Helix Energy: Q4 $403 million loss due to reduced offshore drilling

Helix Energy’s well intervention vessel utilization in Q4 2015 decreased to 47% from 60% in Q3 2015

Helix Energy Solutions Group, Inc. reported a net loss of $403.9 million, or $(3.83) per diluted share, for Q4 2015 compared to net income of $8. million, or $0.08 per diluted share, for the same period in 2014 and net income of $9.9 million, or $0.09 per diluted share, in Q3 2015

“The near term outlook for our industry remains even more challenging given the recent additional stepdown in oil prices,” said CEO Owen Kratz.

Well intervention revenues decreased 7 per cent in the fourth quarter of 2015 as compared to revenues in the third quarter of 2015. Well intervention vessel utilization in Q4 2015 decreased to 47 per cent from 60 per cent in Q3 2015.

“We were able to exceed our prior EBITDA outlook for Q4 on the strength of better utilization of both the Q4000 and the Q5000 for well intervention activities in the Gulf of Mexico. We continue to manage our cost structure to align to the current market environment,” said Kratz.

Reduce tubing failures and extend well run-times significantly with EndurAlloy™ – J55 production tubing with boron diffused into substrate to create extra hard interior surface.

The Q4000 utilization was 98 per cent in the fourth quarter of 2015 compared to 67 per cent in third quarter of 2015. The Q5000 was utilized 78 per cent in the fourth quarter of 2015 after entering service late Oct. The Helix 534 remained idle the entire quarter.

In the North Sea, the Well Enhancer utilization decreased to 67 per cent in the fourth quarter from 91 per cent in the third quarter. The Skandi Constructor utilization decreased to 45 per cent in the fourth quarter from 100 per cent in the third quarter. The vessel has been warm stacked since mid-Nov.

The Seawell was idle the entire quarter and remains warm stacked. The rental intervention riser systems continue to positively contribute to revenues, with both units on hire the entire fourth quarter of 2015.

Robotics revenues decreased 25 per cent in the fourth quarter of 2015 compared to the third quarter of 2015. The decrease in revenue and gross profit was due to lower asset utilization, primarily driven by the seasonal slow-down in the North Sea.