February 25, 2025
Fourth Quarter 2024 Conference Call
PRESENTATION OUTLINE
Agenda
- Executive Summary (pg. 4)
- Operational Highlights (pg. 8)
- Key Financial Metrics (pg. 13)
- 2025 Outlook (pg. 15)
- Non-GAAPReconciliations (pg. 20)
- Questions and Answers
3
Executive Summary
4
EXECUTIVE SUMMARY
Summary of Results
|
($ in millions, except per share amounts, unaudited) |
Three Months Ended |
Year Ended |
||||||||||||
|
12/31/24 |
12/31/23 |
9/30/24 |
12/31/24 |
12/31/23 |
||||||||||
|
Revenues |
$ |
355 |
$ |
335 |
$ |
342 |
$ |
1,359 |
$ |
1,290 |
||||
|
Gross profit |
$ |
59 |
$ |
49 |
$ |
66 |
$ |
220 |
$ |
200 |
||||
|
17% |
15% |
19% |
16% |
16% |
||||||||||
|
Net income (loss) |
$ |
20 |
$ |
(28) |
$ |
30 |
$ |
56 |
$ |
(11) |
||||
|
Basic earnings (loss) per share |
$ |
0.13 |
$ |
(0.19) |
$ |
0.19 |
$ |
0.37 |
$ |
(0.07) |
||||
|
Diluted earnings (loss) per share |
$ |
0.13 |
$ |
(0.19) |
$ |
0.19 |
$ |
0.36 |
$ |
(0.07) |
||||
|
Adjusted EBITDA1 |
||||||||||||||
|
Business segments |
$ |
89 |
$ |
85 |
$ |
100 |
$ |
356 |
$ |
335 |
||||
|
Corporate, eliminations and other |
(18) |
(15) |
(12) |
(53) |
(62) |
|||||||||
|
Adjusted EBITDA1 |
$ |
72 |
$ |
71 |
$ |
88 |
$ |
303 |
$ |
273 |
||||
|
Cash and cash equivalents |
$ |
368 |
$ |
332 |
$ |
324 |
$ |
368 |
$ |
332 |
||||
|
Net Debt1 |
$ |
(53) |
$ |
30 |
$ |
(9) |
$ |
(53) |
$ |
30 |
||||
|
Cash flows from operating activities2 |
$ |
78 |
$ |
95 |
$ |
56 |
$ |
186 |
$ |
152 |
||||
|
Free Cash Flow1,2 |
$ |
65 |
$ |
92 |
$ |
53 |
$ |
163 |
$ |
134 |
- Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below
- Cash flows from operating activities and Free Cash Flow for the year ended 12/31/24 include $58 million of the $85 million Alliance earnout paid in cash in April 2024
Amounts may not add due to rounding
|
5 |
5 |
EXECUTIVE SUMMARY
Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Financial Results
- Net income of $20 million, $0.13 per diluted share
- Adjusted EBITDA1,4 of $72 million
- Operating cash flows of $78 million
- Free Cash Flow1 of $65 million
Financial Condition at December 31, 2024
- Cash and cash equivalents of $368 million
- Liquidity2 of $430 million
- Long-termdebt3 of $315 million
- Negative Net Debt1 of $53 million
Operations
- Commenced Q4000 operations in Nigeria on 180-day contract plus options
- Completed Q7000 operations in Australia and commenced transit and mobilization to Brazil for 400-day contract plus options with Shell
- Siem Helix 1 transitioned to Trident extension contract at higher rates
- Continued strong integrated vessel trenching activities in Robotics; concluded integrated vessel trenching operations on Siem Topaz in Asia Pacific end of Q4
Commercial
- Helix Producer I contract renewal to June 2026
- Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures; see non-GAAP reconciliations below
-
Liquidity is calculated as the sum of cash and cash equivalents and availability under Helix's ABL facility, and excludes cash pledged to the ABL Facility
3 Long-term debt is presented net of unamortized discounts and deferred issuance costs 4 EBITDA includes $11 million related to a contact cancellation benefit received in Q4
|
6 |
6 |
EXECUTIVE SUMMARY
Full Year 2024 Highlights
Full Year 2024 Financial Results
- Net income of $56 million, $0.36 per diluted share
-
- Net income includes a pretax loss of $21 million related to the retirement of our former 2026 Convertible Senior Notes
- Adjusted EBITDA1 of $303 million
- Operating cash flows of $186 million
- Free Cash Flow1 of $163 million
-
- Operating cash flows and Free Cash Flow include $58 million cash outflow related to the Alliance earnout
Operations
|
• Strong results and significant improvement in Well Intervention year over year |
|
|
• |
Completed transit and mobilization and commenced operations on Q4000 on 180-day |
|
project plus options offshore Nigeria |
|
|
• |
Q7000 completed successful Australia operations, including initial deployment of ROAM |
Revenue By Market Strategy2
Year Ended December 31, 2024
Other 1%
Renewables
11%
Production
Maximization
|
• Near-full utilization on Q5000 in the U.S. Gulf Coast |
|
• Strong Robotics results, with increased trenching activity and significant improvements year |
|
over year; concluded two-year integrated vessel trenching on Siem Topaz in Asia Pacific |
Commercial
- Extended contract with Trident in Brazil on Siem Helix 1 for one year beginning Q4 2024
- Two new three-year contracts with Petrobras, commencing early 2025 on Siem Helix 2 and second half 2025 on Siem Helix 1
- Executed two-year contract on Q5000 for committed 175 days per year
- Helix Producer I contract renewal to June 2026
-
Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below
2 Revenue percentages net of intercompany eliminations
7
Decommissioning
44%
44%
7
Operational
Highlights
8
OPERATIONAL HIGHLIGHTS
Segment Results
|
($ in millions, unaudited) |
Three Months Ended |
Year Ended |
||||||||||||||||||
|
12/31/24 |
12/31/23 |
9/30/24 |
12/31/24 |
12/31/23 |
||||||||||||||||
|
Revenues |
||||||||||||||||||||
|
Well Intervention |
$ |
226 |
$ |
204 |
$ |
175 |
$ |
830 |
$ |
708 |
||||||||||
|
Robotics |
82 |
63 |
85 |
298 |
258 |
|||||||||||||||
|
Shallow Water Abandonment |
38 |
62 |
72 |
187 |
275 |
|||||||||||||||
|
Production Facilities |
18 |
19 |
21 |
89 |
88 |
|||||||||||||||
|
Intercompany eliminations |
(9) |
(13) |
(9) |
(45) |
(39) |
|||||||||||||||
|
Total |
$ |
355 |
$ |
335 |
$ |
342 |
$ |
1,359 |
$ |
1,290 |
||||||||||
|
Gross profit (loss) % |
||||||||||||||||||||
|
Well Intervention |
$ |
34 |
15% |
$ |
25 |
12% |
$ |
20 |
11% |
$ |
111 |
13% |
$ |
47 |
6% |
|||||
|
Robotics |
23 |
28% |
11 |
18% |
27 |
32% |
88 |
30% |
61 |
24% |
||||||||||
|
Shallow Water Abandonment |
(3) (9)% |
14 |
22% |
11 |
15% |
(1) - |
71 |
26% |
||||||||||||
|
Production Facilities |
7 |
36% |
- |
9 |
41% |
24 |
27% |
23 |
27% |
|||||||||||
|
Eliminations and other |
(1) |
- |
- |
(2) |
(2) |
|||||||||||||||
|
Total |
$ |
59 |
17% |
$ |
49 |
15% |
$ |
66 |
19% |
$ |
220 |
16% |
$ |
200 |
16% |
|||||
|
Utilization |
||||||||||||||||||||
|
Well Intervention vessels |
79% |
95% |
97% |
90% |
88% |
|||||||||||||||
|
Robotics vessels |
98% |
97% |
96% |
92% |
96% |
|||||||||||||||
|
Robotics assets (ROVs and trenchers) |
64% |
68% |
77% |
69% |
62% |
|||||||||||||||
|
Shallow Water Abandonment vessels |
64% |
72% |
76% |
60% |
74% |
|||||||||||||||
|
Shallow Water Abandonment systems |
17% |
58% |
25% |
24% |
70% |
|||||||||||||||
|
Amounts may not add due to rounding |
||||||||||||||||||||
|
Fourth Quarter Utilization |
||||||||||||||||||||
|
Well Intervention |
Robotics |
|||||||||||||||||||
|
• |
Fleet utilization 79% |
• |
508 chartered vessel days (98% utilization) |
|||||||||||||||||
|
• |
96% in the U.S. Gulf (includes 9 mobilization and transit days on Q4000) |
• |
269 integrated vessel trenching days |
|||||||||||||||||
|
• |
58% in the North Sea and Asia Pacific (includes 55 mobilization and transit days on |
• |
2,754 work class ROV days |
|||||||||||||||||
|
Q7000) |
• |
64% overall ROV and trencher utilization |
||||||||||||||||||
|
• |
94% in Brazil |
|||||||||||||||||||
|
Shallow Water Abandonment |
||||||||||||||||||||
|
• |
15K IRS idle; 10K IRS 100% utilized on third-party vessel offshore Australia; ROAM idle |
|||||||||||||||||||
|
• |
63% liftboat, offshore supply vessel (OSV) and crewboat combined utilization |
|||||||||||||||||||
|
Production Facilities |
||||||||||||||||||||
|
• |
74% diving support vessel (DSV) utilization |
|||||||||||||||||||
|
• |
Helix Producer I operated at full rates |
|||||||||||||||||||
|
• |
41% utilization on Epic Hedron heavy lift barge |
|||||||||||||||||||
|
• |
Thunder Hawk wells shut in during fourth quarter |
|||||||||||||||||||
|
• |
416 days, or 17%, combined utilization on 20 plug and abandonment (P&A) systems and |
|||||||||||||||||||
|
six coiled tubing (CT) systems |
||||||||||||||||||||
|
9 |
9 |
|||||||||||||||||||
OPERATIONAL HIGHLIGHTS
Well Intervention Utilization
- Q4000 (US Gulf Coast, West Africa) - 94% utilized in Q4; completed mobilization and transit and commenced work for customer offshore Nigeria; performed production enhancement operations on four wells; utilization includes 9 days of paid mobilization and transit with related fees and costs deferred and recognized over contract term beginning mid-October 2024
- Q5000 (US Gulf Coast) - 98% utilized in Q4; completed heavy lift scope prior to commencing production enhancement and decommissioning scopes on four wells for one customer
- Well Enhancer (North Sea) - 27% utilized in Q4; worked for two customers performing decommissioning operations; vessel idle for remainder of quarter
- Seawell (North Sea) - 50% utilized in Q4; completed production enhancement work scope for two customers; vessel utilization excludes 12 days working for Helix Robotics performing survey work as a cost reduction measure (vessel days are included in Helix Robotics utilization); net cancellation benefit of $11 million in Q4 related to 2025 commitment
- Q7000 (Australia) - 99% utilized in Q4; completed four-well production enhancement campaign off northwest Australia; vessel subsequently commenced mobilization and transit to Brazil; vessel utilization includes 55 days of paid mobilization and transit with related fees and costs deferred and recognized over contract term expected to begin Q1 2025
- Siem Helix 1 (Brazil) - 100% utilized in Q4; completed decommissioning scopes on five wells for Trident Energy; vessel transitioned to contract extension with Trident at improved rates at end of quarter
- Siem Helix 2 (Brazil) - 88% utilized in Q4; completed temporary abandonment scope on one well and production enhancement scopes on two wells for Petrobras in the quarter; existing contract with Petrobras ended late December 2024, and vessel subsequently underwent an approximate six-day unpaid acceptance period before commencing new Petrobras contract
- 15K IRS - idle during Q4
- 10K IRS - one system 100% utilized for project in Australia
- ROAM - idle during Q4
|
1 |
U.S. Gulf Coast utilization includes Q4000 utilization offshore West Africa during Q4 2024 on a six-month contract |
||
|
2 |
North Sea utilization includes Seawell utilization in the western Mediterranean between Q4 2023 and Q2 2024 |
||
|
10 |
3 |
Q7000 utilization includes utilization in West Africa through Q4 2022, New Zealand in 2023 and Australia in 2024 |
10 |
OPERATIONAL HIGHLIGHTS
Robotics Utilization
- Grand Canyon II (Asia Pacific) - 96% utilized in Q4; performed oil and gas ROV support project in Malaysia
- Grand Canyon III (North Sea) - 100% utilized in Q4; performed oil and gas trenching projects for one customer and renewables trenching project for another customer
- Shelia Bordelon (US Gulf Coast / US East Coast) - 100% utilized in Q4; performed various US East Coast windfarm support projects
- North Sea Enabler (North Sea) - 100% utilized in Q4; performed oil and gas trenching for two customers and renewables trenching project for another customer
- Glomar Wave (North Sea) - 87% utilized in Q4; performed ROV support services for renewables site clearance project
- Spot Vessel - 85 days of utilization on Siem Topaz during Q4, which completed approximately 600 days of integrated vessel trenching on renewables work offshore Taiwan that began Q2 2023; 12 days utilization on Seawell performing survey work
- Trenching - 269 integrated vessel trenching days1 on renewables and oil and gas trenching projects on Grand Canyon III, North Sea Enabler and Siem Topaz; 26 days stand-alone trenching on the i- Plough on a third-party vessel
- Site Clearance - 65 days utilization on IROV boulder grab
- Integrated vessel trenching days represents trenching activities utilizing Helix trenchers on Helix-chartered vessels and excludes stand-alone trenching operations on the i-Plough on third-party vessels of 90 days, 58 days, 49 days, 92 days and 26 days during Q1 2023, Q2 2023, Q2 2024, Q3 2024 and Q4 2024, respectively
- Total ROV utilization includes 42, 40 and 39 work class ROVs during 2021, 2022 and 2023-2024, respectively, and four trenchers during 2021; IROV boulder grabs placed into service end of Q3 2022 and Q1 2024; two trenchers placed into service late Q4 2022 and one trencher retired from service Q1 2024
|
11 |
11 |
Attachments
Disclaimer
Helix Energy Solutions Group Inc. published this content on February 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 25, 2025 at 03:58:22.183.
