Oceaneering Holding Up Better Than Most
Stephen Simpson, CFA
Stephen Simpson, CFA
Oceaneering: A Chance To Feed On Mr. Market's Despair
Fri, May 20, 3:58 PM
- Oceaneering International (OII +3.7%) is higher after RBC Capital upgrades shares to Sector Perform from Underperform with a $36 price target, raised from $30, citing the prospects of more merger activity in the oilfield services sector.
- RBC believes the FMC Tech-Technip merger changes the industry dynamic and increases the possibility of additional M&A, with the potential for such activity offsetting near-term fundamental headwinds.
- The firm lists possible headwinds facing OII including expectations of a declining offshore rig count through 2016 and the fact that operators continue to be selective with spending, which likely will impact OII's products and projects segments.
Mon, Apr. 25, 5:05 PM
Mon, Apr. 25, 5:03 PM
Sun, Apr. 24, 5:35 PM
Wed, Feb. 10, 5:06 PM
Wed, Feb. 10, 5:06 PM
Tue, Feb. 9, 5:35 PM
- AEL, AEM, AFFX, ANDE, APDN, BGC, BRKR, CDE, CGNX, CLW, CNO, CSCO, CSOD, CTL, CUZ, CXW, CYS, EFX, ENSG, EXPE, FLO, FMC, FNF, FORR, GHDX, GPRE, HDP, HNI, HUBS, IFF, IO, IRBT, JCOM, KGC, LGND, LOCK, LPSN, MOSY, MYL, NSIT, O, OHI, OII, ORLY, PPC, PRI, PRU, PXD, QUIK, REG, RYN, SB, SCI, SKX, TCO, TSLA, TTGT, TWTR, VNDA, WFM, ZNGA
Wed, Feb. 3, 3:11 PM
- Oceaneering International (OII -1.5%) says BP will terminate its contract on a vessel contracted to work offshore of Angola eight months early.
- The contract for the Bourbon Oceanteam 101 was scheduled to extend through the end of January 2017, but BP now plans to terminate the deal at the end of May 2016.
- OII expects BP will reimburse costs associated for the early termination, but does not reveal any specific amount.
- OII expects a second chartered vessel, Ocean Intervention III, to continue as contracted with BP offshore Angola through January 2017.
Nov. 30, 2015, 2:23 PM
- The "lower for longer" consensus on crude oil prices is overly conservative, and prices will begin bouncing back next year, Guggenheim analysts say as they upgrade the oil services sector to Buy and see plenty of upside for the major players given current market conditions.
- Guggenheim is calling for oil prices to return to $100/bbl by 2018, and sees 10% upside across the board for oil services stocks in the next year resulting from the group's unique exposure to crude prices.
- Within the group, the firm prefers Rowan (RDC +1.8%) and Atwood Oceanics (ATW +1.6%), as their backlogs should help reduce near-term risk, RDC has no newbuild commitments and ATW is finalizing a contract in Brazil for one of its two uncontracted rigs, utilization in the Middle East (NYSE:RDC) and Australia (NYSE:ATW) should be resilient on a relative basis, and both have fleets that make them more interesting M&A candidates.
- Upgraded to Buy from Neutral: CAM, RIG, NE, OII, PACD, DO, ESV, CLB, OIS, HP, NBR, CRR, NOV, DRQ, FI, PTEN, SSE, FTI, CJES, FET, SPN.
Oct. 28, 2015, 6:20 PM
- Oceaneering (NYSE:OII) declares $0.27/share quarterly dividend, in line with previous.
- Forward yield 2.44%
- Payable Dec. 18; for shareholders of record Nov. 27; ex-div Nov. 24.
Oct. 28, 2015, 5:24 PM
- Oceaneering (NYSE:OII): Q3 EPS of $0.70 beats by $0.01.
- Revenue of $743.61M (-23.6% Y/Y) misses by $48.4M.
Oct. 27, 2015, 5:35 PM
- ABX, ACGL, AEM, AF, AFFX, AFOP, AMGN, ANIK, AR, ARII, ARRS, ASGN, ATML, BANC, BLKB, BWLD, CACI, CAVM, CBL, CGI, CHDN, CLI, CMO, CMPR, CNL, CNO, CNW, CRUS, CSGP, CW, CWT, DRE, DYAX, ECHO, ELLI, EPR, EQIX, EQY, ESIO, ESRT, ESV, EXR, FFIV, FMC, FORM, FORR, FR, GPRO, HBI, HLS, HOS, HT, HUBG, HY, INT, INVN, ISIL, KEX, KRA, KS, LNC, LOCK, LOPE, MAA, MANT, MAR, MC, MEOH, MMLP, MTGE, MTW, MUR, NE, NEM, NGD, NSIT, NTRI, NVDQ, NXPI, O, OCN, OGS, OII, ORLY, OTEX, PLXS, PPC, PRXL, PSA, PTC, QDEL, QEP, QGEN, QUIK, REG, ROG, ROVI, RRC, SCI, SGI, SGMO, SIMO, SPN, SPRT, SPWR, SSS, STAA, SU, TAL, THG, THRX, TILE, TLLP, TSO, TTMI, UNM, VAR, VECO, VRTX, WDC, WES, WGP, WLL, WMB, WSTL, WTS, YELP
Sep. 1, 2015, 2:23 PM
- Oceaneering (OII -6.4%) says in prepared remarks ahead of a Morgan Stanley conference presentation says its H2 outlook by business segment may have been "a bit optimistic."
- "Expected work is being postponed and the summer 'call out' market and rig contract renewals are weaker than anticipated. However, we currently believe our earnings can still be within our guidance range as lower unallocated expenses will somewhat mitigate the shortfall from operations," says OII exec Marvin Migura.
- Says it intends "to continue paying a quarterly cash dividend, which is currently $0.27/share."
Aug. 26, 2015, 3:25 PM
- Analysts say Schlumberger’s (SLB -4.2%) acquisition of Cameron International (CAM +41.7%) is not particularly surprising, given SLB's two years of experience working alongside CAM through their OneSubsea joint venture and track record of soaking up JV partners.
- The combination effectively allows the two companies to extract the type of cost savings found at OneSubsea across the rest of their businesses; SLB thinks it can find pretax benefits of $600M in the second year after the deal, most of which will come from cost-cutting.
- Citigroup says the deal will firmly establish SLB as the dominant and most diversified oilfield service provider, with total estimated revenues for the combined entity of $46B in 2015, a figure the prospective Halliburton (HAL +2.3%) and Baker Hughes (BHI +2.5%) combo cannot match.
- SLB is making a strategic bet on a recovery in deepwater drilling, even if not in 2016, Tudor Pickering says; with 7M-plus bbl/day of global oil production coming from deepwater reservoirs, it makes sense that offshore activity eventually will rebound.
- The deal is not likely to touch off an M&A wave in the oilfield services industry because the global crude slump has strained the finances of many companies, leaving few able to make such a move, says Edward Jones analyst Rob Desai.
- But several potential acquisition targets in the services industry are higher: OII +8.3%, DRQ +7.4%, FTI +6.5%, NOV +4.1%, FET +3%.
Jul. 27, 2015, 3:39 PM
- Cameron (CAM -0.8%) and Oceaneering (OII -1.9%) are upgraded to Buy from Accumulate, with respective $58 and $60 price targets, at Global Hunter, even as it downgrades land-based drilling services provider Patterson-UTI.
- The firm says its CAM upgrade is based on the company's margin resilience, boosting leadership and leverage to an eventual North American recovery, and expects margins to continue to hold up relatively well in its largest subsea and drilling segments due to CAM's focus on improving execution even prior to the downturn.
- OII shares have shed more than 30% since early April as WTI has drifted below $50/bbl, a level the firm believes is not sustainable; OII eventually should rally with oil prices, the firm says, preferring to be buyers when the screen is red.
Jul. 23, 2015, 2:59 PM
- Jefferies analyst Brad Handler upgraded his ratings on FMC Technologies (FTI -0.9%) and Oceaneering (OII +1.2%) to Hold from Underperform, saying subsea shares were discounting a muted deepwater recovery and that broad weakness had left onshore names far more attractive.
- Jefferies cites the reasons for the upgrades as share price weakness, some optimistic signs from FMC regarding normalcy in subsea orders, overly conservative margin estimates from Wall Street, and “at least some expected valuation support from M&A potential/relative earnings resiliency."
- Earlier this week, FMC missed Q2 earnings estimates while subsea orders held up relatively well, and OII posted a Q2 earnings beat but lowered its full-year earnings outlook.
Oceaneering International, Inc. provides engineered services and products primarily to the offshore oil and gas industry. The company provides remotely operated vehicles, built-to-order specialty subsea hardware, engineering and project management, subsea intervention services, including manned... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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