Impairments Weigh on Oceaneering’s Results

Oceaneering has reported a net loss of $263 million, or $2.66 per share, for the three months ended December 31, 2019, despite revenue rise.

The result compares with net loss of $64 million same time last year. During the prior quarter ended September 30, 2019, Oceaneering reported a net loss of close to $26 million, or 26 cents per share.

The Houston-based subsea engineering specialist generated quarterly revenue of $561 million, up from $495 million in Q4 2018, and up from $498 million sequentially.

For the twelve months of 2019, Oceaneering reported a net loss of $348 million, or $3.52 per share, on revenue of $2 billion, against $212 million loss and $1.9 billion revenue in 2018.

The result was mainly impacted by $240 million in asset impairments, write-downs and write-offs recognized during the fourth quarter.

Adjusted net profit for the quarter was $2.5 million, or 3 cents per share.

“During the quarter, we recognized certain non-cash charges related to impairments to the carrying value of several of our vessels and certain other assets, including goodwill and intangible assets, as market conditions no longer support the prior valuations for these assets. A small portion of the asset write-downs related to the retirement of 30 ROVs from our fleet. Additionally, we recognized restructuring costs as we continue to focus our efforts on adapting our asset base, geographic footprint and staffing levels for the realities of the markets we serve,” said Roderick A. Larson, president and CEO of Oceaneering.

Subsea World News Staff