Helix Energy Solutions Reports Mixed Q3 Results, Net Income Up 90% Despite Revenue Decline

Helix Energy Solutions Group, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. Total assets increased to $2.66 billion from $2.56 billion at the end of 2023, while total current assets slightly decreased to $693.9 million. Notably, total current liabilities saw a significant reduction to $303.2 million from $448.6 million, contributing to a rise in total shareholders' equity to $1.57 billion.

For the three months ended September 30, 2024, net revenues were $342.4 million, a decline of 13% from $395.7 million in the same period of 2023. This decrease was primarily driven by a 19% drop in Well Intervention revenues, which fell to $182.7 million, and an 18% decline in Shallow Water Abandonment revenues, down to $71.6 million. Conversely, Robotics revenues increased by 12% to $84.5 million. Gross profit for the quarter also decreased to $65.7 million from $80.5 million, reflecting a reduction in profit from the Shallow Water Abandonment segment.

Despite the revenue decline, Helix reported a net income of $29.5 million for Q3 2024, up from $15.6 million in Q3 2023. This improvement in profitability was attributed to increased income from operations, which rose to $44.6 million from $36.2 million, and a significant increase in income before income taxes to $39.0 million from $23.9 million. Earnings per share (EPS) for the quarter improved to $0.19, compared to $0.10 in the prior year.

For the nine-month period, total revenues increased by 5% to $1.00 billion, driven by a 19% increase in Well Intervention revenues, which reached $623.8 million. Robotics revenues also saw an 11% increase, while Shallow Water Abandonment revenues decreased by 30%. Gross profit for the nine months rose to $160.7 million from $151.1 million, with significant contributions from the Well Intervention and Robotics segments.

Strategically, Helix has focused on enhancing its service offerings in well intervention, robotics, and decommissioning operations, with a consolidated backlog of approximately $1.6 billion as of September 30, 2024. The company anticipates strong performance driven by increasing demand for decommissioning services and growth in the offshore renewables trenching market. Additionally, Helix has made significant investments in its fleet and equipment, including the acquisition of the Alliance group of companies, which was fully integrated in 2024.

Overall, while Helix faced challenges in revenue generation during the third quarter, its profitability metrics improved significantly, reflecting effective cost management and operational efficiencies.