Helix Swings to Profit as Margins Widen
Second-quarter revenue rose 20.8% from a year earlier to $304.0 million.
Helix Energy Solutions Group (HLX), the offshore energy-services company, swung to a second-quarter profit as stronger Well Intervention work and the return of Thunder Hawk production lifted results. Net income was $22.7 million, or $0.15 a share, compared with losses in both the preceding and year-earlier quarters.
The quarter marked a sharp operating rebound. Gross margin expanded to 18% from 7% in the first quarter and 5% a year earlier, while total operating income improved to $26.7 million from losses in both comparison periods.
Revenue increased 14.0% sequentially and 20.8% from a year earlier. Adjusted EBITDA rose to $69.9 million from $32.3 million in the first quarter and $42.4 million a year earlier, though it remained below the $73.9 million recorded in the fourth quarter of 2024.
Well Intervention supplied the main year-over-year lift, with revenue rising 33% to $208.1 million and vessel utilization reaching 91%, up from 72%. The segment posted operating income of $19.3 million after a $16.4 million loss a year earlier. Sequential revenue was nearly flat as lower activity from the Q7000, Q4000 and Sea Helix 1 offset seasonal strength in the North Sea.
Robotics revenue increased 23% from the first quarter to $76.4 million as ROV and trencher utilization improved to 67%. The segment remained weaker than a year earlier, when revenue was $85.6 million and vessel utilization was 95%, compared with 69% in the latest period.
Production Facilities revenue climbed 59% sequentially and 74% year over year to $29.7 million after Thunder Hawk restarted in April. The segment generated $15.8 million of operating income, reversing a $7.9 million first-quarter loss.
Helix withdrew its annual guidance and suspended earnings-guidance updates because of its pending merger with Hornbeck Offshore Services. The company recorded $8.3 million of acquisition and integration costs during the quarter, primarily for legal and professional services.
The May sale of the Shallow Water Abandonment business brought in $107.5 million in cash and produced a $12.7 million after-tax gain. Cash rose to $652.2 million at quarter-end, but Thunder Hawk's wells were shut again in July for maintenance and remedial work expected to continue through the third quarter.