Helix Energy drops as losses widen, well intervention sales slide 20%

Apr. 26, 2022 11:37 AM ETHelix Energy Solutions Group, Inc. (HLX)By: Carl Surran, SA News Editor

AHTS vessel Island Valiant doing rig move operation for semi submersible rig Borgsten Dolphin next to Dunbar platform.

arild lilleboe/iStock via Getty Images

Helix Energy Solutions (NYSE:HLX) plunges as much as 13% on Tuesday after reporting a wider than expected Q1 loss and an 8% Y/Y decline in revenues to $150M, including a 20% drop in well intervention sales.

Helix (HLX) said Q1 adjusted EBITDA fell to $2.5M from $8.8M in Q4 2021 and $36.2M in the year-ago quarter, and Q1 free cash flow turned to negative $18M from positive $17.9M in Q4 2021 and positive $38.5M during the prior-year period.

The company attributed the sales decline in its well intervention business to lower utilization and rates on the Siem Helix 2 in Brazil, which had 23 days off contract during its five-year regulatory inspections and operated at lower rates under its extended contract during Q1.

"2022 will be a transition year for Helix and has started out as we expected, with several vessels undergoing regulatory inspections, a slow return for the North Sea market and several vessels performing short-term work at reduced rates," President and CEO Owen Kratz said, adding that an improved outlook for H2 2022 and into 2023 is "beginning to take shape."

Helix Energy (HLX) shares have gained 39% YTD but declined 3% during the past year.

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