April 25, 2024
2024 First Quarter Conference Call
INTRODUCTION
Forward-Looking Statements
This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding: our plans, strategies and objectives for future operations; any projections of financial items including projections as to guidance and other outlook information; future operations expenditures; our ability to enter into, renew and/or perform commercial contracts; the spot market; our current work continuing; visibility and future utilization; our protocols and plans; energy transition or energy security; our spending and cost management efforts and our ability to manage changes; oil price volatility and its effects and results; our ability to identify, effect and integrate acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition and any subsequently identified legacy issues with respect thereto; developments; any financing transactions or arrangements or our ability to enter into such transactions or arrangements; our sustainability initiatives; future economic conditions or performance; our share repurchase program or execution; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to market conditions and the demand for our services; volatility of oil and natural gas prices; results from acquired properties; our ability to secure and realize backlog; the performance of contracts by customers, suppliers and other counterparties; actions by governmental and regulatory authorities; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; the effectiveness of our sustainability initiatives and disclosures; human capital management issues; complexities of global political and economic developments; geologic risks; and other risks described from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our most recently filed Annual Report on Form 10-K, which are available free of charge on the SEC's website at www.sec.gov.We assume no obligation and do not intend to update these forward-looking statements, which speak only as of their respective dates, except as required by law.
2
At Helix, our purpose
is to enable energy transition through:
|
Maximizing Existing |
Lowering Decommissioning |
Offshore Renewables & |
|
Reserves |
Costs |
Wind Farms |
|
Enhancing remaining production |
Restoring the seabed in an |
Transitioning our energy economy |
|
from existing oil and gas wells |
environmentally safe manner |
to a sustainable model |
PRESENTATION OUTLINE
Agenda
- Executive Summary (pg. 5)
- Operational Highlights (pg. 8)
- Key Financial Metrics (pg. 13)
- 2024 Outlook (pg. 15)
- Non-GAAPReconciliations (pg. 20)
- Questions and Answers
4
Executive Summary
5
EXECUTIVE SUMMARY
Summary of Results
|
($ in millions, except per share amounts, unaudited) |
Three Months Ended |
||||||||||
|
3/31/24 |
3/31/23 |
12/31/23 |
|||||||||
|
Revenues |
$ |
296 |
$ |
250 |
$ |
335 |
|||||
|
Gross profit |
$ |
20 |
$ |
15 |
$ |
49 |
|||||
|
7% |
6% |
15% |
|||||||||
|
Net loss |
$ |
(26) |
$ |
(5) |
$ |
(28) |
|||||
|
Basic loss per share |
$ |
(0.17) |
$ |
(0.03) |
$ |
(0.19) |
|||||
|
Diluted loss per share |
$ |
(0.17) |
$ |
(0.03) |
$ |
(0.19) |
|||||
|
Adjusted EBITDA1 |
|||||||||||
|
Business segments |
$ |
57 |
$ |
46 |
$ |
85 |
|||||
|
Corporate, eliminations and other |
(10) |
(11) |
(15) |
||||||||
|
Adjusted EBITDA1 |
$ |
47 |
$ |
35 |
$ |
71 |
|||||
|
Cash and cash equivalents2,3 |
$ |
324 |
$ |
167 |
$ |
332 |
|||||
|
Net Debt1 |
$ |
(6) |
$ |
91 |
$ |
30 |
|||||
|
Cash flows from operating activities |
$ |
64 |
$ |
(5) |
$ |
95 |
|||||
|
Free Cash Flow1 |
$ |
61 |
$ |
(12) |
$ |
92 |
- Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below
- Excludes restricted cash of $3 million as of 3/31/23
- On April 3, 2024, cash and cash equivalents declined by $85 million with the payment of the Alliance earn-out
6 Amounts may not add due to rounding
EXECUTIVE SUMMARY
First Quarter 2024 Highlights
Financial Results
- Net loss of $26 million, $(0.17) per diluted share
-
- Includes pre-tax losses of $21 million related to the retirement of the remaining Convertible Senior Notes due 2026 (2026 Notes)
- Adjusted EBITDA1 of $47 million
- Operating cash flows of $64 million
- Free Cash Flow1 of $61 million
Financial Condition at March 31, 2024
- Cash and cash equivalents3 of $324 million
- Liquidity3 of $419 million
- Long-termdebt4 of $318 million
- Net Debt1 of $(6) million
Operations
Revenue By Market Strategy2
Quarter Ended March 31, 2024
Other
1%
Renewables
8%
Production
Maximization
35%
- Commencement of Australia operations on Q7000
- Strong results in Well Intervention across all regions, despite Well Enhancer docking
- Good winter season utilization in Robotics
- Restoration of production on Thunder Hawk wells
Commercial
Decommissioning
56%
- Extension of decommissioning contract with Trident Energy offshore Brazil through 2025
- Deepwater well intervention contract in Nigeria with Esso on the Q4000 expected to commence Q4 2024
- Renewal of HWCG contract through March 2026
- Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures; see non-GAAP reconciliations below
- Revenue percentages net of intercompany eliminations
- Liquidity is calculated as the sum of cash and cash equivalents and availability under Helix's ABL facility; on April 3, 2024, cash and cash equivalents and Liquidity declined by $85 million with the payment of the Alliance earn-out
- Long-termdebt is presented net of unamortized discounts and deferred issuance costs
7
Operational
Highlights
8
OPERATIONAL HIGHLIGHTS
Segment Results
Segment Operating Results
|
($ in millions, unaudited) |
Three Months Ended |
||||||||||||
|
3/31/24 |
3/31/23 |
12/31/23 |
|||||||||||
|
Revenues |
|||||||||||||
|
Well Intervention |
$ |
216 |
$ |
142 |
$ |
211 |
|||||||
|
Robotics |
50 |
49 |
63 |
||||||||||
|
Shallow Water Abandonment |
27 |
49 |
62 |
||||||||||
|
Production Facilities |
24 |
21 |
19 |
||||||||||
|
Intercompany eliminations |
(22) |
(12) |
(20) |
||||||||||
|
Total |
$ |
296 |
$ |
250 |
$ |
335 |
|||||||
|
Gross profit (loss) % |
|||||||||||||
|
Well Intervention |
$ |
23 |
11% |
$ |
(4) |
(3)% |
$ |
25 |
12% |
||||
|
Robotics |
8 |
16% |
7 |
14% |
11 |
18% |
|||||||
|
Shallow Water Abandonment |
(10) |
(36)% |
7 |
15% |
14 |
22% |
|||||||
|
Production Facilities |
(1) |
(5)% |
6 |
28% |
- |
||||||||
|
Eliminations and other |
(1) |
(1) |
- |
||||||||||
|
Total |
$ |
20 |
7% |
$ |
15 |
6% |
$ |
49 |
15% |
||||
|
Utilization |
|||||||||||||
|
Well Intervention vessels |
90% |
80% |
95% |
||||||||||
|
Robotics vessels |
74% |
91% |
97% |
||||||||||
|
Robotics assets (ROVs and trenchers) |
58% |
56% |
68% |
||||||||||
|
Shallow Water Abandonment vessels |
41% |
58% |
72% |
||||||||||
|
Shallow Water Abandonment systems |
26% |
68% |
58% |
Amounts may not add due to rounding
Segment Utilization
Well Intervention
- Fleet utilization 90%
-
- 98% in the GOM
- 79% in the North Sea and Asia Pacific
- 100% in Brazil
- 15K IRS idle during Q1; 10K IRS 100% on contract offshore Australia; ROAM mobilizing for Australia project on Q7000
Robotics
- 333 chartered vessel days (74% utilization), includes 64 days at reduced standby rates
- 85 vessel trenching days
- ROV and trencher utilization 58%
Shallow Water Abandonment
- 48% liftboat, offshore supply vessel (OSV) and crewboat combined utilization
- 19% diving support vessel (DSV) utilization
- Epic Hedron heavy lift barge idle
- 626 days, or 26%, combined utilization on 20 P&A systems and six coiled tubing (CT) systems
Production Facilities
- Helix Producer 1 operated at full rates
- Increased oil and gas production following completion of the well workover on the Thunder Hawk field early Q1; incurred $9 million in workover costs with Well Intervention in Q1
9
OPERATIONAL HIGHLIGHTS
Well Intervention Utilization
- Q5000 - 96% utilized in Q1; performing multi-well production enhancement and abandonment campaign for Shell
- Q4000 - 99% utilized in Q1; completed well workover on our Thunder Hawk field, followed by production enhancement work for three customers during Q1
- Well Enhancer - 41% utilized in Q1; completed two-well decommissioning operations followed by 54-day scheduled regulatory dry dock, then commenced a four-well production enhancement program
- Seawell - 96% utilized in Q1; operating in western Mediterranean performing decommissioning campaign involving dive support; incurred approximate one-week marine maintenance period
- Q7000 - 100% utilized in Q1; performed multi-well decommissioning campaign offshore Australia for one customer
- Siem Helix 1 - 99% utilized in Q1; completed decommissioning scopes on five wells for Trident Energy
- Siem Helix 2 - 100% utilized in Q1; performed decommissioning scopes on two wells and production enhancement scopes on two wells for Petrobras
- 15K IRS - idle during Q1
- 10K IRS - one system 100% utilized for a contract offshore Australia
10
Attachments
Disclaimer
Helix Energy Solutions Group Inc. published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:43:29 UTC.
