Helix Energy profit drops in second quarter

Houston-based oil and gas services company Helix Energy Solutions recorded a slight drop in profit in the second quarter of 2019 compared to the same period last year, but recorded better performance sequentially. 

Helix on Wednesday reported a net income of $16.8 million for the second quarter of 2019 compared to $17.8 million for the same period in 2018 and $1.3 million for the first quarter of 2019.

The company recorded revenues of $201.7 million for the second quarter of 2019 compared to $204.6 million in the same period last year.

Well Intervention revenues decreased $2.7 million, or 2%, in the second quarter of 2019 compared to the second quarter of 2018. The decrease year over year was due to lower coiled tubing revenue in the North Sea and a weaker British pound as well as lower IRS rental revenue, offset in part by higher revenues in the Gulf of Mexico and Brazil due to improved vessel utilization in those regions in the second quarter of 2019.

Overall well intervention vessel utilization increased from 88% in the second quarter of 2018 to 94% in the second quarter of 2019. Income from operations decreased $7.8 million, or 23%, in the second quarter of 2019 compared to the second quarter of 2018. The decrease was related to lower revenues in the North Sea, higher integrated services costs in the Gulf of Mexico, and lower IRS rentals during the second quarter of 2019 compared to the second quarter of 2018.

Robotics revenues increased $6.4 million, or 16%, in the second quarter of 2019 compared to the second quarter of 2018 due primarily to an overall increase in long-term chartered vessel utilization.

Chartered vessel utilization was 92% in the second quarter of 2019, which included 24 spot vessel days, compared to 70% in the second quarter of 2018, which included 54 spot vessel days. Income from operations in the second quarter of 2019 improved $7.1 million compared to the second quarter of 2018 due to improved margins on higher long-term charter vessel revenues and lower costs due to fewer spot vessel days year over year.

Owen Kratz, president and CEO of Helix, said: “As expected, our second quarter 2019 results benefited from the seasonal pick-up in the North Sea Well Intervention and Robotics markets and the continued improvements in our Robotics business.

“Despite a few challenges, our results for the first half of 2019 are on par with the first half of 2018. While our outlook is not without its risks, we believe we remain positioned for a strong second half of 2019 as we continue to execute in this weak market.”

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