Oceaneering International, Inc. (NYSE:OII) Q3 2024 Earnings Conference Call October 24, 2024 11:00 AM ET

Company Participants

Hilary Frisbie – Senior Director, Investor Relations
Rod Larson – President and Chief Executive Officer
Alan Curtis – Senior President and Chief Financial Officer

Conference Call Participants

Kurt Hallead – Benchmark
Sean Mitchell – Daniel Energy Partners
David Smith – Pickering Energy Partners

Operator

Welcome to Oceaneering’s Third Quarter 2024 Earnings Conference Call. My name is David, and I’ll be your conference operator. All lines have been placed on mute to prevent any background noise. There will be a question-and-answer period after the speakers’ remarks.

With that, I’ll now turn the call over to Hilary Frisbie, Oceaneering Senior Director of Investor Relations.

Hilary Frisbie

Thanks, David. Good morning, and welcome to Oceaneering’s third quarter 2024 results conference call. Today’s call is being webcast, and a replay will be available on Oceaneering’s website. Joining us on the call are Rod Larson, President and Chief Executive Officer, who will be providing our prepared comments; and Alan Curtis, Senior President and Chief Financial Officer.

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 third 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. First off, thank you to the many Oceaneers who delivered $98.1 million in adjusted EBITDA despite two large hurricanes in the Gulf of Mexico that impacted our offshore operations and three of our onshore facilities in Louisiana and Florida as well as absorbing an approximate $3 million loss as we fine-tuned our business portfolio and sold our Maritime Intelligence business. I believe this speaks to both the resiliency of our Oceaneers and portfolio of businesses.

That being said, I’d like to highlight some of our achievements from the third quarter of 2024. As I just mentioned, we delivered $98.1 million in adjusted EBITDA, which was in line with our guidance and consensus estimates. We generated healthy free cash flow of $67 million. Subsea Robotics, SSR, EBITDA margins continue to expand to 36%. And yes, we did a share repurchase. Now I’ll focus my comments on our performance for the third quarter of 2024, our consolidated and business segment outlook for the fourth quarter and full year of 2024 and our initial consolidated 2025 outlook.