Q3 2024 Oceaneering International Inc Earnings Call Transcript
Key Points
- Oceaneering International Inc (OII) delivered $98.1 million in adjusted EBITDA, aligning with guidance and consensus estimates.
- The company generated a healthy free cash flow of $67 million during the third quarter.
- SSR EBITDA margins expanded to 36%, showcasing improved pricing and execution performance.
- Oceaneering repurchased 422,229 shares for approximately $10 million, indicating confidence in the company's value.
- The company reported a 23% increase in operating income compared to the third quarter of 2023, driven by strong performance in SSR and manufactured product segments.
- Oceaneering's offshore projects group (OPG) experienced a decline in revenue, operating income, and operating income margin due to changes in project mix and vessel downtime.
- Integrity management and digital solutions (IMDS) saw a decline in operating income and margin due to a one-time non-cash charge from the divestiture of the Maritime Intelligence division.
- Aerospace and defense technologies (ADTECH) reported flat revenue with decreased operating income and margins due to increased project proposal costs.
- The company faced challenges from two large hurricanes impacting offshore operations and onshore facilities, resulting in an approximate $3 million loss.
- Manufactured products segment is expected to see lower operating income and margins in the fourth quarter due to lower plan absorption related to holiday schedules and delivery of lower-margin products.
Welcome to Oceaneering's third-quarter, 2024 earnings conference call. My name is David (Operator Instructions)
With that, I'll now turn the call over to Hilary Frisbie, Oceaneering's Senior Director of Investor Relations.
Thanks David. Good morning and welcome to Oceaneering's third quarter. 2024 results conference call. Today's call is being webcast and a replay will be available on Oceaneering's website.
Joining us on the call are Rod Larson, President and Chief Executive Officer who will be providing our prepared comments. And Alan Curtis, Senior Vice President and Chief Financial Officer.
Before we begin, I would like to remind participants that statements we make during the course of this call regarding our future financial performance business strategy plans for future operations and industry conditions are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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