viewHelix Energy Solutions Group Inc

Helix Energy shares flow higher as higher vessel utilization boosts first-quarter results

One of Helix’s new offshore vessels was put straight to work in the quarter, while the company also benefited from a full quarter of work from another recently -introduced vessel

tanker next to an offshore oil rig
Revenues and profits both came in ahead of consensus

Helix Energy Solutions Group Inc (NYSE:HLX) shares flowed higher on Tuesday after the oilfield services provider topped expectations with its first-quarter results.

The Texas-based outfit saw its net loss narrow to US$2.6mln, or US$0.02 per share, in the first three months of 2018.

Revenue beats forecast

That was comfortably better than the US$0.06 per share loss Wall Street had been looking for and comfortably ahead of the US$0.11 loss it recorded in the year-ago period.

Helix generated US$164.3mln in revenue in the quarter – 57% higher than last year’s first quarter and US$18.3mln higher than forecasts of US$146.0mln.

The company said the strong performance was due to higher vessel utilization, with a new offshore vessel going straight into service in the quarter, while another recently-introduced recently enjoyed a full quarter of work.

Other older vessels were also under contract and earning revenue for almost of the quarter as well.

“Our first quarter 2018 results reflect strong operational execution by our team,” said Chief Executive Owen Kratz.

“In the GOM, we successfully introduced the 15K IRS system to the market, and the Q5000, Q4000, and Grand Canyon II were on contract for substantially all of the quarter.

“Our results in Brazil improved, reflecting the first full quarter of operations for the Siem Helix 2 and continued strong performance for the Siem Helix 1. In the North Sea, we maintained tight cost control measures until seasonal activity picked up in March. We will continue to focus on operational execution and maximizing our financial performance.”

Helix shares closed up 12.8% at US$7.05 on Tuesday.

Quick facts: Helix Energy Solutions Group Inc

Price: 3.36 USD

Market: NYSE
Market Cap: $504.02 m

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