- Helix Energy Solutions (HLX, Financial) reports a net income of $3.1 million in Q1 2025, a significant decrease from $20.1 million in Q4 2024.
- Revenues for Q1 2025 were $278.1 million, down from $296.2 million in Q1 2024.
- Management addresses market challenges due to production increases by OPEC+ and U.S. tariffs impacting the global market.
Helix Energy Solutions Group, Inc. (HLX) announced its financial results for the first quarter of 2025, reporting a net income of $3.1 million, or $0.02 per diluted share. This represents a notable decline from the fourth quarter of 2024, where net income stood at $20.1 million, or $0.13 per diluted share. The company had experienced a net loss of $26.3 million in the first quarter of 2024 due to a pre-tax loss linked to the redemption of convertible senior notes.
Helix's quarterly revenue fell to $278.1 million from $296.2 million a year prior. Adjusted EBITDA for the first quarter was $52.0 million, showing a decrease from $71.6 million in the previous quarter. The decline in profitability and revenues reflects seasonal slowdowns, particularly in the North Sea and Gulf of America shelf, and operational adjustments amid regulatory dockings of vessels.
Owen Kratz, President and CEO of Helix, emphasized the challenging market conditions created by increased production from OPEC+, recent U.S. tariffs, and the ongoing struggles in the North Sea oil and gas sectors. These factors contributed to a drop in commodity prices and created uncertainty among customers. In response, Helix is adjusting its operations to align with reduced activity levels while maintaining a strong financial position with a positive free cash flow outlook for the year.
Segment-wise, the Well Intervention segment recorded a 12% decline in revenue compared to the previous quarter, mainly due to reduced activity in the North Sea and the mobilization of the Q7000 vessel to Brazil. The Robotics segment saw a 37% drop in revenue quarter-over-quarter due to decreased seasonal vessel and equipment utilization. Meanwhile, Shallow Water Abandonment revenues decreased by 55% quarter-over-quarter, reflecting the seasonal decline in vessel activity.
Looking at Helix's financial condition, the company held cash and cash equivalents totaling $370.0 million as of March 31, 2025. Long-term debt was recorded at $311.1 million, resulting in a negative net debt position of $58.9 million, indicating strong liquidity despite market challenges.
