Helix Energy Solutions Group’s revenue trend
Helix Energy Solutions Group (HLX) ranks fifth on the list of the top revenue growth OFS (oilfield equipment and services) companies, according to Wall Street analysts. In the first quarter, its revenues increased 57% YoY (year-over-year). From Q4 2017 to Q1 2018, its revenues increased ~1%.
Significantly higher revenues in HLX’s Well Intervention and Robotics segments led to YoY revenue growth in the first quarter due to the start of well intervention operations in Brazil and higher revenues in the Gulf of Mexico. Brazil saw a higher utilization of vessels, while reduced vessel utilization of the Q5000 vessel and a vessel in the North Sea in Europe partially restricted HLX’s revenue growth. In addition, higher ROV (remotely operated vehicle) and trenching revenues pushed HLX’s Robotics segment revenues higher in the first quarter.
HLX’s revenues versus estimates
For the second quarter, Wall Street analysts expect to see 13.7% sequential revenue growth for HLX. YoY, HLX’s revenues could increase 24% in the second quarter. From Q2 2016 to Q1 2018, HLX’s reported revenues fell short of analysts’ average estimates by 0.7%.
What could affect HLX’s revenues in Q2 2018?
HLX’s management expects Grand Canyon to show marked improvement YoY for the remainder of the year on the basis of greater utilization, driven primarily by a strong trenching market. The Grand Canyon is one of HLX’s ROV (remotely operated vehicle) support vessels. According to HLX, pricing of vessels in the North Sea appears to be holding, while pricing pressure continues to weigh on the Gulf of Mexico rates. Overall, HLX expects to see higher revenues on downtime event reductions and improving efficiencies.