Business Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segment Information

Note 10 — Business Segment Information

We have three reportable business segments: Well Intervention, Robotics and Production Facilities. Our U.S., U.K. and Brazil well intervention operating segments are aggregated into the Well Intervention segment for financial reporting purposes. Our Well Intervention segment provides services enabling our customers to safely access offshore wells for the purpose of performing well enhancement or decommissioning operations primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa. Our well intervention vessels include the Q4000, the Q5000, the Q7000, the Seawell, the Well Enhancer, and the Siem Helix 1 and Siem Helix 2 chartered vessels. Our well intervention equipment includes IRSs, SILs and the ROAM, some of which we provide on a stand-alone basis. Our Robotics segment provides offshore construction, cable trenching, seabed clearance, inspection, repair and maintenance services to both the oil and gas and the renewable energy markets globally. Our Robotics services also complement well intervention services. Our Robotics segment includes ROVs, trenchers, a ROVDrill and two robotics support vessels under long-term charter, the Grand Canyon II and the Grand Canyon III, as well as spot vessels as needed. Our Production Facilities segment includes the HP I, the HFRS and our ownership of oil and gas properties (Note 11). All material intercompany transactions between the segments have been eliminated.

We evaluate our performance based on operating income of each reportable segment. Certain financial data by reportable segment are summarized as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net revenues —
Well Intervention	$	132,305	$	145,841	$	266,073	$	286,493
Robotics		31,651		50,836		53,807		86,094
Production Facilities		14,218		13,593		30,665		29,134
Intercompany eliminations		(16,233)		(11,123)		(25,189)		(21,553)
Total	$	161,941	$	199,147	$	325,356	$	380,168
Income (loss) from operations —
Well Intervention	$	(6,719)	$	11,758	$	(1,476)	$	6,066
Robotics		255		7,781		(2,679)		4,957
Production Facilities		4,682		3,365		11,196		7,008
Segment operating income (loss)		(1,782)		22,904		7,041		18,031
Goodwill impairment (1)		—		—		—		(6,689)
Corporate, eliminations and other		(9,159)		(8,710)		(18,537)		(18,175)
Total	$	(10,941)	$	14,194	$	(11,496)	$	(6,833)

(1) As a result of the decline in oil prices as well as energy and energy services valuations during the first quarter 2020 due to the COVID-19 pandemic and the price war among members of the Organization of Petroleum Exporting Countries (“OPEC”) and other non-OPEC producer nations (collectively with OPEC members, “OPEC+”), we impaired all of our goodwill, which consisted entirely of goodwill attributable to the acquisition of a controlling interest in STL.

Intercompany segment amounts are derived primarily from equipment and services provided to other business segments. Intercompany segment revenues are as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Well Intervention	$	10,206	$	3,910	$	12,793	$	7,214
Robotics		6,027		7,213		12,396		14,339
Total	$	16,233	$	11,123	$	25,189	$	21,553

Segment assets are comprised of all assets attributable to each reportable segment. Corporate and other includes all assets not directly identifiable with our business segments, most notably the majority of our cash and cash equivalents. The following table reflects total assets by reportable segment (in thousands):

	June 30,		December 31,
	2021		2020
Well Intervention	$	2,084,665	$	2,134,081
Robotics		101,121		132,550
Production Facilities		125,863		129,773
Corporate and other		106,058		101,874
Total	$	2,417,707	$	2,498,278