Helix Scraps Initial Performance Guidance

Houston-based Helix Energy Solutions Group Inc. has withdrawn its previously issued financial and operational performance guidance for 2020 in light of the current, significant macroeconomic uncertainty.

“While our guidance for 2020 reflected the best information then available to us, at this time we simply are not in a position to provide 2020 guidance given the recent decline in oil prices, COVID-19, and their combined impact on our industry and our company,” Owen Kratz, President and Chief Executive Officer, said in a written statement.

“We have implemented preventative protocols and established contingency plans designed to safeguard our personnel, assets and their operability during this crisis. Thus far we have succeeded in minimizing operational disruptions. We have continued to operate seven well intervention vessels and six robotics and support vessels, in six different countries on four continents. Our supply chains and logistics, like those of many others, have been forced into challenging environments never before experienced. But we are proud that, thus far, we have risen to the occasion.”

While the company’s currently contracted work has continued, Kratz said the spot market for the remainder of the year will likely be significantly weaker than previously forecast.

“We anticipate implementing cost reduction plans consistent with levels of work activity and expect to reduce our 2020 capital expenditures by approximately twenty percent. Nevertheless, we believe Helix will remain free cash flow positive in 2020. These are trying times, but we believe we have the cash and liquidity to manage these current challenges.”

Helix Energy Solutions is an international company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations.

To contact the author, email bertie.taylor@rigzone.com.