Oceaneering Secures Multiple Contracts in the UK North Sea

Oceaneering International Inc. OII has secured multiple awards in the U.K. North Sea region. The company's UK-based subsidiary Oceaneering International Servicesannounced several contracts with multiple operators in the region. These contracts involve decommissioning, inspection, subsea infrastructure preparation and installation support services.

The work duration for these contracts is expected to be 65 days. The contracts also include options that may be exercised to extend their duration. The management and execution of the contracts will be carried out by Oceaneering's UK North Sea hub located in Aberdeen, Scotland.  

OII stated that the operations associated with the contracts are slated to begin in August 2024, and will be conducted with the help of the company's Island Offshore multiservice vessel (MSV) Island Frontier. The company has prolonged the charter for the MSV Island Frontier until December 2025. Oceaneering had previously used the vessel for operations in West Africa and the Black Sea.

The company stated that the recent contracts highlight its expansion into a key market and underscore its strong relationship with major clients in the UK North Sea region. They also demonstrate OII's expertise and execution capabilities in the sector.

OII's Zacks Rank and Key Picks

Currently, OII carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are VAALCO Energy EGY, MPLX LP MPLX and TechnipFMC plc FTI, each carrying a Zacks Rank #2 (Buy) at present.

VAALCO Energy is an independent energy company involved in upstream business operationswith a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company's production outlook seems bright.

MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company's total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for FTI in the future.

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