Business Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segment Information

Note 14 — Business Segment Information

Through the second quarter 2022, we have 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, which includes the assets, liabilities and operating results of Helix Alliance. All material intercompany transactions between the segments have been eliminated.

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, with expansion into Asia Pacific. 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 trenching, seabed clearance, offshore construction 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 includes ROVs, trenchers, the IROV boulder grab and robotics support vessels under term charters as well as spot vessels as needed.

Our Shallow Water Abandonment segment provides services in support of the upstream and midstream ‎industries in the Gulf of Mexico shelf, including offshore oilfield 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 and P&A and coiled tubing systems.

Our Production Facilities segment includes the HP I, the HFRS and our ownership of oil and gas properties (Note 15).

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

	Year Ended December 31,
	2022		2021		2020
Net revenues —
Well Intervention	$	524,241	$	516,564	$	539,249
Robotics		191,921		137,295		178,018
Shallow Water Abandonment		124,810		—		—
Production Facilities		82,315		69,348		58,303
Intercompany eliminations		(50,187)		(48,479)		(42,015)
Total	$	873,100	$	674,728	$	733,555
Income (loss) from operations —
Well Intervention	$	(53,056)	$	(35,882)	$	26,855
Robotics		29,981		5,762		13,755
Shallow Water Abandonment		22,184		—		—
Production Facilities		27,201		22,906		15,975
Segment operating income (loss)		26,310		(7,214)		56,585
Goodwill impairment (1)		—		—		(6,689)
Change in fair value of contingent consideration		(16,054)		—		—
Corporate, eliminations and other		(55,111)		(41,473)		(36,871)
Total	$	(44,855)	$	(48,687)	$	13,025
Net interest expense		(18,950)		(23,201)		(28,531)
Other non-operating income (expense), net		(11,376)		1,246		16,889
Income (loss) before income taxes	$	(75,181)	$	(70,642)	$	1,383
Capital expenditures —
Well Intervention	$	17,617	$	2,349	$	19,523
Robotics		15,603		120		257
Shallow Water Abandonment		532		—		—
Production Facilities		(1,424)		6,770		—
Corporate, eliminations and other		1,176		(917)		464
Total	$	33,504	$	8,322	$	20,244
Depreciation and amortization —
Well Intervention	$	103,952	$	107,551	$	101,756
Robotics		12,209		15,158		15,952
Shallow Water Abandonment		8,172		—		—
Production Facilities		18,520		19,465		15,652
Corporate and eliminations		(167)		(660)		349
Total	$	142,686	$	141,514	$	133,709

(1) Relates to the impairment of the entire STL goodwill balance (Note 3).

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

	Year Ended December 31,
	2022		2021		2020
Well Intervention	$	16,545	$	21,521	$	15,039
Robotics		33,642		26,958		26,976
Total	$	50,187	$	48,479	$	42,015

Revenues by individually significant geographic location are as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
U.S.	$	447,205	$	232,661	$	304,563
U.K.		166,980		100,154		133,005
Brazil		81,940		154,326		208,565
West Africa		87,488		126,856		41,840
Other		89,487		60,731		45,582
Total	$	873,100	$	674,728	$	733,555

Our operational assets work in various regions around the world such as the Gulf of Mexico, Brazil, the North Sea, Asia Pacific and West Africa. The following table provides our property and equipment, net of accumulated depreciation, by individually significant geographic location where those assets are based (in thousands):

	December 31,
	2022		2021
U.S.	$	780,803	$	693,062
U.K. (1)		625,001		713,385
Brazil (2)		235,811		251,194
Other		—		4
Total	$	1,641,615	$	1,657,645

(1) Includes the Q7000 and certain other assets that are based in the U.K. but have operated in West Africa and may also operate in the North Sea, Asia Pacific and other regions.

(2) Includes the equipment on the Siem Helix 1 chartered vessel and certain other assets that are based in Brazil but are have operated in West Africa and may also operate in the North Sea, Asia Pacific and other regions.

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):

	December 31,
	2022		2021
Well Intervention	$	1,796,269	$	2,012,214
Robotics		192,694		96,249
Shallow Water Abandonment		206,944		—
Production Facilities		136,382		119,004
Corporate and other		57,049		98,561
Total	$	2,389,338	$	2,326,028