Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2024 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Jul 25, 2024
Slide 1: 2024 Second Quarter Conference Call
July 25, 2024 2024 Second Quarter Conference Call
Slide 2: Forward-Looking Statements
INTRODUCTION 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
Slide 3: At Helix, our purpose is to enable energy transition
At Helix, our purpose is to enable energy transition through: Maximizing Existing Lowering Decommissioning Offshore Renewables & Reserves Costs Wind Farms Enhancing remaining production Restoring the seabed in an Transitioning our energy economy from existing oil and gas wells environmentally safe m
Slide 4: Agenda
PRESENTATION OUTLINE Agenda • Executive Summary (pg. 5) • Operational Highlights (pg. 8) • Key Financial Metrics (pg. 13) • 2024 Outlook (pg. 15) • Non-GAAP Reconciliations (pg. 20) • Questions and Answers 4 4
Slide 5: Executive Summary
ww Executive Summary ENERGY SOLUTIONS
Slide 6: Summary of Results
EXECUTIVE SUMMARY Summary of Results ($ in millions, except per share amounts, unaudited) Three Months Ended Six Months Ended 6/30/24 6/30/23 3/31/24 6/30/24 6/30/23 Revenues $ 365 $ 309 $ 296 $ 661 $ 559 Gross profit $ 75 $ 55 $ 20 $ 95 $ 71 21% 18% 7% 14% 13% Net income (loss) $ 32 $ 7 $ (26) $ 6
Slide 7: Second Quarter 2024 Highlights
EXECUTIVE SUMMARY Second Quarter 2024 Highlights Financial Results Revenue By Market Strategy3 • Net income of $32 million, $0.21 per diluted share Quarter Ended June 30, 2024 • Adjusted EBITDA1 of $97 million • Operating cash flows2 of $(12) million Other • Free Cash Flow1,2 of $(16) million 1% Fin
Slide 8: Operational Highlights
Operational Highlights 8
Slide 9: Segment Results
OPERATIONAL HIGHLIGHTS Segment Results ($ in millions, unaudited) Three Months Ended Six Months Ended 6/30/24 6/30/23 3/31/24 6/30/24 6/30/23 Revenues Well Intervention $ 225 $ 154 $ 216 $ 441 $ 297 Robotics 81 70 50 132 119 Shallow Water Abandonment 51 76 27 78 126 Production Facilities 25 23 24 50
Slide 10: Well Intervention Utilization
OPERATIONAL HIGHLIGHTS Well Intervention Utilization • Q5000 (GOM) – 81% utilized in Q2; completed multi-well production enhancement and abandonment campaign for Shell and performed production enhancement project for another customer utilizing the 15K IRS; vessel incurred short gap between customers
Slide 11: Robotics Utilization
OPERATIONAL HIGHLIGHTS Robotics Utilization • Grand Canyon II (Asia Pacific) – 100% utilized in Q2; performed windfarm support work for various projects offshore 80% 528 Taiwan 506 76% 500 • Grand Canyon III (North Sea) – 82% utilized in Q2; completed 70% 68% 66% installation of fuel-saving battery
Slide 12: Shallow Water Abandonment Utilization
OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Utilization Q2 activity levels reflect seasonal improvements to most asset classes; overall activity levels continue to be reflective of weaker Gulf of Mexico shelf market in 2024 Offshore • Liftboats – nine liftboats with combined utilization of 57%
Slide 13: Key Financial Metrics
Key Financial Metrics 13
Slide 14: Debt Instrument Profile
KEY FINANCIAL METRICS Debt Instrument Profile Principal Payment Schedule at 6/30/24 Debt and Liquidity Profile at 6/30/24 ($ in millions) ($ in millions) $300 $500 $431 $370 $400 $250 $305 $285 $300 $332 $200 $200 $254 $275 $187 $100 $150 $300 $22 $0 $100 ($100) $(30) $(44) $(75) ($200) $50 $(264) $
Slide 15: 2024 Outlook
2024 Outlook 15
Slide 16: Forecast
2024 OUTLOOK Forecast Key Financial Metrics Key Forecast Drivers ($ in millions) 2024 2023 Our current outlook is based among other things on the following expected key drivers: Outlook Actual Well Intervention Revenues $ 1,250 - 1,400 $ 1,290 • GOM – forecasted improved rates following completion o
Slide 17: Capital Additions, Cash Flow & Balance Sheet
2024 OUTLOOK Capital Additions, Cash Flow & Balance Sheet 2024 Capital additions are forecasted at approximately $60 – $80 million: • Capital additions during Q2 included approximately $13 million for regulatory certification costs for our vessels and systems, which are reported in operating cash fl
Slide 18: Segments Outlook
2024 OUTLOOK Segments Outlook Well Intervention Robotics • Q4000 (Gulf of Mexico / West Africa) – contracted work into Q3 followed by • Grand Canyon II (Asia Pacific) – vessel expected to be fully utilized providing mobilization and transit to Nigeria for project expected to begin Q4 ROV support on
Slide 19: Beyond 2024
Beyond 2024 We continue momentum on our Energy Transition business Robotics strategy: Production Maximization, Decommissioning and • Anticipate continued strong renewables trenching market Renewables and deployment of T-1400-2 jet trencher • Continued strong cash generation expected in this current
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations 20
Slide 21: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations Three Months Ended Six Months Ended Year Ended ($ in thousands, unaudited) 6/30/24 6/30/23 3/31/24 6/30/24 6/30/23 12/31/23 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income income (loss) $ 32,289 $ 7,100 $ (26,287) $ 6,002 $ 1,935
Slide 22: Non-GAAP Definitions
NON-GAAP RECONCILIATIONS Non-GAAP Definitions Non-GAAP Financial Measures We define EBITDA as earnings before income taxes, net interest expense, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets are also added
Slide 23: 2023 Corporate Sustainability Report
2023 Corporate Sustainability Report Sustainability continues to drive our business strategy and decision- making with a renewed focus on our commitment to energy security and participation in the world’s energy transition. Through maximizing existing reserves, decommissioning, and renewable energy
Slide 24: Energy Solutions
ENERGY SOLUTIONS
Helix Energy Solutions Group — Q2 2024 Earnings Presentation on 6ix