On Jan 13, oilfield services provider Oceaneering International Inc. (OII) announced that it has entered into a charter agreement with Shell Offshore Inc., for the vessel – Ocean Alliance. Shell Offshore Inc. is a unit of Royal Dutch Shell plc (RDS.A).
The two-year, multi-service agreement allows Shell to use the vessel in the Gulf of Mexico (GoM), effective Jan 1, 2015. The company is expected to perform subsea inspection, maintenance, and repair (“IMR”) projects and hardware installations using the vessel.
Ocean Alliance was built in 2010 and is fitted with two Oceaneering work class remotely operated vehicles. It also includes a satellite communications' system that enables real-time work observation through video streaming transmissions.
Oceaneering added that it also is likely to provide project management, engineering, fabrication and vessel equipment, and service packages under different installation and IMR contracts as and when required by Shell.
Management at Oceaneering expects promising growth from the GoM in the upcoming years.
Houston, TX based Oceaneering plans to release fourth-quarter and 2014 results on Feb 11, 2015 following the closure of the trading session. The company reported impressive earnings, beating the Zacks Consensus Estimate in trailing four quarters and has an average earnings surprise of 2.76%.
The trend is expected continue in the upcoming earnings release , as it has an ESP of +1.01%. However, considering the weak dynamics of the overall energy industry and oilfield service firms at large, we remain cautious.
Oceaneering currently carries a Zacks Rank #4 (Sell).
Better-ranked players from the same industry include Exterran Holdings, Inc. (EXH) and Transocean Partners LLC (RIGP). While Exterran Holdings sports a Zacks Rank #1 (Strong Buy), North American Energy Partners holds a Zacks Rank #2 (Buy).
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