Oceaneering International, Inc. (NYSE:OII) Q4 2023 Earnings Conference Call February 23, 2024 11:00 AM ET

Company Participants

Hilary Frisbie - Senior Director, IR

Rod Larson - President and CEO

Alan Curtis - SVP and CFO

Conference Call Participants

Eddie Kim - Barclays

Kurt Hallead - Benchmark

David Smith - Pickering Energy Partners

Operator

Good morning, afternoon. My name is Sylvie, and I will be your conference operator. Welcome, everyone, to Oceaneering's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions]

With that, I will turn the call over to Hilary Frisbie, Senior Director, Investor Relations. Please go ahead.

Hilary Frisbie

Thanks, Sylvie. Good morning, and welcome, everyone, to Oceaneering's fourth quarter and full year 2023 earnings conference call. Today's call is being webcast and a replay will be available on Oceaneering's website. With me on the call today are Rod Larson, President and Chief Executive Officer, who will be providing our prepared comments; Alan Curtis, Senior Vice President and Chief Financial Officer; and Mark Peterson, Vice President, Corporate Development and Investor Relations.

Before we begin, I would like to remind participants that statements we make during the course of this call regarding our future financial performance, business strategy, plans for future operations and industry conditions are forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our fourth quarter press release. We welcome your questions after the prepared statements.

I will now turn the call over to Rod.

Rod Larson

Good morning, and thanks for joining the call today.

Today I'll focus my comments on our performance for the fourth quarter and full year of 2023, our market outlook for 2024, Oceaneering's consolidated 2024 outlook, including our expectation to generate positive free cash flow in the range of $110 million to $150 million and EBITDA in the range of $330 million to $380 million, and our segment outlook for the first quarter and full year of 2024.

Now moving to our results. For the fourth quarter of 2023, we reported net income of $44.5 million, or $0.43 per share. These results include the impact of a $23.7 million discrete tax benefit, primarily due to changes in valuation allowances, uncertain tax position and prior year estimates, $2.3 million of pretax adjustments associated with foreign exchange gains recognized during the quarter, and $0.9 million tax effect on adjustments associated with foreign exchange gains.