Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2022 Earnings Presentation
29 slides from Helix Energy Solutions's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Conference Call
April 26, 2022 First Quarter 2022 Conference Call
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. 16) • 2022 Outlook (pg. 19) • Non-GAAP Reconciliations (pg. 25) • Questions and Answers 3
Slide 4: Executive Summary
Executive Summary ENERGY SOLUTIONS,
Slide 5: Executive Summary
EXECUTIVE SUMMARY ($ in millions, except per share amounts, unaudited) Three Months Ended 3/31/22 3/31/21 12/31/21 Revenues $ 150 $ 163 $ 169 Gross profit (loss) $ (19) $ 15 $ (5) (12)% 9% (3)% Net loss1 $ (42) $ (3) $ (26) Diluted loss per share $ (0.28) $ (0.02) $ (0.17) Adjusted EBITDA2 Business
Slide 6: Executive Summary – Q1 2022 Highlights
EXECUTIVE SUMMARY – Q1 2022 HIGHLIGHTS Financial Results • Net loss1 of $(42) million, $(0.28) per diluted share • Adjusted EBITDA2 of $3 million • Operating cash flows of $(17) million • Free Cash Flow2 of $(18) million Operations • Commenced trenching campaigns, additional site clearance work in N
Slide 7: Executive Summary – Q1 2022 Segments
EXECUTIVE SUMMARY – Q1 2022 SEGMENTS Well Intervention • Well intervention vessel fleet utilization 67% • 86% in the GOM • 42% in the North Sea and West Africa • 87% in Brazil1 • 15K IRS utilization 23%; 10K IRS idle during quarter Robotics • Robotics chartered vessels utilization 90% • 323 total ve
Slide 8: Executive Summary – Balance Sheet
EXECUTIVE SUMMARY – BALANCE SHEET Q1 2022 • Cash and cash equivalents of $230 million • Excludes $73 million of restricted cash which primarily includes cash pledged as collateral for a short- term project-related letter of credit expected to be released upon project completion • Liquidity1 of $271
Slide 9: Operational Highlights by Segment
Operational Highlights By Segment 9
Slide 10: Business Segment Results
BUSINESS SEGMENT RESULTS ($ in millions, unaudited) Three Months Ended 3/31/22 3/31/21 12/31/21 Revenues Well Intervention $ 106 $ 134 $ 119 Robotics 37 22 41 Production Facilities 18 16 20 Intercompany eliminations (12) (9) (12) Total $ 150 $ 163 $ 169 Gross profit (loss) % Well Intervention $ (28)
Slide 11: Well Intervention – Gulf of Mexico
WELL INTERVENTION – GULF OF MEXICO • Q5000 – 72% utilized in Q1; performed abandonment scopes on three wells for two customers followed by a short maintenance period; commenced a 15K production enhancement scope for a third customer • Q4000 – 99% utilized in Q1; continued a multi-well campaign with
Slide 12: Well Intervention – North Sea and West Africa
WELL INTERVENTION – NORTH SEA AND WEST AFRICA • Q7000 – 100% utilized in Q1; performed production reinstatement, enhancement and P&A scopes on five wells for two customers in Nigeria • Well Enhancer – 16% utilized in Q1; entered quarter warm stacked, conducted dry dock maintenance during quarter, th
Slide 13: Well Intervention – Brazil
WELL INTERVENTION – BRAZIL • Siem Helix 1 – 100% utilized in Q1; carried out short-term FPSO support and accommodations work offshore West Africa • Siem Helix 2 – 74% utilized in Q1; carried out regulatory maintenance period and performed production enhancement scopes on two wells for Petrobras 13
Slide 14: Robotics
ROBOTICS • Grand Canyon II (Asia Pacific) – 100% utilized in Q1 performing decommissioning work offshore Thailand • Grand Canyon III (North Sea) – 73% utilized in Q1; performed trenching operations for three customers • Shelia Bordelon (GOM) – 74% utilized since taking delivery of vessel mid-Februar
Slide 15: Utilization
UTILIZATION 100% 99% 90% 90% 80% 70% 60% 67% Q1 2022 56% Q4 2021 40% Q1 2021 38% 35% 20% 24% 0% Well Intervention Vessels Robotics Support Vessels ROVs and Trenchers • Q5000 • Siem Helix 11 • Grand Canyon II1 • 40 ROVs2 • Q4000 • Siem Helix 21 • Grand Canyon III1 • 1 ROVDrill unit • Seawell • Q7000
Slide 16: Key Financial Metrics
Key Financial Metrics 16
Slide 17: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Principal Payment Schedule at 3/31/22 Total funded debt1 of $310 million at 3/31/22 ($ in millions) • $35 million Convertible Senior Notes due 2022 – 4.25% • $30 million Convertible Senior Notes due 2023 – 4.125% $250 $210 • $200 million Convertible Senior Notes due 2026 – 6.
Slide 18: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) $500 $426 $380 $452 $400 $348 $305 $300 $271 $200 $254 $267 $279 $291 $230 $100 $208 $22 $1 $0 ($100) $(161) $(143) $(58) $(302) ($200) $(229) $(305) $(350) ($300) $(406) $(496) $(440) ($400) ($500) 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 3/31/22 Cash¹ L
Slide 19: 2022 Outlook
2022 Outlook 19
Slide 20: 2022 Outlook
2022 OUTLOOK We continue to expect 2022 to be a transition year for Helix, where we see an improving energy environment, despite a tepid macro backdrop, with higher commodity prices as we continue to recover from the pandemic. In the second half 2022, we anticipate a stronger North Sea Well Interven
Slide 21: 2022 Outlook – Well Intervention
2022 OUTLOOK – WELL INTERVENTION • Q4000 (Gulf of Mexico) – started regulatory inspection early April and expect to commence operations early May; contracted work in Q2 and Q3 with expected strong utilization for remainder of the year • Q5000 (Gulf of Mexico) – contracted work through Q3 with identi
Slide 22: 2022 Outlook – Robotics
2022 OUTLOOK – ROBOTICS • Grand Canyon II (Asia Pacific) – performed ROV support work for decommissioning project offshore Thailand through late April followed by transit to Taiwan for ROV support work on windfarm project expected through late Q3; expected to have high utilization in 2022 before cur
Slide 23: 2022 Outlook: Capital Additions & Balance Sheet
2022 OUTLOOK: CAPITAL ADDITIONS & BALANCE SHEET 2022 Capital additions are currently forecasted at $45-$55 million: • Primarily maintenance capex related to regulatory recertification costs of our vessels and systems • Capital additions during Q1 approximated $11 million and included • Approximately
Slide 24: Beyond 2022
BEYOND 2022 • Expect to continue anticipated momentum from second half 2022 into 2023 • Market improvements offer additional upside potential • Operating cash flow improvements • Improved operating cash flows in 2023 compared to 2022 • Maintenance capex anticipated to be approximately $40 million an
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations 25
Slide 26: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended 3/31/22 3/31/21 12/31/21 Adjusted EBITDA: Net loss $ (42,031) $ (3,050) $ (25,908) Adjustments: Income tax expense (benefit) 2,140 116 (6,048) Net interest expense 5,174 6,053 5,301 Loss on extinguishment of long-term debt - - 1
Slide 27: Non-GAAP and Other Definitions
NON-GAAP AND OTHER DEFINITIONS Non-GAAP Financial Measures We define EBITDA as earnings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and othe
Slide 28: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental • Our business supports both the responsible transition from a carbon- based economy and extending the value and therefore the life cycle of underutilized wells, which in turn helps clients avoid drilling new wells. These efforts are published in gr
Slide 29: Thank you
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Helix Energy Solutions Group — Q1 2022 Earnings Presentation on 6ix