Higher utilization lifts Helix Energy’s profit

Houston-based Helix Energy Solutions recorded an increase in its quarterly profit boosted by higher utilization in the well intervention business in the Gulf of Mexico and Brazil.

In its quarterly report on Monday, Helix said it had recorded a net income of $31.6 million for the third quarter of 2019 compared to $27.1 million for the same period in 2018 and $16.8 million for the second quarter of 2019.

The company’s revenues in 3Q 2019 were $212.6 million, nearly flat compared to revenues of $212.57 million in the same period last year.

Well Intervention revenues increased $15.8 million, or 10%, in the third quarter of 2019 compared to the third quarter of 2018. The increase was due to higher utilization and integrated services in the Gulf of Mexico and higher utilization in Brazil, offset in part by lower rates in the North Sea and a weaker British pound in the third quarter of 2019 compared to the same period in the prior year.

Overall, Well Intervention vessel utilization increased from 91% in the third quarter of 2018 to 97% in the third quarter of 2019.

Robotics revenues decreased $2.4 million, or 4%, in the third quarter of 2019 compared to the third quarter of 2018. The decrease in revenues year over year was due primarily to a decrease in trenching activity and spot vessel days, offset in part by higher rates on the Grand Canyon II and increased ROV, trencher and ROVDrill utilization. Robotics had 149 trenching days and 28 spot vessel days in the third quarter of 2019, down from 219 trenching days and 113 spot vessel days in the third quarter of 2018.

Overall ROV, trencher and ROVDrill utilization increased to 44% in the third quarter of 2019 from 42% in 2018.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “In this challenging market we had a strong third quarter, marked by the disciplined execution of our strategy, resulting in our highest quarterly revenue and EBITDA levels since 2014.

“We are pleased with the continued improvement in our results, and although our fourth quarter operations will be impacted by the normal winter slowdown in the North Sea and lower rates in the Gulf of Mexico, we will maintain our focus on project execution and cost controls to carry that momentum into 2020 with the launch of the Q7000.”

Helix Energy’s capital expenditures totaled $18.2 million in the third quarter of 2019 compared to $15.8 million in the second quarter of 2019 and $13.5 million in the third quarter of 2018. The increases in capital expenditures quarter over quarter and year over year were due to completion costs related to the Q7000.

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