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Helix Energy Solutions Group, Inc. Message Board

  • giant_seq giant_seq Oct 17, 2012 8:30 AM Flag

    Pipelay asset sale

    To me this is a great move by management. Helix is not a major pipelay vendor and struggle in this area. Eliminating focus on pipelay and increasing assets in well intervention is a very smart move. They are selling the 3 pipelay assets for 252 million. Of the 3 ships being sold only the Express was really bringing in earnings. The Ceaser has been breakeven at best acting as a floating hotel in GOM and unused for pipelay (except for 1 project) since they brought it online a few years ago. Intrepid was out of use and headed for cold stack. Since they just bought another Drill ship to convert to well intervention for 180 million, I see this transaction as swapping out the very under-utilized pipelay assets for an additional asset in their core and growing market. Gold star for management.

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    • one more thing, the sale reduces book value by about 150mm as far as i can tell...Although book doesn't have a direct impact on eps, shareholders get a more current picture of what is being carried on the books generating ROI... so I suspect Q4 will have a charge relating to the sale of Caesar and as such will look at a one time charge against eps of about $1.50...I cannot remember if this write down helps shelter cash taxes...

      Sentiment: Strong Buy

    • The Caesar was an albatross and I agree with you that selling the segment is a win/win...However, they will only keep 40% of proceeds in cash and retire debt with the rest...They continue to focus and I am looking forward to another announcement regarding E & P...as for when that is made? haven't a clue but the debates sure are helping!!!!

      Sentiment: Strong Buy

 
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