BigBull you'll like this. $.30 more in EPS for OII
Oceaneering sees $0.30 EPS yrly gain from latest deal
November 16, 1999 10:04 PM
HOUSTON, Texas, Nov 16 (Reuters) - Oceaneering International Inc. OII said Tuesday it foresaw an annual gain of $0.30 per share for the next three years from a recent contract to help develop a small Australian oil field.
"It's a huge piece of business for a company our size," a spokesman told Reuters, describing the three-year contract as the largest in years for the world's biggest provider of remotely-operated vehicles for underwater work at offshore oilfields, and other services.
Oceaneering won the contract from a joint venture that has been developing the Legendre North and South oil fields with 40 million barrels in estimated reserves, located off the west coast of Australia.
Its stock ended up 1/8 at 14-7/16 in New York before the release of the statement.
The joint venture, comprised of Apache Corp.'s APA Apache Northwest Pty Ltd., Woodside Energy Ltd., and Santos Ltd. STO.AX> , expects to begin production by the middle of 2001, pumping about 40,000 barrels a day.
Oceaneering will provide a mobile offshore production unit, which resembles a platform that floats.
Oceaneering said it planned to fund the estimated $80 million in capital costs through cash flow from operations and an existing revolving credit facility.
"Assuming the project is completed on schedule and within budget, Oceaneering expects to realize incremental earnings of $0.30 per share annually during this primary contract term," it said.
Analyst who follow the company had expected an annual operating profit of $0.74 per diluted share for 2000, $1.15 for 2001, and $1.40 for 2002, according to consensus estimates compiled by First Call/Thomson Financial.
Oceaneering said the joint venture had the option of extending the contract to up to 10 years.
On Nov. 8, Oceaneering reported a net profit of $0.18 per diluted share for the fiscal second quarter ended Sept. 30, down from $0.34 for the same period a year ago.
((-- Gilles Castonguay, New York newsroom, +212 859 1700)) REUTERS
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