Helix Energy Q3 Profit Up 70%, Revenues Beat View

(RTTNews) - Offshore oil and gas services contractor Helix Energy Solutions Group, Inc. (HLX) on Monday reported a 70 percent increase in profit for the third quarter from last year, reflecting strong revenue growth in the well intervention and robotics segments. Revenue for the quarter beat analysts' estimates.

Owen Kratz, President and CEO of Helix, said, "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."

Net income attributable to the company's shareholders for the third quarter was $75.59 million or $0.71 per share, up from $44.59 million or $0.42 per share in the year-ago period.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew 55 percent to $340.84 million from $220.12 million in the same period last year. Analysts had a consensus revenue estimate of $299.51 million for the quarter.

Well Intervention revenues for the quarter surged 80 percent to $205.14 million, while robotics revenues rose 46 percent to $131.71 million. Production facilities revenues edged down slightly to $24.18 million.

Selling, general and administrative expenses were 5.8 percent of revenues in the quarter, compared to 10.3 percent of revenues in the prior-year period.

Looking ahead, Kratz said, "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."

HLX closed Monday's trading at $22.78, up $0.27 or 1.20 percent on a volume of 1.75 million shares. In after-hours, the stock further gained $0.82 or 3.60 percent to $23.60.