Oceaneering International (OII) has disclosed a new risk, in the Debt & Financing category.

Oceaneering International faces a business risk related to its financing activities, as evidenced by the notable increase in cash used from $5.1 million in 2023 to $17 million in 2024, largely attributed to the repurchase of company shares and tax withholding payments. As of September 30, 2024, the company holds significant long-term debt of $500 million in 2028 Senior Notes, with interest payments due semi-annually. While they maintain compliance with financial covenants and have $215 million in unused commitments under their Revolving Credit Facility, the financial management around stock repurchases and debt servicing remains a critical area for monitoring. The company’s strategic decisions in managing these financing activities will be pivotal in mitigating potential financial strain and ensuring robust financial health moving forward.

The average OII stock price target is $29.00, implying 14.04% upside potential.

To learn more about Oceaneering International’s risk factors, click here.