Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2014 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Feb 17, 2015
Slide 1: Fourth Quarter 2014 Conference Call
Fourth Quarter 2014 Conference Call February 17, 2015 Built for success, positioned for growth
Slide 2: Forward-Looking Statements
Built for success, positioned for growth 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: Presentation Outline
Built for success, positioned for growth Executive Summary (pg. 4) Operational Highlights by Segment (pg. 8) Key Balance Sheet Metrics (pg. 13) 2015 Outlook (pg. 16) Non-GAAP Reconciliations (pg. 22) Questions & Answers Work class ROV XLX – 88 * Presentation Outline
Slide 4: Executive Summary
Built for success, positioned for growth * Executive Summary Q5000 under construction in Singapore
Slide 5: Executive Summary
Built for success, positioned for growth See non-GAAP reconciliations on slide 23. * Executive Summary
Slide 6: Executive Summary
Built for success, positioned for growth Q4 2014 earnings per diluted share of $0.08 per diluted share compared to $0.71 per diluted share in Q3 2014 67% utilization of well intervention vessels in the fourth quarter Q4000 at 86% utilization for Q4 primarily due to mechanical problems related to the
Slide 7: Executive Summary: Balance sheet
Built for success, positioned for growth Balance sheet Liquidity* of $1.1 billion at 12/31/2014 Cash and cash equivalents totaled $476 million at 12/31/2014 Net debt of $75 million at 12/31/2014 See updated debt maturity profile on slide 14 We define liquidity as the total of cash and cash equivalen
Slide 8: Operational Highlights
Built for success, positioned for growth Operational Highlights *
Slide 9: Business Segment Results
Built for success, positioned for growth 67% utilization for the well intervention fleet Skandi Constructor completes regulatory dry dock; Seawell enters dry dock in December Robotics realized 61 days of utilization from spot vessels in the quarter; total vessel utilization of 79% including long-ter
Slide 10: Well Intervention
Built for success, positioned for growth Gulf of Mexico Q4000 was 86% utilized during Q4 due to mechanical problems with its intervention riser system; the vessel also worked at reduced rates while making minor repairs as a result of being struck by a supply boat Helix 534 was 42% utilized during th
Slide 11: Robotics
Built for success, positioned for growth 79% chartered vessel fleet utilization in Q4 61 days utilized on spot vessels 73% utilization for ROVs, trenchers and ROVDrill Olympic Canyon fully utilized in India during Q4 REM Installer transited to the GOM in October and performed 40 days of ROV support
Slide 12: Utilization
Built for success, positioned for growth Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1,2) Grand Canyon (1) REM Installer (1) Spot vessels (1,3) Seawell Well Enhancer Q4000 Skandi Constructor (1) H534 50 ROVs 2 ROVDrill Units 5 Trenchers Chartered vessel Vessel returned to owner in September 2
Slide 13: Key Balance Sheet Metrics
Built for success, positioned for growth * Key Balance Sheet Metrics
Slide 14: Debt Instrument Profile
Built for success, positioned for growth Total funded debt of $572 million at end of Q4 2014: $200 million Convertible Senior Notes – 3.25% (A) ($179 million net of unamortized debt discount) $277 million Term Loan – LIBOR + 2.25% (B) Annual amortization payments of 5% in years 1 and 2, 10% per annu
Slide 15: Debt and Liquidity Profile
Built for success, positioned for growth Liquidity of approximately $1.1 billion at 12/31/2014 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. We define liquidity as the total of cash and cash equivalents ($476 million) plus unused capacity un
Slide 16: 2015 Outlook
Built for success, positioned for growth 2015 Outlook *
Slide 17: 2015 Outlook: 2014 in Review and Moving Ahead to 2015
Built for success, positioned for growth * 2015 Outlook 2014 in Review 2014 was an outstanding year for Helix, exceeding our own expectations with $378 million of EBITDA Both the Well Intervention and Robotics business segments posted record results Excluding one-time items and the favorable impact
Slide 18: 2015 Outlook: Moving Ahead to 2015 – cont'd
Built for success, positioned for growth * 2015 Outlook Moving Ahead to 2015 – cont’d Lower oil prices will reduce our “tolling” revenues from the Production Facilities business by an estimated $10 million Q5000 expected to be completed in Q1 and available for service in Q3 of 2015 The current marke
Slide 19: 2015 Outlook: Backlog and Well Intervention
Built for success, positioned for growth Total backlog as of December 31, 2014 was approximately $2.3 billion, of which approximately $2.1 billion is associated with our Well Intervention and Robotics businesses(1) Both the Q4000 (excluding dry dock) and the Well Enhancer are expected to have good u
Slide 20: 2015 Outlook: Robotics
Built for success, positioned for growth Robotics market impacted by the same macro conditions impacting energy markets; record 2014 unlikely to be matched in 2015 Olympic Canyon to continue operations offshore India under firm commitment through June, with two 6-month options remaining on current c
Slide 21: 2015 Outlook – Capex
Built for success, positioned for growth 2015 capex budget of approximately $400 million consisting of the following(1): $305 million in growth capital; primarily for newbuilds currently underway, including: $170 million for Q5000 (includes $15 million contingency) $40 million for Q7000 $65 million
Slide 22: Non-GAAP Reconciliations
Built for success, positioned for growth Non-GAAP Reconciliations *
Slide 23: Adjusted EBITDA Reconciliation
Built for success, positioned for growth We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. This non-GAAP measure is useful to investors and other internal and external users of our financial statements in
Slide 24: Follow Helix on Twitter and LinkedIn
Built for success, positioned for growth Follow Helix on Twitter: @Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q4 2014 Earnings Presentation on 6ix