Back to top

Analyst Blog

Offshore energy services provider Helix Energy Solutions Group Inc. (HLX - Snapshot Report) announced the receipt of a contract from Brazil's state-run energy giant Petroleo Brasileiro S.A. or Petrobras (PBR - Analyst Report) to supply well intervention solutions by using two newbuild vessels.

The vessels will be constructed at the Flensburger shipyard in Germany for Norway’s Siem Offshore, on the basis of a model developed by Salt Ship Design and will cost around $260 million.

Initially, Helix will charter the vessels from Siem Offshore for a 7-year period, with options that can extend the duration to 22 years. The vessels – to be built in accordance with the MODU-class (Marine Offshore Drilling Units) – are slated to be 158 meters long and 31 meters wide.

Helix will be responsible for providing topsides, while looking after the integration of the well intervention gear for vessels. On the other hand, Siem – the owner – will build the monohull, supervise the construction at the shipyard and charter the marine crew.

Though the preliminary agreement between Helix and Petrobras is for 4 years, it can be extended. Helix expects the first vessel delivery sometime in mid-2016, with the second one to follow later during that year. The order is part of Helix’s strong, longstanding relationship with Petrobras and further strengthens its already solid footing in Brazil.

Houston, TX-based Helix Energy offers marine contracting services, apart from operating offshore oil/gas properties and production units. The company looks to add value to the clients’ energy assets by deploying vessels from its diverse portfolio of contracting fleet.

Helix currently holds a Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked stocks in the oilfield services sector include Exterran Partners L.P. (EXLP - Snapshot Report) and Emerge Energy Services L.P. (EMES - Snapshot Report). Both of them carry a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%