Oceaneering International, Inc. · NYSE:OII
Oceaneering International — Q4 2024 Earnings Presentation
45 slides from Oceaneering International's earnings presentation, Feb 20, 2025
Slide 1: Investor Presentation 2024 Fourth Quarter
Investor Presentation 2024 Fourth Quarter NYSE: OII 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements In accordance with the Safe Harbor provisions of the Private Although we believe that the expectations reflected in those operations; hurricanes and other adverse weather and sea Securities Litigation Reform Act of 1995, Oceaneering forward-looking statements are reasonabl
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: 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 5: 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* 4% 51% 42% 3% Market Drivers and FIDs and FIDs and Subsea Tree Customer Opex Budgets Field Abandonments Key Market Indicators Working Floating Rigs Installation
Slide 6: Results Overview by Year
Results,* Overview by Year Revenue Adjusted Operating EBITDA $2.7B $2.4B $347M $289M 100% 9% 11% 15% 15% 3% 4% 80% 11% 11% 20% 21% 60% 22% 23% 11% ADTech 11% IMDS 21% 20% OPG 40% Mfd Products SSR 57% 53% 20% 31% 31% 0% 2024 2023 2024 2023 * Adjusted Operating EBITDA” percentages exclude Unallocated
Slide 7: Results Overview by Quarter
Results,* Overview by Quarter Revenue Adjusted Operating EBITDA $713.5M $679.8M $654.6M $101.5M $98.1M $75.1M 100% 8% 10% 10% 14% 14% 15% 3% 1% 4% 80% 10% 11% 10% 19% 31% 20% 26% 22% 25% 11% 8% 60% ADTech 5% IMDS 21% OPG 40% 20% 20% Mfd Products SSR 59% 58% 53% 20% 30% 32% 30% 0% 2024 Q4 2024 Q3 202
Slide 8: Full Year 2024 Highlights
Full Year 2024 Highlights Corporate Segments • Total Recordable Incident Rate (TRIR) was 0.29 for • Highest ROV Revenue since 2015 the 12-month period ended December 31 • Highest ROV Revenue per day utilized since 2014 • Highest Consolidated Revenue since 2015 • ROV uptime rate of 99% • Adjusted Con
Slide 9: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights 2024 Q4 2024 Q3 2023 Q4 ROV Revenue per Remotely Operated Vehicle (ROV) average $10,786 $10,576 $9,618 Day Utilized, average revenue per day utilized increased again, SSR EBITDA 36% 36% 32% averaging $10,786 for the quarter. Margin SSR EBITDA margin held steady at
Slide 10: Revenue Sources, Year over Year
Revenue Sources, Year over Year Geographic Area Services and Products Industry Segments* $2.7B $2.4B $2.1B $2.7B $2.4B $2.1B $2.7B $2.4B $2.1B 100% 19% 15% 16% 17% 21% 21% 42% 42% 47% 75% 50% 81% 85% 84% 83% 79% 79% 58% 58% 53% 25% 0% 2024 2023 2022 2024 2023 2022 2024 2023 2022 United States Produc
Slide 11: Outlook, Operating Forecast FY 2025
Outlook, Operating Forecast* FY 2025 2025 Forecast compared to 2024 Results Consolidated EBITDA is forecasted in the range of $380M to $430M, and YoY improvement led by SSR, ADTech, and Manufactured Products. Free cash flow is expected in the range of $110M to Consolidated Results $130M. Capital exp
Slide 12: Outlook, Operating Forecast 2025 Q1F to 2024 Q1
Outlook, Operating Forecast* 2025 Q1F to 2024 Q1 Q1 2025 Forecast compared to Q1 2024 Results Revenue is forecasted to increase. EBITDA is forecasted to significantly increase, Consolidated Results to the range of $80M to $90M. Revenue is forecasted to increase and operating profitability is forecas
Slide 13: Liquidity and Free Cash Flow
Liquidity and Free Cash Flow Liquidity at December 31, 2024 Liquidity Outlook for December 31, 2025 • Cash and cash equivalents $498M • Cash and cash equivalents $608M to $628M • $215M unused commitment through senior • $215M unused commitment through senior secured secured revolving credit agreemen
Slide 14: Outlook, Energy Industry, 2024-2025, YoY
Outlook, Energy Industry, 2024-2025, YoY Offshore energy drivers are trending flat to slightly positive • Brent forecast, average price per barrel: 2025 ~$74* and 2026 ~$66 • Offshore energy metrics for OII: Contracted Floating Rigs Tree Awards Tree Installations Spending on Subsea Equipment
Slide 15: Targeted Growth Businesses
Targeted Growth Businesses MOBILITY AEROSPACE DIGITAL ASSET AEROSPACE and DIGITAL ASSET SOLUTIONS and DEFENSE MANAGEMENT DEFENSE MANAGEMENT Achieve operational SOLUTIONS Automate inspection, Segment status SOLUTIONS Increase robotic and dataAutomate inspection, collection, and based on projected dat
Slide 16: Robotics – Key to Oceaneering's Continuing Evolution
Robotics – Key to Oceaneering’s Continuing Evolution Oceaneering’s outlook is reinforced by projected double-digit market growth in onshore industrial robotics markets Multi-decade track record of developing leading offshore robotic capabilities • Increasing depth capability of ROV operations • Exec
Slide 17: Oceaneering Robotics Expertise Serves Multiple Markets
Oceaneering Robotics Expertise Serves Multiple Markets Business Segments / Applications Markets / Potential Markets Subsea Robotics and • Remotely Operated Vehicles (ROVs) • Offshore O&G, Renewables, and Carbon Capture Offshore Projects Group • Autonomous Underwater Vehicles (AUVs) • Offshore O&G, R
Slide 18: Final Thoughts
Final Thoughts 2025 Forecast for Growth in Revenue and Operating Profitability Across All Five Operating Segments. Mid-point of refreshed EBITDA guidance implies >15% YoY growth over 2024 adjusted EBITDA. Continued focus on Growth: Developing solutions for existing energy markets and custome
Slide 19: Appendix
Appendix 19
Slide 20: Subsea Robotics
Subsea Robotics Subsea Robotics (SSR) merges our underwater robotics and automation capabilities by combining our ROV, Survey, and ROV Tooling businesses. Revenue ($ in millions) Remotely Operated Vehicles (ROV) $754 $754 Remotely operated, tethered submersible vehicles for drilling support, offshor
Slide 21: Subsea Robotics Revenue and Adjusted EBITDA Margin
Subsea Robotics Revenue and Adjusted EBITDA Margin* $225 36% 36% 40% SSR ROV Revenue $200 SSR Tool/Survey 32% SSR Adjusted EBITDA Margin $175 30% Revenue (in millions) $150 $125 Margin 20% $100 76% of 77% of 77% of SSR Revenue SSR Revenue SSR Revenue $75 $50 10% $25 $0 0% 2022 Q4 2023 Q1 2023 Q2 202
Slide 22: Subsea Robotics Days Utilized, Revenue per Day, Utilization
Subsea Robotics Days Utilized, Average Revenue per Day, and Utilization Rates Average Revenue Days Rate per DOH* on Hire Drill Support % ROV Days on Hire $10,786 Vessel-based % $11,000 $10,576 17,500 100% ROV Revenue / Day Utilized ROV Fleet Utilization % $9,618 $10,000 15,000 80% 68% 69% 66% $9,000
Slide 23: Contracted Floating Rigs at Period End
Subsea Robotics ROV Drill Support Market Share: 59% on Dec 31, 2024 200 100% Contracted Floaters, Working Contracted Floating Rigs at Period End Contracted Floaters, Not Working 3% 15% OII % of Contracted Floaters OII % of Floating Rigs 150 75% 7% 59% 100 61% 59% 59% 50% 50 25% OII Other Fugro Techn
Slide 24: ROV Fleet Location
Subsea Robotics ROV Fleet Location - 250 ROVs, December 31, 2024 100 Drilling Support ROVs 80 71 Vessel-based ROVs ROV Count 60 48 42 37 40 26 26 20 0 Americas, excl Brazil Africa/MidEast Europe Norway Asia Pacific Brazil 24
Slide 25: 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 26: Manufactured Products Backlog and Book-to-Bill
Manufactured Products Backlog and Book-to-Bill $750 2.00 Backlog $671 Revenue $622 $604 Mfd Products Book-to-Bill, ttm $600 Book-to-Bill, ttm 1.60 Mfd Products ($ in millions) $450 1.31 1.20 1.21 1.00 $300 0.97 0.80 $150 0.40 $133.0 $143.7 $143.0 $0 0.00 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024
Slide 27: Manufactured Products: MaxMover Autonomous Forklift
Manufactured Products MaxMoverTM Autonomous Forklift, AMR A true replacement for conventional counterbalance forklifts for industries in collection, manufacturing, and distribution of raw materials and finished products. Relentless focus on user experience. Tilting mast function for stable load hand
Slide 28: Offshore Projects Group
Revenue ($ 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 29: Offshore Projects Group Vessel Assets
Offshore Projects Group Vessel assets for offshore projects Forecasted Q1 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 30: 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 A range of
Slide 31: 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 32: 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 1
Slide 33: OII Energy Backlog and Revenue track Offshore Spending
OII Energy Backlog and Revenue track Offshore Spending* Global Offshore Spending, OII, $ in billions $ in billions $2.50 $2.27 $500 $2.05 $2.00 $1.72 $2.19 $400 $2.09 $1.49 $1.55 $1.50 $1.76 $300 $1.55 $1.38 $1.00 $200 $0.50 $100 $0.00 $0 2020 2021 2022 2023 2024 2025F 2026F Offshore Spend Total OII
Slide 34: ROV Revenue per day utilized tracks with Floater Dayrates
ROV Revenue per day utilized tracks with Floater Dayrates Average Floater Dayrates OII ROV Revenue/DU ($ in thousands) Brent Crude, annual average closing price per barrel ($ in thousands) $600 $41.76 $70.68 $100.76 $82.49 $80.52 $74 $12 $500 $10 $400 $8 $300 $6 $200 $4 $100 $2 $0 $0 Drillship Qtrly
Slide 35: Supplemental Information
Supplemental Information 35
Slide 36: 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 37: 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, 2024 Dec 31, 2023 Dec 31, 2025 (in millions) (in millions) Net Income (Loss) $ 147.5 $ 97.4 Income(Loss) before income taxes $ 254.0 $ 295.0 Depreciation & Amortization 103.4 105.0
Slide 38: 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 39: Operating Income Reconciliation to Adjusted EBITDA (Q3 2024)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 3-Month Period Ended Unallocated September 30, 2024 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 65,698 $ 11,2
Slide 40: Operating Income Reconciliation to Adjusted EBITDA (Q4 2023)
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 41: Operating Income Reconciliation to Adjusted EBITDA (FY 2024)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 12-Month Period Ended Unallocated December 31, 2024 Expenses SSR MP OPG IMDS ADTech and other Total ($ in thousands) Operating Income (Loss) as reported in accordance with GAAP $ 235,211 $ 43,
Slide 42: Operating Income Reconciliation to Adjusted EBITDA (FY 2023)
Operating Income (Loss) Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDA (continued) For the 12-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 $ 174,293 $ 35,
Slide 43: Operating Income Reconciliation to Adjusted EBITDA (FY 2022)
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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