Oceaneering Reports Record Fourth Quarter and Annual Earnings

        Oceaneering Reports Record Fourth Quarter and Annual Earnings

-- Reaffirms 2013 EPS Guidance of $3.00 to $3.25

PR Newswire

HOUSTON, Feb. 13, 2013

HOUSTON, Feb. 13, 2013 /PRNewswire/ -- Oceaneering International, Inc. (NYSE:
OII) today reported record fourth quarter and annual earnings for the periods
ended December 31, 2012.

For the fourth quarter of 2012, Oceaneering earned net income of
$80.6million, or $0.74 per share, on revenue of $780.9million. During the
corresponding period in 2011, net income was $58.3 million, or $0.54per
share, on revenue of $574.2 million. For the year 2012, Oceaneering reported
net income of $289.0 million, or $2.66 per share, on revenue of $2.8billion.
For the year 2011, net income was $235.7million, or $2.16 per share, on
revenue of $2.2billion.

Summary of Results
(in thousands, except per share amounts)

                         Three Months             Year
                        Ended Ended 
                         December 31,  Sept. 30,  December
                                                         31, 
                        2012        2011       2012      2012       2011
                                              
                        $780,949    $574,197             $2,782,604 $2,192,663
Revenue                                        $734,217
Gross Profit            172,528     130,746    170,869   627,858    508,759
Income from Operations  118,750     82,468     123,813   428,597    334,831
Net Income              $80,602     $58,317    $84,406   $289,017   $235,658
Diluted Earnings Per    $0.74       $0.54      $0.78     $2.66      $2.16
Share (EPS)

Year over year, annual EPS increased 23% due to record operating income from
our Remotely Operated Vehicles (ROV), Subsea Products, Asset Integrity, and
Advanced Technologies segments and the commencement of a three-year field
support vessel services contract offshore Angola. Quarterly EPS increased 37%
on income improvements from all operating business segments, led by Subsea
Products and Subsea Projects.

M. Kevin McEvoy, President and Chief Executive Officer, stated, "Our record
annual earnings of $289million and EPS of $2.66 were largely attributable to
our global focus on deepwater and subsea completion activity. Each of our
five operating business segments attained higher income than in 2011.

"We achieved record ROV operating income for the ninth consecutive year on
higher demand to provide drill support and vessel-based services, notably
offshore Africa and in the U.S. Gulf of Mexico (GOM), and expansion of our
fleet. We increased our days on hire by more than 9,000 to over 82,000 days
for the year. Our fleet utilization rose to 80% from 77% in 2011. During
2012 we put 37 new ROVs into service and retired 15. At year end we had 289
vehicles in our ROV fleet.

"Subsea Products operating income increased primarily on higher demand for
tooling. Products backlog at the end of 2012 was $681million, up 78% from
$382 million at the end of 2011. This backlog growth was largely attributable
to three large umbilical contracts we secured, which in total added nearly
$245 million to our backlog. One of these, the largest umbilical order in
Oceaneering's history, is for Petrobras' first large pre-salt project.

"Asset Integrity operating income improved in 2012 on higher service sales in
most of the major geographic areas we serve, particularly in Norway due to the
business acquisition we completed in December 2011. Subsea Projects operating
income increased due to recovering demand for our services in the GOM and the
work offshore Angola. Advanced Technologies profits were up on engineering
and vessel maintenance work for the U.S. Navy and theme park project activity.

"During 2012 our capital expenditures totaled $310 million, of which $198
million was spent on expanding and upgrading our ROV fleet. We invested $68
million in our Subsea Products business, largely to increase the capabilities
of our umbilical plants in Brazil and Scotland and to expand our rental
tooling operation. In addition to our capital expenditures, we repurchased
400,000 shares of our common stock for $19million and paid $75million of
cash dividends. In June we increased our regular quarterly cash dividend by
20% to $0.18 per common share.

"We are forecasting our 2013 EPS to be in the range of $3.00 to $3.25. We
anticipate continued global demand growth for our services and products 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 is at a historically high level. Consistent with our historical
seasonal earnings pattern, we are forecasting first quarter EPS of $0.55 to
$0.60.

"We expect all of our operating business segments will achieve higher income
in 2013 compared to 2012, notably: ROV on greater service demand to support
drilling and vessel-based projects; Subsea Products on higher demand for all
of our major product line categories, led by subsea hardware; and Subsea
Projects on a full year of work offshore Angola.

"Our liquidity and projected cash flow provide us with ample resources to
invest in Oceaneering's growth. At year end, our balance sheet remained
conservatively capitalized with $121 million of cash, $94 million of debt, and
$1.8 billion of equity. We generated slightly over $600 million of EBITDA
during 2012 and anticipate producing EBITDA of at least $675million in 2013.

"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 services and products
to safely support the 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: statements about
backlog, to the extent backlog may be an indicator of future revenue or
profitability; 2013 EPS guidance range; anticipated continued global demand
growth to support deepwater drilling, field development, and inspection,
maintenance, and repair activities; references to industry observations and
assessments that deepwater drilling is increasing and subsea equipment orders
are escalating; first quarter 2013 EPS guidance range; expectation that all of
its operating business segments will achieve higher income in 2013 compared to
2012, and the basis for such growth in ROV, Subsea Products, and Subsea
Projects; belief that its liquidity and projected cash flow provide ample
resources to invest in the company's growth; anticipated minimum 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
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 our 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, entertainment, 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
Thursday, February 14, 2013 at 11:00 a.m. Eastern, can be accessed at
www.oceaneering.com/investor-relations/.





OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                             
                                                              Dec. 31, 2011
                                             Dec. 31, 2012
                                              (in thousands)
ASSETS
   Current Assets (including cash and cash
   equivalents of $120,549
    and $106,142)                          $  1,202,990  $    
                                                              984,122
   Net Property and Equipment                 1,025,132       893,308
   Other Assets                               539,996         523,114
            TOTAL ASSETS                      $  2,768,118  $  
                                                              2,400,544
LIABILITIES AND SHAREHOLDERS' EQUITY
   Current Liabilities                       $            $    
                                              617,185         501,375
   Long-term Debt                             94,000          120,000
   Other Long-term Liabilities                241,473         221,207
   Shareholders' Equity                       1,815,460       1,557,962
            TOTAL LIABILITIES AND             $  2,768,118  $  
            SHAREHOLDERS' EQUITY                              2,400,544





CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                         For the Three Months Ended      For the Year Ended
                         Dec. 31    Dec. 31,   Sept.     Dec. 31,    Dec. 31,
                                               30,
                         2012       2011       2012      2012        2011
                         (in thousands, except per share amounts)
                         $         $       $      $        $  
Revenue                  780,949    574,197             2,782,604  2,192,663
                                               734,217
Cost of services         608,421    443,451    563,348   2,154,746   1,683,904
and products
Gross Profit             172,528    130,746    170,869   627,858     508,759
Selling, general
and administrative       53,778     48,278     47,056    199,261     173,928
expense
Income from              118,750    82,468     123,813   428,597     334,831
Operations
Interest income          573        428        824       1,935       888
Interest expense         (1,135)    (350)      (1,282)   (4,218)     (1,096)
Equity earnings of
unconsolidated           332        859        418       1,673       3,801
affiliates, net
Other income             (853)      1,792      (553)     (6,065)     (539)
(expense), net
Income before            117,667    85,197     123,220   421,922     337,885
Income Taxes
Provision for            37,065     26,880     38,814    132,905     102,227
income taxes
                         $        $      $      $       $   
Net Income               80,602    58,317              289,017   235,658
                                               84,406
Weighted Average
Number of Diluted        108,558    108,671    108,500   108,617     109,001
Common Shares
Diluted Earnings         $0.74      $0.54      $0.78     $2.66       $2.16
per 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 Year Ended
                               Dec. 31,   Dec. 31,  Sept. 30, Dec. 31,    Dec. 31,
                               2012       2011      2012      2012        2011
                               ($ in thousands)
 Remotely                      $         $      $     $       $   
 Operated     Revenue          226,098    200,681   224,649    853,520   755,033
 Vehicles
              Gross Profit     $        $      $     $       $   
                               72,836     69,298   76,524  289,929   260,287
              Operating        $        $      $     $       $   
              income           61,147     59,100   66,724  248,972   224,705
              Operating        27%        29%       30%       29%         30%
              margin
              Days             26,599     24,277    26,198    102,225     94,999
              available
              Utilization      79%        79%       81%       80%         77%
 Subsea       Revenue          $         $      $     $       $   
 Products                      249,553    196,987   215,617    829,034   770,212
              Gross Profit     $        $      $     $       $   
                               72,196     53,285   67,651  241,240   207,804
              Operating        $        $      $     $       $   
              income           53,866     36,743   50,841  170,959   142,184
              Operating        22%        19%       24%       21%         18%
              margin
              Backlog          $         $      $     $       $   
                               681,000    382,000   619,000    681,000   382,000
 Subsea       Revenue          $         $      $     $       $   
 Projects                      114,728     45,263  101,719    379,571   167,477
                               $        $      $     $       $    
              Gross Profit     26,682             22,202   80,944   42,004
                                          9,108
              Operating        $        $      $     $       $    
              income           22,160             17,765   63,461   32,662
                                          6,769
              Operating        19%        15%       17%       17%         20%
              margin
 Asset        Revenue          $         $      $     $       $   
 Integrity                     114,677     66,826  113,588    435,381   266,577
              Gross Profit     $        $      $     $       $    
                               14,465     10,888   20,457   71,100   46,109
              Operating        $       $      $     $       $    
              income           7,658              14,556   45,196   30,560
                                          6,473
              Operating        7%         10%       13%       10%         11%
              margin
 Advanced     Revenue          $        $      $     $       $   
 Technologies                  75,893     64,440   78,644  285,098   233,364
                               $        $      $     $       $    
              Gross Profit     10,279                      38,681   33,774
                                          9,688     9,753
              Operating        $       $      $     $       $    
              income           5,635                       21,182   16,661
                                          5,215     5,393
              Operating        7%         8%        7%        7%          7%
              margin
 Unallocated                   $         $      $     $       $    
 Expenses     Gross Profit     (23,930)  (21,521)  (25,718)            (81,219)
                                                              (94,036)
              Operating        $         $      $     $       $   
              income           (31,716)  (31,832)  (31,466) (121,173)   (111,941)
 TOTAL        Revenue          $         $      $     $        $  
                               780,949    574,197   734,217   2,782,604  2,192,663
              Gross Profit     $         $      $     $       $   
                               172,528    130,746   170,869    627,858   508,759
              Operating        $         $      $     $       $   
              income           118,750     82,468  123,813    428,597   334,831
              Operating        15%        14%       17%       15%         15%
              margin
SELECTED CASH FLOW
INFORMATION
              Capital
              expenditures,    $        $      $     $       $   
              including        84,050    308,998    64,957  309,858   526,645
              acquisitions
              Depreciation     $        $      $     $       $   
              and              49,410     38,479   44,839  176,483   151,227
              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 Year
                                                             Ended
                                 Dec. 31,  Dec. 31,  Sept.   Dec.     Dec. 31,
                                                     30,     31,
                                 2012      2011      2012    2012     2011
                                 (in thousands)
  Earnings Before Interest,
  Tax, Depreciation and
  Amortization
  (EBITDA)
                                 $       $      $    $     $   
               Net Income        80,602    58,317               235,658
                                                     84,406 289,017
               Depreciation
               and               49,410    38,479    44,839  176,483  151,227
               Amortization
               Subtotal          130,012   96,796    129,245 465,500  386,885
               Interest          562       (78)      458     2,283    208
               Expense, Net
               Provision for     37,065    26,880    38,814  132,905  102,227
               Income Taxes
                                 $        $      $    $     $   
               EBITDA            167,639   123,598                 489,320
                                                     168,517 600,688
                                 2013 Estimates
                                 Low       High
                                 (in thousands)
               Net Income        $        $   
                                 325,000   355,000
               Depreciation
               and               200,000   210,000
               Amortization
               Subtotal          525,000   565,000
               Interest          -         -
               Expense, Net
               Provision for     150,000   165,000
               Income Taxes
               EBITDA            $        $   
                                 675,000   730,000

SOURCE Oceaneering International, Inc.

Website: http://www.oceaneering.com
 
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