Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2021 Earnings Presentation
29 slides from Helix Energy Solutions's earnings presentation, Feb 22, 2022
Slide 1: Fourth Quarter 2021 Conference Call
February 22, 2022 Fourth Quarter 2021 Conference Call
Slide 2: Forward-looking statements
Thispresentationcontainsforward-lookingstatementsthatinvolverisks,uncertaintiesandassumptionsthatcouldcauseourresultsto differmateriallyfromthoseexpressedorimpliedbysuchforward-lookingstatements.Allstatements,otherthanstatementsofhistorical fact,are“forward-lookingstatements”withinthemeaningofthePri
Slide 3: Presentation Outline
• Executive Summary (pg. 4) • Operational Highlights by Segment (pg. 9) • Key Financial Metrics (pg. 17) • 2022 Outlook (pg. 20) • Non-GAAP Reconciliations (pg. 26) • Questions and Answers 3 PRESENTATION OUTLINE
Slide 4: Executive Summary
Executive Summary é Helix ENERGY SOLUTIONS,
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY ($ in millions, except per share data, unaudited) Three Months Ended 12/31/2112/31/209/30/2112/31/2112/31/20 Revenues169 $ 160 $ 181 $ 675 $ 734 $ Gross profit (loss)(5) $ 14 $ 3 $ 15 $ 80 $ (3)%9%2%2%11% Net income (loss) 1 (26) $ 4 $ (19) $ (62) $ 22 $ Diluted earnings (loss) p
Slide 6: Executive Summary – Highlights
6 Q4 2021 •Net loss 1 of $26 million, $(0.17) per diluted share •Adjusted EBITDA 2 of $9 million •Operating cash flows of $19 million •Free Cash Flow 2 of $18 million Q4 2021 Operations •Steady utilization and performance on Q7000 in West Africa •Strong utilization on Q4000 and Q5000 in the Gulf of
Slide 7: Executive Summary – Q4 2021 Segments
7 Well Intervention •Well intervention vessel fleet utilization 56% •89% in the GOM •38% in the North Sea and West Africa •52% in Brazil •15K IRS and 10K IRS idle during quarter Robotics •Robotics chartered vessels utilization 99% •419 total vessel days (237 spot vessel days) •90 days trenching util
Slide 8: Executive Summary – Balance Sheet
8 Q4 2021 •Cash and cash equivalents of $254 million •Excludes $74 million of restricted cash which primarily includes cash pledged as collateral for a short- term project-related letter of credit expected to be released upon project completion •Liquidity 1 of $305 million •Long-term debt 2 of $305
Slide 9: Operational Highlights By Segment
Operational Highlights By Segment
Slide 10: Business Segment Results
BUSINESS SEGMENT RESULTS 10 ($ in millions, unaudited) Three Months EndedYear Ended 12/31/2112/31/209/30/2112/31/2112/31/20 Revenues Well Intervention119 $ 112 $ 131 $ 517 $ 539 $ Robotics41 42 43 137 178 Production Facilities20 15 19 69 58 Intercompany eliminations(12) (9) (12) (48) (42) Total169 $
Slide 11: Well Intervention – Gulf of Mexico
• Q5000 –88% utilized in Q4; completed a hydrate remediation scope for one customer, performed a flowline remediation for another customer, performed a two-well P&A campaign for a third customer • Q4000 –90% utilized in Q4; completed a construction scope followed by a hydrate remediation scope and a
Slide 12: Well Intervention – North Sea and West Africa
• Q7000 – 99% utilized in Q4; performed production enhancement and P&A scopes for one customer in Nigeria • Well Enhancer – 15% utilized in Q4; performed diving and pumping enhancement operations for two customers; vessel stacked and idle for the remainder of the quarter • Seawell –0% utilized in we
Slide 13: Well Intervention – Brazil
• Siem Helix 1 –3% utilized in Q4; vessel completed scheduled regulatory inspections and subsequently mobilized for and commenced accommodations work offshore West Africa • Siem Helix 2 –100% utilized in Q4; performed abandonment scopes on two wells and workover scopes on three wells for Petrobras 1
Slide 14: Robotics
• Grand Canyon II (Asia Pacific) –100% utilized in Q4 performing decommissioning work offshore Thailand • Grand Canyon III (North Sea) –98% utilized in Q4; performed trenching operations for four customers • Spot Vessels –237 total days of spot vessel utilization during Q4 •116 days performing North
Slide 15: Utilization
15 UTILIZATION • Grand Canyon II 1 • Grand Canyon III 1 •Spot vessels 1 • Q5000 • Q4000 • Seawell • Well Enhancer • Siem Helix 1 1 • Siem Helix 2 1 • Q7000 •42 ROVs 2 •1 ROVDrill unit •4 Trenchers 56% 99% 38% 72% 99% 43% 56% 100% 32% 0% 20% 40% 60% 80% 100% Well Intervention VesselsRobotics Support
Slide 16: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental •Our business supports both the responsible transition from a carbon- based economy and extending the value and therefore the life cycle of underutilized wells, which in turn helps clients avoid drilling new wells. These efforts are published in gre
Slide 17: Key Financial Metrics
Key Financial Metrics ENERGY SOLUTIONS,
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt 1 of $314 million at 12/31/21 •$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% •$49 million MARAD Debt –4.93% •Semi-annual amortization payment
Slide 19: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) 1 Cash includes cash and cash equivalents but excludes restricted cash; restricted cash at December 31, 2019 and 2021 of $54 million and $74 million, respectively, related primarily to short-term project-related letters of credit 2 Long-term debt through Dece
Slide 20: 2022 Outlook
2022 Outlook € Helix 1 ENERGY SOLUTIONS,
Slide 21: 2022 Outlook
21 2022 OUTLOOK We expect 2022 to be a transition year for Helix, where we see an improving macro backdrop and increasing commodity prices as we continue to recover from the pandemic. In 2022, we expect to redeploy the Siem Helix 1 to Brazil for non-Petrobras customers and anticipate transitioning t
Slide 22: 2022 Outlook – Well Intervention
22 2022 OUTLOOK –WELL INTERVENTION • Q4000 (Gulf of Mexico) –vessel began year on multi-well campaign; approximate 20-day regulatory inspection scheduled end of Q1; contracted backlog through Q2 with good visibility and expected strong utilization for remainder of the year • Q5000 (Gulf of Mexico) –
Slide 23: 2022 Outlook – Robotics
23 • Grand Canyon II (Asia Pacific) –vessel expected to continue performing ROV support work for decommissioning project offshore Thailand into Q2 and subsequently transition to work in Taiwan; vessel expected to have high utilization in 2022 before charter expiration date at end of year • Grand Can
Slide 24: 2022 Outlook: Capital Additions & Balance Sheet
24 2022 Capital additions are currently forecasted at $40-$50 million: •Primarily maintenance capex related to regulatory inspection costs of our systems and equipment •Approximate $20 million of capital additions carried over from prior year, which contributed to strong 2021 free cash flow Balance
Slide 25: Beyond 2022
25 •Expect to continue anticipated momentum from second half 2022 into 2023 •Market improvements offer additional upside potential •Operating cash flow improvements •Improved operating cash flows in 2023 compared to 2022 •Maintenance Capex anticipated to be approximately $40 million annually •Well I
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations ENERGY SOLUTIONS
Slide 27: Non-GAAP Reconciliations
27 NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended 12/31/2112/31/209/30/2112/31/2112/31/20 Adjusted EBITDA: Net income (loss)(25,908) $ 4,117 $ (19,043) $ (61,684) $ 20,084 $ Adjustments: Income tax benefit(6,048) (2,569) (1,058) (8,958) (18,701) Net interest expense5,301 8,1
Slide 28: Non-GAAP and Other Definitions
28 NON-GAAP AND OTHER DEFINITIONS Non-GAAPFinancialMeasures WedefineEBITDAasearningsbeforeincometaxes,netinterestexpense,gainorlossonextinguishmentoflong-termdebt,netother incomeorexpense,anddepreciationandamortizationexpense.Non-cashimpairmentlossesongoodwillandotherlong-livedassetsand gainsandloss
Slide 29: ENERGY SOLUTIONS,
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Helix Energy Solutions Group — Q4 2021 Earnings Presentation on 6ix