Oceaneering Announces Record First Quarter Earnings

             Oceaneering Announces Record First Quarter Earnings

-- Reports First Quarter 2013 EPS Above Guidance

-- Raises 2013 EPS Guidance Range to $3.10 to $3.30

-- Initiates Second Quarter 2013 EPS Guidance of $0.81 to $0.86

PR Newswire

HOUSTON, April 23, 2013

HOUSTON, April 23, 2013 /PRNewswire/ -- Oceaneering International, Inc.
(NYSE:OII) today reported record first quarter earnings for the period ended
March 31, 2013.

On revenue of $718.6million, Oceaneering generated net income of $74.8
million, or $0.69per share. During the corresponding period in 2012,
Oceaneering reported revenue of $594.9million and net income of $51.5
million, or $0.47per share.

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


                               

                                Three Months
                               Ended
                                March 31,   Dec. 31,
                               2013              2012              2012
Revenue                        $718,552          $594,893          $780,949
Gross Profit                   160,375           123,303           172,528
Income from Operations         108,290           75,987            118,750
Net Income                     74,849            51,455            $80,602
Diluted Earnings Per Share     $0.69             $0.47             $0.74
(EPS)

Year over year, quarterly EPS increased 47% on income improvements from all
operating business segments, led by Remotely Operated Vehicles (ROV) and
Subsea Products. Sequentially, quarterly EPS declined, as anticipated,
because of a reduction in operating income from Subsea Products as a result of
project timing and Subsea Projects due to seasonality in the U.S. Gulf of
Mexico (GOM).

M. Kevin McEvoy, President and Chief Executive Officer, stated, "Our first
quarter EPS was above our guidance range as we are off to a
faster-than-expected start to the year. This was, to a large extent,
attributable to an acceleration of the timing of forecasted work in our Asset
Integrity and Advanced Technologies businesses. All of our business segments
performed well, with Advanced Technologies achieving record quarterly
operating income.

"Year over year, quarterly ROV operating income improved on the strength of a
13% increase in days on hire, particularly in the GOM and offshore Africa.
Our fleet utilization increased to 83% from 79% a year ago. During the
quarter we put six new systems into service and retired one. At the end of
the quarter we had 294 vehicles in our ROV fleet, an increase of 24 from March
2012. For the balance of 2013, we expect to place 24 to 29 more new systems
into service.

"Subsea Products operating income was higher due to improved demand for all of
our major product lines. Our Subsea Products backlog at quarter-end was
$776million, compared to $402 million at the end of March 2012 and $681
million at the end of December 2012.

"Subsea Projects operating income increased on a full quarter of work on a
field support vessel services contract offshore Angola, which commenced in
February 2012. Asset Integrity operating income improved on increased service
demand in most geographic areas in which we operate. Furthermore, during the
first quarter of 2012, Asset Integrity results were adversely affected by a
low profit contribution from operations acquired in December 2011 and poor
execution on a job in the U.S. Advanced Technologies operating income was
higher in 2013 on an increase in work and operational efficiency on theme park
projects and submarine maintenance activity for the U.S. Navy.

"Our outlook for the rest of this year remains very positive. We continue to
anticipate global demand growth for our services and products to support
deepwater drilling, field development, and inspection, maintenance, and repair
activities. 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 lines, led by subsea hardware; and
Subsea Projects on a full year of work offshore Angola.

"Given this outlook and our first quarter earnings performance, we are raising
our annual 2013 EPSguidance. Our newguidance range is $3.10 to $3.30, up
from $3.00 to $3.25 previously. For the second quarter of 2013, we expect
improvements in demand and operating results for all of our oilfield business
segments. We are forecasting EPS of $0.81 to $0.86.

"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 $128million of cash, $90 million of
debt, and $1.8 billion of equity. During the quarter we generated EBITDA of
$160 million and for 2013 we anticipate generating at least $690 million of
EBITDA. We fully intend to pursue organic growth and acquisition
opportunities to expand Oceaneering's asset base and earnings capability.

"Today we announced a 22% increase in our regular quarterly cash dividend to
$0.22 from $0.18 per share. This underscores our confidence in Oceaneering's
financial strength and future business prospects.

"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: expected number of
ROVs to be placed in service in 2013; statements about backlog, to the extent
backlog may be an indicator of future revenue or profitability; positive
outlook for the rest of 2013; continued anticipation of global demand growth
to support deepwater drilling, field development, and inspection, maintenance,
and repair activities; 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; 2013 EPS guidance range;
expectation of improvements in demand and operating results for all oilfield
business segments in the second quarter of 2013; second quarter 2013 EPS
guidance range; belief that its liquidity and projected cash flow provide
ample resources to invest in the company's growth; anticipated minimum 2013
EBITDA; stated intent to pursue organic growth and acquisition opportunities
to expand its asset base and earnings capability; confidence in its financial
strength and future business prospects; 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
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 schedule.

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 Wednesday, April 24,
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
                                                    Mar 31, 2013  Dec 31, 2012
                                                    (in thousands)
ASSETS
   Current Assets
   (including cash and                              $ 1,191,025   $ 1,202,990
   cash equivalents of
   $127,990 and $120,549)
   Net Property and                                 1,060,190     1,025,132
   Equipment
   Other Assets                                     520,406       539,996
        TOTAL ASSETS                                $ 2,771,621   $ 2,768,118
LIABILITIES AND SHAREHOLDERS' EQUITY
   Current Liabilities                              $ 598,239     $ 617,185
   Long-term Debt                                   90,000        94,000
   Other Long-term                                  249,308       241,473
   Liabilities
   Shareholders' Equity                             1,834,074     1,815,460
        TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 2,771,621   $ 2,768,118
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                      For the Three Months Ended
                                      Mar 31, 2013  Mar 31, 2012  Dec 31, 2012
                                      (in thousands, except per share amounts)
   Revenue                            $  718,552    $ 594,893     $ 780,949
   Cost of services and               558,177       471,590       608,421
   products
        Gross Profit                  160,375       123,303       172,528
   Selling, general and               52,085        47,316        53,778
   administrative expense
        Income from                   108,290       75,987        118,750
        Operations
   Interest income                    190           344           573
   Interest expense                   (763)         (545)         (1,135)
   Equity earnings of
   unconsolidated affiliates,         161           804           332
   net
   Other income (expense),            1,390         (1,473)       (853)
   net
        Income before                 109,268       75,117        117,667
        income taxes
   Provision for income               34,419        23,662        37,065
   taxes
        Net Income                    $  74,849     $ 51,455      $ 80,602
Weighted Average Number of            108,612       108,761       108,558
Diluted Common Shares
Diluted Earnings per Share            $0.69         $0.47         $0.74
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
                                        Mar 31, 2013  Mar 31,      Dec 31,
                                                      2012         2012
                                        ($ in thousands)
Remotely Operated Revenue               $  229,628    $ 193,971    $ 226,098
Vehicles
                  Gross Profit          $  76,154     $ 66,392     $ 72,836
                  Operating income      $  65,835     $ 56,933     $ 61,147
                  Operating margin      29%           29%          27%
                  Days available        26,215        24,246       26,599
                  Utilization           83%           79%          79%
Subsea            Revenue               $  214,005    $ 172,081    $ 249,553
Products
                  Gross Profit          $  62,345     $ 46,781     $ 72,196
                  Operating income      $  42,779     $ 29,510     $ 53,866
                  Operating margin      20%           17%          22%
                  Backlog               $  776,000    $ 402,000    $ 681,000
Subsea            Revenue               $  88,455     $ 72,676     $ 114,728
Projects
                  Gross Profit          $  14,921     $ 11,911     $ 26,682
                  Operating income      $  11,620     $ 7,567      $ 22,160
                  Operating margin      13%           10%          19%
Asset             Revenue               $  114,849    $ 93,456     $ 114,677
Integrity
                  Gross Profit          $  19,039     $ 12,230     $ 14,465
                  Operating income      $  12,339     $ 6,538      $ 7,658
                  Operating margin      11%           7%           7%
Advanced          Revenue               $  71,615     $ 62,709     $ 75,893
Technologies
                  Gross Profit          $  13,308     $ 7,723      $ 10,279
                  Operating income      $  8,676      $ 3,509      $ 5,635
                  Operating margin      12%           6%           7%
Unallocated       Gross Profit          $  (25,392)   $ (21,734)   $ (23,930)
Expenses
                  Operating income      $  (32,959)   $ (28,070)   $ (31,716)
TOTAL             Revenue               $  718,552    $ 594,893    $ 780,949
                  Gross Profit          $  160,375    $ 123,303    $ 172,528
                  Operating income      $  108,290    $ 75,987     $ 118,750
                  Operating margin      15%           13%          15%
SELECTED CASH
FLOW INFORMATION
               Capital expenditures,
               including                $  94,177     $ 92,677     $ 84,050
               acquisitions
               Depreciation and         $  49,852     $ 40,588     $ 49,410
               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
                                      Mar 31, 2013  Mar 31, 2012  Dec 31, 2012
                                      (in thousands)
 Earnings Before Interest,
 Taxes, Depreciation and
 Amortization (EBITDA)
     Net Income                       $  74,849     $  51,455     $  80,602
     Depreciation and                 49,852        40,588        49,410
     Amortization
     Subtotal                         124,701       92,043        130,012
     Interest Expense, Net            573           201           562
     Provision for Income Taxes       34,419        23,662        37,065
     EBITDA                           $  159,693    $  115,906    $  167,639
                                      2013 Estimates
                                      Low           High
                                      (in thousands)
     Net Income                       $  335,000    $  360,000
     Depreciation and                 200,000       210,000
     Amortization
     Subtotal                         535,000       570,000
     Interest Income/Expense,         —             —
     Net
     Provision for Income Taxes       155,000       165,000
     EBITDA                           $  690,000    $  735,000

SOURCE Oceaneering International, Inc.

Website: http://www.oceaneering.com
 
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