Helix Energy Solutions Group reported reduced well intervention revenues during Q1 2025 citing lower utilisation rates in the North Sea — but warned of more pressing industry-wide problems up ahead.
Owen Kratz, Helix President and CEO, identified a series of potential forward challenges, including an increasingly testing North Sea market environment with some operators looking to put the brakes on work as a result of recent commodity price falls.
In its latest set of results, the company said Q1 well intervention revenues decreased by US$27.8mn, or 12% compared to the prior quarter “primarily due to seasonally lower utilisation in the North Sea,” as well as mobilisation and docking issues relating to its Q7000 vessel in Brazil.
The Houston-based group’s well intervention vessels include the Q4000, the Q5000, the Q7000, the Seawell, the Well Enhancer, and two chartered monohull vessels, the Siem Helix 1 and the Siem Helix 2.
Its well intervention portfolio includes intervention riser systems, subsea intervention lubricators and the Riserless Open-water Abandonment Module.
“As expected, our first quarter was impacted by the seasonal slowdown in the North Sea and the Gulf of America shelf,” said Kratz.
However, he also warned of a series of major challenges facing the industry in the coming year.
“Our first quarter has been overshadowed by the announcement of production increases by OPEC+, the announcement of US tariffs and its impact on the global market, and the continuing challenges of the North Sea oil and gas market,” he said.
“The confluence of these events has caused a precipitous drop in commodity prices and created uncertainty for our customers and the global economy. As a result, we are seeing some operators pausing work, notably in the North Sea where the current regulatory environment was already challenging for offshore oil and gas production.”
In response to the new market environment, Helix is adjusting its own operations to align with decreased activity, including the decision to stack the Seawell due to the weak North Sea well intervention climate, “but with our strong balance sheet and backlog of contracted work, we nevertheless expect to generate meaningful free cash flow in 2025,” said Kratz.
Helix also noted that its quarterly revenue decreases were offset partially by higher rates during Q1 2025.
Utilisation on the offshore service company’s North Sea vessels declined to 17% during the quarter, from 38% during the prior quarter.
As well as well intervention services, Helix also operates in other market segments including robotics, shallow water abandonment and production facilities.
