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HOUSTON - Helix Energy (NYSE:HLX) Solutions Group, Inc. (NYSE: HLX) has secured new vessel charter and service contracts with Petrobras, the Brazilian state-controlled oil company, for its Siem Helix 1 and Siem Helix 2 vessels. The contracts, which are set for a three-year duration with an option for an additional three years, are valued at approximately $786 million.
The Siem Helix 2 has been active since 2017, conducting riser-based well intervention operations in Brazil's Santos and Campos Basins, completing over 100 well interventions to date. Siem Helix 1 also has a history with Petrobras, having completed 74 well interventions between April 2017 and July 2021 in the same basins.
Daniel Stuart, Helix’s Vice President–Commercial, emphasized the company's established relationship with Petrobras, highlighting the provision of safe and cost-effective well intervention services in Brazil. The new contracts are seen as a continuation of this relationship, with a focus on leveraging Helix's global well intervention expertise.
The Siem Helix 1 and Siem Helix 2 are specialized well intervention vessels, equipped to handle a range of subsea services such as production enhancement, well decommissioning, subsea installation, and emergency response among others.
Helix Energy Solutions Group is a global offshore energy services company based in Houston, Texas. It offers a range of services crucial to the offshore energy industry, particularly in well intervention and decommissioning. The company plays a role in supporting the global energy transition by aiding in the maximization of existing oil and gas production and supporting renewable energy developments.
The announcement comes with the usual caveats of forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ from those projected. The company's recent press release includes a detailed disclaimer regarding these statements.
This news is based on a press release statement and does not include any speculative or forward-looking commentary.
In other recent news, Helix Energy Solutions Group has made significant strides in its financial restructuring and performance. The oil and gas services company has amended its credit agreement, extending the maturity date from September 2026 to August 2029 and increasing its letter of credit capacity from $20 million to $55 million. This amendment, done in collaboration with Bank of America, provides Helix Energy with enhanced financial flexibility.
The company has also reported robust financial results for Q2 2024. Revenues reached $365 million, with a gross profit of $75 million and net income standing at $32 million. This performance was largely driven by the success of its Well Intervention and Robotics segments, as well as the deployment of the Q7000 vessel in Australia.
Helix Energy has updated its 2024 revenue guidance to be between $1.25 billion and $1.4 billion, adjusting its EBITDA forecast to range from $270 million to $330 million. The company also revised its capital expenditure forecast downward to $60 million to $80 million. These recent developments reflect the company's strong cash and liquidity positions, with $275 million in cash and $370 million in total liquidity.
The company is in advanced discussions to secure market rate contracts for well intervention assets and is considering adding more assets to meet the growing demand in the wind farm market. Helix Energy remains optimistic about a demand rebound in the shallow water Gulf of Mexico abandonment market in 2025.
InvestingPro Insights
Helix Energy Solutions Group (NYSE: HLX) has shown a significant return over the last week, with a price total return of 9.0%. This positive momentum aligns with the company's recent announcement of securing lucrative contracts with Petrobras, potentially signaling investor confidence in Helix's growth prospects and ability to capitalize on its established relationship with the Brazilian oil giant.
Despite not having paid dividends, Helix's commitment to providing specialized well intervention services is reflected in its revenue growth, which stands at a robust 24.35% over the last twelve months as of Q2 2024. This growth is indicative of the company's expanding operations and could be a positive sign for investors looking at the company's performance trajectory.
InvestingPro Tips suggest that Helix is expected to turn profitable this year, which may be an encouraging signal for potential investors. The company's liquid assets also exceed its short-term obligations, suggesting a healthy liquidity position that could support its ongoing and future operational needs. For more in-depth analysis and additional InvestingPro Tips, investors can explore the full suite of insights available for Helix Energy Solutions Group at https://www.investing.com/pro/HLX, which lists a total of 9 tips for the company.
InvestingPro Data further indicates a forward-looking P/E Ratio (Adjusted) for the last twelve months as of Q2 2024 at 24.91, reflecting expectations of earnings growth relative to the current share price. Additionally, Helix operates with a moderate level of debt, which is a crucial factor for investors considering the financial stability and risk profile of the company.
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