Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2014 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Oct 21, 2014
Slide 1: Third Quarter 2014 Conference Call
Third Quarter 2014 Conference Call October 21, 2014 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) 2014 Outlook (pg. 16) Non-GAAP Reconciliations (pg. 22) Questions & Answers Intervention riser system undergoing testing * 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 Q3 2014 earnings per diluted share of $0.71 per diluted share compared to $0.55 per diluted share in Q2 2014 Contracting Services and Production Facilities 97% utilization of Well Intervention vessels; strong outlook and backlog expected for remainder of 2014
Slide 7: Executive Summary: Balance sheet
Built for success, positioned for growth Balance sheet Liquidity* of $1.1 billion at 09/30/2014 Cash and cash equivalents totaled $547 million at 09/30/2014 Net debt of $7 million at 09/30/2014 See updated debt maturity profile on slide 14 We define liquidity as the total of cash and cash equivalent
Slide 8: Operational Highlights
Built for success, positioned for growth Operational Highlights *
Slide 9: Business Segment Results
Built for success, positioned for growth 97% utilization for the Well Intervention fleet 90% chartered vessel utilization in Robotics Robotics utilized 3 spot vessels for a total of 197 days in the quarter Skandi Constructor completed company’s first well intervention project in Canadian waters Q400
Slide 10: Well Intervention
Built for success, positioned for growth GOM Q4000 was 89% utilized during Q3; vessel down for 10 days for thruster repairs Helix 534 fully utilized during Q3 Both vessels are expecting strong utilization in Q4 of 2014 IRS no. 2 on hire for the entire quarter (14 days at standby rate) North Sea 99%
Slide 11: Robotics
Built for success, positioned for growth 90% chartered vessel fleet utilization in Q3 197 days utilized on spot vessels (100% utilization) Olympic Triton returned to vessel owner in September 78% utilization for ROVs, trenchers and ROVDrill T1500 jet trencher completed both oil & gas and windfarm tr
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 56 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 $576 million at end of Q3 2014: $200 million Convertible Senior Notes – 3.25% (A) ($178 million net of unamortized debt discount) $281 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 $1.1 billion at 09/30/2014 ($ 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 ($547 million) plus unused capacity un
Slide 16: 2014 Outlook
Built for success, positioned for growth 2014 Outlook *
Slide 17: 2014 Outlook
Built for success, positioned for growth Earnings per share estimates based on a corporate tax rate ranging from 25% − 30%. * 2014 Outlook
Slide 18: 2014 Outlook: Backlog and utilization
Built for success, positioned for growth Total backlog as of September 30, 2014 was approximately $2.4 billion, of which approximately $2.3 billion is associated with our Well Intervention and Robotics businesses Utilization expected to remain strong for the well intervention fleet Q4000 has full ba
Slide 19: 2014 Outlook: Robotics
Built for success, positioned for growth Rem Installer currently transiting to the Gulf of Mexico to provide a presence for a dedicated ROV support vessel for ROV services in the region Deep Cygnus completing jet trenching scopes with T1500 in the North Sea, then expected to transit to the GOM at th
Slide 20: Looking Forward
Built for success, positioned for growth Gulf of Mexico well intervention fleet activity is expected to remain strong in 2015 and beyond Both vessels, Q4000 and H534, have regulatory dry docks in 2015, which provide headwinds in 2015 North Sea based well intervention activity may be softer during th
Slide 21: 2014 Outlook – Capex
Built for success, positioned for growth Total capital expenditures forecasted at approximately $385 million for 2014; $242 million incurred year-to-date(A) $68 million incurred in Q3, including: Approximately $40 million for well intervention newbuilds Approximately $13 million in Robotics Approxim
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 — Q3 2014 Earnings Presentation on 6ix