Helix Issues Revised 2006 Earnings Guidance
Helix Energy Solutions (NYSE: HLX) now expects 2006 earnings to fall in the revised range of $2.80 to $3.20 per diluted share. See attached "Key Variables" for the general range of assumptions embedded in the revised and previous earnings estimates.
Martin Ferron, President and Chief Executive Officer, stated, "The main reason for the revised guidance is lower production volumes caused by both third party pipeline shut-ins and production management integration following the closing of the acquisition of Remington Oil and Gas. These latter integration issues are now largely behind us. Most of the production shortfall is due to factors beyond our control as are prevailing spot commodity prices, which are below the low end of our previous expectations.
"While we are obviously disappointed to reduce our near term earnings estimates we still expect significant earnings growth in the coming year, especially as the market for our contracting services continues to improve. We are deep into our budgeting process and expect to update our 2007 earnings guidance in early December."
Helix Energy Solutions, headquartered in Houston, Texas, is an energy services company that provides innovative solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including diving services, shelf and deepwater construction, robotics, well operations, well engineering and subsurface consulting services, platform ownership and oil and gas production.
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