Margin pressure can deny OII of any swift turn-around
Oceaneering International (OII) provides engineered products and support services to the offshore oil and gas, defense, aerospace, and commercial theme park industries. Based on mild revenue growth and lower margin, I do not expect OII’s stock price to show any positive momentum in the short-to-medium term. It will require a sustained crude oil price level for the offshore upstream operators to increase capex considerably and revive the projects that remain on hold. Only then can OII make a strong comeback.
OII’s policy to diversify