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Oceaneering (OII) Incurs Narrower-Than-Expected Loss in Q2
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Oceaneering International, Inc. (OII - Free Report) reported second-quarter 2018 adjusted loss of 23 cents per share, narrower than the Zacks Consensus Estimate of loss of 26 cents. However, the bottom line compares unfavorably with the prior-year quarter earnings of 2 cents per share.
Total revenues of $478.7 million topped the Zacks Consensus Estimate of $446 million. However, the top line declined about 7% from $515 million in the prior-year quarter.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Remotely Operated Vehicles: This segment’s revenues were $107.4 million compared with $103.4 million in second-quarter 2017. The segment generated operating earnings of around $4.5 million compared with operating income of $10.4 million in the year-ago quarter. The results were adversely impacted by a shift in geographic mix, along with higher costs related to reactivation and mobilization of remotely operated vehicles.
Subsea Products: The segment’s revenues declined to $121.7 million from the prior-year quarter’s figure of $174.9 million. Operating income tumbled 78.2% to $2.3 million from $10.5 million generated in the second quarter of 2017. This deterioration was a result of reduced activities and increasing costs. Notably, the backlog of the segment came in at $245 million.
Subsea Projects: Revenues from this segment amounted to $78 million compared with $75.5 million recorded in the year-ago quarter. The segment incurred an operating loss of $10.4 million, backsliding from the operating income of $3 million recorded a year ago. Lower-than-expected margins and delayed projects affected the segment’s performance.
Asset Integrity: The segment’s revenues totaled $67.4 million, higher than the year-ago quarter’s recorded figure of $58.2 million. However, operating income declined to $3.4 million as a result of cost inefficiency from $3.8 million in the prior-year quarter.
Advanced Technologies: Revenues from this segment were around $104.1 million, higher than $103 million in second-quarter 2017 level amid higher government related work. As such, operating income rose to $7.9 million from $7.6 million in the year-ago quarter.
Balance Sheet
Capital expenditure in the second quarter was $27.8 million.
As of Jun 30, 2018, Oceaneering had cash and cash equivalents of $769.8 million and long-term debt of around $782.2 million. The debt-to-capitalization ratio of the company was 33.2%.
Updated Guidance
The company updated its full-year 2018 guidance and now expects EBITDA within $140-$160 million compared with the prior guidance band of $140-$180 million. At the midpoint of this range, the EBITDA would represent a 43.3% decline from 2017 levels.
Oceaneering now anticipates its capital expenditure between $100 million and $140 million compared with the prior guidance of $80-$100 million.
Zacks Rank & Key Picks
Oceaneering currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are China Petroleum and Chemical Corporation , also known as Sinopec, ConocoPhillips (COP - Free Report) , and Marathon Oil Corporation (MRO - Free Report) . While Sinopec sports a Zacks Rank #1(Strong Buy), ConocoPhillips and Marathon Oil carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production company. It pulled off an average positive earnings surprise of 27.59% in the last four quarters.
Marathon Oil, leading energy explorer, surpassed earnings estimates in three of the four trailing quarters with an average positive earnings surprise of 60.36%.
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Oceaneering (OII) Incurs Narrower-Than-Expected Loss in Q2
Oceaneering International, Inc. (OII - Free Report) reported second-quarter 2018 adjusted loss of 23 cents per share, narrower than the Zacks Consensus Estimate of loss of 26 cents. However, the bottom line compares unfavorably with the prior-year quarter earnings of 2 cents per share.
Total revenues of $478.7 million topped the Zacks Consensus Estimate of $446 million. However, the top line declined about 7% from $515 million in the prior-year quarter.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Oceaneering International, Inc. Price, Consensus and EPS Surprise | Oceaneering International, Inc. Quote
Segmental Information
Remotely Operated Vehicles: This segment’s revenues were $107.4 million compared with $103.4 million in second-quarter 2017. The segment generated operating earnings of around $4.5 million compared with operating income of $10.4 million in the year-ago quarter. The results were adversely impacted by a shift in geographic mix, along with higher costs related to reactivation and mobilization of remotely operated vehicles.
Subsea Products: The segment’s revenues declined to $121.7 million from the prior-year quarter’s figure of $174.9 million. Operating income tumbled 78.2% to $2.3 million from $10.5 million generated in the second quarter of 2017. This deterioration was a result of reduced activities and increasing costs. Notably, the backlog of the segment came in at $245 million.
Subsea Projects: Revenues from this segment amounted to $78 million compared with $75.5 million recorded in the year-ago quarter. The segment incurred an operating loss of $10.4 million, backsliding from the operating income of $3 million recorded a year ago. Lower-than-expected margins and delayed projects affected the segment’s performance.
Asset Integrity: The segment’s revenues totaled $67.4 million, higher than the year-ago quarter’s recorded figure of $58.2 million. However, operating income declined to $3.4 million as a result of cost inefficiency from $3.8 million in the prior-year quarter.
Advanced Technologies: Revenues from this segment were around $104.1 million, higher than $103 million in second-quarter 2017 level amid higher government related work. As such, operating income rose to $7.9 million from $7.6 million in the year-ago quarter.
Balance Sheet
Capital expenditure in the second quarter was $27.8 million.
As of Jun 30, 2018, Oceaneering had cash and cash equivalents of $769.8 million and long-term debt of around $782.2 million. The debt-to-capitalization ratio of the company was 33.2%.
Updated Guidance
The company updated its full-year 2018 guidance and now expects EBITDA within $140-$160 million compared with the prior guidance band of $140-$180 million. At the midpoint of this range, the EBITDA would represent a 43.3% decline from 2017 levels.
Oceaneering now anticipates its capital expenditure between $100 million and $140 million compared with the prior guidance of $80-$100 million.
Zacks Rank & Key Picks
Oceaneering currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are China Petroleum and Chemical Corporation , also known as Sinopec, ConocoPhillips (COP - Free Report) , and Marathon Oil Corporation (MRO - Free Report) . While Sinopec sports a Zacks Rank #1(Strong Buy), ConocoPhillips and Marathon Oil carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production company. It pulled off an average positive earnings surprise of 27.59% in the last four quarters.
Marathon Oil, leading energy explorer, surpassed earnings estimates in three of the four trailing quarters with an average positive earnings surprise of 60.36%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>