Oceaneering loss widens on impairment

Oceaneering has reported a net loss of $79.4 million on revenue of $440 million for the third quarter 2020.

Adjusted net loss was $17.6 million, reflecting the impact of $68.7 million of pre-tax adjustments ($40 million impairment) and $6.3 million of discrete tax adjustments.

Compared to a year-ago period, Oceaneering booked net loss of $25.5 million on revenue of $497.7 million and no impairments.

Sequentially, Oceaneering reported a net loss of $24.8 million, or $25 cents per share, on revenue of $427 million.

Adjusted net loss was $14.2 million, specifically due to impact of $9.6 million of pre-tax adjustments.

For the nine months of 2020 the Houston-based subsea player recognised net loss of close to $472 million and revenue of $1.4 billion.

“Looking forward, we believe our fourth quarter 2020 results will decline sequentially with the onset of lower seasonal offshore activity and customer budget exhaustion negatively affecting our energy businesses.

“For the full year of 2020, we expect to generate adjusted EBITDA in the range of $165 million to $175 million.

“We are also narrowing our guidance range for capital expenditures to $50 million to $60 million.”

At the end of September 2020, Oceaneering ROV fleet size was 250, unchanged from the second quarter.

For the third quarter, utilization was 59 per cent, flat with the quarter ended 30 June 2020.

Also, as of 30 September 2020, Oceaneering had ROV contracts on 76 of the 133 floating rigs under contract. This results in a drill support market share of 57 per cent.

The company’s backlog at 30 September 2020 was $318 million, against $582 million same time last year.