OII’s Subsea Products To Drive Record EPS This Year

Analysts at Pritchard Capital Partners reiterate their "buy" rating on Oceaneering International OII, while raising their estimates for the company. The target price for OII has been raised from $52 to $58. Pritchard Capital Partners mentions, “At the end of March, OII had ROVs working on 31 of the 36 GOM floaters, but exiting the quarter that number fell to 28. As of yesterday, ROVs on 11 rigs were being paid in full, seven were receiving partial rates, and ten were deriving no revenues. Offsetting the decline in ROV operating income, which previously was expected to increase year-over-year but is now projected to be flat, is the amount of work OII is providing BP.” “OII's Subsea Products segment is performing better than we had originally anticipated due to higher throughput at its umbilical plants, ROV tooling, and increased demand for subsea field development products. As such, we now forecast the segment to report $92 million in operating income, nearly a 50% year-over-year improvement and back to peak 2008 levels,” the analysts add. Pritchard Capital Partners raised its EPS estimate for 2010 from $2.90 to $3.59 primarily due to one-time Macondo work. More Analyst Ratings here.