Oceaneering International Rises After Company Increases Earnings Forecast

29 July 2010

Oceaneering International Inc gained the most in more than one month in New York trading after the world’s largest provider of remote-operated vehicles boosted its 2010 profit forecast, citing higher income from services at BP Plc’s Macondo well and from subsea products.

Oceaneering, based in Houston, rose $3.78, or 8 percent, to $50.96 as of 4:05 p.m. in composite trading on the New York Stock Exchange. The stock reached $51.40 in earlier trading today.

Per-share earnings this year will be $3.20 to $3.40, up from a previous company forecast of $2.80 to $3.10, Oceaneering said yesterday in a statement after U.S. stock markets closed. The company was expected to earn $3 a share, the average of 19 analysts’ estimates compiled by Bloomberg.

Oceaneering said it had an improved outlook for subsea products such as control valves and remote-operated vehicle parts and services. The company said the Gulf of Mexico, where BP’s damaged well leaked oil for about three months, will remain “one of the best frontiers for adding large hydrocarbon reserves with high production flow rates.”

Second-quarter net income rose to $54.3 million, or 98 cents a share, from $48.1 million, or 87 cents, a year earlier, Oceaneering said.