Oceaneering grew every segment but one and beat the top of its own EBITDA guidance
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Every Oceaneering segment but one grew. The offshore-services company reported second-quarter revenue of $768m, up 10 percent from a year earlier, with operating income up 11 percent to $88.2m and net income up 19 percent to $65.0m. Adjusted EBITDA rose 11 percent to $115m, which the company said cleared the top of its guidance range.
The breadth is the point. Rather than one large contract carrying the quarter, all of the company's segments posted higher revenue and operating income, with the single exception of Integrity Management and Digital Solutions. The company said that unit was partially affected by the ongoing Middle East conflict. Chief Executive Rod Larson pointed to the Offshore Projects Group, where he said favorable project mix and execution drove better than expected results.
The balance sheet strengthened too. Free cash flow was $32.0m, cash rose to $629m from $434m a year earlier, and the company repurchased about $10.0m of stock while beginning a series of transactions to refinance and extend its debt.
