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Oceaneering International Eyes New Opportunities in Offshore Markets
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Key Takeaways
Brazil, Guyana and Africa drive international offshore growth, with Mozambique as a major drilling market.
OII's Subsea Robotics revenues rose 6% to $233 million, while operating income climbed 16% to $75.4 million.
OII initiated 2027 EBITDA guidance of $430M-$480M, with higher ROV utilization and better IMDS performance.
Oceaneering International, Inc. OII expects international offshore markets to provide growth opportunities in 2027, with Brazil, Guyana and Africa emerging as important regions for its business. Management sees rising deepwater activity and increased demand for subsea services supporting its outlook, while Mozambique could become a significant drilling market over the next few years.
During the third-quarter 2026 earnings call, president and CEO Roderick Larson highlighted Brazil, Guyana and other African markets as key areas of opportunity. He also pointed to the potential for Mozambique to experience drilling activity comparable to Guyana within the next one to two years.
These developments could support demand for Oceaneering's Subsea Robotics (“SSR”) and Offshore Projects Group (“OPG”) businesses as offshore operators expand their activities and develop deepwater resources.
Brazil, Guyana and Africa Offer Offshore Growth Opportunities
Management expects Brazil to remain an important market for Oceaneering in 2027. The company also sees continued growth opportunities in Guyana, where increasing offshore activity could support demand for remotely operated vehicles (ROVs), survey services and other subsea solutions.
Africa is another important region in the company's growth outlook. Larson highlighted opportunities across the continent, particularly in West Africa and Mozambique.
Management believes Mozambique could become a major offshore drilling market. Larson noted that the country could see as much drilling activity as Guyana within one to two years. Increased drilling activity in Mozambique would potentially create additional opportunities for Oceaneering's subsea services and offshore project operations.
The company also sees opportunities in the Eastern Mediterranean, although management described activity in the region as somewhat unpredictable because of geopolitical conditions. Oceaneering completed an offshore installation project in Egypt during 2026 and sees potential for additional work of a similar nature.
Norway also remains an important market. Management highlighted the potential for subsea tieback projects as operators look to develop existing offshore fields. Such projects can create demand for installation services, umbilicals and engineering solutions.
Subsea Robotics Business Supports Growth
Oceaneering's Subsea Robotics business could benefit from increased offshore activity across these international markets. The segment delivered revenues of $233 million in the third quarter of 2026, up from $219 million in the prior-year quarter.
Operating income increased 16% year over year to $75.4 million, while its EBITDA margin reached 39%. Improved ROV pricing in Europe, West Africa and Norway, along with higher survey activity, supported the segment's performance. Average ROV revenue per day utilized increased to $11,781 from $11,254 in the third quarter of 2026. Meanwhile, ROV fleet utilization remained at 65%.
The company also secured approximately $180 million in ROV and survey contracts across multiple regions during the quarter, with contract terms extending into 2031. As of Sept. 30, 2026, Oceaneering had ROV contracts on 80 of the 136 floating rigs under contract, representing a 59% market share. Its ROV fleet consisted of 250 systems. These contract awards and its established market position provide a foundation for the company to participate in future offshore development activity.
Oceaneering Initiates 2027 EBITDA Guidance
Oceaneering expects improved financial performance in 2027 as offshore energy markets strengthen and activity increases across its businesses. The company initiated full-year 2027 EBITDA guidance of $430-$480 million. Oceaneering also expects free cash flow generation to exceed its anticipated 2026 level. Within Subsea Robotics, management expects higher ROV utilization and similar pricing levels in 2027. Improved survey and tooling results are also expected to support higher revenues and operating income.
The company anticipates relatively flat revenue and operating income from Manufactured Products. For OPG, revenues are expected to decline, while operating income is projected to remain flat. However, improved project mix is expected to support higher operating margins.
Oceaneering also expects higher revenue and significantly improved operating income from its Integrity Management and Digital Solutions (“IMDS”) business. Its Aerospace and Defense Technologies segment is projected to deliver significantly higher revenues and operating income.
Management cautioned that the timing of offshore project starts and rig movements could influence its 2027 performance. The timing of government appropriations could also affect the pace of certain defense-related programs.
Bottom Line
Oceaneering's international exposure provides opportunities to benefit from higher offshore drilling and development activity in 2027. Brazil, Guyana, Mozambique and other African markets could support demand for its subsea robotics, survey and offshore installation services. OII’s $180 million in recent ROV and survey contract awards and initial 2027 EBITDA guidance of $430-$480 million provide additional visibility into its growth prospects. However, the timing of customer spending, offshore project starts and geopolitical developments remains important to monitor.
Marathon Petroleum is valued at $129.83 billion. The company is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. Marathon Petroleum benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.
Delek US Holdings is valued at $4.50 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Canadian Natural Resources is valued at $115.30 billion. It is an independent energy company. Canadian Natural Resources is engaged in the exploration, development, production and marketing of crude oil, natural gas and natural gas liquids.
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Oceaneering International Eyes New Opportunities in Offshore Markets
Key Takeaways
Oceaneering International, Inc. OII expects international offshore markets to provide growth opportunities in 2027, with Brazil, Guyana and Africa emerging as important regions for its business. Management sees rising deepwater activity and increased demand for subsea services supporting its outlook, while Mozambique could become a significant drilling market over the next few years.
During the third-quarter 2026 earnings call, president and CEO Roderick Larson highlighted Brazil, Guyana and other African markets as key areas of opportunity. He also pointed to the potential for Mozambique to experience drilling activity comparable to Guyana within the next one to two years.
These developments could support demand for Oceaneering's Subsea Robotics (“SSR”) and Offshore Projects Group (“OPG”) businesses as offshore operators expand their activities and develop deepwater resources.
Brazil, Guyana and Africa Offer Offshore Growth Opportunities
Management expects Brazil to remain an important market for Oceaneering in 2027. The company also sees continued growth opportunities in Guyana, where increasing offshore activity could support demand for remotely operated vehicles (ROVs), survey services and other subsea solutions.
Africa is another important region in the company's growth outlook. Larson highlighted opportunities across the continent, particularly in West Africa and Mozambique.
Management believes Mozambique could become a major offshore drilling market. Larson noted that the country could see as much drilling activity as Guyana within one to two years. Increased drilling activity in Mozambique would potentially create additional opportunities for Oceaneering's subsea services and offshore project operations.
The company also sees opportunities in the Eastern Mediterranean, although management described activity in the region as somewhat unpredictable because of geopolitical conditions. Oceaneering completed an offshore installation project in Egypt during 2026 and sees potential for additional work of a similar nature.
Norway also remains an important market. Management highlighted the potential for subsea tieback projects as operators look to develop existing offshore fields. Such projects can create demand for installation services, umbilicals and engineering solutions.
Subsea Robotics Business Supports Growth
Oceaneering's Subsea Robotics business could benefit from increased offshore activity across these international markets. The segment delivered revenues of $233 million in the third quarter of 2026, up from $219 million in the prior-year quarter.
Operating income increased 16% year over year to $75.4 million, while its EBITDA margin reached 39%. Improved ROV pricing in Europe, West Africa and Norway, along with higher survey activity, supported the segment's performance. Average ROV revenue per day utilized increased to $11,781 from $11,254 in the third quarter of 2026. Meanwhile, ROV fleet utilization remained at 65%.
The company also secured approximately $180 million in ROV and survey contracts across multiple regions during the quarter, with contract terms extending into 2031. As of Sept. 30, 2026, Oceaneering had ROV contracts on 80 of the 136 floating rigs under contract, representing a 59% market share. Its ROV fleet consisted of 250 systems. These contract awards and its established market position provide a foundation for the company to participate in future offshore development activity.
Oceaneering Initiates 2027 EBITDA Guidance
Oceaneering expects improved financial performance in 2027 as offshore energy markets strengthen and activity increases across its businesses. The company initiated full-year 2027 EBITDA guidance of $430-$480 million. Oceaneering also expects free cash flow generation to exceed its anticipated 2026 level. Within Subsea Robotics, management expects higher ROV utilization and similar pricing levels in 2027. Improved survey and tooling results are also expected to support higher revenues and operating income.
The company anticipates relatively flat revenue and operating income from Manufactured Products. For OPG, revenues are expected to decline, while operating income is projected to remain flat. However, improved project mix is expected to support higher operating margins.
Oceaneering also expects higher revenue and significantly improved operating income from its Integrity Management and Digital Solutions (“IMDS”) business. Its Aerospace and Defense Technologies segment is projected to deliver significantly higher revenues and operating income.
Management cautioned that the timing of offshore project starts and rig movements could influence its 2027 performance. The timing of government appropriations could also affect the pace of certain defense-related programs.
Bottom Line
Oceaneering's international exposure provides opportunities to benefit from higher offshore drilling and development activity in 2027. Brazil, Guyana, Mozambique and other African markets could support demand for its subsea robotics, survey and offshore installation services. OII’s $180 million in recent ROV and survey contract awards and initial 2027 EBITDA guidance of $430-$480 million provide additional visibility into its growth prospects. However, the timing of customer spending, offshore project starts and geopolitical developments remains important to monitor.
OII's Zacks Rank & Key Picks
Currently, OII carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might consider some better-ranked stocks, such as Marathon Petroleum (MPC - Free Report) , Delek US Holdings (DK - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is valued at $129.83 billion. The company is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. Marathon Petroleum benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.
Delek US Holdings is valued at $4.50 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Canadian Natural Resources is valued at $115.30 billion. It is an independent energy company. Canadian Natural Resources is engaged in the exploration, development, production and marketing of crude oil, natural gas and natural gas liquids.