Offshore support services firm Oceaneering reported a net income of $22 million for the second quarter of 2016, down from a net income of $65.4 million a year ago.
The company’s revenue for the quarter was $625 million, down from $810 million in the corresponding quarter of 2015.
The company said that sequentially, operating income declined 20% on reduced profit contributions from Subsea Products and Remotely Operated Vehicles (ROV), with a slight increase in Subsea Projects and Advanced Technologies, and lower Unallocated Expenses.
M. Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, “Despite the ongoing challenging offshore market environment, we are pleased that each of our operating segments remained profitable, excluding the negative impact of the bad debt expense. Relative to our peers, overall EBITDA margin of 15% is noteworthy. “
However ‘pleased’, McEvoy feels the worst is not over, expecting the remainder of the year to be bleak.
“With continued limited visibility, we are expecting that the second half of 2016 will be weaker than the first half. We expect lower operating income contributions from Subsea Products and ROVs, partially offset by an increase in Advanced Technologies, while other segment results should be relatively flat on an adjusted basis,” he said.
Offshore Energy Today Staff