October 24, 2023
Third Quarter Conference Call
2023
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; visibility and future utilization; energy transition or energy security; any projections of financial items including projections as to guidance and other outlook information; our share repurchase authorization or program; our ability to identify, effect and integrate acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition and the earn-out payable in connection therewith; oil price volatility and its effects and results; our protocols and plans; our current work continuing; the spot market; our spending and cost management efforts and our ability to manage changes; future operations expenditures; our ability to enter into, renew and/or perform commercial contracts; developments; our environmental, social and governance ("ESG") initiatives; future economic conditions or performance; 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; results from acquired properties; demand for our services; the performance of contracts by suppliers, customers and partners; 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; our ability to secure and realize backlog; the effectiveness of our ESG initiatives and disclosures; human capital management issues; complexities of global political and economic developments; geologic risks; volatility of oil and gas prices 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 |
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 |
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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. 10)
- Key Financial Metrics (pg. 20)
- 2023 Outlook (pg. 23)
- Non-GAAPReconciliations (pg. 30)
- Questions and Answers
4
Executive Summary
5
EXECUTIVE SUMMARY
Summary of Results
|
($ in millions, except per share amounts, unaudited) |
Three Months Ended |
Nine Months Ended |
||||||||||||
|
9/30/23 |
9/30/22 |
6/30/23 |
9/30/23 |
9/30/22 |
||||||||||
|
Revenues |
$ |
396 |
$ |
273 |
$ |
309 |
$ |
955 |
$ |
585 |
||||
|
Gross profit |
$ |
81 |
$ |
39 |
$ |
55 |
$ |
151 |
$ |
19 |
||||
|
20% |
14% |
18% |
16% |
3% |
||||||||||
|
Net income (loss) |
$ |
16 |
$ |
(19) |
$ |
7 |
$ |
17 |
$ |
(90) |
||||
|
Basic earnings (loss) per share |
$ |
0.10 |
$ |
(0.12) |
$ |
0.05 |
$ |
0.12 |
$ |
(0.60) |
||||
|
Diluted earnings (loss) per share |
$ |
0.10 |
$ |
(0.12) |
$ |
0.05 |
$ |
0.11 |
$ |
(0.60) |
||||
|
Adjusted EBITDA1 |
||||||||||||||
|
Business segments |
$ |
116 |
$ |
69 |
$ |
88 |
$ |
250 |
$ |
104 |
||||
|
Corporate, eliminations and other |
(20) |
(16) |
(16) |
(47) |
(32) |
|||||||||
|
Adjusted EBITDA1 |
$ |
96 |
$ |
53 |
$ |
71 |
$ |
203 |
$ |
72 |
||||
|
Cash and cash equivalents2 |
$ |
168 |
$ |
162 |
$ |
183 |
$ |
168 |
$ |
162 |
||||
|
Net Debt1 |
$ |
59 |
$ |
99 |
$ |
78 |
$ |
59 |
$ |
99 |
||||
|
Cash flows from operating activities |
$ |
32 |
$ |
25 |
$ |
32 |
$ |
58 |
$ |
1 |
||||
|
Free Cash Flow1 |
$ |
23 |
$ |
22 |
$ |
30 |
$ |
42 |
$ |
(4) |
-
Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below
2 Excludes restricted cash of $3 million as of 9/30/22
Amounts may not add due to rounding
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6 |
6 |
EXECUTIVE SUMMARY
Third Quarter 2023 Highlights
Financial Results
- Net income of $16 million, $0.10 per diluted share
- Adjusted EBITDA1 of $96 million
- Operating cash flows of $32 million
- Free Cash Flow1 of $23 million
- Repaid remaining $30 million of 2023 Convertible Senior Notes
Operations
- Re-activationof Q4000 in GOM following dry dock and full quarter of Q7000 operations in APAC
- High utilization in the North Sea and Brazil Well Intervention
- Continued strong operating results in Robotics and Shallow Water Abandonment
- Reduced regulatory recertification costs following heavy regulatory recertifications during the first half 2023
- Acquisition of five plugging and abandonment (P&A) systems in our Shallow Water Abandonment segment
Revenue by Core Market
Nine Months Ended September 30, 2023
|
Renewables |
Other |
|
$77 million |
$25 million |
|
8% |
3% |
Production
Maximization
$296 million
31%
Decommissioning
$557 million
58%
- Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below
|
7 |
7 |
EXECUTIVE SUMMARY
Third Quarter 2023 Segments
Well Intervention
- Well Intervention vessel fleet utilization 92%
-
- 82% in the GOM
- 95% in the North Sea and Asia Pacific
- 97% in Brazil
- 15K IRS idle during quarter; 10K IRS working on contract offshore Australia
Robotics
- Robotics chartered vessels utilization 97%
-
- 506 total vessel days (92 spot vessel days)
- 276 days vessel trenching
- ROV and trencher utilization 67%
Shallow Water Abandonment
- 88% liftboat, offshore supply vessel (OSV) and crewboat combined utilization
- 93% diving support vessel (DSV) utilization
- 100% utilization on the Epic Hedron heavy lift barge
- 1,531 days combined utilization on P&A and coiled tubing (CT) systems, 74% utilization on average of 16.4 P&A systems1 and six CT systems
Production Facilities
- Helix Producer I operated at full rates
- Higher commodity prices on production from our Droshky and Thunder Hawk wells
- Average of 16.4 systems based on 15 systems July-August increasing to 20 systems in September
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8 |
8 |
EXECUTIVE SUMMARY
Balance Sheet
As of September 30, 2023
- Cash and cash equivalents of $168 million
- Liquidity1 of $279 million
-
Long-termdebt2 of $227 million
• Remaining $30 million principal of Convertible Senior Notes due 2023 repaid during Q3 - Net Debt3 of $59 million
-
Liquidity is calculated as the sum of cash and cash equivalents and availability under Helix's ABL facility
2 Net of unamortized issuance costs
3 Net Debt is a non-GAAP financial measure; see non-GAAP reconciliations below
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9 |
9 |
Operational
Highlights
10
Attachments
Disclaimer
Helix Energy Solutions Group Inc. published this content on 23 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2023 22:31:48 UTC.
