Oceaneering International Inc (OII) Reports Q3 2023 Earnings
Oceaneering International Inc (NYSE:OII) reported a net income of $29.8 million, or $0.29 per share, on revenue of $635 million for Q3 2023.
Adjusted net income was $38.5 million, reflecting the impact of foreign exchange gains and discrete tax adjustments.
OII's cash position increased by $52.4 million, from $504 million to $556 million.
The company revised its full-year 2023 guidance and provided initial full-year 2024 guidance.
On October 25, 2023, Oceaneering International Inc (NYSE:OII) released its earnings report for the third quarter of 2023. The company reported a net income of $29.8 million, or $0.29 per share, on revenue of $635 million. This represents a significant increase from the prior quarter ended June 30, 2023, where OII reported a net income of $19.0 million, or $0.19 per share, on revenue of $598 million.
Financial Highlights
OII's adjusted net income for Q3 2023 was $38.5 million, or $0.38 per share. This figure reflects the impact of $(0.9) million of pre-tax adjustments associated with foreign exchange gains recognized during the quarter, $0.6 million tax effect on adjustments associated with foreign exchange gains, and $9.0 million of discrete tax adjustments, primarily due to changes in valuation allowances, uncertain tax positions, and prior year estimates.
The company's cash position increased by $52.4 million, from $504 million to $556 million. The Manufactured Products backlog was reported to be $556 million.
Company Performance and Future Outlook
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated,
Our third quarter 2023 results, improved as compared to the second quarter of 2023, were primarily due to increased activity and improved pricing in our Offshore Projects Group (OPG) and Subsea Robotics (SSR) segments. For the full year of 2023, we forecast our adjusted EBITDA to be within the narrowed range of $275 million to $295 million and expect positive free cash flow to remain in our previously guided range of $90 million to $130 million."
OII revised its full-year 2023 guidance, expecting a net income in the range of $75 million to $90 million, consolidated adjusted EBITDA in the range of $275 million to $295 million, free cash flow generation in the range of $90 million to $130 million, and capital expenditures in the range of $95 million to $105 million. The company also provided its initial full-year 2024 guidance, forecasting consolidated EBITDA in the range of $330 million to $380 million and expecting free cash flow generation to exceed that generated in 2023.
Financial Tables Summary
The financial tables provided in the report show a detailed breakdown of OII's performance across different segments. The Subsea Robotics segment reported a revenue of $197.3 million, the Manufactured Products segment reported a revenue of $122.9 million, the Offshore Projects Group reported a revenue of $150.3 million, the Integrity Management & Digital Solutions segment reported a revenue of $66.1 million, and the Aerospace and Defense Technologies segment reported a revenue of $98.6 million.
The report also includes a condensed consolidated balance sheet and a condensed consolidated statement of operations, providing a comprehensive overview of OII's financial position as of September 30, 2023.
For more detailed information, readers are encouraged to view the full earnings report on the company's website.
Explore the complete 8-K earnings release (here) from Oceaneering International Inc for further details.
This article first appeared on GuruFocus.
