Houston-based offshore energy services company Helix Energy Solutions Group returned to profit in the fourth quarter 2017 from a loss in the prior-year period boosted by higher revenues and tax benefits.
Helix Energy on Monday reported net income of $50.6 million for the fourth quarter of 2017 compared to a net loss of $54.4 million for the same period in 2016 and net income of $2.3 million for the third quarter of 2017.
The net income for the year ended December 31, 2017 was $30.1 million compared to a net loss of $81.4 million for the year ended December 31, 2016.
Net income in the fourth quarter of 2017 included a non-cash benefit of approximately $51.6 million related to the U.S. tax law changes enacted in December 2017.
This amount consists of a $59.7 million deferred tax benefit related to the remeasurement of Helix’s net deferred tax liabilities in the U.S. at the new lower corporate income tax rate and an $8.1 million deferred tax expense related to the mandatory tax on previously unremitted earnings of certain foreign subsidiaries.
The company’s revenues increased during the fourth quarter of 2017 totaling $163.3 million compared to $128 million in the same period of 2016.
Owen Kratz, President and Chief Executive Officer of Helix, stated, “We were able to mitigate the seasonal downturn in the North Sea Well Intervention market with a strong quarter in the Gulf of Mexico and continued operational improvements in Brazil, including the commencement of commercial operations of the Siem Helix 2 in December.
“Our Robotics results showed slight improvements over the third quarter results, primarily from trenching work. We look forward to the full year contribution in 2018 of the Siem Helix 1 and Siem Helix 2, both with long-term contracts.”
Looking at segments, Helix’s Well Intervention revenues decreased $4.4 million, or 4%, in the fourth quarter of 2017 from the third quarter of 2017 primarily due to lower utilization of the Q4000 and vessels in the North Sea, offset in part by a full quarter of Q5000 operations for BP, start of the Siem Helix 2 and utilization of the 10K intervention riser system rental unit in December.
Overall, Well Intervention vessel utilization decreased to 74% in the fourth quarter of 2017 from 88% in the third quarter of 2017.
Offshore Energy Today Staff