HOUSTON - Helix Energy (NYSE:HLX) Solutions Group, Inc. (NYSE:HLX) has been awarded a contract for deepwater well intervention services by Esso Exploration and Production Nigeria (Deepwater) Ltd. The operations are scheduled to start in September 2024 and will take place in the Erha and Usan fields, located roughly 97 kilometers offshore Nigeria in waters with depths between 700 and 1,500 meters.
The contract entails the use of Helix's Q4000, a DP3 riser-based semi-submersible well intervention vessel, along with a 10k Intervention Riser System (IRS), remotely operated vehicles, and associated project management and engineering services. These services are designed to address a range of well intervention needs from production enhancement to plug and abandonment operations.
Scotty Sparks, Executive Vice President and Chief Operating Officer of Helix, expressed enthusiasm about the contract, emphasizing the company's commitment to expanding its well intervention services in West Africa and strengthening its relationship with Esso.
The Q4000 vessel is touted as a world-class platform capable of performing various offshore tasks, including subsea well intervention, field and well decommissioning, subsea equipment installation and recovery, well testing, and emergency well containment. The vessel is designed with dedicated service areas to enhance safety and efficiency.
Helix Energy Solutions Group, a Houston-based international offshore energy services company, focuses on well intervention, robotics, and full field decommissioning operations. The company plays a role in supporting the global energy transition by maximizing the production of existing oil and gas reserves, decommissioning end-of-life oil and gas fields, and aiding renewable energy developments.
This announcement is based on a press release statement.
InvestingPro Insights
As Helix Energy Solutions Group, Inc. (NYSE:HLX) gears up for its new deepwater well intervention services contract in Nigeria, investors and industry observers are closely monitoring the company's financial health and stock performance. According to recent data from InvestingPro, Helix boasts a market capitalization of $1.53 billion USD, reflecting its significant presence in the offshore energy services sector.
The company's P/E ratio stands at 76.65, which might seem high; however, when adjusted for the last twelve months as of Q3 2023, the P/E ratio is more moderate at 25.38. This adjustment suggests that investors are valuing Helix's near-term earnings growth potential. An InvestingPro Tip highlights that Helix is trading at a low P/E ratio relative to this anticipated earnings growth, which may signal an attractive entry point for investors seeking growth opportunities.
Another key metric is the company's revenue growth, which has been robust, with a 64.79% increase over the last twelve months as of Q3 2023. This strong performance is further underscored by a considerable quarterly revenue growth of 45.17% in Q1 2023. This indicates that Helix is not only expanding its operations but also effectively capitalizing on market opportunities.
InvestingPro Tips also reveal that Helix does not pay a dividend to shareholders, which may be an important consideration for income-focused investors. However, for those more interested in capital gains, it's worth noting that Helix's stock price has seen a 23.75% return over the past year, underscoring its potential for appreciation.
For more detailed analysis and additional InvestingPro Tips, interested readers can explore Helix's profile on InvestingPro. With 9 more tips available, subscribers can gain a comprehensive understanding of the company's financial position and future prospects. Use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription to InvestingPro.
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