Oceaneering International, Inc. · NYSE:OII
Oceaneering International — Q1 2024 Earnings Presentation
52 slides from Oceaneering International's earnings presentation, Apr 25, 2024
Slide 1: Investor Presentation 2024 First Quarter
Investor Presentation 2024 First 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, credit markets; changes in tax laws, regulations Securities Litigation Reform Act of 1995, Oceaneering performance, opportunities, and future financials, inc
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 of the U.S. certain other statistical information based on third-party Securities Exchange Act of 1934
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: 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 6: Operating Segments
Operating Segments Energy Non-Energy Aerospace and Subsea Robotics Manufactured Products* Defense Technologies Offshore Projects Group Integrity Management & Digital Solutions * Manufactured Products includes the non-energy Mobility Solutions businesses: Autonomous Mobile Robotics (AMR) and Entertai
Slide 7: 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 8: 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 $754 Remotely operated, tethered submersible vehicles for drilling support, offshor
Slide 9: Manufactured Products
Manufactured Products Manufactured Products brings together our competencies and expertise around advanced technology product development, manufacturing, and project management to include four business units: Energy Manufactured Products Distribution Systems Revenue Production Control Umbilicals sup
Slide 10: Offshore Projects Group
Revenue ($ in millions) Offshore Projects Group $489 $546 Offshore Projects Group (OPG) provides a broad portfolio of integrated subsea project capabilities and solutions, including: $0 Project management and engineering; subsea installation and 2022 2023 2024F intervention; IMR (inspection, mainten
Slide 11: Integrity Management & Digital Solutions
Integrity Management & Digital Solutions The Integrity Management & Digital Solutions (IMDS) segment leverages software, analytics, and services that promote the safety, efficiency, cost effectiveness, and sustainability programs of our energy and maritime customers. Integrity Management Revenue ($
Slide 12: 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 13: Results, Overview by Year
Results,* Overview by Year Subsea Robotics Manufactured Products Offshore Projects Group Integrity Mgmt/Digital Sol Aerospace/Defense Tech Revenue Adjusted Operating EBITDA 100% 16% 17% 11% 13% 4% 6% 80% 10% 11% 21% 22% 60% 23% 24% 11% 7% 40% 20% 18% 53% 52% 20% 31% 30% 0% 0 $2.4B $2.1B . $289.0M $2
Slide 14: Results, Comparing FY 2023 to FY 2022
Results,* Comparing FY 2023 to FY 2022 Primary Variance Factors for 2023 compared to 2022 Revenue increased 17% to $2.4B from $2.1B in 2022 with each operating segment achieving double-digit percentage increases. Operating income of $181M and adjusted EBITDA of $289M Consolidated Results improved, w
Slide 15: 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% 16% 17% 15% 14% 10% 10% 5% 4% 5% 80% 12% 11% 10% 7% 14% 20% 19% 19% 25% 16% 16% 8% 60% 40% 22% 21% 20% 58% 55% 58% 20%
Slide 16: Results, Comparing 2024 Q1 to 2023 Q1
Results,* Comparing 2024 Q1 to 2023 Q1 Primary Variance Factors for Q1 2024 compared to Q1 2023 Consolidated Results Revenue was up 12% and operating income was up 37%. All operating segments reported improvement except OPG. Adjusted EBITDA increased 12%. Revenue was up 11% and operating income was
Slide 17: Results, Comparing 2024 Q1 to 2023 Q4
Results,* Comparing 2024 Q1 to 2023 Q4 Primary Variance Factors for Q1 2024 compared to Q4 2023 Revenue of $599M was 8% lower than Q4. As forecast, lower offshore activity resulted in revenue declines in SSR, Mfd Products and particularly in OPG. ADTech and IMDS generated Consolidated Results health
Slide 18: Results, Liquidity and Cash Flow
Results, Liquidity and Cash Flow Liquidity as of March 31, 2024 • $355M of cash and cash equivalents • $215M of unused commitments through our senior secured revolving credit agreement, available through April 2027 • $500M of unsecured senior notes due February 2028, nearest maturity Cash flow for q
Slide 19: Outlook, Liquidity and Cash Flow, 2024
Outlook, Liquidity and Cash Flow, 2024 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 maturity Ca
Slide 20: Outlook, Shareholder Investment Return Program
Outlook, Shareholder Investment Return Program Under consideration for remainder of 2024 • Share Repurchases, subject to market and business conditions, levels of available liquidity, cash requirements for other purposes, applicable legal requirements, share price, and other relevant factors as dete
Slide 21: Outlook, Operating Results FY 2024
Outlook, Operating Results* FY 2024 2024 Forecast compared to 2023 Actual Revenue to grow by more than 5%, with increases in each operating segment, except OPG, based on year-end 2023 backlog, expected increase in backlog conversion, anticipated 2024 order Consolidated Results intake, and current ma
Slide 22: Outlook, Operating Results 2024 Q2 to 2024 Q1
Outlook, Operating Results* 2024 Q2 to 2024 Q1 Q2 2024 Forecast compared to Q1 2024 Actual Higher revenue, on mid-teens percentage increase, and significantly improved operating Consolidated Results results, with EBITDA in the range of $80M to $90M. Higher revenue and operating results on increased
Slide 23: Outlook, Operating Results 2024 Q2 to 2023 Q2
Outlook, Operating Results* 2024 Q2 to 2023 Q2 Q2 2024 Forecast compared to Q2 2023 Actual Higher revenue, on mid-teens percentage increase, and significantly improved operating Consolidated Results results, with EBITDA in the range of $80 million to $90 million. Higher revenue and operating results
Slide 24: Outlook, Energy Industry, 2024
Outlook, Energy Industry, 2024(1) Brent forecast, average price per barrel in 2024 ~$89 Market Driver 2024 Forecasts, YoY: • Contracted Floating Rigs annual average, Flat • Tree Installations, from 282 to 324, up 15% • Tree Awards, from 251 to 250, flat • Subsea Equipment Spend, $7.8B to $7.7B, esse
Slide 25: Robotics – Key to OII's Continuing Evolution
Robotics – Key to OII’s Continuing Evolution Multi-decade track record of developing leading offshore robotic capabilities • Increasing depth capability of ROV operations • Executing challenging deepwater tasks • Enhancing uptime for energy operators • Leading market share in harsh offshore environm
Slide 26: Outlook, Forklifts Market
Outlook, Forklifts Market Growing market demand for mobile robotic material handling equipment Automation of Material Handling Equipment driven by: Material Handling Equipment (MHE) - Forklifts Market Size, CAGR •Sustainability efforts, reduced 2023 5 Years GHG emissions $65B-$73B* 6% - 9%**** •Faci
Slide 27: Outlook, Oceaneering Mobile Robotics
Outlook, Oceaneering Mobile Robotics Strong growth forecasts for our leading competitive designs: MaxMover™ counterbalance, Conveyor, and FOL Forklifts OII Equipment Features CAGR Autonomous Mobile Infrastructure-free navigation. 5-Yr CAGR Robot (AMR) Forklift: Simulation software optimizes 11% to 2
Slide 28: Appendix
Appendix 28
Slide 29: Targeted Growth Businesses
Targeted Growth Businesses MOBILITY SOLUTIONS ENERGY TRANSITION • Autonomously transport people and goods • Accelerate robotic labor utilization safely at low cost • Innovate fit-for-function robotics • Orchestrate real-time fleet operations • Improve flow assurance • Continue to advance boundaries
Slide 30: 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 31: Targeted Organizational Focus
Targeted Organizational Focus Operational Financial • Maintaining focus on safety, execution, and • Generating meaningful free cash flow quality • Remaining disciplined in our approach • Remaining responsive to customer needs to growth capital expenditures in our traditional markets • Maintaining fi
Slide 32: Subsea Robotics: ROV Fleet Location
Subsea Robotics ROV Fleet Location - 250 ROVs, March 31, 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 32
Slide 33: Subsea Robotics: ROV Drill Support Market Share
Subsea Robotics ROV Drill Support Market Share - 59% for quarter ending March 31, 2024 200 100% Contracted Floaters, Working Contracted Floating Rigs at Period End Contracted Floaters, Not Working 3% OII % of Contracted Floaters 7% 59% OII % of Floating Rigs 150 75% 16% 100 59% 50% OII 50 25% Subsea
Slide 34: Subsea Robotics: Revenue and Adjusted EBITDA Margin
Subsea Robotics Revenue and Adjusted EBITDA Margin* $225,000 40% SSR ROV Revenue $200,000 SSR Tool/Survey 32% 31% SSR Adjusted EBITDA Margin 29% $175,000 30% Revenue (in thousands) $150,000 $125,000 Margin 20% $100,000 78% of SSR Revenue $75,000 $50,000 10% $25,000 $0 0% 2022 Q1 2022 Q2 2022 Q3 2022
Slide 35: Subsea Robotics: Days on Hire, Revenue per Day, Utilization
Subsea Robotics Days on Hire, Average Revenue per Day, and Utilization Rates Average Revenue Days Rate per DOH on Hire $11,000 17,500 100% Drill Support % ROV Days on Hire ROV Revenue / Day on Hire $10,009 Vessel-based % ROV Fleet Utilization % $10,000 15,000 80% 64% $9,000 12,500 60% $8,000 66% 14,
Slide 36: Manufactured Products Backlog and Book-to-Bill
Manufactured Products Backlog and Book-to-Bill $650 2.00 Backlog Revenue $597 Mfd Products Book-to-Bill, ttm $520 Book-to-Bill, ttm 1.60 Mfd Products ($ in millions) $390 1.30 1.20 $260 0.80 $130 0.40 $129.5 $0 0.00 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 36
Slide 37: Manufactured Products Facilities
Manufactured Products Manufacturing sites for design, engineering, fabrication, manufacturing, and assembly, include state-of-the-art testing facilities, for design qualification and verification. Manufacturing Facilities Grayloc® Products Facilities Houston, Texas USA Houston, Texas USA Panama City
Slide 38: Offshore Projects Group Vessel Assets
Offshore Projects Group Vessel assets for offshore projects FY 2023 Vessel Utilization 74% Forecasted Q2 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* Charter
Slide 39: Aerospace and Defense Technologies Work Scopes
Aerospace and Defense Technologies Work scopes* Vehicle Systems and Submarine Services Life Support Sea-basing Technologies Submarine Rescue and Deep Submergence Connection Systems Hyperbaric Systems *slides. including, but not limited to 39 39
Slide 40: 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 41: Liquidity – Cash from Operations, Capex, Net Debt
Liquidity – Cash from Operations, Capex, Net Debt* Net Debt in millions in millions $300 $500 $445.7 $426.3 Cash Flow, Operations Capex $250 $348.0 Net Debt $400 $200 $300 Axis Title $150 $161.9 $200 $131.3 $250.0 $210.0 $100 $100 $38.4 $157.6 $136.6 $120.9 $50 $225.3 ($92.0) $0 $36.6 $178.0 $147.7
Slide 42: 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 135 Tree Installations Subsea Tree Awards and Installations 450 125 Contracted Floating Ri
Slide 43: Supplemental Information
Supplemental Information 43
Slide 44: 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 45: 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 $ 206.0 $ 242.0 Depreciation & Amortization 105.0 121.0
Slide 46: Operating Income Reconciliation to Adjusted 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 47: 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 December 31, 2023 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 50,594 $ 5,435
Slide 48: 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 March 31, 2023 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 33,654 $ 11,280 $
Slide 49: 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 50: 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 w/ GAAP $ 118,248 $ 11,69
Slide 51: 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 52: Investor Relations Contact
NYSE: OII Investor Relations Contact Hilary Frisbie Senior Director, Investor Relations 713.329.4755 Mark Peterson Vice President, Corporate Development and Investor Relations 713.329.4507 InvestorRelations@oceaneering.com 52
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