Oceaneering International Is Diversifying Into Non-Energy, But Subsea Is Still A Pullback - Oceaneer
Oceaneering International: An Overview
Oceaneering International (OII) provides engineered products and support services to the offshore oil and gas, defense, aerospace, and commercial theme park industries. In 2018 so far, OIIs stock price has increased by 25% and strongly outperformed the VanEck Vectors Oil Services ETF (OIH), which declined by 9% during this period. OIH represents the oilfield equipment & services (or OFS) industry. The subsea segment of the energy sector has not yet bounced back from the crude oil price crash in 2014-16. OII, which is considerably reliant on the subsea industry, has not been able to recover fully, either. But there have been a couple of bright spots emerging over the past few quarters that can catapult the stock in the medium-to-long term. In particular, OIIs Advanced Technologies and Asset Integrity businesses are making encouraging progress. Before we get into why OIIs stock price is rallying, let us understand the business first.
OIIs ROV segment provides submersible vehicles to support offshore energy exploration, development, and production activities. Its Subsea Products segment supplies a variety of specialty subsea hardware and related services. The Subsea Projects segment provides inspection, maintenance and repair, and installation activities for the subsea support vessels. The Asset Integrity segment provides asset integrity management and assessment services, non-destructive testing and inspection. OIIs Advanced Technologies....