Houston-based offshore energy services company Helix Energy Solutions Group returned to profit in the fourth quarter 2017 from a loss in the prior-year period boosted by higher revenues and tax benefits.
Helix Energy on Monday reported net income of $50.6 million for the fourth quarter of 2017 compared to a net loss of $54.4 million for the same period in 2016 and net income of $2.3 million for the third quarter of 2017.
The net income for the year ended December 31, 2017 was $30.1 million compared to a net loss of $81.4 million for the year ended December 31, 2016.
Net income in the fourth quarter of 2017 included a non-cash benefit of approximately $51.6 million related to the U.S. tax law changes enacted in December 2017.
This amount consists of a $59.7 million deferred tax benefit related to the remeasurement of Helix’s net deferred tax liabilities in the U.S. at the new lower corporate income tax rate and an $8.1 million deferred tax expense related to the mandatory tax on previously unremitted earnings of certain foreign subsidiaries.
The company’s revenues increased during the fourth quarter of 2017 totaling $163.3 million compared to $128 million in the same period of 2016.
Owen Kratz , President and Chief Executive Officer of Helix, stated, “We were able to mitigate the seasonal downturn in the North Sea Well Intervention market with a strong quarter in the Gulf of Mexico and continued operational improvements in Brazil, including the commencement of commercial operations of the Siem Helix 2 in December.
“Our Robotics results showed slight improvements over the third quarter results, primarily from trenching work. We look forward to the full year contribution in 2018 of the Siem Helix 1 and Siem Helix 2, both with long-term contracts.”
Looking at segments, Helix’s Well Intervention revenues decreased $4.4 million, or 4%, in the fourth quarter of 2017 from the third quarter of 2017 primarily due to lower utilization of the Q4000 and vessels in the North Sea, offset in part by a full quarter of Q5000 operations for BP, start of the Siem Helix 2 and utilization of the 10K intervention riser system rental unit in December.
Overall, Well Intervention vessel utilization decreased to 74% in the fourth quarter of 2017 from 88% in the third quarter of 2017.
Offshore Energy Today Staff