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Oceaneering International's CEO Discusses Q4 2011 Results - Earnings Call Transcript

And I'm now going to turn the call over to Kevin.

M. Kevin McEvoy

Good morning, and thanks for joining the call. It is a pleasure to be here today. But before I get into my customary opening remarks, I'd like to summarize 3 key points addressed in our earnings release.

First, 2011 was a record earnings year for Oceaneering. Second, we are expecting an even better 2012 and are not changing our previously announced EPS guidance range for the year of $2.45 to $2.65. And third, we are initiating first quarter 2012 EPS guidance of $0.44 to $0.46. We recognize that may appear a little light to some of you. At this time of the year, we always seem to need to remind the investment community of the seasonality of our business especially in the Gulf of Mexico and the North Sea. We usually earn about 19% of our net income in the first quarter and 45% in the first half of the year. Our first quarter guidance is consistent with our historical quarterly earnings distribution.

Now, for my opening remarks. Our 2011 earnings of over $235 million and EPS of $2.16 were the highest in Oceaneering's history. These were notable accomplishments, particularly in light of regulatory-constrained activity the U.S. Gulf of Mexico. This performance was largely attributable to our global focus on deepwater and Subsea completion activity.

Our results were highlighted by best-ever operating income from our ROV and Subsea Products segments. At $484 million, our 2011 EBITDA was also a record high.

In May, we initiated the regular quarterly dividend of $0.15 per common share to return a portion of our earnings to our shareholders, which underscores our confidence in Oceaneering's financial strength and future business prospects. We believe this will not compromise our ability to pursue organic growth and acquisition opportunities to expand Oceaneering's asset base and earnings capability.

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