Offshore staff
HOUSTON, Texas-Oceaneering International, Inc. reported all-time high record quarterly earnings for the quarter ended June 30, 2006. Its net income of $30.6 million represents a nearly 110% increase over the 2Q 2005, and a 20% increase from income reported for 1Q 2006.
Oceaneering attributed the year-over-year increase in quarterly earnings of over 100% to improvements in ROV, Subsea Products and Subsea Projects operating profits. The 20% income improvement over the first three months of 2006 was mainly attributable to increased operating income from its ROV, Subsea Projects and Inspection segments.
"Net income was at a record level for the fifth consecutive quarter as we continued to benefit from high demand for our subsea services and products," said T. Jay Collins, president and CEO. Collins explained that the earnings also reflect Oceaneering's participation in GoM hurricane damage inspection and repair projects.
The company's ROV group achieved record operating income due to the average revenue per day-on-hire surpassing the $7,000 mark. "Our year-to-date ROV pricing and number of days on hire were both approximately 15% higher than in the first half of 2005," Collins said.
Continued demand for GoM hurricane damage inspection and repair services provided a big boost for the Subsea Projects division. Operating income rose $8.9 million on a $1.9 million increase in revenue. Collins also pointed to improved utilization, higher pricing, and the increased use of company-owned vessels as a major contributor to profit growth, bringing in $4.4 million.
The Inspection division experienced increased revenue as Oceaneering continued to sell more valued-added services, such as the largest inspection and corrosion management services contract in the company's history for all offshore platforms for a North Sea operator.
Collins forecast a strong third quarter for Oceaneering, particularly in its Subsea Products sector.
08/03/2006
