Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2021 Earnings Presentation
27 slides from Helix Energy Solutions's earnings presentation, Oct 21, 2021
Slide 1: Third Quarter 2021 Conference Call
October 21, 2021 Third Quarter 2021 Conference Call
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. 25) • 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 9/30/21 9/30/20 6/30/21 9/30/21 9/30/20 Revenues 181 $ 193 $ 162 $ 506 $ 574 $ Gross profit 3 $ 35 $ 3 $ 21 $ 66 $ 2% 18% 2% 4% 12% Net income (loss)1 (19) $ 25 $ (14) $ (36) $ 18 $ Diluted earnings (loss) per s
Slide 6: Executive Summary – Highlights
6 Q3 2021 • Net loss1 of $19 million, $(0.13) per diluted share • Adjusted EBITDA2 of $27 million • Operating cash flows of $29 million • Free Cash Flow2 of $28 million Q3 2021 Operations • Steady utilization and performance on Q7000 in Nigeria • Continued seasonal trenching and wind farm site clear
Slide 7: Executive Summary – Q3 2021 Segments
7 Well Intervention • Well intervention vessel fleet utilization 72% • 74% in the GOM • 71% in the North Sea and West Africa • 72% in Brazil • 15K IRS and 10K IRS idle during quarter Robotics • Robotics chartered vessels utilization 99% • 358 total vessel days (176 spot days) • 90 days trenching uti
Slide 8: Executive Summary – Balance Sheet
8 Q3 2021 • Cash and cash equivalents of $238 million • Excludes $71 million of restricted cash pledged as collateral for a short-term project-related letter of credit expected to be released upon completion of project • Received tax refund related to the CARES Act of $12 million during Q3 • Execute
Slide 9: Operational Highlights By Segment
Operational Highlights By Segment
Slide 10: COVID & Market Events
• The ongoing COVID-19 pandemic and its impact on the global economy have resulted in volatility and significant disruption in the oil and gas market • The pandemic negatively affected the global economy and the oil and gas market; while the global economy as well as oil and gas prices have returned
Slide 11: Business Segment Results
BUSINESS SEGMENT RESULTS 11 ($ in millions, unaudited) Three Months Ended Nine Months Ended 9/30/21 9/30/20 6/30/21 9/30/21 9/30/20 Revenues Well Intervention 131 $ 141 $ 132 $ 397 $ 427 $ Robotics 43 50 32 96 136 Production Facilities 19 14 14 49 43 Intercompany eliminations (12) (11) (16) (37) (33
Slide 12: Well Intervention – Gulf of Mexico
• Q5000 – 77% utilized in Q3; performed production enhancement operations for three customers; vessel incurred idle time between projects • Q4000 – 71% utilized in Q3; completed a two-well production enhancement campaign for one customer, followed by construction work for two other customers; subseq
Slide 13: Well Intervention – North Sea and West Africa
• Q7000 – 100% utilized in Q3; performed well integrity work scopes for two customers in Nigeria • Well Enhancer – 57% utilized in Q3; performed production enhancement operations for two customers; vessel stacked and idle for the remainder of the quarter • Seawell – 56% utilized in Q3; performed div
Slide 14: Well Intervention – Brazil
• Siem Helix 1 – 45% utilized in Q3; performed abandonment scope on one well and workover scopes on two wells; demobilized Petrobras equipment and entered regulatory dry-dock • Siem Helix 2 – 100% utilized in Q3; performed abandonment scopes on three wells and workover scopes on two wells 14 WELL IN
Slide 15: Robotics
• Grand Canyon II (Asia Pacific) – 100% utilized in Q3 performing decommissioning work offshore Thailand • Grand Canyon III (North Sea) – 98% utilized in Q3; performed trenching operations for four customers • Spot Vessels – 176 total days of spot vessel utilization during Q3 • 53 days performing No
Slide 16: Utilization
16 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 72% 99% 43% 72% 93% 36% 68% 95% 37% 0% 20% 40% 60% 80% 100% Well Intervention Vessels Robotics Support Ve
Slide 17: Key Financial Metrics
Key Financial Metrics ENERGY SOLUTIONS.
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt1 of $314 million at 9/30/21 • $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% • $49 million MARAD Debt – 4.93% • Semi-annual amortization
Slide 19: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) 1 Cash includes cash and cash equivalents but excludes restricted cash; restricted cash at December 31, 2019 and September 30, 2021 of $54 million and $71 million, respectively, related to short-term project-related letters of credit 2 Long-term debt through
Slide 20: 2021 Outlook
2021 Outlook
Slide 21: 2021 Outlook: Forecast
21 2021 OUTLOOK: FORECAST ($ in millions) 2021 2020 Outlook Actual Revenues $ 600 - 645 734 $ Adjusted EBITDA1 85 - 100 155 Free Cash Flow1 80 - 120 80 Capital Additions2 15 - 25 32 Revenue Split: Well Intervention $ 455 - 490 539 $ Robotics 125 - 130 178 Production Facilities 65 - 70 58 Elimination
Slide 22: 2021 Outlook – Well Intervention
22 2021 OUTLOOK – WELL INTERVENTION • Q4000 (Gulf of Mexico) – vessel has contracted backlog through remainder of Q4 and into Q1 • Q5000 (Gulf of Mexico) – vessel has contracted work beginning October with good utilization expected through remainder of Q4 and into Q1 • IRS rental units (Gulf of Mexi
Slide 23: Outlook - Robotics
23 • Grand Canyon II (Asia Pacific) – vessel expected to continue performing ROV support work for decommissioning project offshore Thailand through the remainder of 2021 • Grand Canyon III (North Sea) – vessel expected to continue performing trenching work in the North Sea with good utilization expe
Slide 24: Outlook: Capital Additions & Balance Sheet
24 2021 Capital additions are currently forecasted at $15-$25 million, consisting of the following: • Maintenance Capex – $10-$20 million related to regulatory inspection costs of our systems and equipment and other maintenance capital • Recompletion Capex – $5 million of recompletion costs on one o
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations € Helix 1 ENERGY SOLUTIONS
Slide 26: Non-GAAP Reconciliations
26 NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended Year Ended 9/30/21 9/30/20 6/30/21 9/30/21 9/30/20 12/31/20 Adjusted EBITDA: Net income (loss) (19,043) $ 24,445 $ (13,683) $ (35,776) $ 15,967 $ 20,084 $ Adjustments: Income tax provision (benefit) (1,058) 5,232 (1,968) (2,9
Slide 27: 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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