Strength in well invention work for Helix

Demand for well intervention services has continued to be strong in the Gulf of Mexico and North Sea, says Helix Energy Solutions.

The Houston-based firm said that as well as a recent five year contract for its Q5000 semisubmersible, currently under construction in Singapore, the firm had won key contract extensions in the Gulf of Mexico and had increased its contracted backlog in the North Sea.

Well intervention vessel utilization increased to 100% in Q1, compared to 94% in Q4 2012. There was full utilization in the North Sea for the first quarter of 2013 compared to 91% in the fourth quarter of 2012. The Q4000 achieved 100% utilization in the Gulf of Mexico in the first quarter of 2013, marking it the third consecutive quarter of full utilization.

Robotics revenues decreased in the first quarter of 2013, reflecting a reduction in vessel utilization, most significantly, the Deep Cygnus, which was idle for 75 days during the first quarter. Chartered vessel utilization in the first quarter of 2013 was 69% compared to 87% in the fourth quarter of 2012. Helix said the utilization decrease reflected the potentially harsh weather conditions in the North Sea during the winter months resulting in a seasonal decline in the scheduling of robotics activities during that period.

The firm said subsea construction revenues remained relatively flat. Utilization of the Empress increased but was on standby rates due to customer scheduling delays. The Caesar continued its work offshore Mexico on an accommodation project.

Owen Kratz, President and Chief Executive Officer of Helix, said: “We continue to see strong customer demand for our well intervention services as demonstrated by the recent announcement of a five year contract for the Q5000 semisubmersible currently under construction in Singapore.

“Furthermore, we have recently executed multi-year contract extensions with two key customers in the Gulf of Mexico for the Q4000, as well as increasing our contracted backlog for our North Sea well intervention assets.”

Net income for Q1 was $1.6 million, compared with net income of $65.7 million for the same period in 2012 and a net loss of $171.6 million in the fourth quarter of 2012.

First quarter 2013 results were impacted by $36.8 million of pre-tax charges and expenses related to the sale of Helix’s former wholly-owned US oil and gas subsidiary, Energy Resource Technology GOM, Inc. (ERT).