Helix Energy returns to quarterly profit

Houston-based offshore services company Helix Energy Solutions managed to return to quarterly profit on the back of higher revenues driven by higher utilization and integrated services in the Gulf of Mexico.

The company on Monday reported net income of $7.9 million for the fourth quarter of 2019 compared to a net loss of $13.7 million for the same period in 2018 and net income of $31.6 million for the third quarter of 2019.

For the full year 2019, Helix reported net income of $57.7 million compared to $28.6 million for the year ended December 31, 2018.

Helix Energy’s revenues in the fourth quarter 2019 were $170.7 million compared to $158 million in the same period of 2018.

Well Intervention revenues increased $27 million, or 24%, in the fourth quarter of 2019 compared to the fourth quarter of 2018. The increase in revenues was primarily driven by higher utilization and integrated services in the Gulf of Mexico and the contractual adjustments related to increases in withholding taxes in Brazil. The increase was partially offset by seasonally lower rates in the North Sea in the fourth quarter of 2019 compared to the same period in the prior year.

Robotics revenues decreased $3.1 million, or 8%, in the fourth quarter of 2019 compared to the fourth quarter of 2018. The decrease in revenues year over year was primarily due to a decrease in trenching activity and chartered vessel utilization and fewer spot vessel days, offset in part by higher rates on the Grand Canyon II and increased ROV, trencher and ROVDrill utilization in the fourth quarter of 2019.

In the Production Facilities section, revenues increased $0.7 million year over year due to production revenues realized in the fourth quarter of 2019, offset in part by reduced revenue from the Helix Fast Response System.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “Our results for 2019 mark our third consecutive year of sequential growth in revenue and EBITDA.”

Kratz added: “Looking at 2020, we expect slow but continued improvement in the market, and we plan to maintain discipline as we continue to drive improvements in our operations and financial results.”

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