Oceaneering International, Inc. (OII) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $11.03 million, or $ 0.11 a share in the quarter, against a net profit of $27.50 million, or $0.28 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.58 million, or $0.03 a share compared with $57.37 million or $0.58 a share, a year ago. Revenue during the quarter plunged 32.35 percent to $488.44 million from $722.07 million in the previous year period. Gross margin for the quarter contracted 424 basis points over the previous year period to 10.46 percent. Operating margin for the quarter stood at negative 0.79 percent as compared to a positive 6.34 percent for the previous year period.
Operating loss for the quarter was $3.86 million, compared with an operating income of $45.76 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10.78 million compared to $90.76 million in the prior year period. At the same time, adjusted operating margin contracted 1036 basis points in the quarter to 2.21 percent from 12.57 percent in the last year period.
M. Kevin McEvoy, chief executive officer of Oceaneering, stated, "Our fourth quarter operating results on an adjusted basis approximated our expectations and the consensus estimate. As industry conditions remained challenging, and our outlook for 2017 does not assume a pronounced recovery in demand for our services and products, our focus has been on organizing more effectively and managing our cost structure. Accordingly, these restructuring steps included a sizable reduction in our workforce. We made these difficult decisions to enable our organization to be leaner and appropriately sized for the expected level of business."
Working capital declines
Oceaneering International, Inc. has witnessed a decline in the working capital over the last year. It stood at $754.23 million as at Dec. 31, 2016, down 16.34 percent or $147.31 million from $901.54 million on Dec. 31, 2015. Current ratio was at 2.48 as on Dec. 31, 2016, up from 2.46 on Dec. 31, 2015. Debt remains almost stable
Total debt of Oceaneering International, Inc. remained almost stable for the quarter at $793.06 million, when compared with the last year period. Long-term debt of Oceaneering International remained almost stable for the quarter at $793.06 million, when compared with the last year period. Total debt was 25.33 percent of total assets as on Dec. 31, 2016, compared with 23.21 percent on Dec. 31, 2015. Debt to equity ratio was at 0.52 as on Dec. 31, 2016, up from 0.50 as on Dec. 31, 2015.
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