{"id":50197,"date":"2023-08-18T16:42:23","date_gmt":"2023-08-18T20:42:23","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/helix-energy-solutions-continues-uptrend-after-strong-q2-2023-results-nysehlx\/"},"modified":"2023-08-18T16:42:26","modified_gmt":"2023-08-18T20:42:26","slug":"helix-energy-solutions-continues-uptrend-after-strong-q2-2023-results-nysehlx","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=50197","title":{"rendered":"Helix Energy Solutions Continues Uptrend After Strong Q2-2023 Results (NYSE:HLX)"},"content":{"rendered":"
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Helix Energy Solutions (NYSE:HLX<\/span>) reported strong financial performance for Q2-2023 and updated its guidance for the remainder of the year. The company beat revenue expectation by $34.99 million and reported 89.9% revenue growth YoY. The company updated its financial outlook for the remainder of 2023 and gave some updates for 2024. The company expects improved performance because more vessels are out of maintenance and committed through contract. The company attributed strong demand for its services as an ongoing synergy. I <\/span>covered the company prior to earnings and rated it as a hold. I now rate the company as a buy. If the stock price reaches $11 in the near future, then gains of 18% may be realized.<\/span><\/p>\n

Operations<\/h2>\n

Helix Energy Solutions operates a fleet of specialty vessels and equipment for servicing offshore energy operations. The company specializes in well enhancement and decommissioning. The company’s technical equipment includes robotics for underwater trenching, seabed clearance, and offshore construction. The company also works in shallow water abandonment, including offshore oilfield decommissioning and reclamation. The company operates in Europe (North Sea), West Africa, Asia (Thailand and Australia), South America (Brazil), the Gulf of Mexico, and the US East Coast. The major operating segments for the company are Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment. The company has sections on its website which cover its <\/span>assets and <\/span>specialty services.<\/span><\/p>\n

Q2-2023 Results and Outlook<\/h2>\n

Results for Q2-2023 were improved compared to the previous quarter and YoY. Helix Energy Solutions reported revenues of $309 million, representing a 23.5% increase from last quarter and an 89.9% increase YoY. The company reported a net income of $7 million compared to a net loss of $1 million in the previous quarter. Adjusted EBITDA for Q2 was $71 million, an increase of more than a 100% from the last quarter and YoY. Gross profit was $55 million, representing a 263% increase from the previous quarter. The company reported operating cash flow of $32 million and free cash flow of $30 million.<\/p>\n

Helix Energy Solutions attributed strong results to better weather in the North Sea and Gulf of Mexico. Demand for its services is growing in the offshore renewables market in the US and Asia Pacific. The company reported high utilization of its vessels and equipment during the quarter. The company expects financial performance to improve over the next two quarters.<\/p>\n

The company reported segment results as follows:<\/p>\n

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\"A<\/span>
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Earning Call Presentation<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Source: Q2-2023 Earnings Call Presentation<\/p>\n

Across the segments, there is an increase in revenue from the previous quarter and YoY. The company reports a higher percentage of utilization for the quarter compared to the previous quarter and YoY. Gross profit has also increased for each segment.<\/p>\n

The company announces Q3-2023 earnings in October. The market consensus for the quarter is $340.29 million, which represents a 10% increase from the previous quarter. The company stated in its Q2-2023 earnings transcript that it expects strong financial performance for the rest of the year.<\/p>\n

Here is a data chart of the company’s last five quarterly earnings:<\/p>\n

<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Amounts in $US Millions<\/p>\n<\/td>\n

\n

Q2-2023<\/p>\n<\/td>\n

\n

Q1-2023<\/p>\n<\/td>\n

\n

Q4-2022<\/p>\n<\/td>\n

\n

Q3-2022<\/p>\n<\/td>\n

\n

Q2-2022<\/p>\n<\/td>\n<\/tr>\n

\n

Revenues<\/p>\n<\/td>\n

\n

308.8<\/p>\n<\/td>\n

\n

250.1<\/p>\n<\/td>\n

\n

287.8<\/p>\n<\/td>\n

\n

272.5<\/p>\n<\/td>\n

\n

162.6<\/p>\n<\/td>\n<\/tr>\n

\n

Cost of Revenues<\/p>\n<\/td>\n

\n

253.5<\/p>\n<\/td>\n

\n

234.9<\/p>\n<\/td>\n

\n

256.5<\/p>\n<\/td>\n

\n

233.3<\/p>\n<\/td>\n

\n

164.0<\/p>\n<\/td>\n<\/tr>\n

\n

Gross Profit<\/p>\n<\/td>\n

\n

55.3<\/p>\n<\/td>\n

\n

15.2<\/p>\n<\/td>\n

\n

31.4<\/p>\n<\/td>\n

\n

39.2<\/p>\n<\/td>\n

\n

(1.4)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Operating Expenses<\/p>\n<\/td>\n

\n

24.0<\/p>\n<\/td>\n

\n

19.6<\/p>\n<\/td>\n

\n

22.8<\/p>\n<\/td>\n

\n

23.6<\/p>\n<\/td>\n

\n

16.0<\/p>\n<\/td>\n<\/tr>\n

\n

Operating Income<\/p>\n<\/td>\n

\n

31.3<\/p>\n<\/td>\n

\n

(4.4)<\/p>\n<\/td>\n

\n

8.6<\/p>\n<\/td>\n

\n

15.7<\/p>\n<\/td>\n

\n

(17.4)<\/p>\n<\/td>\n<\/tr>\n

\n

Net Income<\/p>\n<\/td>\n

\n

7.1<\/p>\n<\/td>\n

\n

(5.2)<\/p>\n<\/td>\n

\n

2.7<\/p>\n<\/td>\n

\n

(18.8)<\/p>\n<\/td>\n

\n

(29.7)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Cash & ST Investments<\/p>\n<\/td>\n

\n

182.7<\/p>\n<\/td>\n

\n

166.7<\/p>\n<\/td>\n

\n

186.6<\/p>\n<\/td>\n

\n

162.3<\/p>\n<\/td>\n

\n

260.6<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Total Receivables<\/p>\n<\/td>\n

\n

262.4<\/p>\n<\/td>\n

\n

218.8<\/p>\n<\/td>\n

\n

219.1<\/p>\n<\/td>\n

\n

258.8<\/p>\n<\/td>\n

\n

192.5<\/p>\n<\/td>\n<\/tr>\n

\n

Total Current Assets<\/p>\n<\/td>\n

\n

512.0<\/p>\n<\/td>\n

\n

449.4<\/p>\n<\/td>\n

\n

460.6<\/p>\n<\/td>\n

\n

476.1<\/p>\n<\/td>\n

\n

485.4<\/p>\n<\/td>\n<\/tr>\n

\n

Total Assets<\/p>\n<\/td>\n

\n

2,423.8<\/p>\n<\/td>\n

\n

2,369.3<\/p>\n<\/td>\n

\n

2,389.3<\/p>\n<\/td>\n

\n

2,355.5<\/p>\n<\/td>\n

\n

2,213.7<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Accounts Payable<\/p>\n<\/td>\n

\n

145.9<\/p>\n<\/td>\n

\n

134.4<\/p>\n<\/td>\n

\n

135.3<\/p>\n<\/td>\n

\n

131.9<\/p>\n<\/td>\n

\n

99.7<\/p>\n<\/td>\n<\/tr>\n

\n

Total Current Liabilities<\/p>\n<\/td>\n

\n

382.7<\/p>\n<\/td>\n

\n

288.0<\/p>\n<\/td>\n

\n

298.0<\/p>\n<\/td>\n

\n

330.5<\/p>\n<\/td>\n

\n

232.7<\/p>\n<\/td>\n<\/tr>\n

\n

Total Liabilities<\/p>\n<\/td>\n

\n

891.9<\/p>\n<\/td>\n

\n

853.6<\/p>\n<\/td>\n

\n

872.6<\/p>\n<\/td>\n

\n

873.6<\/p>\n<\/td>\n

\n

681.9<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Levered Free Cash Flow<\/p>\n<\/td>\n

\n

105.7<\/p>\n<\/td>\n

\n

4.9<\/p>\n<\/td>\n

\n

16.2<\/p>\n<\/td>\n

\n

14.5<\/p>\n<\/td>\n

\n

83.0<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Total Debt<\/p>\n<\/td>\n

\n

447.8<\/p>\n<\/td>\n

\n

460.1<\/p>\n<\/td>\n

\n

469.7<\/p>\n<\/td>\n

\n

478.6<\/p>\n<\/td>\n

\n

410.4<\/p>\n<\/td>\n<\/tr>\n

\n

Net Debt<\/p>\n<\/td>\n

\n

265.2<\/p>\n<\/td>\n

\n

293.4<\/p>\n<\/td>\n

\n

283.1<\/p>\n<\/td>\n

\n

316.3<\/p>\n<\/td>\n

\n

149.8<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Book Value Per Share<\/p>\n<\/td>\n

\n

$10.16<\/p>\n<\/td>\n

\n

$10.01<\/p>\n<\/td>\n

\n

$9.98<\/p>\n<\/td>\n

\n

$9.76<\/p>\n<\/td>\n

\n

$10.10<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

<\/span><\/span>