Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2024 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Apr 25, 2024
Slide 1: 2024 First Quarter Conference Call
April 25, 2024 2024 First 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 3/31/24 3/31/23 12/31/23 Revenues $ 296 $ 250 $ 335 Gross profit $ 20 $ 15 $ 49 7% 6% 15% Net loss $ (26) $ (5) $ (28) Basic loss per share $ (0.17) $ (0.03) $ (0.19) Diluted loss per share $
Slide 7: First Quarter 2024 Highlights
EXECUTIVE SUMMARY First Quarter 2024 Highlights Financial Results Revenue By Market Strategy2 • Net loss of $26 million, $(0.17) per diluted share Quarter Ended March 31, 2024 • Includes pre-tax losses of $21 million related to the retirement of the remaining Convertible Senior Notes due 2026 (2026
Slide 8: Operational Highlights
Operational Highlights 8
Slide 9: Segment Results
OPERATIONAL HIGHLIGHTS Segment Results Segment Operating Results Segment Utilization Well Intervention ($ in millions, unaudited) Three Months Ended • Fleet utilization 90% 3/31/24 3/31/23 12/31/23 • 98% in the GOM Revenues • 79% in the North Sea and Asia Pacific Well Intervention $ 216 $ 142 $ 211
Slide 10: Well Intervention Utilization
OPERATIONAL HIGHLIGHTS Well Intervention Utilization • Q5000 – 96% utilized in Q1; performing multi-well production enhancement and abandonment campaign for Shell • Q4000 – 99% utilized in Q1; completed well workover on our Thunder Hawk field, followed by production enhancement work for three custom
Slide 11: Robotics Utilization
OPERATIONAL HIGHLIGHTS Robotics Utilization • Grand Canyon II (Asia Pacific) – 100% utilized in Q1; completed ROV support project in Malaysia; commenced a 70% 67% 68% 66% long-term windfarm support project offshore Taiwan 58% 500 • Grand Canyon III (North Sea) – 23% utilized in Q1; worked on 58% 506
Slide 12: Shallow Water Abandonment Utilization
OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Utilization Slower Q1 activity levels are reflective not only of seasonality, but also of the variable nature of operator spending, as well as higher customer concentrations in the Gulf of Mexico shelf Offshore • Liftboats – nine liftboats with combin
Slide 13: Key Financial Metrics
Key Financial Metrics 13
Slide 14: Debt Instrument Profile
KEY FINANCIAL METRICS Debt Instrument Profile Principal Payment Schedule at 3/31/24 Debt and Liquidity Profile at 3/31/24 ($ in millions) ($ in millions) $300 $500 $452 $431 $419 $400 $380 $250 $305 $285 $300 $324 $291 $332 $200 $254 $200 $100 $208 $187 $22 $6 $150 $300 $0 ($100) $(143) $(30) $(58)
Slide 15: 2024 Outlook
2024 Outlook 15
Slide 16: Forecast
2024 OUTLOOK Forecast Key Financial Metrics Key Forecast Drivers ($ in millions) 2024 2023 Our current outlook is based, among other things, on the following Outlook Actual expected key drivers: Well Intervention • GOM – forecasted improved rates following completion of legacy 75- Revenues $ 1,200 -
Slide 17: Capital Additions, Cash Flow & Balance Sheet
2024 OUTLOOK Capital Additions, Cash Flow & Balance Sheet 2024 Capital additions are forecasted at approximately $70 – $90 million: • Capital additions during Q1 included approximately $12 million for regulatory certification costs for our vessels and systems, which are reported in operating cash fl
Slide 18: Segments Outlook
2024 OUTLOOK Segments Outlook Well Intervention • Q4000 (Gulf of Mexico / West Africa) – contracted work through Q2 with • Grand Canyon III (North Sea) – vessel resumed trenching mid-April and identified opportunities through mid year; vessel expected to transit during Q3 expected to remain nearly f
Slide 19: Beyond 2024
Beyond 2024 We continue momentum on our Energy Transition business Robotics strategy: Production Maximization, Decommissioning and • Anticipate continued strong renewables trenching Renewables market and deployment of T-1400-2 jet trencher • Expected continued strong cash generation in this current
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations 20
Slide 21: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations Three Months Ended Year Ended ($ in thousands, unaudited) 3/31/24 3/31/23 12/31/23 12/31/23 Reconciliation from Net Loss to Adjusted EBITDA: Net loss $ (26,287) $ (5,165) $ (28,333) $ (10,838) Adjustments: Income tax provision (benefit) (1,698) (2,01
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: Thank You
Helix JERGY SOLUTIONS
Helix Energy Solutions Group — Q1 2024 Earnings Presentation on 6ix