Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2024 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Oct 24, 2024
Slide 1: 2024 Third Quarter Conference Call
October 24, 2024 2024 Third Quarter Conference Call
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. 8) • Key Financial Metrics (pg. 13) • 2024 Outlook (pg. 15) • Non-GAAP Reconciliations (pg. 20) • 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 9/30/24 9/30/23 6/30/24 9/30/24 9/30/23 Revenues $ 342 $ 396 $ 365 $ 1,003 $ 955 Gross profit $ 66 $ 81 $ 75 $ 161 $ 151 19% 20% 21% 16% 16% Net income $ 30 $ 16 $ 32 $ 36 $
Slide 7: Third Quarter 2024 Highlights
EXECUTIVE SUMMARY Third Quarter 2024 Highlights Financial Results Revenue By Market Strategy4 • Net income of $30 million, $0.19 per diluted share Quarter Ended September 30, 2024 • Adjusted EBITDA1 of $88 million • Operating cash flows of $56 million Other • Free Cash Flow1 of $53 million 1% Financ
Slide 8: Operational Highlights
Operational Highlights 8
Slide 9: Segment Results
OPERATIONAL HIGHLIGHTS Segment Results ($ in millions, unaudited) Three Months Ended Nine Months Ended 9/30/24 9/30/23 6/30/24 9/30/24 9/30/23 Revenues Well Intervention $ 183 $ 225 $ 225 $ 624 $ 522 Robotics 85 76 81 216 195 Shallow Water Abandonment 72 87 51 149 213 Production Facilities 21 24 25
Slide 10: Well Intervention Utilization
OPERATIONAL HIGHLIGHTS Well Intervention Utilization • Q4000 (GOM) – 100% utilized in Q3; completed production enhancement operations for customer in July and subsequently mobilized and transited to Nigeria for six months of contracted work; 100% utilization includes 67 days of paid transit and mobi
Slide 11: Robotics Utilization
OPERATIONAL HIGHLIGHTS Robotics Utilization • Grand Canyon II (Asia Pacific) – 100% utilized in Q3; performed windfarm support work for various projects offshore Taiwan followed by ROV support project in Malaysia • Grand Canyon III (North Sea) – 100% utilized in Q3; performed renewables and oil and
Slide 12: Shallow Water Abandonment Utilization
OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Utilization Q3 activity levels reflect seasonal improvements to most asset classes despite two hurricanes in the Gulf of Mexico affecting utilization by 12 days; overall activity levels continue to be reflective of weaker Gulf of Mexico shelf market i
Slide 13: Key Financial Metrics
Key Financial Metrics 13
Slide 14: Debt Instrument Profile
KEY FINANCIAL METRICS Debt Instrument Profile Principal Payment Schedule at 9/30/24 Debt and Liquidity Profile at 9/30/24 ($ in millions) ($ in millions) $300 $500 $431 $399 $400 $250 $305 $285 $300 $332 $324 $200 $200 $254 $187 $100 $150 $300 $22 $9 $0 $100 ($100) $(30) $(75) ($200) $50 $(264) $10
Slide 15: 2024 Outlook
2024 Outlook 15
Slide 16: Forecast
2024 OUTLOOK Forecast Key Financial Metrics Key Forecast Drivers ($ in millions) 2024 2023 Our remainder of the year outlook will be affected by the Outlook Actual timing and extent of the winter weather seasonal impact to our operations in addition to the following expected key drivers: Revenues $
Slide 17: Capital Additions, Cash Flow & Balance Sheet
2024 OUTLOOK Capital Additions, Cash Flow & Balance Sheet 2024 Capital additions are forecasted at approximately $55 – $70 million: • Capital additions1 during Q3 included approximately $4 million for regulatory certification costs for our vessels and systems, which are reported in operating cash fl
Slide 18: Segments Outlook
2024 OUTLOOK Segments Outlook Well Intervention Robotics • Q4000 (Gulf of Mexico / West Africa) – contracted work in Nigeria commenced • Grand Canyon II (Asia Pacific) – vessel expected to be fully utilized providing mid-October and expected into Q2 2025 ROV support on oil and gas project offshore M
Slide 19: Beyond 2024
Beyond 2024 We continue execution of our Energy Transition business strategy: Robotics Production Maximization, Decommissioning and Renewables • Anticipate continued strong renewables trenching market • Increasing cash generation expected in this current environment • Expect continued renewables sit
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations 20
Slide 21: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations Three Months Ended Nine Months Ended Year Ended ($ in thousands, unaudited) 9/30/24 9/30/23 6/30/24 9/30/24 9/30/23 12/31/23 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income income (loss) $ 29,514 $ 15,560 $ 32,289 $ 35,516 $ 17,4
Slide 22: Non-GAAP Definitions
NON-GAAP RECONCILIATIONS Non-GAAP Definitions Non-GAAP Financial Measures We define EBITDA as earnings before income taxes, net interest expense, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets are also added
Slide 23: 2023 Corporate Sustainability Report
2023 Corporate Sustainability Report Sustainability continues to drive our business strategy and decision- making with a renewed focus on our commitment to energy security and participation in the world’s energy transition. Through maximizing existing reserves, decommissioning, and renewable energy
Slide 24: Energy Solutions
ENERGY SOLUTIONS
Helix Energy Solutions Group — Q3 2024 Earnings Presentation on 6ix