Oilfield services company Oceaneering International Inc. (OII - Free Report) has inked a deal with Italian oil and gas contractor Saipem.
Per the contract, Oceaneering will provide ten subsea production control umbilicals and two electrical power cables for the development of the Burullus West Delta Deep Marine Phase IXa project, which is based offshore Egypt. The umbilicals have a total length of roughly 84 kilometers (Km) whereas the cables recorded a length of 55 Km in total.
Oceaneering is planning to carry out the manufacturing work of the products at its facility, which is based in Rosyth, Scotland. The company will commence product manufacturing in the second quarter of 2013 with likely completion by the third quarter of 2014.
Recently, Oceaneering reported 1Q13 earnings per share of 69 cents, which came ahead of the Zacks Consensus Estimate of 59 cents. The beat was owing to robust performances from the Remotely Operated Vehicles and Subsea Products business units.
Houston, Texas-based Oceaneering primarily serves the global offshore oilfield industry by providing engineered products and services. The company also offers inspection works, subsea products and services. Moreover, Oceaneering provides technological skills to the aerospace and defence sectors.
Oceaneering currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
However, in the oilfield services sector, three firms that are expected to significantly outperform the broader U.S. equity market over the next one to three months are Exterran Holdings Inc. , Compagnie G (CGG - Free Report) and Dawson Geophysical Company (DWSN - Free Report) . All three firms currently retain a Zacks Rank #1 (Strong Buy).