Oceaneering (OII) Tops Q3 EPS by 1c

Oceaneering (NYSE: ) reported Q3 EPS of $0.17, $0.01 better than the analyst estimate of $0.16. Revenue for the quarter came in at $549 million versus the consensus estimate of $598.56 million.

M. Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, "On an adjusted basis, our third quarter operating results were in line with our expectations and the consensus estimate. However, the leading indicator for deepwater activity, contracted floating rigs, continued to decline, as the rate of rigs being idled, either by contract termination or expiration, continued unabated. This prevailing market condition required us to reassess the number of ROVs we have in our fleet, as well as the associated inventory. As a result of our reassessment, we recorded a $36.0 million charge related to our retirement of 39 ROVs this quarter (for a net book value of $10.8 million) and established a $25.2 million reserve for excess inventory. We also scrutinized assets in our Subsea Products segment and recorded an $8.2 million charge, related predominantly to tools and inventory in our portfolio used to support deepwater drilling and operations.

For earnings history and earnings-related data on Oceaneering (OII) click here.

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