HELIX ENERGY SOLUTIONS GROUP, INC. (NYSE:HLX) Files An 8-K Other Events
Item 8.01 Other Events

The following provides information with respect to certain recent developments of Helix Energy Solutions Group, Inc. (the “Company”). Unless otherwise expressly stated or the context otherwise requires, “we,” “us” and “our” refer to the Company and its Subsidiaries.

Goodwill

We currently have on our balance sheet $45.1 million of goodwill associated with the acquisition in 2002 of Canyon Offshore, Inc., our principal robotics subsidiary. We are required by United States Generally Accepted Accounting Principles to perform an annual impairment analysis of goodwill. Due to the severe and prolonged downturn in the offshore oil and gas industry, we currently expect to record an impairment of goodwill, up to the full $45.1 million, in the fourth quarter of 2016. The impairment charge would be a non-cash charge that does not affect our EBITDA, cash position, financial standing, or bank covenant compliance.

Delayed in-service date for Siem Helix 1

The vessel we chartered, the Siem Helix 1, for the purpose of performing work offshore Brazil under a contract with Petroleo Brasileiro S.A. (“Petrobras”), arrived in Brazil in the third quarter of 2016 and continues to work through Petrobras’s inspection and acceptance process. Inspections and acceptance are proving to take longer than originally anticipated. Our current expectation is that the vessel will commence commercial operations in the first quarter of 2017.

Sale of Helix 534

On December 21, 2016, we sold the Helix 534 vessel to a third party for approximately $2.8 million. The vessel had been warm stacked for over a year.

About HELIX ENERGY SOLUTIONS GROUP, INC. (NYSE:HLX)

Helix Energy Solutions Group, Inc. is an international offshore energy services company. The Company provides services to the offshore energy industry, with a focus on well intervention and robotics operations. The Company operates in three segments: Well Intervention, Robotics and Production Facilities. Its Well Intervention segment includes the Company’s vessels and equipment used to perform well intervention services primarily in the Gulf of Mexico and North Sea regions. Its Robotics segment includes remotely operated vehicles (ROVs), trenchers and ROVDrills designed to complement offshore construction and well intervention services, and operates over four chartered ROV support vessels. Its Production Facilities segment includes the Helix Producer I (the HP I), a floating production vessel, the Helix Fast Response System (the HFRS), and its ownership interest in Independence Hub, LLC (Independence Hub).

HELIX ENERGY SOLUTIONS GROUP, INC. (NYSE:HLX) Recent Trading Information

HELIX ENERGY SOLUTIONS GROUP, INC. (NYSE:HLX) closed its last trading session down -0.60 at 9.09 with 1,272,139 shares trading hands.