Helix cuts quarterly loss due to well intervention market rebound

Houston-based oil and gas services company Helix Energy Solutions Group reduced its net loss in the second quarter of 2017, compared to the prior-year period, helped by well intervention business. 

Helix Energy on Monday reported a net loss of $6.4 million for the second quarter of 2017 compared to a net loss of $10.7 million for the same period in 2016 and a net loss of $16.4 million for the first quarter of 2017.

The company’s revenues totaled $150.3 million for the period, compared to $107.3 million in the second quarter of 2016.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “Our second quarter results benefited from a strong quarter for our well intervention business in the North Sea and the Gulf of Mexico. Specifically, we are encouraged by the rebound this year in the North Sea well intervention market. We expect both the Well Enhancer and Seawell to have strong utilization into the fourth quarter of 2017.

“As we previously announced, the Siem Helix 1 commenced operations in Brazil in mid-April. The vessel performed successful operations on three wells during the quarter. We have seen improvements in the vessel’s financial results since it began commercial operations.”

Looking at segments, Helix’s well intervention revenues increased 52% in the second quarter of 2017 from the first quarter of 2017 and overall well intervention vessel utilization in the second quarter of 2017 increased to 90% from 59% in the first quarter of 2017.

Robotics revenues increased 50% in the second quarter of 2017 from the first quarter of 2017. The increase in revenues was primarily driven by increased seasonal activity in the North Sea. Chartered vessel utilization increased to 57% in the second quarter of 2017 from 37% in the first quarter of 2017, and ROV asset utilization increased to 42% in the second quarter of 2017 from 36% in the first quarter of 2017.

However, production facilities revenues decreased 7% in the second quarter of 2017 from the first quarter of 2017, primarily reflecting HFRS at reduced rates as a result of the Q4000 dry-dock.

Helix’s total backlog at the end of the quarter was approximately $1.8 billion.

Offshore Energy Today Staff