OII Is Bound By The Energy Price Crash
Oceaneering International's (OII) performance in the Gulf of Mexico and in some of its international operations is unlikely to deteriorate in the short term. However, the offshore vessels will see demand declining due to the fall in deepwater capex. Plus, the company's growth engine in the non-energy segments will come to a halt as entertainment activities are impacted by low economic growth.
Countering the slowdown, the company has deployed various cost control initiatives to mitigate the pressure on margin. However, negative cash flows coupled with