Oceaneering's Business Rejig to Aid Its Cost-Saving Efforts
Oceaneering International, Inc. OII recently announced that it restructured its business units into five operating segments, namely subsea robotics, manufactured products, offshore projects group, integrity management & digital solutions, and aerospace and defense technologies. It will report financial results for the third quarter per the new realignment.
Per Rod Larson, president and CEO of Oceaneering, this streamlining will help the company improve its cost-minimization efforts and position it well to focus on the customer needs more efficiently as well as maximise its shareholder value. Details of the newly-formed five operating segments are as follows:
Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services. Martin McDonald, a senior vice president at Oceaneering, leads the subsea robotics segment.
Manufactured Products (MP): The segment focuses on manufactured products business, theme park entertainment systems and automated guided vehicles (AGV). Senior vice president Shaun Roedel manages the manufactured products segment.
Offshore Projects Group (OPG): The segment involves Oceaneering’s former Subsea Projects segment excluding survey services and global data solutions, and its service and rental business excluding ROV tooling. Benjamin Laura leads the offshore projects group as senior vice president.
Integrity Management & Digital Solutions (IMDS): This segment mainly covers the company’s Asset Integrity segment along with its global data solutions business (GDS). Senior vice presidentKishore Sundararajan is in charge of this segment.
Aerospace and Defense Technologies (ADTech): This segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems. Senior vice president Philip G. Beierl manages this segment.
Company Profile
Founded in 1964, Oceaneering is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. Headquartered in Houston, TX, the company provides specialized products and services for all phases of the offshore oilfield lifecycle — from exploration to decommissioning — with a focus on deep water.
Zacks Rank & Key Picks
Oceaneering currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Murphy USA Inc. MUSA, Laredo Petroleum, Inc. LPI and SilverBow Resources Inc. SBOW, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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