Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2020 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Apr 23, 2020
Slide 1: 2020 1st Quarter Conference Call
2020 1st Quarter Conference Call April 23, 2020
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. 17) • 2020 Outlook (pg. 20) • Non-GAAP Reconciliations (pg. 24) • Questions and Answers 3
Slide 4: Executive Summary
Executive Summary 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY ($ in millions, except per share data) Three Months Ended 3/31/20 3/31/19 12/31/19 Revenues $ 181 $ 167 $ 171 Gross profit $ 2 $ 16 $ 27 1% 10% 16% 1 Net income (loss) $ (12) $ 1 $ 8 Diluted earnings (loss) per share $ (0.09) $ 0.01 $ 0.05 2 Adjusted EBITDA Business segments $ 26 $
Slide 6: Executive Summary - Highlights Q1 2020
EXECUTIVE SUMMARY - HIGHLIGHTS Highlights – Q1 2020 • Net loss1 of $(12) million, $(0.09) per diluted share, which was impacted by the following: • Goodwill impairment charge of $6.7 million associated with Subsea Technologies Group Limited • Net tax benefits of $8.3 million related to certain forei
Slide 7: Executive Summary – Q1 2020 Operations
EXECUTIVE SUMMARY – Q1 2020 OPERATIONS Well Intervention • Q7000 commenced operations in Nigeria in January 2020 • Utilization of 72% across the well intervention vessel fleet • 59% in the GOM, impacted by 73 days of scheduled regulatory inspections • 63% in the North Sea and West Africa • 99% in Br
Slide 8: Executive Summary – Balance Sheet
EXECUTIVE SUMMARY – BALANCE SHEET Q1 2020 • Cash and cash equivalents of $159 million • Excludes $52 million of restricted cash1 • Liquidity2 of approximately $332 million • Long-term debt3 of $394 million • Net debt4 of $183 million 1 Restricted cash of $52 million pledged as collateral at 3/31/20
Slide 9: Operational Highlights by Segment
Operational Highlights by Segment 9
Slide 10: COVID-19 and Market Events
COVID-19 AND MARKET EVENTS • The ongoing COVID-19 pandemic and the Q1 OPEC+ price war have resulted in a precipitous decrease in the price of oil and caused significant disruption and uncertainty in the oil and gas market. • The COVID-19 pandemic has created challenges for our operations, in particu
Slide 11: Business Segment Results
BUSINESS SEGMENT RESULTS ($ in millions) Three Months Ended 3/31/20 3/31/19 12/31/19 Revenues 2 Well Intervention $ 141 $ 122 $ 142 Robotics 35 39 35 Production Facilities 16 15 17 Intercompany Eliminations (10) (9) (23) 1 Total $ 181 $ 167 $ 171 Gross profit (loss) % 2 Well Intervention $ (1) -1% $
Slide 12: Well Intervention – Gulf of Mexico
WELL INTERVENTION – GULF OF MEXICO Gulf of Mexico • Q5000 - 51% utilized in Q1; completed scheduled five-year regulatory inspection; performed enhancement work on one well for a customer followed by well abandonment work on one well for another customer • Q4000 - 68% utilized in Q1; completed multi-
Slide 13: Well Intervention – North Sea and West Africa
WELL INTERVENTION – NORTH SEA AND WEST AFRICA North Sea and West Africa • Well Enhancer – 63% utilized in Q1; performed one- well intervention work for one customer; completed scheduled dry dock maintenance during seasonal warm stack period; commenced intervention work in March for another customer
Slide 14: Well Intervention – Brazil
WELL INTERVENTION – BRAZIL Brazil • Siem Helix 1 – 98% utilized in Q1; performed workover and production enhancement operations on one well and abandonment scopes on three wells • Siem Helix 2 – 99% utilized in Q1; performed workover and performance enhancement operations on two wells and abandonmen
Slide 15: Robotics
ROBOTICS Grand Canyon II (Asia Pacific) – 100% utilized in Q1; performed ROV support projects for customer in Malaysia Grand Canyon III (North Sea) – 46% utilized in Q1; performed trenching operations for two customers Spot Vessels – 272 total days of spot vessel utilization globally; three vessels
Slide 16: Utilization
UTILIZATION 100% 92% 89% 80% 88% 72% 74% 73% 60% Q1 2020 Q4 2019 40% Q1 2019 41% 39% 34% 20% 0% Well Intervention Vessels Robotics Support Vessels ROVs, Trenchers and ROVDrill • Grand Canyon1,3 • 44 ROVs2 • Q5000 • Siem Helix 11 • Grand Canyon II1 • 1 ROVDrill unit2 • Q4000 • Siem Helix 21 • Grand C
Slide 17: Key Financial Metrics
Key Financial Metrics 17
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt1 of $423 million at 3/31/20 • $125 million Convertible Senior Notes due 2022 – 4.25% Principal Payment Schedule at 3/31/20 ($ in millions) • $125 million Convertible Senior Notes due 2023 – 4.125% $150 $133 $133 • $32 million Term Loan – LIBOR + 3.25% • Quar
Slide 19: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE $700 $626 $600 $496 $500 $440 $406 $394 $400 $300 $269 $229 $200 $183 $161 $143 $100 $0 12/31/16 12/31/17 12/31/18 12/31/19 3/31/20 Long-term Debt¹ Net Debt² Liquidity³ Liquidity3 of approximately $332 million at 3/31/20 1 Long-term debt is net of unamortized debt discounts
Slide 20: 2020 Outlook
2020 Outlook 20
Slide 21: 2020 Outlook – Backlog and Well Intervention
2020 OUTLOOK Total backlog at March 31, 2020 was approximately $678 million ($471 million for Well Intervention); backlog of $392 million expected to be realized during remainder of 2020 Well Intervention Outlook • Q7000 (West Africa) – vessel warm stacked until it resumes its West Africa campaign o
Slide 22: 2020 Outlook – Robotics
2020 OUTLOOK Robotics Outlook Anticipate continued improved cost structure, lower trenching activity, and headwinds in oil & gas market during remainder of the year • Grand Canyon II (Asia Pacific) – contracted for ROV support project through mid-April; identified prospects and expected good utiliza
Slide 23: 2020 Outlook: Capital Additions & Balance Sheet
2020 OUTLOOK: CAPITAL ADDITIONS & BALANCE SHEET 2020 Capital additions are currently forecasted at approximately $38 million, consisting of the following: • Growth Capex – $5 million related primarily to completion of Q7000 and related intervention system • Maintenance Capex – $33 million primarily
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations 24
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended 3/31/20 3/31/19 12/31/19 Adjusted EBITDA: Net income (loss) $ (13,928) $ 1,318 $ 7,934 Adjustments: Income tax provision (benefit) (21,093) 324 1,120 Net interest expense 5,746 2,098 2,129 Loss on extinguishment of long-term deb
Slide 26: Thank you
Thank you eo0o0000 € Helix ENERGY SOLUTIONS
Helix Energy Solutions Group — Q1 2020 Earnings Presentation on 6ix