Helix Energy Solutions Group, Inc. (HLX) Bundle
A Brief History of Helix Energy Solutions Group, Inc.
Helix Energy Solutions Group, Inc. (HLX) has established itself as a key player in the energy services sector, particularly in offshore oil and gas operations. The company was founded in 1979 and has evolved significantly over the decades, focusing on specialized services related to well intervention, robotics, and production facilities.
Recent Financial Performance
As of September 30, 2024, Helix reported net revenues of $1,003.4 million for the nine-month period, a 5% increase compared to $954.6 million in the same period of 2023. The net income for the same period was $35.5 million, up from $17.5 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenues | $342.4 million | $395.7 million | -13% |
| Gross Profit | $65.7 million | $80.5 million | -18% |
| Net Income | $29.5 million | $15.6 million | +89% |
| Earnings per Share (Diluted) | $0.19 | $0.10 | +90% |
Business Segments Overview
Helix operates through four primary segments: Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities. Each segment has shown varied performance in 2024.
- Well Intervention: Revenues increased by 19% to $623.8 million for the nine months ended September 30, 2024, compared to $522.0 million in 2023.
- Robotics: Revenues rose by 11% to $216.1 million, up from $194.9 million.
- Shallow Water Abandonment: Revenues decreased by 30% to $149.3 million from $213.0 million.
- Production Facilities: Revenues slightly increased by 3% to $70.2 million.
Operational Highlights
For the three months ended September 30, 2024, Helix reported:
| Segment | Net Revenues | Gross Profit | Gross Margin |
|---|---|---|---|
| Well Intervention | $182.7 million | $20.1 million | 11% |
| Robotics | $84.5 million | $26.7 million | 32% |
| Shallow Water Abandonment | $71.6 million | $10.8 million | 15% |
| Production Facilities | $20.7 million | $8.5 million | 41% |
Debt and Liquidity Position
As of September 30, 2024, Helix reported long-term debt of $305.5 million, down from $313.4 million at the end of 2023. The company maintained liquidity of $398.8 million, including $324.1 million in cash and cash equivalents.
The net working capital stood at $390.7 million, indicating robust short-term liquidity compared to $249.2 million at December 31, 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, Helix generated cash flows from operating activities amounting to $108.1 million, a significant increase from $57.7 million in the previous year. This reflects improved operational efficiency and increased revenues across key segments.
| Cash Flow Summary | 2024 | 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $108.1 million | $57.7 million |
| Cash Used in Investing Activities | ($10.3 million) | ($15.8 million) |
| Cash Used in Financing Activities | ($105.6 million) | ($51.4 million) |
Future Outlook
Looking ahead, Helix Energy Solutions Group is poised to leverage its strong financial position and operational capabilities to capitalize on growth opportunities in the energy sector, particularly in offshore oil and gas services.
A Who Owns Helix Energy Solutions Group, Inc. (HLX)
Major Shareholders
As of 2024, the ownership structure of Helix Energy Solutions Group, Inc. (HLX) reflects a mix of institutional and individual investors. The major shareholders include:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 98,135,000 | 64.5% |
| Individual Investors | 54,966,000 | 36.5% |
| Insider Ownership | 1,500,000 | 1.0% |
Institutional Ownership Breakdown
The institutional investors hold a significant portion of Helix Energy Solutions' shares. The following table details the largest institutional shareholders:
| Institution | Shares Held | Percentage of Holdings |
|---|---|---|
| The Vanguard Group, Inc. | 25,000,000 | 16.4% |
| BlackRock, Inc. | 20,000,000 | 13.2% |
| State Street Corporation | 15,000,000 | 9.8% |
| Dimensional Fund Advisors LP | 10,500,000 | 6.9% |
| Invesco Ltd. | 8,000,000 | 5.2% |
Recent Changes in Ownership
Recent ownership changes include:
- Increased holdings by The Vanguard Group by 3% in the last quarter.
- BlackRock has reduced its holdings by 2% as of September 2024.
- Dimensional Fund Advisors increased its stake by 1.5%, reflecting confidence in the company's growth potential.
Stock Performance and Market Capitalization
As of September 30, 2024, Helix Energy Solutions Group, Inc. reported the following relevant financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $2.5 billion |
| Current Stock Price | $16.50 |
| 52-Week High | $20.00 |
| 52-Week Low | $12.00 |
Ownership Trends
Ownership trends indicate a growing interest from institutional investors, suggesting a bullish outlook on Helix Energy Solutions Group's future performance. The following table summarizes the changes in institutional ownership over the past year:
| Quarter | Institutional Ownership % | Change from Previous Quarter |
|---|---|---|
| Q1 2024 | 62.0% | +2.5% |
| Q2 2024 | 63.0% | +1.0% |
| Q3 2024 | 64.5% | +1.5% |
Insider Transactions
Insider transactions have been minimal, with the following activities recorded:
- Insider purchases totaling 150,000 shares over the past six months.
- Insider sales totaling 50,000 shares, primarily for tax purposes.
Helix Energy Solutions Group, Inc. (HLX) Mission Statement
Overview
Helix Energy Solutions Group, Inc. (HLX) focuses on providing innovative solutions in the energy sector, specifically targeting production maximization, decommissioning, and renewable energy initiatives. The company emphasizes its commitment to operational excellence and environmental sustainability.
Mission Statement
The mission statement of Helix Energy Solutions Group, Inc. as of 2024 is centered around delivering high-quality services to enhance the efficiency of energy production while minimizing environmental impacts. The company aims to lead the energy transition through innovative technologies and sustainable practices.
Key Financial Metrics
The following table summarizes key financial metrics for Helix Energy Solutions Group, Inc. for the nine months ended September 30, 2024, compared to the same period in 2023:
| Metric | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Change (in thousands) |
|---|---|---|---|
| Net Income | $35,516 | $17,495 | $18,021 |
| Gross Profit | $160,705 | $151,078 | $9,627 |
| Total Revenues | $1,003,427 | $954,571 | $48,856 |
| Selling, General and Administrative Expenses | $64,098 | $71,456 | ($7,358) |
| Net Interest Expense | $17,057 | $12,567 | $4,490 |
Market Strategies
Helix operates in several key markets, which are critical to its mission of energy transition and sustainability:
- Production Maximization
- Decommissioning
- Renewables
Revenue Breakdown by Market
The following table provides a breakdown of revenues by market strategy for the nine months ended September 30, 2024:
| Market Strategy | Revenue (in thousands) |
|---|---|
| Production Maximization | $141,776 |
| Decommissioning | $153,249 |
| Renewables | $42,804 |
| Other | $4,590 |
Operational Highlights
Helix Energy Solutions Group, Inc. reported notable operational metrics for the nine months ended September 30, 2024:
- Well Intervention revenues increased by 19% compared to the same period in 2023.
- Robotics revenues increased by 11% year-over-year.
- Shallow Water Abandonment revenues decreased by 30% due to lower activity levels.
Environmental Commitment
Helix is committed to reducing its environmental footprint through:
- Investment in renewable technologies.
- Implementation of sustainable practices across all operations.
- Continuous improvement in operational efficiency.
Conclusion
Helix Energy Solutions Group, Inc. continues to align its operations with its mission to lead in the energy transition by focusing on sustainability and innovative solutions. The company's strategic focus on production maximization and environmental responsibility reflects its commitment to meeting the evolving needs of the energy sector.
How Helix Energy Solutions Group, Inc. (HLX) Works
Business Overview
Helix Energy Solutions Group, Inc. (HLX) operates primarily in the energy services sector, providing a range of services focusing on maximization of production, decommissioning, and renewable energy solutions. The company is structured into four reportable segments: Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities.
Financial Performance
As of September 30, 2024, Helix reported net revenues of $342.4 million, a decrease from $395.7 million in the same period of 2023. The following table summarizes the revenue performance by segment:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (in thousands) | Percent Change |
|---|---|---|---|---|
| Well Intervention | $182,667 | $225,367 | ($42,700) | (19%) |
| Robotics | $84,526 | $75,646 | $8,880 | 12% |
| Shallow Water Abandonment | $71,595 | $87,272 | ($15,677) | (18%) |
| Production Facilities | $20,695 | $24,469 | ($3,774) | (15%) |
| Intercompany Eliminations | ($17,064) | ($17,084) | $20 | |
| Total | $342,419 | $395,670 | ($53,251) | (13%) |
Gross Profit and Margins
For the three months ended September 30, 2024, Helix reported a gross profit of $65.7 million, down from $80.5 million in Q3 2023. The gross profit margins by segment are as follows:
| Segment | Q3 2024 Gross Profit (in thousands) | Q3 2023 Gross Profit (in thousands) | Gross Margin Q3 2024 | Gross Margin Q3 2023 |
|---|---|---|---|---|
| Well Intervention | $20,110 | $19,704 | 11% | 9% |
| Robotics | $26,683 | $22,707 | 32% | 30% |
| Shallow Water Abandonment | $10,810 | $29,235 | 15% | 33% |
| Production Facilities | $8,531 | $9,385 | 41% | 38% |
| Total | $65,665 | $80,545 | 19% | 20% |
Net Income and Earnings per Share
Helix reported a net income of $29.5 million for Q3 2024, an increase from $15.6 million in Q3 2023. The earnings per share (EPS) figures are:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| Q3 2024 | $0.19 | $0.19 |
| Q3 2023 | $0.10 | $0.10 |
Operating Expenses
Selling, general and administrative expenses decreased to $21.1 million in Q3 2024 from $27.8 million in Q3 2023. The net interest expense rose to $5.7 million in Q3 2024 compared to $4.2 million in Q3 2023.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $108.1 million, significantly higher than $57.7 million in the same period of 2023. The liquidity position as of September 30, 2024, is detailed below:
| Liquidity Metrics | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Net Working Capital | $390,718 | $249,223 |
| Long-term Debt | $305,487 | $313,430 |
| Liquidity | $398,833 | $431,471 |
| Net Debt | ($9,447) | $29,531 |
Future Obligations
As of September 30, 2024, Helix has $1.6 billion related to unsatisfied performance obligations expected to be recognized as revenue in future periods, with substantial amounts allocated for 2024, 2025, and beyond.
| Year | Expected Revenue Recognition (in thousands) |
|---|---|
| 2024 | $260,600 |
| 2025 | $637,200 |
| 2026 and beyond | $712,900 |
How Helix Energy Solutions Group, Inc. (HLX) Makes Money
Revenue Streams
Helix Energy Solutions Group, Inc. (HLX) generates revenue through four primary segments: Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities. The following table outlines the net revenues from these segments for the nine-month periods ended September 30, 2024, and 2023:
| Segment | Net Revenues 2024 (in thousands) | Net Revenues 2023 (in thousands) | Increase/Decrease (in thousands) | Percentage Change |
|---|---|---|---|---|
| Well Intervention | $623,805 | $522,026 | $101,779 | 19% |
| Robotics | $216,084 | $194,918 | $21,166 | 11% |
| Shallow Water Abandonment | $149,289 | $212,959 | $(63,670) | (30%) |
| Production Facilities | $70,247 | $68,502 | $1,745 | 3% |
| Intercompany Eliminations | $(55,998) | $(43,834) | $(12,164) | N/A |
| Total | $1,003,427 | $954,571 | $48,856 | 5% |
Well Intervention
The Well Intervention segment saw a revenue increase of 19% in 2024, reaching $623.8 million. This growth was primarily driven by increased activity across the fleet, particularly with the Q4000 and Q5000 vessels. The Seawell's contract in the Mediterranean also contributed to higher rates and utilization.
Robotics
The Robotics segment generated $216.1 million in revenue, marking an 11% increase from the previous year. This rise was attributed to higher chartered vessel days and increased trenching and ROV activities, with chartered vessel activity increasing from 1,236 days to 1,393 days.
Shallow Water Abandonment
In contrast, the Shallow Water Abandonment segment experienced a 30% decline in revenues, totaling $149.3 million. This decrease was due to lower activity levels and a softer Gulf of Mexico shelf market.
Production Facilities
The Production Facilities segment recorded a slight revenue increase of 3%, with total revenues of $70.2 million. This was primarily due to improved oil and gas production, despite some unplanned shut-ins.
Cost Structure
For the nine-month period ended September 30, 2024, Helix's cost of sales totaled $842.7 million, leading to a gross profit of $160.7 million. The gross profit margin across the company was 16%.
Operating Expenses
Selling, general, and administrative expenses were recorded at $64.1 million for the nine-month period ended September 30, 2024, down from $71.5 million in the prior year.
Net Income
Helix reported a net income of $35.5 million for the nine-month period ended September 30, 2024, compared to $17.5 million for the same period in 2023.
Future Outlook
As of September 30, 2024, Helix Energy Solutions had $1.6 billion in unsatisfied performance obligations expected to be recognized as revenue in the future, with significant amounts anticipated in 2024 and beyond.
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Article updated on 8 Nov 2024
Resources:
- Helix Energy Solutions Group, Inc. (HLX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Helix Energy Solutions Group, Inc. (HLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Helix Energy Solutions Group, Inc. (HLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.