Oceaneering International (OII) risk factors, FY2024 10-K

Business and Operational Risks

1. 01We derive most of our revenue from companies in the offshore oil and gas industry, a historically cyclical industry with levels of activity that are significantly affected by the levels and volatility of oil and gas prices
2. 02Our operations could be adversely impacted by the indirect consequences of climate change and climate-related business trends
3. 03Our international operations involve additional risks not associated with domestic operations
4. 04Our backlog is subject to unexpected adjustments and cancellations and is, therefore, an uncertain indicator of our future revenue and earnings
5. 05Our offshore oilfield operations involve a variety of operating hazards and risks that could cause losses

Legal and Regulatory Risks

1. 06Legislative and regulatory responses to climate change and the ongoing “energy transition” could result in increased operating costs and capital expenditures and changes in demand for the services and products of our Energy business
2. 07Employee, agent or partner misconduct or our overall failure to comply with laws or regulations could weaken our ability to win contracts, which could result in reduced revenue and profits
3. 08Laws and governmental regulations may add to our costs or adversely affect our operations
4. 09Environmental laws and regulations can increase our costs, and our failure to comply with those laws and regulations can expose us to significant liabilities

Financial Risks

1. 10Foreign exchange risks and fluctuations may affect our profitability on certain projects
2. 11Maintaining adequate letter of credit and bonding capacity is necessary for us to successfully bid on and win various contracts
3. 12Significant inflation and higher interest rates could adversely affect our business and financial condition
4. 13Public and investor sentiment regarding ESG matters and our industry could adversely affect our business operations and the trading price of our securities
5. 14Difficulty in obtaining sufficient capital could adversely impact our business and financial condition
6. 15Our business strategy contemplates future acquisitions or dispositions. Acquisitions of other businesses or assets and dispositions of our current businesses or assets present various risks and uncertainties
7. 16Our business strategy also includes development and commercialization of new technologies to support our growth. The development and commercialization of new technologies require capital investment and involve various risks and uncertainties
8. 17Our success depends on the continued active participation of our executive officers and key operating personnel. The unexpected loss of the services of any one of these persons could adversely affect our operations
9. 18We may not be able to compete successfully against current and future competitors
10. 19Our aspirations, goals, commitment targets and initiatives related to sustainability, including emissions reduction and our public statements and disclosures regarding the same, expose us to numerous risks

Risks Related to Intellectual Property, Information Technology and Data Privacy

1. 20Our informational technology (“IT”) and operational technology (“OT”) systems are subject to interruption and cybersecurity risks that could adversely impact our operations
2. 21could be negatively impacted by a breach or interruption of systems that originates from, or compromises, third-party networks or devices outside of our control
3. 22Changes in data privacy and security laws, regulations and standards, and emerging laws, regulations and standards surrounding artificial intelligence (“AI”), may adversely impact our business
4. 23failure by us to comply with these laws and regulations, including as a result of a personal data breach, could result in significant penalties and liabilities for us

Risks Related to our Organization and Structure

1. 24We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock
2. 25Provisions in our corporate documents and Delaware law could delay or prevent a change in control of our company, even if that change would be beneficial to our shareholders

General Risks

1. 26Our internal controls may not be sufficient to achieve all stated goals and objectives
2. 27The use of estimates could result in future adjustments to our assets, liabilities and results of operations