July 25, 2024
2024 Second 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 mergers, 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 mergers, acquisitions, joint ventures or similar transactions; 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.
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2 |
2 |
At Helix, our purpose
is to enable energy transition through:
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Maximizing Existing |
Lowering Decommissioning |
Offshore Renewables & |
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Reserves |
Costs |
Wind Farms |
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Enhancing remaining production |
Restoring the seabed in an |
Transitioning our energy economy |
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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 |
Six Months Ended |
||||||||||||
|
6/30/24 |
6/30/23 |
3/31/24 |
6/30/24 |
6/30/23 |
||||||||||
|
Revenues |
$ |
365 |
$ |
309 |
$ |
296 |
$ |
661 |
$ |
559 |
||||
|
Gross profit |
$ |
75 |
$ |
55 |
$ |
20 |
$ |
95 |
$ |
71 |
||||
|
21% |
18% |
7% |
14% |
13% |
||||||||||
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Net income (loss) |
$ |
32 |
$ |
7 |
$ |
(26) |
$ |
6 |
$ |
2 |
||||
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Basic and diluted earnings (loss) per share |
$ |
0.21 |
$ |
0.05 |
$ |
(0.17) |
$ |
0.04 |
$ |
0.01 |
||||
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Adjusted EBITDA1 |
||||||||||||||
|
Business segments |
$ |
110 |
$ |
88 |
$ |
57 |
$ |
166 |
$ |
134 |
||||
|
Corporate, eliminations and other |
(13) |
(16) |
(10) |
(23) |
(27) |
|||||||||
|
Adjusted EBITDA1 |
$ |
97 |
$ |
71 |
$ |
47 |
$ |
144 |
$ |
106 |
||||
|
Cash and cash equivalents |
$ |
275 |
$ |
183 |
$ |
324 |
$ |
275 |
$ |
183 |
||||
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Net Debt1 |
$ |
44 |
$ |
78 |
$ |
(6) |
$ |
44 |
$ |
78 |
||||
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Cash flows from operating activities2 |
$ |
(12) |
$ |
32 |
$ |
64 |
$ |
52 |
$ |
26 |
||||
|
Free Cash Flow1,2 |
$ |
(16) |
$ |
30 |
$ |
61 |
$ |
45 |
$ |
19 |
- 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 include $58 million of the $85 million Alliance earn-out paid in cash during Q2 2024 Amounts may not add due to rounding
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6 |
6 |
EXECUTIVE SUMMARY
Second Quarter 2024 Highlights
Financial Results
- Net income of $32 million, $0.21 per diluted share
- Adjusted EBITDA1 of $97 million
- Operating cash flows2 of $(12) million
- Free Cash Flow1,2 of $(16) million
Financial Condition at June 30, 2024
- Cash and cash equivalents4 of $275 million
- Liquidity4 of $370 million
- Long-termdebt5 of $319 million
- Net Debt1 of $44 million
- Settlement of Alliance earn-out in April of $85 million
Operations
- Successful initial deployment of the Riserless Openwater Abandonment Module (ROAM) in Australia
- Strong results in Robotics, Well Intervention and Production Facilities
Revenue By Market Strategy3
Quarter Ended June 30, 2024
Other 1%
Renewables
14%
Production
Maximization
41%
Decommissioning
44%
- Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures; see non-GAAP reconciliations below
-
Cash flows from operating activities and Free Cash Flow include $58 million of the $85 million Alliance earn-outpaid in cash during Q2 2024
3 Revenue percentages net of intercompany eliminations
4 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 $85
million with the payment of the Alliance earn-out
5 Long-term debt is presented net of unamortized discounts and deferred issuance costs
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7 |
7 |
Operational
Highlights
8
OPERATIONAL HIGHLIGHTS
Segment Results
|
($ in millions, unaudited) |
Three Months Ended |
Six Months Ended |
|||||||||||||
|
6/30/24 |
6/30/23 |
3/31/24 |
6/30/24 |
6/30/23 |
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Revenues |
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|
Well Intervention |
$ |
225 |
$ |
154 |
$ |
216 |
$ |
441 |
$ |
297 |
|||||
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Robotics |
81 |
70 |
50 |
132 |
119 |
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Shallow Water Abandonment |
51 |
76 |
27 |
78 |
126 |
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Production Facilities |
25 |
23 |
24 |
50 |
44 |
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Intercompany eliminations |
(17) |
(15) |
(22) |
(39) |
(27) |
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Total |
$ |
365 |
$ |
309 |
$ |
296 |
$ |
661 |
$ |
559 |
|||||
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Gross profit (loss) % |
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Well Intervention |
$ |
34 |
15% |
$ |
7 |
5% |
$ |
23 |
11% |
$ |
57 |
13% |
$ |
3 |
1% |
|
Robotics |
31 |
38% |
20 |
28% |
8 |
16% |
39 |
30% |
27 |
22% |
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Shallow Water Abandonment |
2 |
3% |
21 |
28% |
(10) |
(36)% |
(8) |
(10)% |
28 |
23% |
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Production Facilities |
10 |
39% |
9 |
37% |
(1) |
(5)% |
9 |
17% |
14 |
33% |
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Eliminations and other |
(1) |
(1) |
(1) |
(1) |
(2) |
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Total |
$ |
75 |
21% |
$ |
55 |
18% |
$ |
20 |
7% |
$ |
95 |
14% |
$ |
71 |
13% |
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Utilization |
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Well Intervention vessels |
94% |
84% |
90% |
92% |
82% |
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Robotics vessels |
97% |
96% |
74% |
86% |
94% |
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Robotics assets (ROVs and trenchers) |
76% |
58% |
58% |
67% |
57% |
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Shallow Water Abandonment vessels |
58% |
78% |
41% |
49% |
68% |
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Shallow Water Abandonment systems |
27% |
81% |
26% |
27% |
74% |
Second Quarter Utilization
Well Intervention
- Fleet utilization 94%
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- 82% in the GOM
- 100% in the North Sea and Asia Pacific
- 99% in Brazil
- 15K IRS 35% utilized in the GOM; ROAM 46% utilized on the Q7000; 10K IRS 100% utilized on third-party vessel offshore Australia
Production Facilities
- Helix Producer I operated at full rates
Robotics
- 528 chartered vessel days (97% utilization)
- 232 integrated vessel trenching days
- ROV and trencher utilization 76% Shallow Water Abandonment
- 59% liftboat, offshore supply vessel (OSV) and crewboat combined utilization
- 53% diving support vessel (DSV) utilization
- 46% utilization on the Epic Hedron heavy lift barge
- 632 days, or 27%, combined utilization on 20 plug and abandonment (P&A) systems and six coiled tubing (CT) systems
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9 |
Amounts may not add due to rounding |
9 |
OPERATIONAL HIGHLIGHTS
Well Intervention Utilization
- Q5000 (GOM) - 81% utilized in Q2; completed multi-well production enhancement and abandonment campaign for Shell and performed production enhancement project for another customer utilizing the 15K IRS; vessel incurred short gap between customers
- Q4000 (GOM) - 82% utilized in Q2; worked for four customers performing production enhancement operations on six wells; vessel incurred short gap between customers
- Well Enhancer (North Sea) - 100% utilized in Q2; completed a three-well production enhancement campaign for one customer; commenced a multi-well enhancement and decommissioning campaign for another customer
- Seawell (Mediterranean, North Sea) - 100% utilized in Q2; completed the western Mediterranean decommissioning campaign; vessel returned to the North Sea and commenced a production enhancement project for another customer
- Q7000 (Australia) - 100% utilized in Q2; completed multi-well decommissioning campaign for Cooper Energy before commencing a two-well decommissioning program for another customer
- Siem Helix 1 (Brazil) - 100% utilized in Q2; completed decommissioning scopes on seven wells for Trident Energy
- Siem Helix 2 (Brazil) - 98% utilized in Q2; performed decommissioning scopes on one well and production enhancement scopes on two wells for Petrobras
- 15K IRS - 35% utilized during Q2
- 10K IRS - one system 100% utilized for a contract in Australia
- ROAM - 46% utilized in Australia on the Q7000
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Attachments
Disclaimer
Helix Energy Solutions Group Inc. published this content on 24 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2024 23:51:28 UTC.
