Helix Reduces Losses Despite Revenue Drop

Offshore services player Helix Energy Solutions has seen red in the fourth quarter of 2016 on impairment charges linked mostly to its robotics division, but still managed to improve when compared to a year-ago period.

Despite revenue drop of close to 19 percent year-over-year, the Houston-based well intervention and robotics specialist narrowed its net loss to $54.4 million, or 46 cents per diluted share, against some $404 million loss, or $3.83 per diluted share in the year-ago quarter, when the company booked asset impairments of $345 million.

Sequentially, Helix revenues declined some 20 percent. In the third quarter of 2016 the company also recorded profit of 10 cents per diluted share.

“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,” said Owen Kratz, president and chief executive officer of Helix.

Seasonal drop in activity in the North Sea has also led to a 17 percent decrease in robotics business revenues, while Helix’s well intervention division generated 26 percent less sequentially .

Fourth-quarter revenues were $128 million, down from $157.7 million in 4Q 2015, and from $161 million in 3Q 2016. Revenues for the full-year 2016 fell some 30 percent from $696 million in 2015.

Result for the 2016 was a negative $81.4 million or $(0.73) per diluted share, compared to loss of $377 million, or $(3.58) per diluted share in 2015.

Helix said its total liquidity at December 31, 2016 was some $376 million, and added that its long-term debt decreased to $626 million in the fourth quarter of 2016 from $678 million in the third quarter of 2016.

Subsea World News Staff

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