Oceaneering International, Inc. (NYSE: OII) has reported its first quarter 2024 results, revealing a net income of $15.1 million, or $0.15 per share, on revenue of $599 million for the three months ended March 31, 2024. Comparing this to the same period in 2023, the company saw a considerable increase in net income, which was $44.5 million in the first quarter of 2023. However, the revenue for the first quarter of 2023 was higher at $654.6 million.
The company's consolidated adjusted EBITDA for the first quarter of 2024 was reported at $61.7 million, showing an improvement over the first quarter of 2023. Additionally, the cash flow used in operating activities was $69.7 million, and free cash flow was reported at $(95.2) million, with an ending cash position of $355 million.
When comparing the segment results for the first quarter of 2024 to the first quarter of 2023, Oceaneering International, Inc. observed an increase in operating income in various segments. The Subsea Robotics (SSR) segment reported a 31% increase in operating income, with an improved EBITDA margin of 31%. The Manufactured Products segment also saw a 17% improvement in operating income on a 15% increase in revenue. Conversely, the Offshore Projects Group (OPG) operating income declined as expected due to drydock expenses incurred during the first quarter of 2024.
Looking ahead, the company confirmed its prior guidance for 2024, expecting net income in the range of $125 million to $155 million, consolidated EBITDA in the range of $330 million to $380 million, free cash flow generation in the range of $110 million to $150 million, and capital expenditures in the range of $110 million to $130 million.
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, expressed optimism about the first quarter results, noting that the company's adjusted EBITDA was higher than guided, driven by better-than-expected activity levels across their businesses. Larson highlighted that compared to the same quarter last year, the consolidated first quarter 2024 operating income was 37% higher on a 12% increase in revenue, with higher revenue in all business segments and improved operating income in each segment except for OPG.
The company also provided guidance for the second quarter of 2024, with expectations of improved operating results and EBITDA in the range of $80 million to $90 million on a mid-teens percentage increase in revenue. Full-year 2024 consolidated and segment guidance remains unchanged from the fourth quarter 2023 earnings release.
Oceaneering International, Inc. has scheduled a conference call and webcast on Thursday, April 25, 2024, at 9:00 a.m. Central Time, to discuss its first quarter 2024 results, as well as provide more detailed guidance for the full year and second quarter of 2024. Interested parties may listen to the call through a webcast link posted in the investor relations section of Oceaneering's website. Following these announcements, the company's shares moved -0.7%, and are now trading at a price of $23.05. For the full picture, make sure to review Oceaneering International's 8-K report.
