Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2023 Earnings Presentation
36 slides from Helix Energy Solutions's earnings presentation, Apr 25, 2023
Slide 1: First Quarter Conference Call
April 25, 2023 First 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
At Helix, our purpose is to enable energy transition through: Maximizing Existing Lowering Decommissioning Offshore Renewables & Reserves Costs Wind Farms Enhancing remaining production Safely returning the seabed to Transitioning our energy economy from mature oil and gas wells its original state t
Slide 4: Agenda
PRESENTATION OUTLINE Agenda • Executive Summary (pg. 5) • Operational Highlights (pg. 10) • Key Financial Metrics (pg. 20) • 2023 Outlook (pg. 23) • Sustainability and ESG (pg. 30) • Non-GAAP Reconciliations (pg. 33) • 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 3/31/23 3/31/22 12/31/22 Revenues $ 250 $ 150 $ 288 Gross profit (loss) $ 15 $ (19) $ 31 6% (12)% 11% Net income (loss) $ (5) $ (42) $ 3 Diluted earnings (loss) per share $ (0.03) $ (0.28) $
Slide 7: First Quarter 2023 Highlights
EXECUTIVE SUMMARY First Quarter 2023 Highlights Financial Results Revenue by Core Market Quarter Ended March 31, 2023 • Net loss of $5 million, $(0.03) per diluted share • Adjusted EBITDA1 of $35 million Other • Operating cash flows of $(5) million Renewables $3 million $8 million 1% • Free Cash Flo
Slide 8: First Quarter 2023 Segments
EXECUTIVE SUMMARY First Quarter 2023 Segments Well Intervention • Well Intervention vessel fleet utilization 80% Shallow Water Abandonment • 79% in the GOM • 65% liftboat, OSV and crewboat combined • 68% in the North Sea and West Africa / Asia utilization Pacific • 31% diving support vessel (DSV) ut
Slide 9: Balance Sheet
EXECUTIVE SUMMARY Balance Sheet Q1 2023 Share Repurchases • Cash and cash equivalents of $167 million • Acquired 660,000 Helix common shares for (excludes $3 million of restricted cash) approximately $5 million under our repurchase program in Q1 • Liquidity1 of $247 million • Long-term debt2 of $260
Slide 10: Operational Highlights
Operational Highlights 10
Slide 11: Segment Results
OPERATIONAL HIGHLIGHTS Segment Results ($ in millions, unaudited) Three Months Ended 3/31/23 3/31/22 12/31/22 Revenues Well Intervention $ 142 $ 106 $ 168 Robotics 49 37 49 Shallow Water Abandonment1 49 - 57 Production Facilities 21 18 28 Intercompany eliminations (12) (12) (14) Total $ 250 $ 150 $
Slide 12: Well Intervention - Gulf of Mexico
OPERATIONAL HIGHLIGHTS Well Intervention - Gulf of Mexico • Q5000 – 59% utilized in Q1; performed production enhancement scopes on four wells under a multi- year campaign for Shell with a customer-provided 15K IRS; vessel completed scheduled regulatory inspection during the quarter • Q4000 – 100% ut
Slide 13: Well Intervention - North Sea & West Africa / Asia Pacific
OPERATIONAL HIGHLIGHTS Well Intervention - North Sea & West Africa / Asia Pacific • Well Enhancer – 87% utilized in Q1; performed production enhancement operations on three wells for two customers and P&A operations on five wells for three customers • Seawell – 76% utilized in Q1; completed continuo
Slide 14: Well Intervention - Brazil
OPERATIONAL HIGHLIGHTS Well Intervention - Brazil • Siem Helix 1 – 94% utilized in Q1; performed decommissioning scopes on five wells in the Campos basin for Trident Energy • Siem Helix 2 – 100% utilized in Q1; performed production enhancement scope on one well and decommissioning scopes on four wel
Slide 15: Well Intervention Utilization
OPERATIONAL HIGHLIGHTS Well Intervention Utilization 99% 99% 99% 99% 98% 100% 100% 99% 97% 100% 97% 93% 87% 88% 90% 92% 92% 89% 88% 86% 88% 80% 83% 74% 80% 79% 79% 70% 72% 63% 68% 71% 63% 60% 59% 58% 50% 52% 40% 44% 40% 31% 38% 38% 30% 42% 20% 10% 9% 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 2
Slide 16: Robotics
OPERATIONAL HIGHLIGHTS Robotics • Grand Canyon II (Asia Pacific) – 100% utilized in Q1 performing long-term decommissioning project offshore Thailand • Grand Canyon III (North Sea) – 76% utilized in Q1; performed oil and gas trenching for two customers and ROV survey support for another oil and gas
Slide 17: Robotics Utilization
OPERATIONAL HIGHLIGHTS Robotics Utilization 499 70% 500 66% 450 450 60% 405 419 58% 56% 400 370 376 358 50% 336 53% 350 323 332 Utilization 295 300 38% Days 40% 37% 36% 43% 34% 34% 32% 35% 250 30% 236 24% 200 176 154 160 156 20% 165 150 119 92 84 90 90 100 72 81 10% 66 42 50 0% - Q1 20 Q2 20 Q3 20 Q
Slide 18: Shallow Water Abandonment
OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Offshore • Liftboats – nine liftboats with combined utilization of 86% in Q1 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 The graph below presents the utilization statistics of the Helix Alliance vessels and equipment following their acquisition on July 1, 2022 100% 95% 90% 86% 86% 80% 80% 77% 74% 72% 71% 70% 69% 63% 60% 50% 44% 41% 40% 39% 31% 30% 30% 26% 20
Slide 20: Key Financial Metrics
Key Financial Metrics 20
Slide 21: Debt Instrument Profile
KEY FINANCIAL METRICS Debt Instrument Profile Principal Payment Schedule at 3/31/23 Total funded debt1 of $267 million at 3/31/23 ($ in millions) • $30 million Convertible Senior Notes due 2023 – 4.125% $250 $210 • Final maturity September 15, 2023 $200 • $200 million Convertible Senior Notes due 20
Slide 22: Debt & Liquidity Profile
KEY FINANCIAL METRICS Debt & Liquidity Profile ($ in millions) $500 $426 $380 $452 $400 $348 $305 $300 $285 $247 $200 $279 $291 $254 $267 $187 $100 $208 $167 $0 $22 $(75) $(91) ($100) $(161) $(143) $(58) ($200) $(229) $(260) $(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 $ 1,020 - 1,200 $ 873 Adjusted EBITDA2 210 - 250 121 Free Cash Flow2 110 - 150 18 Capital Additions3 50 - 70 69 Revenue Split: Well Intervention $ 640 - 690 $ 524 Robotics 190 - 230 192 Shallow Water Abandonment1 170 - 250 125
Slide 25: Well Intervention
2023 OUTLOOK Well Intervention • Q4000 (Gulf of Mexico) – approximate 75-day dry • Seawell (North Sea and Europe) – contracted work dock commencing early Q2; subsequent awarded work through remainder of 2023 and into 2024 into Q3 with identified opportunities and expected • Q7000 (Asia Pacific) – co
Slide 26: Robotics
2023 OUTLOOK Robotics • Grand Canyon II (Asia Pacific) – continuing to • Horizon Enabler (North Sea) – flexible charter, perform contracted decommissioning and ROV expected to perform seasonal trenching campaign support work offshore Thailand with full utilization commencing in May and continuing in
Slide 27: Shallow Water Abandonment
2023 OUTLOOK Shallow Water Abandonment • Offshore • Diving & Heavy Lift • Liftboats – expected high utilization on eight of • DSVs – diving services expected to be nine liftboats during 2023 seasonal, with stronger mid-year utilization and • OSVs – expected seasonality in activity, with seasonal slo
Slide 28: Capital Additions & Balance Sheet
2023 OUTLOOK Capital Additions & Balance Sheet 2023 Capital additions are forecasted at approximately $50 - $70 million: • Primarily maintenance capex related to regulatory recertification costs of our vessels and systems, which are reported in operating cash flows • Capital additions1 during Q1 app
Slide 29: Beyond 2023
2023 OUTLOOK Beyond 2023 We plan to continue momentum on the three legs of our Energy Transition business model: production Robotics maximization, renewables and decommissioning • Anticipate continued strong renewables trenching • Expected continued strong operating and free cash market flows in thi
Slide 30: Sustainability and ESG
Sustainability and ESG 30
Slide 31: Corporate Sustainability
SUSTAINABILITY AND ESG Corporate Sustainability “Safety, Sustainability and Value Creation – our core goals – support our vision as a preeminent offshore energy transition Company.” Owen Kratz, President and Chief Executive Officer, Helix Energy Solutions Group, Inc. Sustainability continues to driv
Slide 32: Environmental, Social and Governance
SUSTAINABILITY AND ESG Environmental, Social and Governance Environmental • Our business supports the responsible transition from a carbon-based economy through a three-pronged strategy of maximizing remaining oil and gas reserves, applying the techniques and technologies proven in offshore oil and
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations 33
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations Three Months Ended Year Ended ($ in thousands, unaudited) 3/31/23 3/31/22 12/31/22 12/31/2022 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss) $ (5,165) $ (42,031) $ 2,709 $ (87,784) Adjustments: Income tax provision (benef
Slide 35: 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 36: Helix Energy Solutions
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