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Oceaneering Reports Record Quarterly Earnings

                Oceaneering Reports Record Quarterly Earnings

-- Initiates 2013 EPS guidance range of $3.00 to $3.25

PR Newswire

HOUSTON, Oct. 29, 2012

HOUSTON, Oct. 29, 2012 /PRNewswire/ -- Oceaneering International, Inc.
(NYSE:OII) today reported record earnings for the third quarter ended
September 30, 2012. On revenue of $734million, Oceaneering generated net
income of $84.4million, or $0.78per share.

For the third quarter of 2011, Oceaneering reported revenue of $602 million
and net income of $78.6million, or $0.72per share. The 2011 results
included an $18.3 million pre-tax gain in Subsea Projects, $11.9million after
tax using an incremental tax rate of 35%, on the sale of a mobile offshore
production system and $4.9 million of tax benefits principally related to
prior years. For the second quarter of 2012, Oceaneering reported revenue of
$673million and net income of $72.6million, or $0.67per share.

Summary of Results

(in thousands, except per share amounts)
                            Three Months  Nine Months
                           Ended             Ended 
                            September  June   September
                           30,           30,     30, 
                           2012      2011     2012     2012        2011
Revenue                    $734,217  $602,208 $672,545 $2,001,655  $1,618,466
Gross Profit               170,869   153,096  161,158  455,330     378,013
Income from Operations     123,813   109,622  110,047  309,847     252,363
Net Income                 $84,406   $78,578  $72,554  $208,415    $177,341
Diluted Earnings Per Share $0.78     $0.72    $0.67    $1.92       $1.63

Sequentially, quarterly earnings were higher on record operating income from
Remotely Operated Vehicles (ROV) and Subsea Products. Year over year,
earnings increased on operating income improvements from ROV, Subsea Products,
and Asset Integrity.

M. Kevin McEvoy, President and Chief Executive Officer, stated, "Our quarterly
performance demonstrates the rising demand we are experiencing for our subsea
services and products. Overall, our operations performed within expectations
and we remain on track to achieve record EPS for the year.

"Compared to the second quarter of 2012, ROV operating income increased on the
strength of higher global demand to provide drill support and vessel-based
services. Our ROV days on hire for the quarter increased to an all-time high
of over 21,000. Subsea Products operating income improved on increased profit
contributions from all of our major product line categories, led by
Installation and Workover Control System (IWOCS) services and subsea
hardware. Products operating margin for the quarter rose to a record 24%, due
to higher profitability on IWOCS services and sales of subsea hardware and
umbilicals. Subsea Products backlog at quarter-end was $619million,
comparable to our June 30 backlog of $621million and up from $403million one
year ago.

"We are narrowing our 2012 EPS guidance range to $2.60 to $2.65, up slightly
at the midpoint from last quarter. For the fourth quarter of 2012 we are
projecting EPS of $0.68 to $0.73.

"We are initiating 2013 EPS guidance with a range of $3.00 to $3.25, up nearly
20% at the midpoint over our expectation for 2012. For our services and
products, we anticipate continued global demand growth to support deepwater
drilling, field development, and inspection, maintenance, and repair
activities. This market outlook is supported by industry observations and
assessments that deepwater drilling is increasing, subsea equipment orders are
escalating, and backlog to perform offshore construction projects are at a
record high level.

"Compared to 2012, we anticipate all of our segments will have higher
operating income in 2013: ROV on greater service demand to support drilling
and vessel-based projects; Subsea Products on higher subsea hardware and
tooling sales, and increased throughput at our umbilical plants; and Subsea
Projects on a full year of work on the field support services contract for BP
offshore Angola.

"Our liquidity and projected cash flow provide us with ample resources to
invest in Oceaneering's growth. At the end of the quarter, our balance sheet
remained conservatively capitalized with $104million of cash, $120 million of
debt, and $1.7 billion of equity. We generated EBITDA of $169million during
the quarter and $433 million year to date. For 2012 and 2013, we anticipate
generating EBITDA of at least $590 million and $670 million, respectively.

"Looking beyond 2013, our belief that the oil and gas industry will continue
to invest in deepwater projects remains unchanged. Deepwater remains one of
the best frontiers for adding large hydrocarbon reserves with high production
flow rates at relatively low finding and development costs. With our existing
assets, we are well positioned to supply a wide range of the services and
products required to support safe deepwater efforts of our customers."

Statements in this press release that express a belief, expectation, or
intention are forward looking. The forward-looking statements in this press
release include the statements concerning Oceaneering's: track to achieve
record EPS for 2012; statements about backlog, to the extent backlog may be an
indicator of future revenue or profitability; 2012 EPS guidance range;
projected fourth quarter 2012 EPS; 2013 EPS guidance range; anticipated
continued global demand growth for its services and products; anticipated
operating income growth for all of its segments in 2013 relative to 2012, and
the basis for such growth in ROVs, Subsea Products, and Subsea Projects;
anticipated 2012 and 2013 EBITDA; belief that the oil and gas industry will
continue to invest in deepwater projects; and belief that deepwater remains
one of the best frontiers for adding large hydrocarbon reserves with high
production flow rates at relatively low finding and development costs. These
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and are based on current
information and expectations of Oceaneering that involve a number of risks,
uncertainties, and assumptions. Should one or more of these risks or
uncertainties materialize, or should the assumptions underlying the
forward-looking statements prove incorrect, actual outcomes could vary
materially from those indicated. For a more complete discussion of these risk
factors, please see Oceaneering's latest annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q filed with the Securities and
Exchange Commission.

We define EBITDA as net income plus provision for income taxes, interest
income/expense, net, and, depreciation and amortization. EBITDA is a non-GAAP
financial measure. We have included EBITDA disclosures in this press release
because EBITDA is widely used by investors for valuation and comparing our
financial performance with the performance of other companies in our
industry. Our presentation of EBITDA may not be comparable to similarly
titled measures other companies report. Non-GAAP financial measures should be
viewed in addition to and not as an alternative for our reported operating
results or cash flow from operations or any other measure of performance as
determined in accordance with GAAP. For a reconciliation of these EBITDA
amounts to the most directly comparable GAAP financial measures, please see
the attached schedules.

Oceaneering is a global oilfield provider of engineered services and products,
primarily to the offshore oil and gas industry, with a focus on deepwater
applications. Through the use of its applied technology expertise,
Oceaneering also serves the defense and aerospace industries.

For further information, please contact Jack Jurkoshek, Director Investor
Relations, Oceaneering International, Inc., 11911 FM 529, Houston, Texas
77041; Telephone 713-329-4670; E‑Mailinvestorrelations@oceaneering.com. A
live webcast of the company's earnings release conference call, scheduled for
Tuesday, October 30, 2012 at 11:00 a.m. Eastern, can be accessed at
www.oceaneering.com/investor-relations/.





OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                           Sept. 30, 2012    Dec. 31, 2011
                                           (in thousands)
ASSETS
   Current Assets (including cash and cash
   equivalents of $103,638
    and $106,142)                       $              $    
                                           1,176,845         984,122
   Net Property and Equipment              989,356           893,308
   Other Assets                            530,651           523,114
        TOTAL ASSETS                       $              $  
                                           2,696,852         2,400,544
LIABILITIES AND SHAREHOLDERS' EQUITY
   Current Liabilities                    $             $    
                                           615,353          501,375
   Long-term Debt                          120,000           120,000
   Other Long-term Liabilities             227,263           221,207
   Shareholders' Equity                    1,734,236         1,557,962
        TOTAL LIABILITIES AND              $              $  
        SHAREHOLDERS' EQUITY               2,696,852         2,400,544

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                         For the Three Months Ended    For the Nine Months
                                                       Ended
                         Sept.    Sept. 30,  Jun. 30,  Sept. 30,     Sept. 30,
                         30,
                         2012     2011       2012      2012          2011
                         (in thousands, except per share amounts)
Revenue                  $       $         $        $            $ 
                         734,217  602,208   672,545   2,001,655     1,618,466
Cost of services and     563,348  449,112    511,387   1,546,325     1,240,453
products
Gross Profit             170,869  153,096    161,158   455,330       378,013
Selling, general and     47,056   43,474     51,111    145,483       125,650
administrative expense
Income from Operations   123,813  109,622    110,047   309,847       252,363
Interest income          824      204        194       1,362         460
Interest expense         (1,282)  (387)      (1,256)   (3,083)       (746)
Equity earnings of
unconsolidated           418      1,042      119       1,341         2,942
affiliates
Other expense, net       (553)    (1,973)    (3,186)   (5,212)       (2,331)
Income before Income     123,220  108,508    105,918   304,255       252,688
Taxes
Provision for income     38,814   29,930     33,364    95,840        75,347
taxes
Net Income               $        $ 78,578  $         $ 208,415    $ 
                         84,406             72,554                 177,341
Weighted Average Number  108,500  108,928    108,663   108,637       109,114
of Diluted Common Shares
Diluted Earnings per     $0.78    $0.72      $0.67     $1.92         $1.63
Share
The above Condensed Consolidated Balance Sheets and Condensed Consolidated
Statements of Income should be read in conjunction with the Company's latest
Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

SEGMENT INFORMATION
                             For the Three Months Ended      For the Nine Months
                                                             Ended
                             Sept.     Sept. 30,  Jun. 30,   Sept. 30,   Sept. 30,
                             30,
                             2012      2011       2012       2012        2011
                             ($ in thousands)
 Remotely                    $        $         $          $         $ 
 Operated     Revenue        224,649   200,927    208,802   627,422     554,352
 Vehicles
              Gross Profit   $       $        $         $         $ 
                             76,524    69,052     74,177    217,093     190,989
              Operating      $       $        $         $         $ 
              Income         66,724    60,054     64,168    187,825     165,605
              Operating      30%       30%        31%        30%         30%
              margin
              Days           26,198    23,719     25,182     75,626      70,722
              available
              Utilization    81%       80%        81%        81%         76%
 Subsea       Revenue        $        $         $ 191,783  $         $ 
 Products                    215,617   220,107              579,481     573,225
              Gross Profit   $       $        $         $         $ 
                             67,651    57,798    54,612     169,044     154,519
              Operating      $       $        $         $         $ 
              Income         50,841    41,489    36,742     117,093     105,441
              Operating      24%       19%        19%        20%         18%
              margin
              Backlog        $        $         $ 621,000  $         $ 
                             619,000   403,000              619,000     403,000
 Subsea       Revenue        $        $        $         $         $ 
 Projects                    101,719   49,912    90,448     264,843     122,214
              Gross Profit   $       $        $         $        $  
                             22,202    23,326    20,149     54,262      32,896
              Operating      $       $        $         $        $  
              Income         17,765    20,983    15,969     41,301      25,893
              Operating      17%       42%        18%        16%         21%
              margin
 Asset        Revenue        $        $        $ 113,660  $         $ 
 Integrity                   113,588   71,633               320,704     199,751
              Gross Profit   $       $        $         $        $  
                             20,457    12,879    23,948     56,635      35,221
              Operating      $       $       $         $        $  
              Income         14,556    8,858     16,444     37,538      24,087
              Operating      13%       12%        14%        12%         12%
              margin
 Advanced     Revenue        $        $        $         $         $ 
 Technologies                78,644   59,629    67,852     209,205     168,924
              Gross Profit   $       $        $         $        $  
                             9,753    10,517    10,926     28,402      24,086
              Operating      $       $       $        $        $  
              Income         5,393    5,769     6,645      15,547      11,446
              Operating      7%        10%        10%        7%          7%
              margin
 Unallocated  Gross Profit   $        $         $          $         $  
 Expenses                    (25,718)  (20,476)  (22,654)  (70,106)    (59,698)
              Operating      $        $         $          $         $  
              Income         (31,466)  (27,531)  (29,921)  (89,457)    (80,109)
 TOTAL        Revenue        $        $         $          $           $
                             734,217   602,208   672,545   2,001,655  1,618,466
              Gross Profit   $        $         $          $         $  
                             170,869   153,096   161,158   455,330     378,013
              Operating      $        $         $          $         $  
              Income         123,813   109,622   110,047   309,847     252,363
              Operating      17%       18%        16%        15%         16%
              margin
SELECTED CASH FLOW
INFORMATION
              Capital
              expenditures,  $       $         $ 68,174  $          $ 
              including      64,957    49,885               225,808     217,647
              acquisitions
              Depreciation   $       $                    $          $ 
              and            44,839    39,603    $ 41,646  127,073     112,748
              Amortization
 The above should be read in conjunction with the Company's latest Annual Report on
 Form 10-K and Quarterly Report on Form 10-Q.

RECONCILIATION of GAAP to NON-GAAP FINANCIAL INFORMATION
                         For the Three Months Ended    For the Nine Months
                                                       Ended
                         Sept. 30,  Sept.    Jun. 30,    Sept. 30,
                                    30,                Sept. 30,
                         2012       2011     2012      2012         2011
                         ($ in thousands)
Earnings Before Interest, Taxes,
Depreciation
and Amortization
(EBITDA)
  Net Income             $        $       $       $  208,415  $ 
                         84,406    78,578  72,554                 177,341
  Depreciation and       44,839     39,603   41,646    127,073      112,748
  Amortization
  Subtotal               129,245    118,181  114,200   335,488      290,089
  Interest               458        183      1,062     1,721        286
  Income/Expense, Net
  Provision for Income   38,814     29,930   33,364    95,840       75,347
  Taxes
  EBITDA                 $         $       $        $  433,049  $ 
                         168,517   148,294  148,626                365,722
                         2012 Estimates                2013 Estimates
                         Low        High               Low          High
                         ($ in thousands)              ($ in thousands)
  Net Income             $         $                $  325,000  $ 
                         285,000   290,000                         355,000
  Depreciation and       175,000    175,000            195,000      205,000
  Amortization
  Subtotal               460,000    465,000            520,000      560,000
  Interest               -          -                  -            -
  Income/Expense, Net
  Provision for Income   130,000    135,000            150,000      165,000
  Taxes
  EBITDA                 $         $                 $  670,000  $ 
                         590,000   600,000                         725,000

SOURCE Oceaneering International, Inc.

Website: http://www.oceaneering.com
 
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