Very interesting to see, with record crude, a lot of these oil service names falling short on 2008 goals. This has been a pattern seen throughout the quarter; OII is keeping full year guidance but guiding down in the first quarter. I don't own Oceaneering International (NYSE:OII) but it's part of a pantheon of oil service names I follow. The commentary is consistent with my long held theme that being in the "deep sea" area is the safest spot.
- Oilfield services company Oceaneering International Inc (OII) reported a higher quarterly profit, helped by demand growth in its offshore oilfield service and product markets, but forecast first-quarter earnings below Street expectations.
- Oceaneering said it expects to earn 65 cents to 75 cents a share in the first quarter. Analysts on average were expecting earnings of 76 cents a share, excluding items, according to Reuters Estimates.
- The company, based in Houston, Texas, said subsea projects operating income is expected to decline in 2008 due to decreasing demand for its shallow-water vessel and diving services as hurricane damage projects near completion.
- For 2008 the company backed its earnings outlook of $3.50 a share to $3.80 a share. Analysts on average expect $3.70 a share, excluding items.
- However, Oceaneering expects to benefit in 2008 from "continued pricing improvement" and fleet expansion for its remotely operated vehicles, Collins said.
- "Looking beyond 2008, we anticipate demand for our deepwater services and products will continue to rise and, consequently, believe our business prospects for the next several years are excellent," he said in a statement.