Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2023 Earnings Presentation
34 slides from Helix Energy Solutions's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter Conference Call 2023
October 24, 2023 Third Quarter Conference Call 2023
Slide 2: Forward-Looking Statements
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
Slide 3: At Helix, our purpose is to enable energy transition through
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 m
Slide 4: Agenda
PRESENTATION OUTLINE Agenda • Executive Summary (pg. 5) • Operational Highlights (pg. 10) • Key Financial Metrics (pg. 20) • 2023 Outlook (pg. 23) • Non-GAAP Reconciliations (pg. 30) • Questions and Answers 4 4
Slide 5: Executive Summary
ww Executive Summary ENERGY SOLUTIONS
Slide 6: Summary of Results
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 $
Slide 7: Third Quarter 2023 Highlights
EXECUTIVE SUMMARY Third Quarter 2023 Highlights Financial Results Revenue by Core Market • Net income of $16 million, $0.10 per diluted share Nine Months Ended September 30, 2023 • Adjusted EBITDA1 of $96 million Renewables Other • Operating cash flows of $32 million $77 million $25 million 3% • Fre
Slide 8: Third Quarter 2023 Segments
EXECUTIVE SUMMARY Third Quarter 2023 Segments Well Intervention Shallow Water Abandonment • Well Intervention vessel fleet utilization 92% • 88% liftboat, offshore supply vessel (OSV) and • 82% in the GOM crewboat combined utilization • 95% in the North Sea and Asia Pacific • 93% diving support vess
Slide 9: Balance Sheet
EXECUTIVE SUMMARY Balance Sheet As of September 30, 2023 • Cash and cash equivalents of $168 million • Liquidity1 of $279 million • Long-term debt2 of $227 million • Remaining $30 million principal of Convertible Senior Notes due 2023 repaid during Q3 • Net Debt3 of $59 million 1 Liquidity is calcul
Slide 10: Operational Highlights
Operational Highlights 10
Slide 11: Segment Results
OPERATIONAL HIGHLIGHTS Segment Results ($ in millions, unaudited) Three Months Ended Nine Months Ended 9/30/23 9/30/22 6/30/23 9/30/23 9/30/22 Revenues Well Intervention $ 225 $ 144 $ 154 $ 522 $ 357 Robotics 76 56 70 195 143 1 Shallow Water Abandonment 87 67 76 213 67 Production Facilities 24 18 23
Slide 12: Well Intervention - Gulf of Mexico
OPERATIONAL HIGHLIGHTS Well Intervention - Gulf of Mexico • Q5000 – 96% utilized in Q3; performed a combination of production enhancement and abandonment scopes on four wells under a multi- year campaign for Shell; subsequently commenced a four-well campaign for another customer with both abandonmen
Slide 13: Well Intervention - North Sea & Asia Pacific
OPERATIONAL HIGHLIGHTS Well Intervention - North Sea & Asia Pacific • Well Enhancer – 100% utilized in Q3; worked for three customers performing production enhancement operations on four wells and decommissioning operations on one well, including operating in the West of Shetland region • Seawell –
Slide 14: Well Intervention - Brazil
OPERATIONAL HIGHLIGHTS Well Intervention - Brazil • Siem Helix 1 – 99% utilized in Q3; performed decommissioning scopes on six wells in the Campos Basin for Trident Energy • Siem Helix 2 – 96% utilized in Q3; performed decommissioning scopes on three wells in the Campos Basin for Petrobras 14 14
Slide 15: Well Intervention Utilization
OPERATIONAL HIGHLIGHTS Well Intervention Utilization 99% 99% 98% 100% 100% 97% 100% 97% 97% 89% 88% 95% 88% 87% 88% 97% 97% 90% 92% 79% 74% 86% 80% 83% 82% 80% 79% 72% 70% 63% 71% 68% 60% 53% 58% 52% 50% 40% 38% 44% 42% 38% 30% 20% 10% 9% 0% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 2
Slide 16: Robotics
OPERATIONAL HIGHLIGHTS Robotics • Grand Canyon II (Asia Pacific) – 100% utilized in Q3 performing long-term decommissioning project offshore Thailand • Grand Canyon III (North Sea) – 100% utilized in Q3 performing two separate renewables trenching projects for one customer and an oil and gas trenchi
Slide 17: Robotics Utilization
OPERATIONAL HIGHLIGHTS Robotics Utilization 70% 67% 66% 58% 500 60% 58% 506 56% 419 435 400 50% 376 358 53% Utilization 336 332 323 370 Days 40% 36% 295 43% 276 300 38% 32% 35% 252 30% 24% 236 176 200 165 160 156 20% 92 84 90 90 100 72 81 10% 66 0% - Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q
Slide 18: Shallow Water Abandonment
OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Offshore • Liftboats – nine liftboats with combined utilization of 85% in Q3 performing make safe, well abandonment, pipeline abandonment, CT, wireline, construction support, production support and dive support operations • OSVs – six OSVs and one cre
Slide 19: Shallow Water Abandonment Utilization
OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Utilization P&A and CT Systems Heavy Lift 100% 100% 92% 100% 80% 84% 79% 77% 80% 71% 80% 56% 60% 60% 47% 44% 41% 40% 30% 40% 26% 20% 20% 0% 14% 0% 0% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 P&A Systems² CT Systems² Heavy Lift Derri
Slide 20: Key Financial Metrics
Key Financial Metrics 20
Slide 21: Debt Instrument Profile
KEY FINANCIAL METRICS Debt Instrument Profile Principal Payment Schedule at 9/30/23 Total funded debt1 of $233 million at 9/30/23 ($ in millions) • $200 million Convertible Senior Notes due 2026 – $250 6.75% $210 $200 • $33 million MARAD Debt – 4.93% • Semi-annual amortization payments through $150
Slide 22: Debt & Liquidity Profile
KEY FINANCIAL METRICS Debt & Liquidity Profile ($ in millions) $500 $426 $380 $452 $400 $348 $305 $300 $285 $279 $200 $279 $291 $254 $267 $187 $100 $208 $168 $0 $22 $(75) $(59) ($100) $(161) $(143) $(58) $(229) $(227) ($200) $(305) $(264) $(350) ($300) $(406) $(496) $(440) ($400) ($500) 12/31/17 12/
Slide 23: Outlook
2023 Outlook 23
Slide 24: Forecast
2023 OUTLOOK Forecast ($ in millions) 2023 2022 Outlook Actual1 Revenues $ 1,230 - 1,290 $ 873 Adjusted EBITDA2 263 - 278 121 Free Cash Flow2 100 - 140 18 Capital Additions3 75 - 85 69 Revenue Split: Well Intervention $ 710 - 735 $ 524 Robotics 240 - 255 192 Shallow Water Abandonment1 255 - 270 125
Slide 25: Well Intervention
2023 OUTLOOK Well Intervention • Q4000 (Gulf of Mexico) – contracted work into late Q4 • Q7000 (Asia Pacific) – decommissioning operations offshore New Zealand through October, followed by • Q5000 (Gulf of Mexico) – contracted work into late Q4 contracted work in Australia expected to continue into
Slide 26: Robotics
2023 OUTLOOK Robotics • Grand Canyon II (Asia Pacific) – vessel expected to • Horizon Enabler (North Sea) – spot vessel be nearly fully utilized in Q4 completing contracted performing seasonal trenching campaign expected to decommissioning and ROV support work offshore continue until mid-December 20
Slide 27: Shallow Water Abandonment
2023 OUTLOOK Shallow Water Abandonment • Offshore • Diving & Heavy Lift • Liftboats – two 265’ liftboats Miami and Dallas • DSVs – expected seasonal slowdown in Q4 contracted during Q4; smaller liftboats • Epic Hedron – heavy lift barge expected to expected seasonal slowdown in Q4 experience seasona
Slide 28: Capital Additions & Balance Sheet
2023 OUTLOOK Capital Additions & Balance Sheet 2023 Capital additions are forecasted at approximately $75 – $85 million: • Primarily maintenance capex related to regulatory recertification costs of our vessels and systems, which are reported in operating cash flows • Capital additions1 during Q3 app
Slide 29: Beyond 2023
2023 OUTLOOK Beyond 2023 We plan to continue momentum on the three legs of our Robotics Energy Transition business model: Production • Anticipate continued strong renewables trenching Maximization, Decommissioning and Renewables market – expected good seasonal utilization on • Expected continued str
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations 30
Slide 31: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations Three Months Ended Nine Months Ended Year Ended ($ in thousands, unaudited) 9/30/23 9/30/22 6/30/23 9/30/23 9/30/22 12/31/2022 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss) $ 15,560 $ (18,763) $ 7,100 $ 17,495 $ (90,493)
Slide 32: Non-GAAP Definitions
NON-GAAP RECONCILIATIONS Non-GAAP Definitions Non-GAAP Financial Measures We define EBITDA as earnings before income taxes, net interest expense, gains or losses on extinguishment of long-term debt, gains and losses on equity investments, net other income or expense, and depreciation and amortizatio
Slide 33: Coming November 2023
Coming November 2023 Sustainability continues to drive our business strategy and decision-making with a renewed focus on our commitment to and participation in the world’s energy transition. Through production maximization, decommissioning and renewable energy support, our services lay the foundatio
Slide 34: Thank You
€ Helix ~~ ENERGY SOLUTIONS es ade’ 3 ae “Thank Yo Wee ae
Helix Energy Solutions Group — Q3 2023 Earnings Presentation on 6ix