Business Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Business Segment Information

Note 11 — Business Segment Information

Through the second quarter 2022, we had three reportable business segments: Well Intervention, Robotics and Production Facilities. Beginning in the third quarter 2022 as a result of the Alliance acquisition (Note 3), we formed a new reportable business segment: Shallow Water Abandonment. 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 production 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 intervention systems, some of which we provide on a stand-alone basis. Our Robotics segment provides offshore construction, trenching, seabed clearance and IRM services to both the oil and gas and the renewable energy markets globally. Additionally, our Robotics services are used in and complement our well intervention services. Our Robotics segment mainly includes ROVs, trenchers and robotics support vessels under term charters 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 12). Our Shallow Water Abandonment segment provides services in support of the upstream and midstream ‎industries in the Gulf of Mexico shelf, including offshore oil field decommissioning and ‎reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift and commercial diving services. Our Shallow Water Abandonment segment operates a diversified fleet of marine assets including liftboats, OSVs, DSVs, a heavy lift derrick barge, a crew boat, P&A systems, coiled tubing systems and other miscellaneous assets. 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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Net revenues —
Well Intervention	$	143,925	$	131,314	$	356,583	$	397,387
Robotics		56,182		42,623		143,383		96,430
Shallow Water Abandonment		67,401		—		67,401		—
Production Facilities		18,448		18,552		54,420		49,217
Intercompany eliminations		(13,409)		(11,773)		(36,503)		(36,962)
Total	$	272,547	$	180,716	$	585,284	$	506,072
Income (loss) from operations —
Well Intervention	$	(1,304)	$	(13,343)	$	(55,610)	$	(14,819)
Robotics		11,708		4,936		22,854		2,257
Shallow Water Abandonment		16,320		—		16,320		—
Production Facilities		6,068		5,089		17,964		16,285
Segment operating income (loss)		32,792		(3,318)		1,528		3,723
Corporate, eliminations and other		(20,566)		(7,013)		(41,255)		(25,550)
Total	$	12,226	$	(10,331)	$	(39,727)	$	(21,827)

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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Well Intervention	$	4,303	$	4,267	$	12,046	$	17,060
Robotics		8,971		7,506		24,322		19,902
Shallow Water Abandonment		135		—		135		—
Total	$	13,409	$	11,773	$	36,503	$	36,962

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. The following table reflects total assets by reportable segment (in thousands):

	September 30,		December 31,
	2022		2021
Well Intervention	$	1,769,705	$	2,012,214
Robotics		172,521		96,249
Shallow Water Abandonment		200,987		—
Production Facilities		138,921		119,004
Corporate and other		73,363		98,561
Total	$	2,355,497	$	2,326,028