Offshore services provider Oceaneering posted a strong second quarter thanks to a solid performance from its subsea products segment.
Oceaneering raked in $110.3 million in income for the three months ending in June, or about $1.02 per share, on revenues of $927.4 million.
That compared to net income of $98.8 million ($0.91 per share) on revenues of $820.4 million a year earlier.
The quarter was driven by Oceaneering's subsea products segment, which brought in revenue of $327.3 million and operating income of $79.5 million. That marked a record quarter for the segment and was the first time it exceeded income from the remotely operated vehicles segment, chief executive Kevin McEvoy said.
“Compared to the first quarter, subsea products operating income rose on the strength of increased revenue and profitability from tooling and subsea hardware," McEvoy said. Backlog for the segment was $850 million, compared to $902 million this time last year.
ROVs brought in revenue of $268.3 million and income of $75.8 million, up from $242.2 million and $69.2 million a year ago, respectively.
Operating margins declined for ROVs due to higher repair and maintenance expenses, unanticipated start-up costs associated with placing new systems in service, and lower fleet utilisation.
Subsea projects operating income also rose, "largely as a result of adding a vessel, the Bourbon Evolution 803," said McEvoy.