Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2013 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Apr 22, 2013
Slide 1: First Quarter 2013 Conference Call
* First Quarter 2013 Conference Call April 22, 2013
Slide 2: Forward-Looking Statements
* Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All such statements, other than statements of historical fact, are “forward-looking statements” w
Slide 3: Presentation Outline
* Presentation Outline Executive Summary Summary of Q1 2013 Results (pg. 4) Operational Highlights by Segment Contracting Services (pg. 9) Key Balance Sheet Metrics (pg. 14) 2013 Outlook (pg. 17) Non-GAAP Reconciliations (pg. 21) Questions & Answers
Slide 4: Executive Summary
* Executive Summary *
Slide 5: Executive Summary
* Executive Summary ($ in millions, except per share data) See non-GAAP reconciliation on slide 24. 1Q 2013 includes $14.1 million loss in connection with the settlement of our commodity hedge contracts associated with the oil and gas business, which were not included with the sale of ERT.
Slide 6: Executive Summary
* Executive Summary Q1 2013 earnings (loss) per share of $0.02 per diluted share compared with $(1.64) per diluted share in Q4 2012 $22.7 million loss related to the sale of our oil and gas business and associated divestiture costs $14.1 million loss in connection with the settlement of our commodit
Slide 7: Executive Summary: Balance sheet
* Executive Summary Balance sheet Cash increased to $626 million at 03/31/2013 from $437 million at 12/31/2012 Liquidity* at $1.1 billion at 03/31/2013 Net debt decreased to $72 million at 03/31/2013 from $582 million at 12/31/2012 $624 million in pre-tax proceeds from the sale of our oil and gas bu
Slide 8: Operational Highlights
* Operational Highlights *
Slide 9: Contracting Services
* ($ in millions, except percentages) See non-GAAP reconciliation on slide 23. Amounts are prior to intercompany eliminations. Before gross profit impact of asset impairment charges: $157.8 million for the Caesar in Q4. 100% utilization for the Well Intervention fleet IRS no. 2 utilized on the Ocean
Slide 10: Contracting Services – Well Ops
* GOM Q4000 100% utilized during Q1 IRS no. 2 utilized for 59 days onboard the Ocean Victory during the quarter Helix 534 remains on schedule for Q3 with full backlog the remainder of 2013 Extended contract with major operator for the Q4000 for 150 days per year for 2014–2015 Entered into five-year
Slide 11: Contracting Services – Robotics
* 69% chartered vessel utilization in Q1 Four vessels under long-term charter, plus two vessels of opportunity 55% utilization for ROVs, trenchers, and ROVDrills Deep Cygnus idle for 75 days in Q1 T1200 aboard the Grand Canyon trenched and buried 60km of cables in the London Array windfarm offshore
Slide 12: Contracting Services – Subsea Construction
* Express had 80% utilization in Q1 working in the GOM Caesar had 100% utilization in Q1 working in Mexico’s Bay of Campeche on accommodations project Sales of both pipelay assets expected to occur in July Coiled tubing connected to the pipeline recovered through the moonpool of the Express Contract
Slide 13: Contracting Services Utilization
* Express Caesar Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1) Grand Canyon (1) (2) spot vessels (1) Seawell Well Enhancer Q4000 49 ROVs 2 ROVDrill Units 4 Trenchers (1) Chartered vessels. Contracting Services Utilization
Slide 14: Key Balance Sheet Metrics
* Key Balance Sheet Metrics *
Slide 15: Total funded debt and debt maturity profile
* Total funded debt of $728 million at end of Q1 2013 consisting of: $200 million Convertible Senior Notes – 3.25% (A) ($170 million net of unamortized debt discount) $150 million in Term Loan / Revolver borrowings LIBOR + 2.75% on $73 million of Term Loan LIBOR + 2.75% on $78 million of Revolver $5
Slide 16: Debt and Liquidity Profile
* Liquidity of approximately $1.1 billion at 3/31/2013 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. Liquidity, as we define it, is equal to cash and cash equivalents ($626 million), plus available capacity under our revolving credit facilit
Slide 17: 2013 Outlook
* 2013 Outlook *
Slide 18: 2013 Outlook
* 2013 Outlook ($ in millions) 2013 Outlook and 2012 Actual includes $32 million and $367 million from Oil and Gas discontinued operations. 2013 Outlook excluding Subsea Construction and Oil and Gas, plus expected annualized contribution from Helix 534 and chartered Skandi Constructor vessel.
Slide 19: 2013 Outlook: Contracting Services Backlog
* 2013 Outlook Contracting Services Backlog as of March 31, 2013 was $1.6 billion (pro forma for Q4000 and Q5000 multi-year contracts signed the first week in April) Utilization expected to remain strong for the well intervention fleet Q4000 full backlog thru 2015 Q5000 initial backlog of 270 days a
Slide 20: 2013 Outlook - Capex
* 2013 Outlook - Capex Capital Expenditures Contracting Services (approximately $365 million in 2013) $61 million incurred in Q1 Q5000 new build (approximately $135 million in 2013) On schedule for delivery in 2015 Newly acquired Helix 534 continues conversion in Singapore into a well intervention v
Slide 21: Non-GAAP Reconciliations
* Non-GAAP Reconciliations *
Slide 22: Non-GAAP Reconciliations
* Non-GAAP Reconciliations We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Adjusted EBITDAX is Adjusted EBITDA from continuing operations plus the earnings of our former oil and gas business before net i
Slide 23: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions)
Slide 24: * * Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/…
* * Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q1 2013 Earnings Presentation on 6ix