Why Helix Energy Solutions Stock Dropped Nearly 11% in Early Trading on Aug. 12
Shares of offshore energy services provider Helix Energy Solutions (NYSE: HLX) fell a little bit less than 11% in early trading on Aug. 12. By 10:30 a.m. EDT, that loss had been pared to a still sizable 8% or so. The news that precipitated the drop was actually spread across two days.
Helix Energy Solutions is muddling through a difficult period in the energy sector, noting that oil prices actually fell below zero at one point earlier in the year. Although there were technical reasons for that, it basically meant that, for a brief moment, oil companies were paying customers to take their oil. Oil prices are still at a relatively low level, though much improved from zero, leading oil companies to pull back aggressively on their capital spending plans. That's hit Helix hard: Through the first six months of 2020, it lost $0.06 per share, compared with a profit of $0.12 per share in the first half of 2019. That's pretty much to be expected, since Helix's customers aren't spending like they used to.
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