Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2021 Earnings Presentation
28 slides from Helix Energy Solutions's earnings presentation, Jul 27, 2021
Slide 1: Second Quarter 2021 Conference Call
July 27, 2021 Second Quarter 2021 Conference Call
Slide 2: 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
Slide 3: Presentation Outline
• Executive Summary (pg. 4) • Operational Highlights by Segment (pg. 9) • Key Financial Metrics (pg. 17) • 2021 Outlook (pg. 20) • Non-GAAP Reconciliations (pg. 26) • Questions and Answers 3 PRESENTATION OUTLINE
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY ($ in millions, except per share data, unaudited) Three Months Ended 6/30/21 6/30/20 3/31/21 6/30/21 6/30/20 Revenues 162 $ 199 $ 163 $ 325 $ 380 $ Gross profit 3 $ 30 $ 15 $ 18 $ 32 $ 2% 15% 9% 5% 8% Net income (loss)1 (14) $ 5 $ (3) $ (17) $ (6) $ Diluted earnings (loss) per sh
Slide 6: Executive Summary – Highlights
6 Q2 2021 • Net loss1 of $(14) million, $(0.09) per diluted share • Adjusted EBITDA2 of $25 million • Operating cash flows of $53 million • Free Cash Flow2 of $47 million Q2 2021 Operations • Reactivated Seawell after 12 months in warm stack • Steady utilization and performance on Q7000 in West Afri
Slide 7: Executive Summary – Q2 2021 Segments
7 Well Intervention • Well intervention vessel fleet utilization 72% • 58% in the GOM • 63% in the North Sea and West Africa • 100% in Brazil • 15K IRS and 10K IRS idle during quarter Robotics • Robotics chartered vessels utilization 93% • 236 total vessel days (61 spot days) • 84 days trenching uti
Slide 8: Executive Summary – Balance Sheet
8 Q2 2021 • Cash and cash equivalents of $244 million • Excludes $71 million of restricted cash pledged as collateral for a short-term project-related letter of credit expected to be released upon completion of project • Liquidity1 of $416 million • Long-term debt2 of $336 million • Net debt3 of $21
Slide 9: Operational Highlights By Segment
Operational Highlights By Segment
Slide 10: COVID & Market Events
• The ongoing COVID-19 pandemic and its impact on the global economy have resulted in volatility and significant disruption in the oil and gas market • The pandemic negatively affected the global economy and the oil and gas market; while the global economy as well as oil and gas prices have begun to
Slide 11: Business Segment Results
BUSINESS SEGMENT RESULTS 11 ($ in millions, unaudited) Three Months Ended Six Months Ended 6/30/21 6/30/20 3/31/21 6/30/21 6/30/20 Revenues Well Intervention 132 $ 146 $ 134 $ 266 $ 286 $ Robotics 32 51 22 54 86 Production Facilities 14 14 16 31 29 Intercompany eliminations (16) (11) (9) (25) (21) T
Slide 12: Well Intervention – Gulf of Mexico
• Q5000 – 72% utilized in Q2; completed demobilization of long-term contract with BP; performed recompletion work on Droshky well owned by Helix; subsequently performed ROV work scope for one customer and heavy lift work scope for another customer; commenced production enhancement work for another c
Slide 13: Well Intervention – North Sea and West Africa
• Well Enhancer – 83% utilized in Q2; performed production enhancement work scopes on four wells for one customer; subsequently commenced production enhancement work on one well for another customer • Seawell – 10% utilized in Q2 after reactivating from warm stack; performed production enhancement w
Slide 14: Well Intervention – Brazil
• Siem Helix 1 – 100% utilized in Q2; performed abandonment scopes on four wells • Siem Helix 2 – 100% utilized in Q2; performed abandonment scopes on three wells 14 WELL INTERVENTION – BRAZIL
Slide 15: Robotics
• Grand Canyon II (Asia Pacific) – 100% utilized in Q2; performed ROV support work offshore Taiwan • Grand Canyon III (North Sea) – 93% utilized in Q2; performed trenching operations for two customers • Spot Vessels – 61 days utilization during Q2; performed follow-on North Sea renewables seabed cle
Slide 16: Vessel Utilization
16 VESSEL UTILIZATION • Grand Canyon II1 • Grand Canyon III1 • Spot vessels1 • Q5000 • Q4000 • Seawell • Well Enhancer • Siem Helix 11 • Siem Helix 21 • Q7000 • 42 ROVs2 • 4 Trenchers • 1 ROVDrill unit 72% 93% 36% 70% 90% 24% 72% 95% 34% 0% 20% 40% 60% 80% 100% Well Intervention Vessels Robotics Sup
Slide 17: Key Financial Metrics
Key Financial Metrics ENERGY SOLUTIONS.
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt1 of $346 million at 6/30/21 • $35 million Convertible Senior Notes due 2022 – 4.25% • $30 million Convertible Senior Notes due 2023 – 4.125% • $200 million Convertible Senior Notes due 2026 – 6.75% • $28 million Term Loan – LIBOR + 3.25% • Quarterly amortiza
Slide 19: Debt & Liquidity Profile
19 DEBT & LIQUIDITY PROFILE ($ in millions) $496 $440 $406 $350 $394 $336 $229 $161 $143 $58 $102 $21 $348 $426 $380 $452 $452 $416 $0 $100 $200 $300 $400 $500 12/31/17 12/31/18 12/31/19 12/31/20 1/1/21 6/30/21 Long-term Debt¹ Net Debt² Liquidity³ $44 $44 Impact of the adoption of ASU 2020-061 as of
Slide 20: 2021 Outlook
2021 Outlook
Slide 21: 2021 Outlook: Forecast
21 2021 OUTLOOK: FORECAST ($ in millions) 2021 2020 Outlook Actual Revenues $ 600 - 670 734 $ Adjusted EBITDA1 75 - 100 155 Free Cash Flow1 45 - 90 80 Capital Additions2 20 - 35 32 Revenue Split: Well Intervention $ 455 - 515 539 $ Robotics 120 - 130 178 Production Facilities 65 - 70 58 Eliminations
Slide 22: 2021 Outlook – Key Expectations and Assumptions
22 The ongoing COVID pandemic and its effect on the offshore oil and gas market, combined with sector uncertainty relating to regulatory changes by the new U.S. administration, suggest a year that will be more challenging than 2020. Our customers’ spending levels currently remain low, providing even
Slide 23: 2021 Outlook – Well Intervention
23 2021 OUTLOOK – WELL INTERVENTION • Q4000 (Gulf of Mexico) – vessel has contracted backlog during Q3 with intermittent scheduling gaps and expected utilization into Q4; identified opportunities thereafter on various work scopes • Q5000 (Gulf of Mexico) – vessel has contracted work through mid-Augu
Slide 24: 2021 Outlook – Robotics
24 • Grand Canyon II (Asia Pacific) – vessel expected to perform ROV support work for decommissioning project offshore Thailand through the remainder of 2021 • Grand Canyon III (North Sea) – vessel expected to continue performing trenching work in the North Sea into December with good utilization ex
Slide 25: 2021 Outlook: Capital Additions & Balance Sheet
25 2021 Capital additions are currently forecasted at $20-$35 million, consisting of the following: • Maintenance Capex – $15-30 million related to regulatory inspection costs of our systems and equipment and other maintenance capital • Recompletion Capex – $5 million of recompletion costs on one of
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations € Helix 1 ENERGY SOLUTIONS
Slide 27: Non-GAAP Reconciliations
27 NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended Year Ended 6/30/21 6/30/20 3/31/21 6/30/21 6/30/20 12/31/20 Adjusted EBITDA: Net income (loss) (13,683) $ 5,450 $ (3,050) $ (16,733) $ (8,478) $ 20,084 $ Adjustments: Income tax provision (benefit) (1,968) (271) 116 (1,852) (
Slide 28: ESG initiatives and disclosures
We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business. We understand we have an important role to play as a steward of the people, communities and environments we serve, and we regularly look for ways to emphasize and im
Helix Energy Solutions Group — Q2 2021 Earnings Presentation on 6ix