Energy & Mining

Helix Energy Solutions Group Inc (NYSE:HLX) Reports First Quarter 2017 Results

Helix Energy Solutions Group Inc (NYSE:HLX)

Helix Energy Solutions Group Inc (NYSE:HLX) has announced its results for the first quarter of 2017. The company reported $16.4 million or $0.11 per share in net loss for the first quarter of 2017, a decrease from the $27.8 million or $0.26 per share reported in the first quarter of the 2016 financial year and the $54.4 million or $0.26 per share reported in the fourth year of the 2016 financial year.

The company reported $14.6 million in adjusted EBITDA1 for the first quarter of 2017 compared to the $1.0 million reported for the same period of the previous financial year and $26.9 million reported in the last quarter of the 2016 financial year.

Helix President and Chief Executive Officer Owen Kratz in a statement said the company’s first quarter results were highly boosted by an increase in the level of activities in the North Sea Well Intervention business as well as increase in the utilization for the Q5000 in the Gulf of Mexico. He however noted that the robotics industry still suffers from turbulent and weak market conditions which is reflected in little subsea infrastructure spending. He announced that the Siem Helix 1 is fully operational in Brazil following a long process of inspection and approval.

The company reported a 6% decrease in well intervention revenue in the first quarter of 2017 compared to what was reported in the fourth quarter of the 2016 financial year. A drop of 59% was reported in full year well intervention utilization of vessel in the first quarter of the 2017 financial year compared to the 62% reported in the fourth quarter of 2016.

The company reported 83% decrease in Q4000 utilization in the first quarter of the 2017 financial year down from the 100% that was reported in the previous quarter. The vessel commenced dry-dock services in March and experience an outage for the last 15 days of the first quarter. Utilization of Q5000 went up by 97% in the first quarter of the 2017 financial year compared to the 84% in the last quarter of the 2016 financial year. Utilization of Well Enhancer in the North Sea was 60% in the first quarter of the 2017 fiscal year compared to the 47% reported in the last quarter of 2016. The Skandi Constructor remained unused during the first quarter of 2017 and its charter term expired at the close of the quarter. The rental intervention riser system was in operation for 38 days, representing 42% utilization in the first quarter of 2017.

Revenue from robotics went down by 46% in the first quarter of the 2017 fiscal year as compared to what was reported in the fourth quarter of the last financial year. The decrease is attributed to a weak market as well as seasonal activities in the North Sea. Utilization of chartered vessels went down to 37% in the first quarter of 2017 compared to the 68% reported in the last quarter of 2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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