Oceaneering has reported a net loss of $24.8 million, or 25 cents per share, on revenue of $427 million for the first quarter 2020.
Adjusted net loss was $14.2 million, or 14 cents per share, reflecting the impact of $9.6 million of pre-tax adjustments and $3.3 million of other discrete tax adjustments.
During the prior quarter ended March 31, 2020, Oceaneering reported a net loss of $368 million, or $3.71 per share, on revenue of $537 million.
Adjusted net income was $3.5 million, or 4 cents per share, specifically due to impact of $393 million of pre-tax adjustments.
These were primarily due to goodwill impairments, asset impairments and write-offs.
Roderick A. Larson, president and CEO of Oceaneering, stated:
“Considering all of the uncertainties surrounding the crude oil markets and the COVID-19 pandemic, we were satisfied with our second quarter 2020 results.
“For the second quarter, we generated adjusted EBITDA of $40.5 million, exceeding consensus estimates, and we generated $26.9 million of free cash flow.”
At the end of June 2020 Oceaneering ROV fleet size was 250, unchanged from the first quarter.
For the second quarter, utilization was 59 per cent, down from 65 per cent achieved for the quarter ended March 31, 2020.
Also, as of June 30, 2020, Oceaneering had ROV contracts on 86 of the 139 floating rigs under contract, resulting in a drill support market share of 62 per cent.
The company’s subsea products backlog at June 30, 2020 was $486 million, against March 31, 2020 backlog of $528 million.
Due to market uncertainty, Oceaneering is not providing segment financial guidance for the third quarter or second half of 2020.