Oceaneering Wins Offshore Canada Decommissioning Contract

Oceaneering International, Inc. (NYSE:OII) recently announced that it has clinched a decommissioning contract from an undisclosed client. This is the company’s first located in offshore Canada.

Located 135 nautical miles to the east of Halifax, Nova Scotia in Canada on the edge of the Scotian Shelf, the decommissioning venture comprises seven offshore gas platforms wherein Oceaneering will be responsible for internal cutting. The Internal Cutting Tool (ICT) is based on Oceaneering’s powerful abrasive water jet cutting (AWJC) technology and is ideal for efficient internal cutting of piles, external cutting and displacement of local soil.

The financial value of the contract is not yet revealed and the company is scheduled to begin operations in the second quarter of 2020.

These seven gas platforms consisting of integrated topsides modules on jacket structures were all stationed between 1999 and 2006. These modules are located 25-75 meters under water.

Oceaneering, which secured a deal from Baker Hughes for supplying subsea umbilical control systems for the KG-DWN 98/2 project earlier this month, is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.

Headquartered in Houston, TX, the company provides specialized products and services for all phases of the offshore oilfield lifecycle — from exploration to decommissioning — with a focus on deep water.

Zacks Rank & Key Picks

Oceaneering carries a Zacks Rank #4 (Sell).

Better-ranked players in the energy space include BP (LON:BP) Midstream Partners (NYSE:BPMP) , Dril-Quip, Inc. (NYSE:DRQ) and TC Pipelines, LP (NYSE:TCP) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BP Midstream’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.

Dril-Quip earnings beat the Zacks Consensus Estimate in three of the previous four quarters.

TC Pipelines earnings beat the Zacks Consensus Estimate in three of the last four quarters.

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