Oceaneering secures $80-90 million contract with Esso in Angola

HOUSTON - Oceaneering International, Inc. (NYSE:OII), a $2.2 billion market cap company with a perfect Piotroski Score of 9 according to InvestingPro, announced Monday that its subsidiaries have been awarded a three-year contract by Esso Exploration Angola (Block 15) Limited, an ExxonMobil affiliate, to support offshore operations in Angola Block 15.

The contract, which began July 1, is expected to generate between $80 million and $90 million in revenue over its three-year term, according to a company press release. This new contract will contribute to Oceaneering’s robust revenue stream, which has grown 10% over the last twelve months to $2.7 billion. InvestingPro analysis indicates the company is currently trading below its Fair Value, with 8 additional exclusive insights available to subscribers.

Oceaneering secured the renewal following a competitive bidding process. The scope of work includes providing multiple work-class remotely operated vehicles (ROVs), ROV tooling, intervention workover control systems, satellite communication systems, and various subsea services.

These services will be deployed from Esso-supplied facilities, intervention vessels, and drilling rigs in Angola’s offshore energy sector.

"Securing this contract renewal with Esso, a key customer, through a competitive process reinforces our position as a trusted partner in Angola’s offshore energy sector," said Martin McDonald, Subsea Robotics Senior Vice President at Oceaneering.

Oceaneering International describes itself as a global technology company delivering engineered services, products, and robotic solutions to the offshore energy, defense, aerospace, and manufacturing industries. The company maintains strong financial health with a current ratio of 1.89 and trades at an attractive P/E ratio of 12.2, demonstrating solid operational efficiency. Discover more detailed analysis in the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Oceaneering International Inc. has been awarded a $34.8 million contract modification by the U.S. Department of Defense for submarine rescue operations. This contract, a continuation of a previous agreement, will support the Navy’s submarine rescue program until June 2026. In addition, Oceaneering has secured a $33 million contract to manufacture support equipment for Virginia Class Submarines, further solidifying its relationship with the U.S. Navy. This contract, awarded by the Naval Surface Warfare Center Philadelphia Division, involves a five-year ordering period with potential extensions.

Furthermore, the company has entered into a vessel services agreement for the Gulf of Mexico, utilizing its chartered vessel, Harvey Deep Sea, for subsea inspection and maintenance. In another development, Oceaneering is preparing for a change in its financial leadership as Chief Financial Officer Alan R. Curtis announces his retirement, with Michael W. Sumruld set to succeed him. Curtis has been with the company for over three decades, and his successor, Sumruld, brings experience from Parker Drilling Company and other notable firms. These recent developments highlight Oceaneering’s ongoing collaborations with the U.S. Navy and strategic leadership changes aimed at sustaining its growth trajectory.

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