Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2020 Earnings Presentation
27 slides from Helix Energy Solutions's earnings presentation, Feb 23, 2021
Slide 1: 2020 4th Quarter Conference Call
2020 4th Quarter Conference Call February 23, 2021
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 PRESENTATION OUTLINE 3
Slide 4: Executive Summary
Executive Summary 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY ($ in millions, except per share data, unaudited) Three Months Ended 12/31/20 12/31/19 9/30/20 12/31/20 12/31/19 Revenues 160$ 171$ 193$ 734$ 752$ Gross profit 14$ 27$ 35$ 80$ 138$ 9% 16% 18% 11% 18% Net income 1 4$ 8$ 25$ 22$ 58$ Diluted earnings per share 0.03$ 0.05$ 0.16$ 0.13$
Slide 6: Q4 2020 and Full Year 2020 Highlights
6 Q4 2020 • Net income1 of $4 million, $0.03 per diluted share • Adjusted EBITDA2 of $35 million • Operating cash flows of $40 million • Free Cash Flow2 of $39 million, includes $1 million in capital spending Full Year 2020 • Net income1 of $22 million, $0.13 per diluted share, which was impacted by
Slide 7: Executive Summary – Q4 2020 Operations
7 Well Intervention • Utilization of 56% across the well intervention vessel fleet • 83% in the GOM • 9% in the North Sea and West Africa • 98% in Brazil • 15K IRS utilization 29%; 10K IRS idle during quarter Robotics • Robotics chartered vessels utilization 100% • 336 total vessel days (152 spot da
Slide 8: Executive Summary – Balance Sheet
8 Q4 2020 • Cash and cash equivalents of $291 million • In January 2021, cash of $73 million was restricted as collateral for a short-term project-related letter of credit • In January 2021, we repaid the $54 million remaining balance of the Q5000 Loan at its maturity • Liquidity1 of $452 million •
Slide 9: Operational Highlights by Segment
Operational Highlights by Segment 9
Slide 10: COVID-19 Impact and Response
10 • The ongoing COVID-19 pandemic and its impact on the global economy have resulted in weaker oil prices and caused significant disruption and uncertainty in the oil and gas market • The COVID-19 pandemic has created challenges for our operations, including crew changes due to travel restrictions;
Slide 11: Business Segment Results
BUSINESS SEGMENT RESULTS ($ in millions, unaudited) Three Months Ended Year Ended 12/31/20 12/31/19 9/30/20 12/31/20 12/31/19 Revenues Well Intervention 112$ 142$ 141$ 539$ 593$ Robotics 42 35 50 178 172 Production Facilities 15 17 14 58 61 Intercompany eliminations (9) (23) (11) (42) (74) Total 1 1
Slide 12: Well Intervention – Gulf of Mexico
Gulf of Mexico • Q5000 – 89% utilized in Q4 for BP • Q4000 – 78% utilized in Q4; completed production enhancement work on two wells for two customers; completed abandonment work on three wells for another customer; completed production enhancement utilizing the 15K IRS for another customer after a s
Slide 13: Well Intervention – North Sea and West Africa
North Sea and West Africa • Well Enhancer – 26% utilized in Q4; performed well suspension and enhancement work for one customer and environmental clean up for another customer, warm stacked at year-end in Leith • Seawell – warm stacked during Q4 in Leith • Q7000 – warm stacked in Tenerife early Q4;
Slide 14: Well Intervention – Brazil
Brazil • Siem Helix 1 – 98% utilized in Q4; performed abandonment scopes on six wells • Siem Helix 2 – 99% utilized in Q4; performed workover and production enhancement operations on one well and abandonment scopes on four wells WELL INTERVENTION – BRAZIL 14
Slide 15: Robotics
• Grand Canyon II (Asia Pacific) – 100% utilized in Q4 performing ROV support work on wind farm project offshore Taiwan • Grand Canyon III (North Sea) – 100% utilized in Q4 performing trenching operations for two customers • Spot Vessels – 152 total days of spot vessel utilization • 74 days on two v
Slide 16: Utilization
16 UTILIZATION • Grand Canyon1,3 • Grand Canyon II1 • Grand Canyon III1 • Spot vessels1 • Q5000 • Q4000 • Seawell • Well Enhancer • Siem Helix 11 • Siem Helix 21 • Q70004 • 44 ROVs2 • 4 Trenchers • 1 ROVDrill unit 56% 100% 32% 68% 95% 37% 92% 73% 41% 0% 20% 40% 60% 80% 100% Well Intervention Vessels
Slide 17: Key Financial Metrics
Key Financial Metrics 17
Slide 18: Debt Instrument Profile
Total funded debt1 of $405 million at 12/31/20 • $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% • $30 million Term Loan – LIBOR + 3.25% • Quarterly amortization payments of approx
Slide 19: Debt & Liquidity Profile
19 DEBT & LIQUIDITY PROFILE ($ in millions) $626 $496 $440 $406 $350 $269 $229 $161 $143 $58 $375 $348 $426 $380 $452 $0 $100 $200 $300 $400 $500 $600 $700 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 Long-term Debt¹ Net Debt² Liquidity³ Liquidity3 of approximately $452 million at 12/31/20 1 Long-te
Slide 20: 2021 Outlook
2021 Outlook 20
Slide 21: 2021 Outlook
2021 OUTLOOK 21 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 maintain the challenges of 2020. Our customers’ spending levels currently remain low
Slide 22: 2021 Outlook – Well Intervention
22 2021 OUTLOOK Well Intervention Outlook • Q4000 (Gulf of Mexico) – contracted backlog into March; identified opportunities thereafter on a broad range of work scopes; scheduling gaps expected • Q5000 (Gulf of Mexico) – vessel working for BP through contract end in Q2; identified opportunities ther
Slide 23: 2021 Outlook – Robotics
23 Robotics Outlook • Grand Canyon II (Asia Pacific) – completed ROV support work for a renewables project in Japan in January; strong utilization expected in Asia Pacific region for the remainder of 2021; vessel charter extended through 2021 with option to renew through 2022. • Grand Canyon III (No
Slide 24: 2021 Outlook: Capital Additions & Balance Sheet
24 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 – $5-10 million of recompletion costs on one
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations 25
Slide 26: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended 12/31/20 12/31/19 9/30/20 12/31/20 12/31/19 Adjusted EBITDA: Net income 4,117$ 7,934$ 24,445$ 20,084$ 57,697$ Adjustments: Income tax provision (benefit) (2,569) 1,120 5,232 (18,701) 7,859 Net interest expense 8,124 2,129 7,598
Slide 27: Thank you
Thank you eo0o000 € Helix ENERGY SOLUTIONS
Helix Energy Solutions Group — Q4 2020 Earnings Presentation on 6ix