Helix Energy Solutions Group, Inc. (HLX), an offshore energy services company, has increased 7.22% in premarket and was trading at $4.16 when last checked. The increase could be attributed to the company’s announcement regarding an asset-based credit facility. Besides, oil and gas stocks have been constantly rising for the last few days, apparently due to increased demand. On Thursday, HLX stock closed the day at $3.88 after declining 0.77% during regular hours.
HLX entered the ABL facility
On Thursday, HLX announced that it had entered into a new asset-based revolving credit facility (ABL facility), worth $80 million. The ABL facility was with a syndicated banking group. The ABL facility replaced Helix’s existing credit facility and term loan. The term loan was concurrently repaid in full. From the ABL facility, the company would obtain an $80 million revolving credit facility, as well as Separate U.S. and U.K. tranches of $45 million and $35 million, respectively. The company would also obtain a five-year term before the maturity of Helix’s 2026 Convertible Senior Notes. Bank of America, N.A. and Wells Fargo Bank, N.A. served as the joint lead arrangers. Bank of America would continue to act as the administrative agent. Erik Staffeldt, Executive Vice President and Chief Financial Officer of Helix, commented on the development that the ABL facility would provide the company with access to working capital financing as needed during its post-capital expansion phase.
Q2 2021 financial results
On 26th July, HLX reported the quarterly results for the second quarter of the fiscal year 2021, which ended on 30th June 2021. According to the details, the net revenue generated by the company during the period stood at $161.94 million. Compared to that, the net revenue generated during the equivalent period of 2020 stood at $199.14 million. The gross profit for the period stood at $3.13 million. During the equivalent period of 2020, the gross profit generated by the company stood at $29.57 million. The selling, administrative, and general expenses for the period stood at $13.42 million. During the equivalent period of 2020, these were $15.85 million. The net loss bore by the company during the period stood at $13.68 million. During the equivalent period of 2020, the net income generated by the company stood at $5.45 million. The loss per basic and diluted share during the period stood at $0.09. During the equivalent period of 2020, the earnings per basic and diluted share remained at $0.04. On 30th June, the company had cash and cash equivalents of $243.91 million. The total assets in possession of the company stood at $2.41 billion.
What’s ahead for HLX?
During the last year, HLX stock has increased by 61%, mainly due to the increased demand for oil around the globe after the effects of the pandemic have started subsiding. Based on that increased demand for oil and resultantly increased price, analysts are predicting a tremendous fiscal 2021 and 2022 for HLX.
