Oil service company Helix Energy Solutions has narrowed its loss in the second quarter of 2017 backed by increased activity of its well intervention business. Mainly North Sea operations helped narrow the firm’s losses.
The group, which controls Aberdeen based Helix Well Ops and Canyon Offshore, reported a net loss of $22.9million for the first six months of the year, compared to $38.5million in the same period last year.
It reported a net loss of $6.4 million for the second quarter of 2017 compared to a net loss of $10.7 million for the same period in 2016.
Owen Kratz, President and Chief Executive Officer of Helix, stated, "Our second quarter results benefited from a strong quarter for our well intervention business in the North Sea and the Gulf of Mexico
. Specifically, we are encouraged by the rebound this year in the North Sea well intervention market. We expect both the Well Enhancer and Seawell to have strong utilization into the fourth quarter of 2017."
"As we previously announced, the Siem Helix 1 commenced operations in Brazil
in mid-April. The vessel performed successful operations on three wells during the quarter. We have seen improvements in the vessel's financial results since it began commercial operations," Owen added.
Well Intervention revenues increased 52% in the second quarter of 2017 from the first quarter of 2017 and overall Well Intervention vessel utilization in the second quarter of 2017 increased to 90% from 59% in the first quarter of 2017.
The Siem Helix 1 was utilized 95% in the second quarter of 2017 after commencing commercial operations in mid-April. The Q4000 began dry-dock activities mid-March and was out of service for 34 days during the second quarter of 2017; vessel utilization decreased to 63% in the second quarter of 2017 from 83% in the first quarter of 2017.
The Q5000 utilization decreased to 91% in the second quarter of 2017 from 97% in the first quarter of 2017. Both of our vessels in the North Sea were fully utilized in the second quarter of 2017 primarily due to the normal seasonal pickup.
The Well Enhancer utilization increased to 100% from 60% in the first quarter of 2017 and the Seawell utilization increased to 100% from 53% in the first quarter of 2017. The rental intervention riser system was idle during the second quarter of 2017.