Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2020 Earnings Presentation
27 slides from Helix Energy Solutions's earnings presentation, Jul 23, 2020
Slide 1: 2020 2nd Quarter Conference Call
2020 2nd Quarter Conference Call July 23, 2020
Slide 2: Forward-Looking Statements
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 of historical
Slide 3: Presentation Outline
PRESENTATION OUTLINE • Executive Summary (pg. 4) • Operational Highlights by Segment (pg. 9) • Key Financial Metrics (pg. 17) • 2020 Outlook (pg. 20) • Non-GAAP Reconciliations (pg. 25) • Questions and Answers 3
Slide 4: Executive Summary
Executive Summary 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY ($ in millions, except per share data) Three Months Ended Six Months Ended 6/30/20 6/30/19 3/31/20 6/30/20 6/30/19 Revenues $ 199 $ 202 $ 181 $ 380 $ 369 Gross profit $ 30 $ 40 $ 2 $ 32 $ 56 15% 20% 1% 8% 15% Net income (loss)1 $ 5 $ 17 $ (12) $ (6) $ 18 Diluted earnings (loss) per
Slide 6: Executive Summary - Highlights
EXECUTIVE SUMMARY - HIGHLIGHTS Q2 2020 • Net income1 of $5 million, $0.04 per diluted share • Adjusted EBITDA2 of $48 million • Operating cash flows of $23 million • Free Cash Flow2 of $19 million, includes $5 million in capital spending Q2 2020 Year to date • Net loss1 of $(6) million, $(0.06) per
Slide 7: Executive Summary – Q2 2020 Operations
EXECUTIVE SUMMARY – Q2 2020 OPERATIONS Well Intervention • Utilization of 72% across the well intervention vessel fleet • 93% in the GOM • 40% in the North Sea and West Africa, with both Q7000 and Seawell warm-stacked in April 2020 • 99% in Brazil • 15K IRS utilization 78%; 10K IRS idle during quart
Slide 8: Executive Summary – Balance Sheet
EXECUTIVE SUMMARY – BALANCE SHEET Q2 2020 • Cash and cash equivalents of $178 million • Excludes $42 million of restricted cash1 • Liquidity2 of approximately $351 million • Long-term debt3 of $387 million • Net debt4 of $166 million 1 Restricted cash of $42 million pledged as collateral at 6/30/20
Slide 9: Operational Highlights by Segment
Operational Highlights by Segment 9
Slide 10: COVID-19 and Market Events
COVID-19 AND MARKET EVENTS • The ongoing COVID-19 pandemic and its impact on the global economy have resulted in a precipitous decrease in the price of oil and caused significant disruption and uncertainty in the oil and gas market • The COVID-19 pandemic has created challenges for our operations, i
Slide 11: Business Segment Results
BUSINESS SEGMENT RESULTS ($ in millions) Three Months Ended Six Months Ended 6/30/20 6/30/19 3/31/20 6/30/20 6/30/19 Revenues Well Intervention $ 146 $ 159 $ 141 $ 286 $ 281 Robotics 51 45 35 86 85 Production Facilities 14 16 16 29 31 Intercompany Eliminations (11) (18) (10) (21) (28) Total 1 $ 199
Slide 12: Well Intervention – Gulf of Mexico
WELL INTERVENTION – GULF OF MEXICO Gulf of Mexico • Q5000 – 87% utilized in Q2; completed a one-well abandonment project for one customer; 12 days unpaid scheduled testing of 15K IRS prior to resuming operations with BP performing 15K work during remainder of quarter • Q4000 - 98% utilized in Q2; co
Slide 13: Well Intervention – North Sea and West Africa
WELL INTERVENTION – NORTH SEA AND WEST AFRICA North Sea and West Africa • Well Enhancer – 87% utilized in Q2; performed enhancement work for four customers including coiled tubing operations on two wells • Seawell – 21% utilized in Q2; completed well abandonment programs on four wells for two custom
Slide 14: Well Intervention – Brazil
WELL INTERVENTION – BRAZIL Brazil • Siem Helix 1 – 99% utilized in Q2; performed workover and production enhancement operations on one well and abandonment scopes on three wells • Siem Helix 2 – 99% utilized in Q2; performed workover and production enhancement operations on three wells 14
Slide 15: Robotics
ROBOTICS • Grand Canyon II (Asia Pacific) – 100% utilized in Q2 performing ROV support work • Grand Canyon III (North Sea) – 72% utilized in Q2 performing trenching operations for three customers and ROV support work for two customers • Spot Vessels – 342 total days of spot vessel utilization global
Slide 16: Utilization
UTILIZATION 100% 94% 95% 89% 92% 80% 72% 72% 60% Q2 2020 Q1 2020 40% Q2 2019 41% 34% 34% 20% 0% Well Intervention Vessels Robotics Support Vessels ROVs, Trenchers and ROVDrill • Grand Canyon1,3 • 44 ROVs2 • Q5000 • Siem Helix 11 • Grand Canyon II1 • 1 ROVDrill unit2 • Q4000 • Siem Helix 21 • Grand C
Slide 17: Key Financial Metrics
Key Financial Metrics 17
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt1 of $413 million at 6/30/20 • $125 million Convertible Senior Notes due 2022 – 4.25% Principal Payment Schedule at 6/30/20 ($ in millions) • $125 million Convertible Senior Notes due 2023 – 4.125% $150 $133 $133 • $32 million Term Loan – LIBOR + 3.25% • Quar
Slide 19: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE $700 $626 $600 $496 $500 $440 $406 $387 $400 $269 $300 $229 $166 $200 $161 $143 $100 $0 12/31/16 12/31/17 12/31/18 12/31/19 6/30/20 Long-term Debt¹ Net Debt² Liquidity³ Liquidity3 of approximately $351 million at 6/30/20 1 Long-term debt is net of unamortized debt discounts
Slide 20: 2020 Outlook
2020 Outlook 20
Slide 21: 2020 Outlook: Forecast
2020 OUTLOOK: FORECAST ($ in millions) 2020 2019 Outlook Actual Revenues $ 655 - 740 $ 752 Adjusted EBITDA1,2,3 115 - 145 180 Free Cash Flow1 40 - 80 31 4 Capital Additions ~ 38 161 Revenue Split: Well Intervention $ 490 - 560 $ 593 Robotics 145 - 160 172 Production Facilities3 55 61 Eliminations5 (
Slide 22: 2020 Outlook – Well Intervention and Backlog
2020 OUTLOOK Total backlog at June 30, 2020 was approximately $574 million ($365 million for Well Intervention); backlog of $263 million expected to be realized during remainder of 2020 Well Intervention Outlook • Q4000 (Gulf of Mexico) – contracted backlog through August, identified opportunities i
Slide 23: 2020 Outlook – Robotics
2020 OUTLOOK Robotics Outlook • Grand Canyon II (Asia Pacific) – contracted for flotel and ROV support project through Q3; identified prospects for Q4 and expected good utilization during remainder of 2020 • Grand Canyon III (North Sea) – currently performing export cable trenching in North Sea thro
Slide 24: 2020 Outlook: Capital Additions & Balance Sheet
2020 OUTLOOK: CAPITAL ADDITIONS & BALANCE SHEET 2020 Capital additions are currently forecasted at approximately $38 million, consisting of the following: • Growth Capex – $5 million related primarily to completion of Q7000 and related intervention system • Maintenance Capex – $33 million primarily
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations 25
Slide 26: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Twevle Months ($ in thousands, unaudited) Three Months Ended Six Months Ended Ended 6/30/20 6/30/19 3/31/20 6/30/20 6/30/19 12/31/19 Adjusted EBITDA: Net income (loss) $ 5,450 $ 16,823 $ (13,928) $ (8,478) $ 18,141 $ 57,697 Adjustments: Income tax provision (benefit) (271) 2
Slide 27: Thank you
Thank you eo0o0000 € Helix ENERGY SOLUTIONS
Helix Energy Solutions Group — Q2 2020 Earnings Presentation on 6ix