Atlantic Canada. Oceaneering already has a huge project backlog, which reflects its potential to generate significant cash flows for shareholders in the long run.
About the Company
Headquartered in Houston, TX, Oceaneering primarily supports the leading offshore oil and gas industry with its innovative products and engineered services.
The company earnings surprise history is also impressive as it topped the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 115.67%.
However, the company’s debt-to-capitalization ratio is 34.7%, which is higher than 31.7% ratio for the Zacks categorized Oil & Gas-Field Services industry. Also, Oceaneering’s one-year pricing chart shows significant weaknesses as the company’s shares lost more than 26% as against 9.2% decline for the broader industry.
As a result, Oceaneering currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Canadian Natural sports a Zacks Rank #1 (Strong Buy), while McDermott and W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth for Canadian Natural to be 720% for 2017.
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
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Oceaneering to Provide ROV Services to Leading Firm in Canada
Oil field services player Oceaneering International Inc. (OII - Free Report) recently signed a deal with a leading energy firm to offer remotely operated vehicle services for the development of offshore projects in Newfoundland and Labrador in Canada. The identity of the company receiving services from Oceaneering was not disclosed.
Contract Details
Oceaneering is likely to provide two ROV units on a multi-function platform support vessel. The company is anticipated to offer its services to the customer up to 2026.
It is to be noted that the oil field services player will be responsible for subsea construction, maintenance and repair works and inspection activities on obtainable and future infrastructure.
Benefits
The aforesaid contract reflects Oceaneering’s ability to accomplish projects for valuable customers with minimal cost by utilizing highly advanced equipment as well as an experienced and trained workforce.
Also, the deal has expanded the company’s businesses in the Atlantic Canada. Oceaneering already has a huge project backlog, which reflects its potential to generate significant cash flows for shareholders in the long run.
About the Company
Headquartered in Houston, TX, Oceaneering primarily supports the leading offshore oil and gas industry with its innovative products and engineered services.
The company earnings surprise history is also impressive as it topped the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 115.67%.
However, the company’s debt-to-capitalization ratio is 34.7%, which is higher than 31.7% ratio for the Zacks categorized Oil & Gas-Field Services industry. Also, Oceaneering’s one-year pricing chart shows significant weaknesses as the company’s shares lost more than 26% as against 9.2% decline for the broader industry.
As a result, Oceaneering currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Canadian Natural sports a Zacks Rank #1 (Strong Buy), while McDermott and W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth for Canadian Natural to be 720% for 2017.
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>