Oceaneering Ups Profits

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Subsea engineering specialist, Oceaneering, has reported increased earnings for the fourth quarter of 2014, driven by Remotely Operated Vehicles (ROV), Subsea Projects, and Advanced Technologies.

The company earned net income of $102.5 million, or $0.99 per share, compared to $93.4 million, or $0.86 per share, for the corresponding period in 2013

Revenue for the fourth quarter 2014 was at $918.9 million, versus $894.8 million same time last year.

For the year 2014, Oceaneering reported net income of $428.3 million, or $4.00 per share, on revenue of $3.7 billion. For the year 2013, net income was $371.5 million, or $3.42 per share, on revenue of $3.3 billion.

Annual earnings increased on the strength of best ever performances by our ROV, Subsea Products, and Subsea Projects business segments.

M. Kevin McEvoy, President and Chief Executive Officer, stated: “Results for the fourth quarter and the year were exemplary as we achieved record EPS in each period. At $4.00 our EPS for 2014 was up 17% over 2013, and we realized the highest annual operating income margin in our history. These exceptional results are largely attributable to our global focus on deepwater and subsea completion activity and solid operational execution.”

Oceaneering boss also said that the company will be faced with a slowdown in deepwater activity due to drop in oil prices, and that due to capex slashing by the company’s customers, 2015 earning prospects will be impacted.

“Compared to 2014, our revised 2015 forecast assumptions are that demand and pricing for many of the services and products we offer will be down. Consequently, we are projecting that all of our oilfield business segments will have lower operating income in 2015 than in 2014. We are resetting our 2015 EPS guidance to a range of $3.10 to $3.50 on an estimated number of 100.3 million diluted common shares outstanding. Our EPS range includes the impact of right-sizing and cost reduction initiatives we have underway. And, we will take further measures if demand falls short of our expected levels. For the first quarter of 2015, we are estimating EPS of $0.58 to $0.62,” says McEvoy.

Furthermore, Oceaneering says it is planning to reduce its organic capital expenditures to between $200 million and $250 million.

The company also announced that its Board of Directors has declared a regular quarterly dividend of $0.27 per common share. The dividend is payable March 20, 2015 to shareholders of record at the close of business on February 27, 2015.

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