Helix Energy Solutions Group, Inc. reported net income of $75.6 million, for the third quarter of 2014 compared to net income of $44.6 million, for the same period in 2013.
Owen Kratz, President and Chief Executive Officer of Helix, stated, “We executed at a high level in the third quarter for both the Well Intervention and the Robotics businesses.
“This quarter’s results reflect the strong demand for our services and the earnings ability of our existing asset base. As previously forecasted, the fourth quarter’s earnings are expected to decline as a result of two of our Well Intervention vessels – the Skandi Constructor and the Seawell – entering dry dock, as well as normal seasonal factors in the Robotics business.”
Business Segment Results
Well Intervention revenues increased 13% in the third quarter of 2014 from revenues in the second quarter of 2014, primarily due to the successful well intervention project completed in Canadian waters with the Skandi Constructor. Overall, our North Sea well intervention fleet utilization was 99% in the third quarter of 2014 compared to 100% in the second quarter of 2014.
Vessel utilization for the Q4000 vessel in the Gulf of Mexico was slightly down – 89% utilization in the third quarter of 2014 compared to 90% in the second quarter of 2014 – due to thruster repairs.
The H534 unit was at 100% utilization for the second consecutive quarter. The spare rental intervention riser system (IRS no. 2) was on-hire for the entire third quarter of 2014, with 16 more days at operating rates than the second quarter of 2014.
Robotics revenues increased 10% in the third quarter of 2014 from revenues in the second quarter of 2014. Overall vessel and asset utilization remained flat, quarter over quarter; the increase in spot vessel days was the primary driver in higher revenue and gross profit for the quarter. Spot vessel utilization for the third quarter increased by 36 days (197 days total) over the second quarter of 2014.
Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, is an international offshore energy company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations.