HOUSTON - Oceaneering International, Inc. (NYSE:OII) has secured multiple contracts in the fourth quarter of 2023, expected to generate around $200 million in revenue. The contracts, predominantly with international oil and gas operators and marine construction firms, cover a range of values, with some below $10 million and others exceeding $100 million.
Two significant contracts contribute to a large portion of the anticipated revenue. The first entails supplying approximately 34 kilometers of electro-hydraulic, steel tube umbilicals and related subsea distribution hardware for a major greenfield development in the Gulf of Mexico. Production for this project is planned at the company's Panama City and Houston facilities, with the final delivery scheduled for the third quarter of 2026.
The second major contract involves the next stage of a development in the Black Sea, where Oceaneering will provide around 45 kilometers of electro-hydraulic, steel tube umbilicals, both dynamic and static, along with supporting hardware. Production is set to begin in 2024 at the Rosyth, Scotland facility, aiming for final delivery in the third quarter of 2025.
Additional contracts acquired during the same period include the supply of more subsea production umbilicals, umbilical termination hardware, Grayloc and Rotator products, and mobility solutions.
Rod Larson, Oceaneering's President and CEO, remarked "These contract awards validate the continued necessity for stability in global offshore energy production, and demonstrate customer confidence in our ability to support their operations to meet energy demand."
Oceaneering, a global technology firm, serves the offshore energy sector, defense, aerospace, manufacturing, and entertainment with engineered services, products, and robotic solutions.
This news article is based on a press release statement.
InvestingPro Insights
Oceaneering International, Inc. (NYSE:OII) has demonstrated a promising outlook with the recent acquisition of multiple lucrative contracts, as shown by the anticipated revenue boost of around $200 million. In light of this development, InvestingPro data provides a deeper financial perspective on the company. With a market capitalization of approximately $2.03 billion and a Price/Earnings (P/E) ratio of 26.72 over the last twelve months as of Q3 2023, Oceaneering appears to be valued on par with its earnings growth. The company's revenue has grown by 15.51% during the same period, indicating a healthy expansion in its operations.
InvestingPro Tips suggest that net income is expected to grow this year, with analysts predicting profitability for Oceaneering. This aligns with the company's strategic wins in securing new contracts. Additionally, the company's liquid assets surpass its short-term obligations, which is a reassuring signal of financial stability. However, it's worth noting that the stock price has experienced considerable volatility, and Oceaneering does not pay dividends to shareholders, which may influence investment strategies.
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