Helix Energy Solutions Group Inc (HLX) Reports Strong Q3 2023 Results with Highest Quarterly ...
Helix Energy Solutions Group Inc (NYSE:HLX) reported a net income of $15.6 million for Q3 2023, a significant increase from a net loss of $18.8 million in Q3 2022.
Adjusted EBITDA for Q3 2023 was $96.4 million, up from $52.6 million in Q3 2022.
Revenues for Q3 2023 stood at $395.67 million, a substantial increase from $272.547 million in Q3 2022.
The company's Well Intervention, Robotics, and Shallow Water Abandonment segments all saw sequential improvements.
Helix Energy Solutions Group Inc (NYSE:HLX) released its Q3 2023 earnings report on October 24, 2023, revealing a significant improvement in its financial performance. The company reported a net income of $15.6 million, or $0.10 per diluted share, for Q3 2023, a stark contrast to the net loss of $18.8 million, or $(0.12) per diluted share, reported for Q3 2022. The company's adjusted EBITDA for Q3 2023 was $96.4 million, a substantial increase from $52.6 million in Q3 2022.
Financial Highlights
Helix Energy Solutions Group Inc (NYSE:HLX) reported revenues of $395.67 million for Q3 2023, a significant increase from $272.547 million in Q3 2022. The company's gross profit for Q3 2023 was $80.545 million, marking a significant improvement from $39.215 million in Q3 2022. The company's net income for the nine months ended September 30, 2023, was $17.5 million, a turnaround from a net loss of $90.5 million for the same period in 2022.
Segment Performance
Helix's Well Intervention segment saw a significant increase in activity, with the Q7000 working a full quarter and the Q4000 completing dry dock activities at the end of July. The Robotics segment continued to perform at high levels with strong trenching activities in Europe and Asia Pacific. The Shallow Water Abandonment segment performed well, and the company enhanced its competitive position with the acquisition of five additional P&A systems during the third quarter.
Management Commentary
Owen Kratz, President and Chief Executive Officer of Helix, stated, The efforts of our team are paying off, and with the improving market, we achieved our highest quarterly revenue and EBITDA since 2014, with sequential improvements realized in all of our business segments. Our third quarter results benefitted from seasonally strong utilization in the North Sea and Gulf of Mexico. We expect to finish 2023 with strong seasonally adjusted performance, establishing a solid foundation for further improvements in 2024.
Financial Condition and Liquidity
As of September 30, 2023, Helix Energy Solutions Group Inc (NYSE:HLX) had cash and cash equivalents of $168.4 million. The company's available capacity under its ABL facility at the end of Q3 2023 was $110.2 million, resulting in total liquidity of $278.6 million. The company had $227.3 million of remaining long-term debt and a net debt of $58.9 million.
For more detailed financial information, please refer to the full earnings report on the company's website.
This article first appeared on GuruFocus.
