Helix 4Q profit falls to $8M

Helix Energy Solutions Group, Inc., a U.S. -based provider of well intervention services to the international oil and gas industry, reported net income of $8.0 million, for the fourth quarter of 2014 compared to net income of $36.5 million, for the same period in 2013.

Net income for the year ended December 31, 2014 was $195.0 million, compared with net income of $109.9 million, for the year ended December 31, 2013.

Well Intervention revenues decreased 41% in the fourth quarter of 2014 from revenues in the third quarter of 2014, due to a substantial decrease in vessel utilization across the fleet.

In the Gulf of Mexico, vessel utilization was 64% in the fourth quarter, compared to 95% in the third quarter of 2014, primarily due to the H534 well intervention vessel being idle for 39 days; the vessel was also placed out of service for an additional 14 days for regulatory inspection.

Additionally, the Q4000 well intervention vessel worked at reduced rates while making repairs to the vessel after being struck by a supply boat in late November.

The rental intervention riser system, IRS no. 2, was on-hire for the entire fourth quarter of 2014. In the North Sea vessel utilization for the fourth quarter of 2014 was 69%, compared to 99% in the third quarter of 2014.

The Skandi Constructor vessel completed its regulatory dry dock during December, and the Seawell entered dry dock for its refit project in December.

Robotics revenues decreased 39% in the fourth quarter of 2014 from revenues in the third quarter of 2014, primarily due to a decline in utilized vessel days. For the fourth quarter vessel utilization was 79% versus 90% in the third quarter of 2014. Spot vessel utilization for the fourth quarter decreased 136 days (from 197 to 61 days) over the third quarter of 2014.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “In addition to the forecasted normal seasonal factors, fourth quarter earnings were adversely impacted by downtime associated with the Q4000 after the vessel was accidentally hit by a nearby supply boat, followed up by mechanical problems related to the redeployment of its intervention riser system. Additionally, work scheduled for the H534 was cancelled on short notice during the quarter. However, it should be noted that despite the disappointing fourth quarter, we achieved record financial performance in 2014 for both our Well Intervention and Robotics businesses.”

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