Oceaneering International's products are designed to operate in places where most people don't venture, from the bottom of the sea to the reaches of space. The company provides offshore oil companies with underwater drilling support, construction, inspection, and repair services. Oceaneering also makes subsea systems to test potential offshore oil fields. The company's advanced technologies unit makes remotely operated diving vessels (ROVs), which are often used in search and recovery operations for the US Navy, life-support robotic systems for use in space, and robotics for use in the entertainment industry. In late 2011 the company owned 267 ROVs, the largest fleet in the world.
In recent years Oceaneering has turned its attention to beefing up its ROV business. From 2004 to 2011, in response to increased demand from the deepwater industry, the company added 161 ROVs. During this time it also disposed of 61 older ROVs as it upgraded its fleet.
Oceaneering's Advanced Technologies division has brought in 11% to 12% of total revenues in 2009, 2010, and 2011, primarily from work on entertainment industry projects and NASA contracts.
In 2010 the company acquired seal connector maker SMX International Canada, which had revenues of $125 million. The deal complements the activities of Oceaneering's Grayloc Products (Canada) unit, which the company purchased in 2005.
In an effort to expand its subsea oil and gas equipment and maintenance portfolio, in 2011 it acquired Norse Cutting & Abandonment for $60 million, and AGR Field Operations for $230 million.
A recovering global economy fueled higher commodity prices and an increase in oil and gas exploration activities in 2011. This growth in demand (especially in the ROV and Subsea Products segment) helped to lift Oceaneering's revenues by 14% and net income by 17% that year. – – less