Tue, Mar. 24, 10:29 AM
- Oceaneering (OII -1.1%) trades lower after reaffirming FY 2015 EPS guidance of $3.10-$3.50, which falls in-line with current expectations, and sees 2015 EBITDA of at least $725M.
- OII says it is experiencing declining demand and pricing pressure for its oilfield services and products.
- Says it expects flat umbilical revenues, based on its current backlog and bookings forecast, and that all its oilfield business segments will have lower operating income in 2015 than in 2014; believes that while work on most deepwater projects already approved and underway likely will continue but the urgency to start new projects is in question until the commodity price environment stabilizes and improves.
- Earlier: Oceaneering lands contract for Offshore Cape Three Points project
Mon, Mar. 23, 6:45 PM
- Oceaneering International (NYSE:OII) says it has won a $100M contract with Eni (NYSE:E) as part of a consortium with GE Oil & Gas to supply equipment for the Offshore Cape Three Points project off Ghana.
- OII's scope of work is to supply electro-hydraulic steel tube umbilicals totaling ~32 miles in length, and the contract adds more than $100M to its subsea products backlog.
- OII expects product manufacturing to be completed by Q4 2017.
Thu, Feb. 19, 6:56 PM
- Oceaneering (NYSE:OII) appoints Rod Larson as its President and COO, effective immediately.
- Larson has served as OII's senior VP and COO since 2012, with worldwide responsibility for all of the company's oilfield business operations.
- Larson previously had worked at Baker Hughes for more than 20 years.
Thu, Feb. 12, 3:59 PM
- Oceaneering (OII -8.4%) tumbled to 52-week lows before recovering slightly, after reporting record Q4 earnings but spooking investors with downside guidance for the current quarter and year.
- OII now estimates Q4 EPS of $0.58-$0.62, far below analyst consensus expectations for $0.90, and sees FY 2015 EPS of $3.10-$3.50, lowered from prior company guidance of $4.10-$4.50 and below the $3.96 consensus.
- OII says all of its oilfield business segments will have lower operating income in 2015 than in 2014 because of reduced demand and pricing for many of its services and products amid the slowdown in deepwater activity attributable to lower crude oil prices.
Wed, Feb. 11, 5:10 PM
Wed, Feb. 11, 5:09 PM
Tue, Feb. 10, 5:35 PM
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Mon, Feb. 2, 7:48 AM
- Oceaneering (NYSE:OII) agrees to acquire privately-held C&C Technologies, a provider of ocean-bottom mapping services in deepwater and marine construction surveys for both surface and subsea assets, for ~$230M.
- OII expects the acquired business to generate $20M-$30M of EBITDA within a year of the deal closing and to be accretive to earnings.
Mon, Jan. 12, 10:38 AM
- Goldman Sachs reiterates its cautious view on oil services companies (OIH -4.2%) as it cuts its outlook for crude prices, now forecasting a 30% cut in U.S. E&P capex and 15% globally and sharply lowering earnings estimates and target prices for several companies in the space.
- Goldman downgrades Schlumberger (SLB -5%) to Neutral from Buy with a $76 price target, down from $90, expecting SLB’s earnings to come under pressure and noting that SLB has high exposure to Russia (nearly 5% of total revenues) and will be hurt by the recent steep fall in the ruble.
- The firm removes Oceaneering (OII -3.9%) from its Conviction Buy list and cuts its price target to $64 from $74, now expecting a reduced deepwater rig count in 2015 vs. previous expectations of a flat rig count, which should hurt OII’s Remotely Operated Vehicles business.
Tue, Jan. 6, 10:37 AM
- Citigroup analyst Scott Gruber says now could be time for longer-term investors to bulk up on oil services stocks (NYSEARCA:OIH), taking the contrarian view that falling capital spending forecasts and looming bankruptcies by some E&P companies could portend that the industry’s shakeout is closer at hand.
- Meanwhile, Gruber says oil services stocks tend to stop falling as oil reaches "unsustainably low” levels, and investors appear to be through much of their selling since valuations have fallen so low.
- Oil services companies generally have been hit twice as hard as integrated oil majors during the past three months; related tickers include SLB, HAL, NOV, BHI, CAM, ESV, FTI, HP, TS, OII.
Dec. 23, 2014, 6:55 PM
- Goldman Sachs' David Kostin thinks it’s time for patient investors with at least a 12-month time horizon to begin loading up on energy companies.
- The Goldman team recommends refiners such as Marathon Petroleum (NYSE:MPC) and Phillips 66 (NYSE:PSX), as well as midstream companies that are less sensitive to oil prices and offer the potential for dividend growth, including EQT Midstream Partners (NYSE:EQM), Kinder Morgan (NYSE:KMI) and Cheniere Energy (NYSEMKT:LNG).
- With capital spending sure to take a hit and oil prices likely to remain volatile, oil service companies probably aren’t the way to go, but Goldman considers the more defensive names such as Atwood Oceanics (NYSE:ATW), Schlumberger (NYSE:SLB) and Oceaneering (NYSE:OII) as the best of a bad lot.
Dec. 23, 2014, 6:19 PM
- Although the energy sector led today's stock advance, a raft of companies downgraded by Global Hunter mostly took it on the chin - none more so than Key Energy (NYSE:KEG), which plunged 15% after shares were cut to Reduce from Neutral with a $1.50 price target that was reduced from $2.50.
- Also downgraded to Reduce were HERO -6.1%, NBR -3.2%, DO +1.3%.
- Lowered to Neutral were HAL +0.5%, GEOS -8.9%, HP -2.9%, BAS -2.5%, PKD -2.5%, BHI +0.6%, BBEP -0.2%, MEP +0.1%.
- Downgraded to Accumulate: PES -3.5%, PTEN -1.1%, NGLS +2.9%.
- The firm upgraded five stocks - ATW, NOV, OII, RES and SPN - all of which gained in today's trading.
Dec. 18, 2014, 9:59 AM
- RBC recommends increasing weightings and exposure to oil service stocks (OIH +2.5%) heading into 2015, as it says oil prices will start to improve in H2 of next year and that oil service stocks typically discount this move by 6-9 months.
- Down cycles such as 2000-02 and 2008-09 suggest North American land drillers and service companies provide the best returns off business cycle lows, RBC says as it expects a similar dynamic this time.
- RBC upgrades Key Energy (KEG +24.6%) and Superior Energy (SPN +7.5%) to Outperform, and downgrades FMC Tech (FTI +1.8%), Franks (FI +4.9%), Oceaneering (OII +0.2%) and Oil States (OIS +2.3%) to Sector Perform; the firm also says since 1985 three of the top five performing stocks off lows have been Patterson-UTI (PTEN +6.6%), Precision Drilling (PDS +4%) and Nabors (NBR +7.2%).
Dec. 16, 2014, 8:58 AM
- GE agrees to acquire Oceaneering's (NYSE:OII) Subsea Electric Actuator product line, which specializes in the design and manufacturing of specialty subsea products with a focus on electric valve actuators.
- GE says the acquisition of the product line will pave the way for electrification in its oil and gas subsea space, providing a new technology that is faster to operate for processing applications, has excellent enhanced diagnostic capabilities and can be seamlessly integrated into a customer's existing controls, communications and power network.
- Financial terms are not disclosed.
- GE -0.8% premarket.
Dec. 9, 2014, 8:12 AM
- Jefferies downgrades oil service stocks Schlumberger (NYSE:SLB), Oceaneering (NYSE:OII) and Nabors Industries (NYSE:NBR) as it lowers its Brent oil price forecast for 2015 to $72/bbl from $90, as well as an average 16% for 2015, 2016 and 2017.
- The firm expects oil prices to remain under pressure from temporary oversupply and sluggish global economic growth through H1 of next year, and remains concerned about longer-term deepwater development in light of oil prices vs. cost structures.
- Jefferies views Royal Dutch Shell (RDS.A, RDS.B) as the most defensive oil stocks in an environment where overall integrated oil earnings will drop 30% in 2015 and 21% in 2016.
Nov. 14, 2014, 12:48 PM
- Oil services companies are mostly higher as Halliburton (HAL +1.7%) is indeed in talks to buy Baker Hughes (BHI +0.5%), a deal that would provide a jolt to oilfield services companies contending with falling oil prices: SLB +0.4%, OIS +1.2%, SPN +2.3%, CAM +0.2%, FTI -0.3%, NOV -0.6%.
- Sterne Agee analyst Stephen Gengaro calls a potential HAL-BHI combo a “HAL of a Frac-ing Deal," seeing several positives for HAL including strengthening its relatively weak position in artificial lift and production chemicals which are critical to enhancing HAL’s mature field strategy, enabling it to leverage its unparalleled U.S. pressure pumping logistics chain to enhance the efficiency of BHI’s operations, and providing the opportunity for significant cost savings which likely would total $600M-$750M or more.
- While antitrust concerns could force some divestitures, Gengaro does not believe it would prevent a deal from happening.
- Other potentially attractive M&A targets among oil services companies could include Dril-Quip (DRQ +0.7%), Frank’s International (FI +2.6%) and Oceaneering (OII -0.2%), Simmons & Co. says.
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