Business Segment Information

6 Months Ended

Jun. 30, 2025

Business Segment Information

Business Segment Information

Note 11 — Business Segment Information

We have four reportable business segments: Well Intervention, Robotics, Shallow Water Abandonment 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. These reportable segments are strategic business units that utilize different mix of vessels and/or equipment to perform different types of services. All material intercompany transactions between the segments have been eliminated. See Note 2 for more information on our business segments.

Our chief operating decision maker (“CODM”) is the chief operating officer. The CODM uses segment operating income or loss as the measure of segment profit or loss to evaluate segment performance by comparing the results of each segment with its annual budgeted amounts and monthly forecasts as well as the results of other segments. The CODM also uses segment operating income or loss to allocate company resources (including employees, property, and financial resources) to each segment. Information about our segment revenues and our measure of segment profit or loss is shown as follows (in thousands):

	Well				Shallow Water		Production
	Intervention		Robotics		Abandonment		Facilities		Total
Three months ended June 30, 2025
External revenues	$	156,786	$	77,815	$	50,606	$	17,081	$	302,288
Intersegment revenues (1)		—		7,757		12		—		7,769
Segment revenues		156,786		85,572		50,618		17,081		310,057
Elimination of intersegment revenues										(7,769)
Total consolidated net revenues									$	302,288
Less (2):
Direct cost of revenues		(165,154)		(62,573)		(46,460)		(12,173)
Operations support		(3,938)		(1,345)		(2,664)		(154)
Selling, general and administrative expenses		(4,124)		(2,610)		(1,851)		(329)
Segment operating income	$	(16,430)	$	19,044	$	(357)	$	4,425	$	6,682

	Well				Shallow Water		Production
	Intervention		Robotics		Abandonment		Facilities		Total
Three months ended June 30, 2024
External revenues	$	217,761	$	70,901	$	50,735	$	25,400	$	364,797
Intersegment revenues (1)		—		10,348		106		—		10,454
Segment revenues		217,761		81,249		50,841		25,400		375,251
Elimination of intersegment revenues										(10,454)
Total consolidated net revenues									$	364,797
Less (2):
Direct cost of revenues		(180,529)		(49,111)		(45,909)		(15,384)
Operations support		(3,617)		(1,250)		(3,278)		(125)
Selling, general and administrative expenses		(4,316)		(2,488)		(1,935)		(794)
Segment operating income	$	29,299	$	28,400	$	(281)	$	9,097	$	66,515
Six months ended June 30, 2025
External revenues	$	355,160	$	120,902	$	67,372	$	36,918	$	580,352
Intersegment revenues (1)		—		15,712		64		—		15,776
Segment revenues		355,160		136,614		67,436		36,918		596,128
Elimination of intersegment revenues										(15,776)
Total consolidated net revenues									$	580,352
Less (2):
Direct cost of revenues		(335,187)		(104,208)		(71,999)		(24,437)
Operations support		(7,957)		(2,736)		(5,525)		(267)
Selling, general and administrative expenses		(8,476)		(5,279)		(3,710)		(845)
Segment operating income (loss)	$	3,540	$	24,391	$	(13,798)	$	11,369	$	25,502
Six months ended June 30, 2024
External revenues	$	422,968	$	110,982	$	77,506	$	49,552	$	661,008
Intersegment revenues (1)		6,093		20,576		188		—		26,857
Segment revenues		429,061		131,558		77,694		49,552		687,865
Elimination of intersegment revenues										(26,857)
Total consolidated net revenues									$	661,008
Less (2):
Direct cost of revenues		(364,722)		(89,824)		(79,133)		(40,699)
Operations support		(7,580)		(2,663)		(6,670)		(268)
Selling, general and administrative expenses		(8,781)		(5,221)		(4,450)		(1,031)
Other segment items (3)		—		—		(150)		—
Segment operating income (loss)	$	47,978	$	33,850	$	(12,709)	$	7,554	$	76,673

(1) Intersegment amounts are derived primarily from equipment and services provided to other business segments. Beginning with the full-year 2024, certain intersegment revenues of Well Intervention are no longer evaluated by the CODM in his assessment of the segment’s results as those revenues are pass-through amounts related to non-core services. Accordingly, for the three- and six-month periods ended June 30, 2024, $6.9 million and $12.1 million, respectively, have been removed from Well Intervention segment revenues and related intersegment eliminations. This change has no impact on our segment profit or our consolidated revenues and operating income (loss).

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.

(3) Other segment items relate to gain (loss) on disposition of assets, net.

The table below provides a reconciliation of segment profit to income (loss) before income taxes (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Reconciliation of segment profit —
Segment operating income	$	6,682	$	66,515	$	25,502	$	76,673
Corporate, eliminations and other		(9,834)		(13,322)		(20,482)		(24,756)
Net interest expense		(5,875)		(5,891)		(11,581)		(11,368)
Losses related to convertible senior notes		—		—		—		(20,922)
Other non-operating expense, net		432		(288)		1,491		(598)
Income (loss) before income taxes	$	(8,595)	$	47,014	$	(5,070)	$	19,029

The following items are also regularly provided to the CODM (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Capital expenditures (1) —
Well Intervention	$	1,391	$	1,056	$	4,359	$	3,272
Robotics		2,901		2,520		4,100		3,277
Shallow Water Abandonment		164		106		378		612
Production Facilities		—		—		—		—
Corporate, eliminations and other		14		307		121		433
Total	$	4,470	$	3,989	$	8,958	$	7,594
Depreciation and amortization (2) —
Well Intervention	$	33,387	$	30,523	$	63,978	$	61,832
Robotics		1,255		2,071		2,624		4,376
Shallow Water Abandonment		5,901		5,557		11,579		11,054
Production Facilities		4,761		5,207		9,510		12,345
Corporate and eliminations		85		113		180		217
Total	$	45,389	$	43,471	$	87,871	$	89,824

(1) Represent cash paid principally for the acquisition, construction, upgrade, modification and refurbishment of long-lived property and equipment.

(2) Represents an aggregate of depreciation and amortization expense related to property and equipment and deferred recertification and dry dock costs, which is included within the segment expense captions “Direct cost of revenues” and “Selling, general and administrative expenses” as well as the line item caption “Corporate, eliminations and other” presented above.

We have not included a disclosure of total assets by segment as management’s focus is on operating performance and cash flow generation and the CODM does not regularly review segment asset information.