Oceaneering International, Inc. yesterday reported record first quarter earnings for the period ended March 31, 2012. On revenue of $594.9 million, Oceaneering generated net income of $51.5 million, or $0.47 per share. During the corresponding period in 2011, Oceaneering reported revenue of $470.4 million and net income of $42.1 million, or $0.39 per share.
Year over year, quarterly earnings per share (EPS) improved as all business segments achieved higher operating income, led by Remotely Operated Vehicles (ROV). Sequentially, quarterly EPS declined, as anticipated, principally due to a reduction in operating income from Subsea Products.
M. Kevin McEvoy, President and Chief Executive Officer, stated, “Our EPS was up over 20% compared to the first quarter of 2011 and our outlook for the rest of this year remains very positive. We continue to forecast our 2012 EPS to be in the range of $2.45 to $2.65, another record earnings year. For our services and products, we expect continued international demand growth and a moderate rebound in overall activity in the U.S. Gulf of Mexico (GOM).
“Year over year, quarterly ROV operating income improved on the strength of higher demand in most areas of the world, particularly in the GOM and off West Africa. Our ROV days on hire rose 17% and fleet utilization increased to 79% from 71% a year ago. During the quarter we put five new systems into service and retired two. At the end of the quarter we had 270 vehicles in our ROV fleet, an increase of 10 from March 2011. For the balance of 2012, we expect to place 15 to 20 more new systems into service and retire three.
“Looking beyond 2012, 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 the services and products required to support safe deepwater efforts of our customers.”
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 and aerospace industries.
Source: Oceaneering International, April 26, 2012