Oceaneering International, Inc. · NYSE:OII
Oceaneering International — Q3 2024 Earnings Presentation
45 slides from Oceaneering International's earnings presentation, Oct 24, 2024
Slide 1: Investor Presentation 2024 Third Quarter
Investor Presentation 2024 Third Quarter NYSE: OII 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements In accordance with the Safe Harbor provisions of the Private vessel utilization, growth, bidding activity, outlook, by taxing authorities; changes in, or our ability to comply Securities Litigation Reform Act of 1995, Oceaneering performance, opportunities, and future fina
Slide 3: Non-GAAP Information and Market and Industry Data
Non-GAAP Information Market and Industry Data This presentation includes several “non-GAAP” financial This presentation includes market and industry data and measures, as defined under Regulation G promulgated certain other statistical information based on third-party under the U.S. Securities Excha
Slide 4: Oceaneering – Born at Sea
Oceaneering – Born at Sea Oceaneering is a market leader in engineered services and products, with 60 years of experience working in underwater and harsh environments. Oceaneering is driven to develop technology and hardware for a variety of applications designed to meet high standards for safety an
Slide 5: Operating Segments
Operating Segments Manufactured Offshore Projects Integrity Aerospace and Subsea Robotics Products Group Management & Defense Digital Solutions Technologies Subsea Robotics (SSR) Manufactured Products (MP) Offshore Projects Group Integrity Management & Aerospace and Defense merges our underwater bri
Slide 6: Active in All Phases of the Offshore Oilfield Life Cycle
Active in All Phases of the Offshore Oilfield Life Cycle Phase Exploration Development Production Decommissioning % of Oceaneering Revenue* 11% 51% 32% 6% Market Drivers and FIDs and FIDs and Subsea Tree Customer Opex Budgets Field Abandonments Key Market Indicators Working Floating Rigs Installatio
Slide 7: Highlights from Third Quarter 2024
Highlights from Third Quarter 2024 2024 Q3 2024 Q2 2023 Q3 ROV Revenue per Remotely Operated Vehicle (ROV) average Day Utilized, $10,576 $10,528 $9,372 revenue per day utilized continued to increase, average averaging $10,576 for the quarter. SSR EBITDA margin improved to 36%. SSR EBITDA Margin 36
Slide 8: Subsea Robotics
Subsea Robotics Days Utilized, Average Revenue per Day, and Utilization Rates Average Revenue Days Rate per DOH* on Hire $11,000 ROV Days on Hire $10,576 17,500 100% Drill Support % ROV Revenue / Day Utilized $9,372 Vessel-based % ROV Fleet Utilization % $10,000 15,000 80% 15,796 69% 69% $9,000 12,5
Slide 9: Subsea Robotics Revenue and Adjusted EBITDA Margin
Subsea Robotics Revenue and Adjusted EBITDA Margin* $225 36% 40% SSR ROV Revenue SSR Tool/Survey 31% $200 SSR Adjusted EBITDA Margin $175 30% Revenue (in millions) $150 $125 Margin 20% $100 76% of 77% of SSR Revenue SSR Revenue $75 $50 10% $25 $0 0% 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 20
Slide 10: Contracted Floating Rigs at Period End
Subsea Robotics ROV Drill Support Market Share: 59% on Sept 30, 2024 200 100% Contracted Floaters, Working Contracted Floating Rigs at Period End Contracted Floaters, Not Working 3% 16% OII % of Contracted Floaters OII % of Floating Rigs 7% 150 75% 59% 100 61% 59% 50% OII 50 25% Other Fugro TechnipF
Slide 11: Manufactured Products Backlog and Book-to-Bill
Manufactured Products Backlog and Book-to-Bill 20.7% YoY $750 2.00 Backlog $671 Revenue Mfd Products Book-to-Bill, ttm $600 Book-to-Bill, ttm $556 1.60 Mfd Products ($ in millions) $450 1.41 1.20 1.21 1.00 $300 0.80 $150 0.40 $122.9 $143.7 $0 0.00 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024
Slide 12: Results Overview by Quarter
Results,* Overview by Quarter Subsea Robotics Manufactured Products Offshore Projects Group Integrity Mgmt/Digital Sol Aerospace/Defense Tech Revenue Adjusted Operating EBITDA 100% 7% 14% 14% 16% 10% 12% 1% 4% 3% 80% 11% 11% 10% 19% 15% 27% 22% 22% 11% 14% 60% 24% 9% 40% 21% 21% 19% 59% 60% 49% 20%
Slide 13: Outlook, Operating Forecast 2024 Q4F to 2024 Q3
Outlook, Operating Forecast* 2024 Q4F to 2024 Q3 Q4 2024 Forecast compared to Q3 2024 Results Revenue to increase slightly, led by increases in Manufactured Products and OPG. Adjusted Consolidated Results EBITDA in line with Q3 adjusted EBITDA of $98M. Revenue and operating income to slightly declin
Slide 14: Outlook, Operating Forecast FY 2024
Outlook, Operating Forecast* FY 2024 2024 Forecast compared to 2023 Actual Revenue to grow by more than 5%, with increases in each operating segment based on 2023 year-end backlog, expected increase in backlog conversion, anticipated 2024 order intake, and Consolidated Results current market fundame
Slide 15: Outlook, Operating Forecast FY 2025
Outlook, Operating Forecast* FY 2025 2025 Forecast compared to 2024 Forecast Increased revenue and improved operating income across all operating segments, led by Consolidated Results notable gains from SSR, Manufactured Products, and ADTech. Forecasted Adjusted EBITDA in the range $400M to $430M. R
Slide 16: 2024 Forecasted Liquidity and Free Cash Flow
2024 Forecasted Liquidity and Free Cash Flow Liquidity at December 31, 2024 • Cash and cash equivalents between $572M and $612M • $215M unused commitment through senior secured revolving credit agreement, available through April 2027 • $500M of unsecured senior notes due February 2028, nearest matur
Slide 17: Free Cash Flow Uses in 2024
Free Cash Flow Uses in 2024 • Organic Growth and Maintenance Capex • Inorganic Growth, bolt-on Acquisitions • Share Repurchases, subject to market and business conditions, available liquidity, cash requirements for other purposes, applicable legal requirements, share price, and other relevant factor
Slide 18: Outlook, Energy Industry, 2024-2025, YoY
Outlook, Energy Industry, 2024-2025, YoY Offshore energy drivers are trending flat to slightly higher • Brent forecast, average price per barrel in 2025 ~$78* • Offshore energy metrics for OII: Contracted Floating Rigs Tree Awards Tree Installations Spending on Subsea Equipment and Subsea Se
Slide 19: Targeted Growth Businesses
Targeted Growth Businesses Achieve operational Segment status Increase robotic and Automate inspection, based on autonomous offerings data collection, and projected market growth analysis • Autonomously transport people • Enable human interface in low • Enable data-driven risk mitigation and goods s
Slide 20: Robotics – Key to Oceaneering's Continuing Evolution
Robotics – Key to Oceaneering’s Continuing Evolution Oceaneering’s outlook is reinforced by projected double-digit market growth in onshore industrial robotics markets Multi-decade track record of developing leading offshore robotic capabilities • Increasing depth capability of ROV operations • Exec
Slide 21: Oceaneering Robotics Expertise Serves Multiple Markets
Oceaneering Robotics Expertise Serves Multiple Markets Business Segments / Applications Markets / Potential Markets Subsea Robotics and • Remotely Operated Vehicles (ROVs) • Offshore O&G, Renewables, and Carbon Capture Offshore Projects Group • Autonomous Underwater Vehicles (AUVs) • Offshore O&G, R
Slide 22: Oceaneering Autonomous Mobile Robotics
Oceaneering Autonomous Mobile Robotics Strong growth opportunities for our leading competitive designs: MaxMover counterbalance (CB) and fork-over-leg (FOL) forklifts, and Unimover robot OII Material Handling Features CAGR Equipment Autonomous Mobile Robot Infrastructure-free navigation. 5-Yr CAGR M
Slide 23: MaxMover Autonomous Forklift, AMR
MaxMoverTM Autonomous Forklift, AMR A true replacement for conventional counterbalance forklifts for industries in collection, manufacturing, and distribution MaxMoverTM of raw materials and finished products. Counterbalance forklift Relentless focus on user experience. Autonomous Mobile Robot (AMR)
Slide 24: Final Thoughts
Final Thoughts Initial 2025 guidance projects revenue and operating margin growth across all five operating segments. Mid-point of initial EBITDA guidance ($415M) implies 20% YoY growth when compared to the guided 2024 mid-point ($345M). Continued focus on Growth • Developing solutions for exist
Slide 25: Appendix
Appendix 25
Slide 26: Subsea Robotics
Subsea Robotics Subsea Robotics (SSR) merges our underwater robotics and automation capabilities by combining our ROV, Survey, and ROV Tooling businesses. Revenue ($ in millions) Remotely Operated Vehicles (ROV) $754 $754 Remotely operated, tethered submersible vehicles for drilling support, offshor
Slide 27: ROV Fleet Location
Subsea Robotics ROV Fleet Location - 250 ROVs, September 30, 2024 100 Drilling Support ROVs Vessel-based ROVs 80 71 ROV Count 60 49 38 38 40 24 30 20 0 Americas, excl Brazil Africa/MidEast Europe Norway Asia Pacific Brazil 27
Slide 28: Manufactured Products
Manufactured Products Manufacturing Grayloc® Products Manufactured Products brings together our competencies and expertise Facilities Facilities around advanced technology product development, manufacturing, and Houston, Texas Houston, Texas USA USA project management to include four business units:
Slide 29: Offshore Projects Group
Revenue ($ in millions) Offshore Projects Group $489 $546 Offshore Projects Group (OPG) provides a broad portfolio of integrated subsea project capabilities and solutions, including: $0 Project management and engineering; subsea installation and 2022 2023 2024F intervention; IMR (inspection, mainten
Slide 30: Offshore Projects Group Vessel Assets
Offshore Projects Group Vessel assets for offshore projects Forecasted Q4 Location Deepwater Multi-purpose Supply Vessels: Ocean Evolution* Owned Gulf of Mexico Ocean Intervention* Owned Global Regions Brandon Bordelon* Chartered Gulf of Mexico Harvey Blue Sea* Chartered Gulf of Mexico Harvey Deep S
Slide 31: Integrity Management & Digital Solutions
Integrity Management & Digital Solutions The Integrity Management & Digital Solutions (IMDS) segment leverages software, analytics, and services that promote the safety, efficiency, cost effectiveness, and sustainability programs of our energy and maritime customers. Revenue Integrity Management ($
Slide 32: Aerospace and Defense Technologies
Aerospace and Defense Technologies Aerospace and Defense Technologies (ADTech) provides engineering services and related manufacturing, principally for the U.S. Department of Defense and NASA and their prime contractors. Defense Subsea Technologies Design, build, and operate unique maritime and spec
Slide 33: Sustainability at Oceaneering
Sustainability at Oceaneering Environmental We are advancing capabilities as a technology delivery company and developing technologies designed to address a myriad of challenges, including mitigating greenhouse gas emissions for customers and our own operations. Social We are leveraging a variety of
Slide 34: Revenue Sources, Year over Year
Revenue Sources, Year over Year Geographic Area Services and Products Industry Segments* $1.9B $2.1B $2.4B $1.9B $2.1B $2.4B $1.9B $2.1B $2.4B 100% 17% 16% 20% 19% 21% 20% 75% 43% 42% 47% 50% 80% 81% 79% 80% 83% 84% 57% 53% 58% 25% 0% 2021 2022 2023 2021 2022 2023 2021 2022 2023 International United
Slide 35: Offshore O&G Energy Drivers
Offshore O&G Energy Drivers Greenfield Sanction Activity Offshore O&G Activity Forecast $100 150 200 500 Development Spend, Deepwater Tree Awards Contracted Floating Rigs, annual average Deepwater FID Projects Tree Installations Subsea Tree Awards and Installations 450 125 Contracted Floating Rigs D
Slide 36: Supplemental Information
Supplemental Information 36
Slide 37: Net Income (Loss) Reconciliation to EBITDA
Net Income (Loss) Reconciliation to EBITDA Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure. Oceaneering’s management uses EBITDA because we believe that this measurement is a widely accepted financial indicator used by investors and analysts to
Slide 38: Net Income (Loss) Reconciliation to EBITDA (continued)
Net Income (Loss) Reconciliation to EBITDA (continued) Low Estimate High Estimate For the 12-Month Period Ended Dec 31, 2023 Dec 31, 2022 Dec 31, 2024 (in millions) (in millions) Net Income (Loss) $ 97.4 $ 25.9 Income(Loss) before income taxes $ 219.0 $ 225.0 Depreciation & Amortization 105.0 121.0
Slide 39: Operating Income Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA Adjusted EBITDA excludes the effects of certain specified items, as set forth in the tables that follow. Adjusted Operating EBITDA is Adjusted EBITDA before Unallocated Expenses. We believe these are useful measu
Slide 40: Operating Income Reconciliation to Adjusted EBITDA (continued)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 3-Month Period Ended Unallocated June 30, 2024 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 61,750 $ 14,369 $
Slide 41: Operating Income Reconciliation to Adjusted EBITDA (continued)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 3-Month Period Ended Unallocated September 30, 2023 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 47,818 $ 8,22
Slide 42: Operating Income Reconciliation to Adjusted EBITDA (continued)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 12-Month Period Ended Unallocated December 31, 2023 Expenses and SSR MP OPG IMDS ADTech other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 174,293 $ 35,
Slide 43: Operating Income Reconciliation to Adjusted EBITDA (continued)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 12-Month Period Ended Unallocated December 31, 2022 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 118,248 $ 11,
Slide 44: Free Cash Flow
Free Cash Flow “Free Cash Flow” (FCF) is a non-GAAP financial measure. FCF represents cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). Oceaneering's management believes that this is an
Slide 45: Investor Relations Contact
NYSE: OII Investor Relations Contact Hilary Frisbie Senior Director, Investor Relations 713.329.4755 InvestorRelations@oceaneering.com 45
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