Why Helix Energy Solutions Group Inc (NYSE: HLX) stock is under pressure

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Helix Energy Solutions Group Inc (NYSE: HLX) stock lost over 4.8% on Feb 19th, 2019 (As of 10:37 am GMT-5; Source: Google finance) as the company in the fourth quarter of FY 18 has reported the net loss of $13.7 million compared to net income of $50.6 million for the same period in 2017 and net income of $27.1 million for the third quarter of 2018. Cash and cash equivalents at December 31, 2018 were $279.5 million. Consolidated long-term debt decreased to $440.3 million at December 31, 2018 from $448.0 million at September 30, 2018. Consolidated net debt at December 31, 2018, is of $160.9 million and net debt to book capitalization at December 31, 2018 is of 9%. Further, Capital expenditures and dry dock costs has totaled $81.7 million and $1.6 million, respectively, in the fourth quarter of 2018 compared to $13.5 million and $0.2 million in the third quarter of 2018 and $99.7 million and $0.0 million in the fourth quarter of 2017. The capital expenditures in the fourth quarter of 2018 and 2017 each included a $69.2 million installment payment to the shipyard for the Q7000. Operating cash flow has fallen to $45.9 million in the fourth quarter of 2018 compared to $63.2 million in the third quarter of 2018, primarily on the back of the decrease in operating income offset in part by net reductions in working capital. Operating cash flow in the fourth quarter of 2018 has risen by $25.6 million year over year due primarily to higher net income and changes in working capital. Free cash flow in the fourth quarter of 2018 has increased $43.7 million year over year due to higher operating cash flow on higher earnings and reduced capital expenditures resulting from the completion of the Siem Helix 1 and Siem Helix 2 vessels during 2017.

Moreover, Well Intervention revenues increased $7.7 million, or 7%, in the fourth quarter of 2018 compared to the fourth quarter of 2017. The increase was primarily due to 75 additional vessel days in the fourth quarter of 2018 compared to the fourth quarter of 2017 with the introduction of the Siem Helix 2 in that quarter as well as increased utilization and rates in the North Sea compared to the fourth quarter of 2017. Robotics revenues decreased $12.3 million, or 24%, in the fourth quarter of 2018 from the fourth quarter of 2017. Vessel utilization was 78% in the fourth quarter of 2018 compared to 85% in the fourth quarter of 2017.

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