Subsea engineering specialist, Oceaneering, has reported a drop in third-quarter profit for the period ended September 30, 2015 as revenues declined on lower demand and as prices dropped for most of its oilfield services and products.
The Houston-based company generated net income of $69.5 million, or $0.70 per share, on revenue of $743.6 million, versus net income of $91.2 million, or $0.84 per share on revenue of $840.2 million in the year-ago quarter.
Oceaneering reported EBITDA of $168 million during the quarter and said it anticipates generating at least $640 million for the year 2015, which is lower than earlier anticipated. At the end of the quarter, the company had $271 million in cash and an undrawn $500 million revolver.
Furthermore, Oceaneering has lowered its guidance for the fourth quarter of this year, and said it expects to report fourth quarter EPS in the range of $0.54 to $0.60, and drops in operating income from ROV, subsea projects, and asset integrity. Full-year EPS guidance has also been reduced to a range of $2.60 to $2.66 from $2.70 to $2.90.
According to CEO M. Kevin McEvoy, projection for 2016 earnings will be lower than 2015.
In addition, Oceaneering declared a regular quarterly dividend of $0.27 per common share. The dividend is payable December 18, 2015 to shareholders of record at the close of business on November 27, 2015.