Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2021 Earnings Presentation
28 slides from Helix Energy Solutions's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Conference Call
April 27, 2021 First Quarter 2021 Conference Call EXHIBIT 99.2
Slide 2: 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 fact, are “forward-looking
Slide 3: Presentation Outline
• Executive Summary (pg. 4) • Operational Highlights by Segment (pg. 9) • Key Financial Metrics (pg. 17) • 2021 Outlook (pg. 20) • Non-GAAP Reconciliations (pg. 26) • Questions and Answers 3 PRESENTATION OUTLINE
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY ($ in millions, except per share data, unaudited) Three Months Ended 3/31/21 3/31/20 12/31/20 Revenues 163 $ 181 $ 160 $ Gross profit 15 $ 2 $ 14 $ 9% 1% 9% Net income (loss)1 (3) $ (12) $ 4 $ Diluted earnings (loss) per share (0.02) $ (0.09) $ 0.03 $ Adjusted EBITDA2 Business se
Slide 6: Executive Summary – Highlights
6 Q1 2021 • Net loss1 of $(3) million, $(0.02) per diluted share • Adjusted EBITDA2 of $36 million • Operating cash flows of $40 million • Free Cash Flow2 of $39 million Q1 2021 Operations • Q7000 re-commenced operations offshore Nigeria late-January • Early re-activation of the Well Enhancer from i
Slide 7: Executive Summary – Q1 2021 Segments
7 Well Intervention • Utilization of 70% across the well intervention vessel fleet • 88% in the GOM • 38% in the North Sea and West Africa • 100% in Brazil • 15K IRS and 10K IRS idle during quarter Robotics • Robotics chartered vessels utilization 90% • 165 total vessel days (three spot days) • 72 d
Slide 8: Executive Summary – Balance Sheet
8 Q1 2021 • Cash and cash equivalents of $205 million • Excludes $66 million of restricted cash pledged as collateral for a short-term project-related letter of credit expected to be released upon completion of project • In January, we repaid the remaining $54 million balance on the Q5000 Loan • Liq
Slide 9: Operational Highlights By Segment
Operational Highlights By Segment
Slide 10: COVID & Market Events
• The ongoing COVID-19 pandemic and its impact on the global economy have resulted in volatile oil prices and caused significant disruption and uncertainty in the oil and gas market • The pandemic has negatively affected the global economy and the oil and gas market and resulted in demand and pricin
Slide 11: Business Segment Results
BUSINESS SEGMENT RESULTS 11 ($ in millions, unaudited) Three Months Ended 3/31/21 3/31/20 12/31/20 Revenues Well Intervention 134 $ 141 $ 112 $ Robotics 22 35 42 Production Facilities 16 16 15 Intercompany eliminations (9) (10) (9) Total 163 $ 181 $ 160 $ Gross profit (loss) % Well Intervention 9 $
Slide 12: Well Intervention – Gulf of Mexico
• Q5000 – 100% utilized in Q1 on contract with BP; completed production enhancement work on one well and performed abandonment work on another well; subsequently commenced demobilization from long-term contract • Q4000 – 76% utilized in Q1; completed production enhancement work on five wells for one
Slide 13: Well Intervention – North Sea and West Africa
• Well Enhancer – 46% utilized in Q1; mobilized mid-February and performed well enhancement work on three wells for two customers • Seawell – warm stacked during Q1 • Q7000 – resumed operations in Nigeria late- January; 67% utilized in Q1; performed well integrity work scopes on three wells followed
Slide 14: Well Intervention – Brazil
• Siem Helix 1 – 100% utilized in Q1; performed abandonment scopes on four wells; awarded 120- day extension with Petrobras beginning mid-April • Siem Helix 2 – 100% utilized in Q1; performed workover and production enhancement operations on two wells and abandonment scopes on four wells 14 WELL INT
Slide 15: Robotics
• Grand Canyon II (Asia Pacific) – 100% utilized in Q1 performing ROV support work on renewables project offshore Japan and salvage support work • Grand Canyon III (North Sea) – 80% utilized in Q1 performing trenching operations for three customers; vessel completed scheduled regulatory drydock duri
Slide 16: Vessel Utilization
16 VESSEL UTILIZATION • Grand Canyon II1 • Grand Canyon III1 • Spot vessels1 • Q5000 • Q4000 • Seawell • Well Enhancer • Siem Helix 11 • Siem Helix 21 • Q7000 • 42 ROVs2 • 4 Trenchers • 1 ROVDrill unit 70% 90% 24% 56% 100% 32% 72% 89% 34% 0% 20% 40% 60% 80% 100% Well Intervention Vessels Robotics Su
Slide 17: Key Financial Metrics
Key Financial Metrics ENERGY SOLUTIONS.
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt1 of $347 million at 3/31/21 • $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% • $29 million Term Loan – LIBOR + 3.25% • Quarterly amortiza
Slide 19: Debt & Liquidity Profile
19 DEBT & LIQUIDITY PROFILE ($ in millions) $496 $440 $406 $350 $394 $336 $229 $161 $143 $58 $102 $66 $348 $426 $380 $452 $452 $377 $0 $100 $200 $300 $400 $500 12/31/17 12/31/18 12/31/19 12/31/20 1/1/21 3/31/21 Long-term Debt¹ Net Debt² Liquidity³ $44 $44 Impact of the adoption of ASU 2020-061 as of
Slide 20: 2021 Outlook
2021 Outlook
Slide 21: 2021 Outlook: Forecast
21 2021 OUTLOOK: FORECAST ($ in millions) 2021 2020 Outlook Actual Revenues $ 625 - 700 734 $ Adjusted EBITDA1 75 - 100 155 Free Cash Flow1 45 - 75 80 Capital Additions2,3 20 - 40 32 Revenue Split: Well Intervention $ 480 - 530 539 $ Robotics 115 - 135 178 Production Facilities 65 - 70 58 Eliminatio
Slide 22: 2021 Outlook key expectations and assumptions
22 The ongoing COVID pandemic and its effect on the offshore oil and gas market, combined with sector uncertainty relating to regulatory changes by the new U.S. administration, suggests a year that will be more challenging than 2020. Our customers’ spending levels currently remain low, providing eve
Slide 23: 2021 Outlook – Well Intervention
23 2021 OUTLOOK – WELL INTERVENTION • Q4000 (Gulf of Mexico) – vessel has some contracted backlog during Q2 and expected utilization with intermittent scheduling gaps into Q3; identified opportunities thereafter on a broad range of work scopes • Q5000 (Gulf of Mexico) – vessel completed contract for
Slide 24: Outlook - Robotics
24 • Grand Canyon II (Asia Pacific) – vessel performing various work scopes including ROV support work for renewable project offshore Taiwan expected late April through early May; identified subsequent projects currently being evaluated; strong utilization expected in Asia Pacific region for the rem
Slide 25: 2021 Outlook: Capital Additions & Balance Sheet
25 2021 Capital additions are currently forecasted at $20-$40 million, consisting of the following: • Maintenance Capex – $15-30 million related to regulatory inspection costs of our systems and equipment and other maintenance capital • Recompletion Capex – $5-10 million of recompletion costs on one
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations € Helix 1 ENERGY SOLUTIONS
Slide 27: Non-GAAP Reconciliations
27 NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended 3/31/21 3/31/20 12/31/20 12/31/20 Adjusted EBITDA: Net income (loss) (3,050) $ (13,928) $ 4,117 $ 20,084 $ Adjustments: Income tax provision (benefit) 116 (21,093) (2,569) (18,701) Net interest expense 6,053 5,746 8,124 28,53
Slide 28: ESG initiatives and disclosures
We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business. We understand we have an important role to play as a steward of the people, communities and environments we serve, and we regularly look for ways to emphasize and im
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