Oceaneering reports record quarterly earningsCompany News // November 5, 2014
Oceaneering International has reported record earnings for the third quarter ended September 30, 2014. On revenue of US$973.1 million, Oceaneering generated net income of US$124.3 million, or US$1.16 per share.
For the third quarter of 2013, Oceaneering reported revenue of US$853.3 million and net income of US$104.4 million, or US$0.96 per share. For the second quarter of 2014, Oceaneering reported revenue of US$927.4 million and net income of US$110.3 million, or US$1.02 per share.
Sequentially, quarterly EPS was 14 per cent higher on operating income improvements from all business segments, led by ROVs. Year over year, quarterly EPS increased by
21 per cent on the strength of operating income improvements from Subsea Products and ROV. EPS for the first nine months of 2014 was up 18 per cent over the comparable period in 2013.
Kevin McEvoy, President and Chief Executive Officer, said: "We achieved record EPS for the quarter, demonstrating the high level of demand we experienced for our subsea services and products.
"Our results were highlighted by all-time high operating income from our ROV and Subsea Products businesses. We remain on track to achieve record EPS for 2014. For the fourth quarter, we are projecting EPS of US$0.94 to US$0.99. Given this outlook and our year-to-date performance, we are narrowing our 2014 EPS guidance range to US$3.95 to US$4.00 from US$3.95 to US$4.05.
“Compared to the second quarter of 2014, ROV operating income increased on higher global demand to support drilling and vessel-based projects and an improvement in operating margin. Our ROV days on hire for the quarter increased to a record high of over 25,200 and our operating margin improved to 31 per cent from 28 per cent due largely to a change in geographic operations mix, resulting in a higher average
revenue per day-on-hire. During the quarter we put 14 new vehicles into service and retired five. At the end of September, we had 332 vehicles in our fleet, compared to 302 one year ago."