Oceaneering Anticipates Hit from Moratorium
Oceaneering International announced that it is making a preliminary change to its 2010 EPS guidance. This is being done in light of the May 27, 2010 U.S. Department of Interior announcement of a six-month moratorium on deepwater permitting and drilling activities in the Gulf of Mexico (GOM).
T. Jay Collins, President and Chief Executive Officer, stated, "Using limited information from our customers to date, we have estimated the impact of the moratorium could be an EPS reduction of $0.45 to our second half results. Consequently, our new annual EPS guidance range for 2010 is $2.80 to $3.10. Our reduced earnings guidance presumes declining use of ROVs in the GOM during the second half of 2010, lower demand for our IWOCS and pipeline repair system Subsea Product lines, and less deepwater vessel installation work for Subsea Projects.
"Oceaneering has extensive deepwater business operations in the GOM, some of which are tied to drilling activity. As of May 31, 2010 we had 255 ROVs in our fleet. Of these, 70 were located in the GOM, of which 35 were engaged in drill support service, including 32 onboard 29 floating drilling rigs. These ROV contracts include provisions for early-termination, and we are expecting some terminations and revised scopes of work.
"We are talking to our customers to stay abreast of what specific actions they intend to take and when. Our 2010 EPS guidance could change significantly as our customers' reactions to the moratorium materialize. An update to our 2010 EPS guidance will be given in our second quarter earnings release in late July.
"Despite the moratorium, we continue to believe that the underlying fundamentals supporting long-term secular growth in deepwater activity remain unchanged. We are well positioned to participate in this market niche."
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call