Helix Energy Solutions announced in its 3Q results that its net income fell nearly 87% from US$75.6 million in 3Q 2014 to only $9.9 million for 3Q 2015. However, the drop is all about perspective. The company reported a net loss of 2.6 million in 2Q 2015.
Some bright spots in the company’s report were the well intervention and robotics segments, which both revenue increases of 11% each.
“Improved activity levels in our robotics segment plus strong utilization for the Well Enhancer and Skandi Constructor well intervention vessels led the way for the improved quarter over quarter results,” said Owen Kratz, president and CEO, Helix. “However, industry conditions continue to remain challenging, and we expect Q4 results to be impacted by normal seasonal factors in the North Sea as well as a continuation of the weak industry environment.”
The quarterly results showed that Helix’s well intervention revenues increased 11% in 3Q 2015 as compared to revenues in 2Q, reflecting a greater number of utilized days in the quarter for two of Helix’s North Sea vessels.
The company further stated that well intervention vessel utilization for 3Q 2015 decreased to 60% from 63% in 2Q 2015. The Gulf of Mexico fleet utilization was 34% in 3Q compared to 42% in 2Q 2015. The Helix 534 was idle the entire quarter due to low levels of activity, Helix said. The vessel entered dry dock in September.
In the North Sea, vessel utilization decreased to 82% in 3Q 2015 compared to 84% in 2Q 2015. The Seawell completed its life extension capital upgrade and is currently warm stacked due to low levels of activity. The Well Enhancer and Skandi Constructor combined for 96% utilization in 3Q, working in the North Sea. Helix said that its rental intervention riser systems continue to positively contribute to revenues, with both units on hire the entire 3Q period.
Robotics revenues increased 11% in 3Q 2015 from revenues in 2Q 2015. Vessel utilization increased to 87% and ROV asset utilization was marginally lower, quarter over quarter. The increase in vessel utilized days was the primary driver in higher revenue and gross profit for the quarter.
Image: Skandi Constructor
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