Helix Energy Solutions Q4 revenue beats expectations

Overview

• Offshore energy services firm's Q4 revenue beat analyst expectations

• Q4 net income decreased due to non-cash impairment charge

• Company generated over $100 mln in free cash flow during Q4

Outlook

• Helix expects offshore market improvements in the latter half of 2026 and into 2027

• Thunder Hawk field expected to resume production in April

Result Drivers

• NON-CASH IMPAIRMENT - Helix's Q4 net income was impacted by an $18 mln non-cash impairment charge on its Thunder Hawk field due to lower oil prices and higher expected operating costs

• SEASONAL SLOWDOWN - Seasonal impacts led to decreased utilization in Well Intervention and Robotics segments, affecting revenues

• MULTI-YEAR CONTRACT - Helix secured a multi-year P&A program in the UK North Sea, indicating resilience amidst market volatility

Company press release: ID:nBwXmt41a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Helix Energy Solutions Group Inc is $10.00, about 10.3% above its February 23 closing price of $9.07

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 21 three months ago

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