Oceaneering International, Inc. (‘Oceaneering’), a global technology company, delivers engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.
The company is an underwater services contractor. The services and products it provides to the energy industry include remotely operated vehicles, survey and positioning services, specialty subsea hardware, engineering and project management, subsea intervention serv...
Oceaneering International, Inc. (‘Oceaneering’), a global technology company, delivers engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.
The company is an underwater services contractor. The services and products it provides to the energy industry include remotely operated vehicles, survey and positioning services, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, and asset integrity and non-destructive testing services. Its foreign operations, principally in Africa, the United Kingdom (‘U.K.’), Norway, Brazil, and Asia and Australia, accounted for approximately 58% of its revenue for the year ended December 31, 2024.
The company intends to continue its strategy of acquiring, as opportunities arise, additional assets or businesses, to improve its market position or expand into related service and product lines. In October 2024, it acquired Global Design Innovation Ltd. (‘GDi’), a U.K.-based provider of digital and software services.
Segments
The company operates in five business segments. Its segments are contained within two businesses—services and products provided primarily to the oil and gas industry, and to a lesser extent, the mobility solutions and offshore renewables industries, among others (‘Energy’), and services and products provided to non-energy industries (‘Aerospace and Defense Technologies’).
The four segments within the Energy business are Subsea Robotics, Manufactured Products, Offshore Projects Group, and Integrity Management & Digital Solutions. It reports its non-energy business, Aerospace and Defense Technologies, as one segment.
Energy: The primary focus of the company's Energy business is to continue driving the positive momentum associated with its operational efficiency programs that leverage its asset base and capabilities for providing services and products for offshore energy operations and subsea completions. These efforts continue to benefit it during the current upstream spending cycle that is consistent with the ongoing global demand for energy. It is also focused on deploying its capabilities to grow its business in integrity management, survey services, mobile robotics, offshore wind installations, nuclear, and other clean energy solutions.
Subsea Robotics: The company's Subsea Robotics segment consists of its remotely operated vehicles (‘ROVs’), survey services, and ROV tooling businesses. It provides ROVs, which are tethered submersible vehicles remotely operated from the surface, to customers in the offshore energy industry for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey, and facilities inspection, maintenance, and repair (‘IMR’). It designs, builds, retrofits, and upgrades its new and existing ROVs at in-house facilities, the largest of which is in Morgan City, Louisiana. In 2024, it retired eight of its conventional work-class ROV systems and replaced them with eight upgraded conventional work-class ROV systems.
The company's work-class ROV fleet size was 250 as of December 31, 2024, and included six IsurusTM work-class ROV systems, which are capable of operating in high-current conditions and are ideal for renewables projects and high-speed surveys, and its battery-operated Liberty electric ROV (‘E-ROV’) system, which it developed to address customer objectives regarding cost efficiencies, safety, personnel shortages, and environmental considerations. The E-ROV system allows its customers to reduce carbon dioxide and other ‘greenhouse gas’ (‘GHG’) emissions associated with offshore production operations. This system does not require a dedicated vessel to be on standby during ROV operations and reduces the need for ROV and other vessel-based personnel to be transported to and from marine vessels and offshore platforms, making the system more cost-efficient and safer for its customers. Additionally, it offers Freedom, a hybrid autonomous underwater vehicle (‘AUV’) and ROV. Freedom combines the data resolution and completeness of coverage in a single pass usually only obtainable using an ROV, but with the speed and efficiency of a traditional AUV. The company intends to continue to expand its remote service offerings in this segment, given the potentially significant savings both financially and in CO2 emissions available from Freedom, Liberty, and IsurusTM systems.
Manufactured Products: The company's Manufactured Products segment provides distribution systems, such as production control umbilicals and connection systems made up of specialty subsea hardware, along with clamp connectors and subsea and topside control valves. It also provides turnkey solutions that include project management, engineering design, fabrication, assembly, and installation of autonomous mobile robotic technology to industrial, manufacturing, healthcare, and warehousing markets.
The company provides various types of subsea umbilicals through its Umbilical Solutions division from facilities in the United States, Scotland, and Brazil. Offshore operators use umbilicals to control subsea wellhead hydrocarbon flow rates, monitor downhole and wellhead conditions, and perform chemical injection. Subsea umbilicals are also used to provide power and fluids to other subsea processing hardware, including pumps and gas separation equipment.
Offshore Projects Group: The company's Offshore Projects Group (‘OPG’) segment provides a broad portfolio of integrated subsea project capabilities and solutions as follows:
Subsea installation and intervention, including riserless light well intervention (‘RLWI’) services, IMR services, principally in the United States (‘U.S.’) Gulf of Mexico and offshore Angola, utilizing owned and chartered vessels;
Installation and workover control systems (‘IWOCS’) and ROV workover control systems (‘RWOCS’); diving services; decommissioning services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions.
The OPG segment provides vessel-based services principally in the U.S. Gulf of Mexico and offshore Angola, utilizing a fleet consisting of three owned and six chartered dynamically positioned deepwater vessels with integrated high-specification work-class ROVs onboard, and one owned survey vessel, other spot-chartered vessels, and other assets. Its owned vessels are Jones Act-compliant. The dynamically positioned vessels are equipped with thrusters that allow them to maintain a constant position at a location without the use of anchors. They are used in the IMR of subsea facilities, pipeline or flowline tie-ins, pipeline crossings, and installations.
Integrity Management & Digital Solutions: The company's Integrity Management & Digital Solutions (‘IMDS’) segment provides asset integrity management, corrosion management, inspection, and nondestructive testing services, principally to customers in the oil and gas, power generation, and petrochemical industries. It performs these services on both onshore and offshore facilities, both topside and subsea. It also provides software, digital, and connectivity solutions for the energy industry.
Aerospace and Defense Technologies: The company's Aerospace and Defense Technologies (‘ADTech’) segment provides services and products, including engineering and related manufacturing in defense and space exploration activities, principally to the U.S. government agencies and their prime contractors. Many of the services and products utilized in ADTech are applied technologies based on its core competencies and knowledge derived from decades of working in the offshore markets and solving complex problems in harsh environments.
Energy
The company's Energy business consists of the Subsea Robotics, Manufactured Products, Offshore Projects Group, and Integrity Management & Digital Solutions segments. Its Energy business focuses on driving the positive momentum from its operational efficiency programs that leverage its asset base and capabilities for providing services and products for offshore energy operations and subsea completions. These efforts continue to benefit it during the current upstream spending cycle that is consistent with the ongoing global demand for energy. It is also focused on deploying its capabilities to grow its business in mobile robotics, offshore wind installations, nuclear, and other clean energy solutions.
Subsea Robotics: ROVs are tethered submersible vehicles remotely operated from the surface. The company uses its ROVs in the offshore energy industry to perform a variety of underwater tasks, including drill support, vessel-based IMR, installation and construction support, pipeline inspection, and surveys, as well as subsea production facility operation and maintenance. Work-class ROVs are outfitted with manipulators, sonar, and video cameras. As of December 31, 2024, it owned several work-class ROVs.
ROV tooling provides an additional operational interface between an ROV and equipment located subsea. The company also provides survey services, including hydrographic survey and positioning services, and autonomous underwater vehicles for geoscience.
Manufactured Products: It provides advanced technology product development, manufacturing, and project management to industrial, manufacturing, healthcare, and warehousing markets. These include various types of subsea umbilicals utilizing steel tubes, thermoplastic hoses, and power and communication cables, along with termination assemblies; production control equipment; clamp connectors; pipeline connector and repair systems; subsea and topside control valves; subsea chemical injection valves; and autonomous mobile robotic technology.
Offshore Projects Group: The company's OPG segment provides a comprehensive portfolio of integrated subsea project capabilities and solutions, leveraging the range of Oceaneering services, products, engineering, and design expertise from all of its segments, including the following: subsea installation and intervention, including RLWI and IMR services, principally in the U.S. Gulf of Mexico and offshore Angola, utilizing owned and chartered vessels; and RWOCS; diving services; decommissioning services; project management and engineered solutions; and drill pipe riser services and systems, and wellhead load relief solutions.
Integrity Management & Digital Solutions: The company offers a wide range of asset integrity services to customers worldwide to help ensure the safety of their facilities onshore and offshore, while reducing their unplanned maintenance and repair costs. It also provides third-party inspections to satisfy contractual structural specifications, internal safety standards, or regulatory requirements. It provides these services principally to customers in the oil and gas, power generation, and petrochemical industries. In the U.K., it provides Independent Inspection Authority services for the oil and gas industry, which include first-pass integrity evaluation and assessment, and nondestructive testing services. It performs these services on both onshore and offshore facilities, both topside and subsea. It also provides software, digital, and connectivity solutions for the energy industry. In October 2024, it acquired GDi, a U.K.-based provider of asset management, engineering, and software services. As the only provider certified by the U.K. Accreditation Service to perform remote visual inspection using point cloud data and photographic images, GDi brings advanced algorithms and data solutions. GDi’s suite of solutions, including its Vision software, complements Oceaneering’s portfolio by supporting enhanced safety, data quality and integrity, and cost efficiency for customers worldwide.
Aerospace and Defense Technologies: The company provides engineering services and manufacturing to the U.S. Department of Defense, National Aeronautics and Space Administration (‘NASA’), and major government contractors. It works with its customers to understand their specialized requirements, identify and mitigate risks, and provide them with value-added, maintainable, safe, and certified solutions. The segment's largest customer is the U.S. Government, with the U.S. Navy and NASA being the primary agencies supported. For the U.S. Navy, it performs engineering services, prototype design building services, and repair and maintenance services on submarines and surface ships. It supports space exploration and technology development by providing its products and services to NASA, aerospace contractors, and commercial space companies. Its U.S. Navy and NASA-related activities substantially depend on continued government funding.
Marketing
Energy: Energy exploration and development expenditures fluctuate from year to year. In particular, budgetary approval for drilling and production in deepwater, an area in which the company has a high degree of focus. Over the last several years, one of its focus areas has been to increase its service and product offerings toward its energy customers' operating expenditures and the offshore renewables energy market.
The company markets its Subsea Robotics, Manufactured Products, OPG, and IMDS services and products to domestic, international, and foreign national energy companies engaged in offshore exploration, development, and production. It also provides services and products as a subcontractor to other oilfield service companies operating as prime contractors. In addition, it markets its Manufactured Products mobile robotic solutions to domestic and international industrial, manufacturing, healthcare, and warehousing industries. Customers for its energy services and products typically award contracts on a competitive-bid basis.
In connection with the services the company performs in its Energy business, it generally seeks contracts that compensate it on a dayrate basis. Under dayrate contracts, the contractor provides the ROV, vessel, or equipment and the required personnel to operate the unit, and compensation is based on a rate per day for each day the unit is used. The typical dayrate depends on market conditions, the nature of the operations to be performed, the duration of the work, the equipment and services to be provided, the geographical areas involved, and other variables. Contracts for its product sales are generally for a fixed price.
Aerospace and Defense Technologies: The company markets its engineered products and services primarily to the U.S. government agencies and their prime contractors in defense and space exploration activities, as well as commercial space companies.
Major Customers
The company’s top five customers in 2024 accounted for 31% of its consolidated revenue. In 2024, four of its top five customers were oil and gas exploration and production companies served by its Energy business segments, with the other one being the U.S. Government, which is served primarily by its ADTech segment.
Seasonality
The company generates a material amount of its consolidated revenue from contracts for services in the U.S. Gulf of Mexico in its OPG segment, which is usually more active in the second and third quarters as compared to the rest of the year (year ended December 31, 2024). Revenue in its Subsea Robotics segment is subject to seasonal variations in demand, with its first quarter generally being the low quarter of the year. The level of its Subsea Robotics seasonality depends on the number of ROVs it has engaged in vessel-based subsea infrastructure IMR and installation, which is more seasonal than drill support.
Regulation
Environmental laws and regulations that apply to the company's operations include the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act (each, as amended), and similar laws that provide for responses to, and liability for, releases of hazardous substances into the environment. Environmental laws and regulations also include similar foreign, state, or local counterparts to the above-mentioned federal laws, which regulate air emissions, water discharges, hazardous substances, and waste, and require public disclosure related to the use of various hazardous substances. Its operations are also governed by laws and regulations relating to workplace safety and worker health, primarily, in the United States, the Occupational Safety and Health Act and regulations promulgated thereunder.
The company's quality management systems are registered as being in conformance with ISO 9001:2015 and cover:
The company’s Subsea Robotics operations in the U.S. Gulf of Mexico, the U.K., Norway, Angola, Ghana, Brazil, Canada, India, the United Arab Emirates, Australia, Azerbaijan, Indonesia, and Malaysia;
The company’s Manufactured Products operations in Brazil, Canada, the U.S., the U.K., Norway, Malaysia, the Netherlands, and Germany;
The company’s Offshore Projects Group operations in the U.S. Gulf of Mexico, the U.K., Norway, Angola, Ghana, Brazil, Canada, India, the United Arab Emirates, Australia, Azerbaijan, Indonesia, Singapore, Thailand, and Malaysia;
The company’s Integrity Management & Digital Solutions operations in the U.S. Gulf of Mexico, the U.K., Norway, Angola, the United Arab Emirates, Oman, Qatar, Australia, Malaysia, Indonesia, and Azerbaijan; and
The Oceaneering Space Systems, Oceaneering Technologies, and Marine Services divisions of its Aerospace and Defense Technologies segment in the U.S.
History
Oceaneering International, Inc., was founded in 1964. The company, a Delaware corporation, was incorporated in 1969.
