Oceaneering reported declines in its offshore division as vessel crane repairs lifted costs and downtime.
But the segment’s slip in the third quarter was not enough to halt revenue and profit growth for the engineering contractor.
The Houston-based company, led by chief executive Roderick Larson, reported $41.2m in bottom line profit. That was up from $29.8m in the same quarter of 2023.
That was fuelled by a rise in revenue to nearly $680m, an increase from $635m a year earlier.
The New York-listed company reported that its offshore projects group, which operates a fleet of multipurpose support vessels and other offshore ships, saw a 24% decline in operating income, which totalled $20.3m.
Revenue came in at $148m, a 2% dip from the third quarter of last year.
That was a result of changes in its project mix, vessel crane repair costs and the vessel downtime that resulted from that work.
The unit’s operating income margin dropped to 14% from 18%.
The offshore group’s revenue is expected to “increase and generate significantly higher operating profitability” in the fourth quarter, Oceaneering said.
The quarter’s decline helped drag down operating income for the first nine months of the year, which fell to $34.4m from $49.4m in the same period of 2023.
Overall, Oceaneering’s nine-month profit came in at $91.4m, up from $52.9m a year earlier.
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