Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2014 Earnings Presentation
23 slides from Helix Energy Solutions's earnings presentation, Jul 22, 2014
Slide 1: Second Quarter 2014 Conference Call
Second Quarter 2014 Conference Call July 22, 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. 21) 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 22. * Executive Summary
Slide 6: Executive Summary: Q2 2014 earnings and operations
Built for success, positioned for growth Q2 2014 earnings of $0.55 per diluted share compared to $0.51 per diluted share in Q1 2014 Q2 includes a $5.2 million, $(0.03) per diluted share after-tax, charges associated with the provision for uncertain collection of a portion of our existing trade recei
Slide 7: Executive Summary: Balance sheet
Built for success, positioned for growth Balance sheet Liquidity* of $1.1 billion at 06/30/2014 Cash and cash equivalents totaled $501 million at 06/30/2014 Net debt of $57 million at 06/30/2014 See updated debt maturity profile on slide 14 We define liquidity as the total of cash and cash equivalen
Slide 8: Operational Highlights
Built for success, positioned for growth Operational Highlights *
Slide 9: Business Segment Results
Built for success, positioned for growth 98% utilization for the Well Intervention fleet 89% chartered vessel utilization in Robotics T1500 trencher placed into service in the North Sea Skandi Constructor commences company’s first ever well intervention campaign in Canadian waters Seawell * Business
Slide 10: Well Intervention
Built for success, positioned for growth GOM Q4000 was 90% utilized during Q2; off hire 9 days for planned annual inspection and thruster repairs Helix 534 fully utilized during Q2 Both vessels have full backlog for the remainder of 2014 IRS no. 2 on hire for 86 days during the quarter (24 days at s
Slide 11: Robotics
Built for success, positioned for growth 89% chartered vessel fleet utilization in Q2 161 days utilized on spot vessels Olympic Canyon and Deep Cygnus dry docked in May 78% utilization for ROVs, trenchers and ROVDrill Awarded long term ROV services contract support for McDermott construction vessels
Slide 12: Utilization
Built for success, positioned for growth Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1) Grand Canyon (1) REM Installer (1) Spot vessels (1,2) Seawell Well Enhancer Q4000 Skandi Constructor (1) H534 55 ROVs 2 ROVDrill Units 5 Trenchers Chartered vessel Robotics chartered various spot vessels d
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 $583 million at end of Q2 2014: $200 million Convertible Senior Notes – 3.25% (A) ($176 million net of unamortized debt discount) $285 million Term Loan – LIBOR + 2.50% (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 $1.1 billion at 06/30/2014 ($ 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 ($501 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: Well Intervention backlog
Built for success, positioned for growth Total backlog as of June 30, 2014 was approximately $2.7 billion, of which approximately $2.5 billion is associated with our Well Intervention and Robotics businesses Utilization expected to remain strong for the well intervention fleet Q4000 has full backlog
Slide 19: 2014 Outlook: Robotics
Built for success, positioned for growth Trenching market in the North Sea, Norwegian Continental Shelf and Middle East more robust compared to 2013 T1500 performing well and has full backlog through Q3 2014 Rem Installer expected to transit to the Gulf of Mexico in late Q3 2014 at the conclusion of
Slide 20: 2014 Outlook – Capex
Built for success, positioned for growth Total capital expenditures forecasted at approximately $375 million for 2014; $174 million incurred year-to-date(A) $105 million incurred in Q2, including: Approximately $69 million for well intervention newbuilds; inclusive of $58 million milestone payment f
Slide 21: Non-GAAP Reconciliations
Built for success, positioned for growth Non-GAAP Reconciliations *
Slide 22: 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 23: 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 — Q2 2014 Earnings Presentation on 6ix