Helix Energy shrinks quarterly loss

Houston-based oil and gas services company Helix Energy Solutions narrowed its net loss during the last quarter of 2016 while its revenues dropped. 

The company on Monday reported a net loss of $54.4 million for the fourth quarter of 2016, compared to a net loss of $403.9 million for the same period in 2015.

According to the company, the fourth quarter 2016 results were impacted by non-cash pretax charges of $50.9 million ($48.9 million after tax), including a $45.1 million goodwill impairment charge associated with the company’s robotics business and a $4.1 million loss associated with the repurchase of $125 million of convertible notes due 2032.

For the last quarter of 2016 Helix’s revenues totaled $128.03 million, versus $157.68 million in the same period of 2015.

The company’s selling, general and administrative expenses were $18.4 million, 14.4% of revenue, in the fourth quarter of 2016 compared to $18.7 million, 11.6% of revenue, in the third quarter of 2016.

Helix Energy incurred capital expenditures (including capitalized interest) totaling $37 million in the fourth quarter of 2016 compared to $42 million in the fourth quarter of 2015.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “The fourth quarter reflected a continuation of overall industry weakness that persisted throughout the year. However, higher oil prices bode well for an improving overall industry environment going forward. As we look forward to 2017, our focus will be on a successful startup of Brazil operations for both Siem Helix 1 and Siem Helix 2.”

To remind, Helix is chartering two well intervention vessels, Siem Helix 1 and Siem Helix 2, from Siem Offshore. Helix will use the vessels to provide well intervention services offshore Brazil for Petrobras. The first vessel is already in Brazil while the second joined Siem’s fleet at the end of December 2016. According to latest information from Siem Offshore, Siem Helix 2 headed for Rotterdam earlier in February for installation of the topside.

Offshore Energy Today Staff

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