Oceaneering Intl misses by $0.01, misses on revs; believes Q4 'results will be considerably lower' than adj. Q3 results
- Reports Q3 (Sep) earnings of $0.02 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.03; revenues fell 13.3% year/year to $476.12 mln vs the $511.14 mln Capital IQ Consensus.
- Q4 Outlook
- "Looking forward, we believe our fourth quarter results will be considerably lower than our adjusted third quarter results due to seasonality and a reduced level of activity. Most of the decline is expected to be in our ROV and Subsea Projects segments, with modestly lower operating income from our other oilfield segments as we foresee very few near-term catalysts to support an improvement in our oilfield markets. For our non-oilfield segment, Advanced Technologies, we are projecting a modest quarterly improvement, and slightly higher Unallocated Expenses." Said Roderick A. Larson, President and Chief Executive Officer of Oceaneering.
- "Based on the current number of floating rigs working and expectations for further reductions in oil and gas industry capital and operating expenditures as offshore activities get pushed into 2019, we believe our 2018 earnings will be significantly lower than 2017. However, during 2018, we expect each of our operating segments will contribute positive EBITDA, and, on a consolidated basis, we will generate sufficient cash flows to service our debt and fund our anticipated maintenance and organic growth capital expenditures. While we are anticipating an increase in offshore activity levels during the second half of 2018, we do not expect this shift in momentum to be adequate to offset the near-term market weakness or to present an opportunity to meaningfully improve pricing.
No comments:
Post a Comment