エドガーで原本を確認する
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 2025
HELIX ENERGY SOLUTIONS GROUP, INC.
(Exact name of registrant as specified in its charter)
Minnesota |
001-32936 |
95-3409686 |
(State or other jurisdiction |
(Commission |
(IRS Employer |
3505 West Sam Houston Parkway North |
|
|
Suite 400 |
|
|
Houston, Texas |
|
77043 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code: 281-618-0400
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, no par value |
|
HLX |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 23, 2025, Helix Energy Solutions Group, Inc. (“Helix”) issued a press release reporting its financial results for the first quarter 2025. The press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
On April 23, 2025, Helix issued a press release reporting its financial results for the first quarter 2025. In addition, on April 24, 2025, Helix is making a presentation (with slides) to analysts and investors regarding its financial and operating results. Furnished herewith as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference, are the press release and the slides for the First Quarter 2025 Conference Call Presentation issued by Helix. The presentation materials are also available on the Investor Relations section of Helix’s website, www.helixesg.com.
The information furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 23, 2025 |
|
|
|
|
|
HELIX ENERGY SOLUTIONS GROUP, INC. |
|
|
|
|
|
|
By: |
/s/ Erik Staffeldt |
|
|
|
|
Erik Staffeldt |
|
|
|
Executive Vice President and |
EXHIBIT 99.1
|
|
|
|
|
|
|
|
|
Helix Energy Solutions Group, Inc. |
● |
3505 W. Sam Houston Parkway N., Suite 400 |
● |
Houston, TX 77043 |
● |
281-618-0400 |
● |
fax: 281-618-0505 |
|
|
|
|
|
|
|
|
|
For Immediate Release |
|
|
|
|
|
|
25-006 |
|
|
|
|
|
|
|
|
|
|
Date: April 23, 2025 |
Contact: |
Erik Staffeldt |
|
|
|
|
||
|
|
|
Executive Vice President & CFO |
|
|
|||
|
|
|
|
|
|
|
|
|
Helix Reports First Quarter 2025 Results
HOUSTON, TX – Helix Energy Solutions Group, Inc. (“Helix”) (NYSE: HLX) reported net income of $3.1 million, or $0.02 per diluted share, for the first quarter 2025 compared to net income of $20.1 million, or $0.13 per diluted share, for the fourth quarter 2024 and a net loss of $26.3 million, or $(0.17) per diluted share, for the first quarter 2024. Net loss in the first quarter 2024 included a net pre-tax loss of approximately $20.9 million related to the redemption of our former Convertible Senior Notes due 2026 (“2026 Notes”).
Helix reported adjusted EBITDA1 of $52.0 million for the first quarter 2025 compared to $71.6 million for the fourth quarter 2024 and $47.0 million for the first quarter 2024. The table below summarizes our results of operations:
Summary of Results
($ in thousands, except per share amounts, unaudited)
|
|
Three Months Ended |
|
|||||||
|
|
3/31/2025 |
|
3/31/2024 |
|
12/31/2024 |
|
|||
Revenues |
|
$ |
278,064 |
|
$ |
296,211 |
|
$ |
355,133 |
|
Gross Profit |
|
$ |
27,538 |
|
$ |
19,554 |
|
$ |
58,859 |
|
|
|
|
10 |
% |
|
7 |
% |
|
17 |
% |
Net Income (loss) |
|
$ |
3,072 |
|
$ |
(26,287) |
|
$ |
20,121 |
|
Basic Earnings (Loss) Per Share |
|
$ |
0.02 |
|
$ |
(0.17) |
|
$ |
0.13 |
|
Diluted Earnings (Loss) Per Share |
|
$ |
0.02 |
|
$ |
(0.17) |
|
$ |
0.13 |
|
Adjusted EBITDA1 |
|
$ |
51,985 |
|
$ |
46,990 |
|
$ |
71,641 |
|
Cash and Cash Equivalents |
|
$ |
369,987 |
|
$ |
323,849 |
|
$ |
368,030 |
|
Net Debt1 |
|
$ |
(58,878) |
|
$ |
(5,685) |
|
$ |
(52,873) |
|
Cash Flows from Operating Activities |
|
$ |
16,442 |
|
$ |
64,484 |
|
$ |
77,977 |
|
Free Cash Flow1 |
|
$ |
11,954 |
|
$ |
61,242 |
|
$ |
65,454 |
|
Owen Kratz, President and Chief Executive Officer of Helix, stated, “As expected, our first quarter was impacted by the seasonal slowdown in the North Sea and the Gulf of America shelf. In addition, we performed the planned regulatory dockings of several chartered vessels in our Robotics fleet and completed the docking and mobilization of the Q7000 for the Shell project in Brazil. Nonetheless, we delivered strong first quarter results with higher rates in our Well Intervention segment in Brazil and on our Q vessels. However, our first quarter has been overshadowed by the announcement of production increases by OPEC+, the announcement of U.S. tariffs and its impact on the global market, and the continuing challenges of the North Sea oil and gas market. The confluence of these events has caused a precipitous drop in commodity prices and created uncertainty for our customers and the global economy. As a result, we are seeing some operators pausing work, notably in the North Sea where the current regulatory environment was already challenging for offshore oil and gas production. In response to the new market environment, we are adjusting our operations to align with decreased activity, but with our strong balance sheet and backlog of contracted work, we nevertheless expect to generate meaningful free cash flow in 2025.”
|
1 Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP measures; see reconciliations below |
Segment Information, Operational and Financial Highlights
($ in thousands, unaudited)
|
|
Three Months Ended |
|||||||
|
|
3/31/2025 |
|
3/31/2024 |
|
12/31/2024 |
|||
Revenues: |
|
|
|
|
|
|
|
|
|
Well Intervention |
|
$ |
198,374 |
|
$ |
211,300 |
|
$ |
226,188 |
Robotics |
|
|
51,042 |
|
|
50,309 |
|
|
81,594 |
Shallow Water Abandonment |
|
|
16,818 |
|
|
26,853 |
|
|
37,690 |
Production Facilities |
|
|
19,837 |
|
|
24,152 |
|
|
18,462 |
Intercompany Eliminations |
|
|
(8,007) |
|
|
(16,403) |
|
|
(8,801) |
Total |
|
$ |
278,064 |
|
$ |
296,211 |
|
$ |
355,133 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations: |
|
|
|
|
|
|
|
|
|
Well Intervention |
|
$ |
19,970 |
|
$ |
18,679 |
|
$ |
29,118 |
Robotics |
|
|
5,347 |
|
|
5,450 |
|
|
19,335 |
Shallow Water Abandonment |
|
|
(13,441) |
|
|
(12,428) |
|
|
(5,422) |
Production Facilities |
|
|
6,944 |
|
|
(1,543) |
|
|
5,498 |
Corporate / Other / Eliminations |
|
|
(10,648) |
|
|
(11,434) |
|
|
(17,651) |
Total |
|
$ |
8,172 |
|
$ |
(1,276) |
|
$ |
30,878 |
Segment Results
Well Intervention
Well Intervention revenues decreased $27.8 million, or 12%, during the first quarter 2025 compared to the prior quarter primarily due to seasonally lower utilization in the North Sea as well as a higher number of mobilization and docking days on the Q7000. Revenue decreases were offset partially by higher rates during the first quarter 2025. Utilization on the North Sea vessels declined to 17% during the first quarter 2025 from 38% during the prior quarter. During the first quarter 2025, following the vessel’s mobilization and regulatory docking, the Q7000 commenced operations in Brazil and recognized six days of revenue compared to recognizing 36 days of revenue during the prior quarter. Revenues also decreased quarter over quarter due to the contract cancellation benefit of approximately $14.0 million recognized during the fourth quarter 2024. Revenue decreases were offset in part by higher revenues in Brazil on the Siem Helix 1, which recognized a full quarter of its contract extension with Trident that commenced during the prior quarter at higher rates and on the Siem Helix 2, which commenced its new contract with Petrobras early January 2025 at higher rates. Overall Well Intervention vessel utilization was 67% during the first quarter 2025 compared to 79% during the prior quarter. Well Intervention operating income decreased $9.1 million during the first quarter 2025 compared to the prior quarter. The decrease was due primarily to lower revenues, offset in part by higher cost deferrals on the Q7000 during its mobilization and regulatory docking during the first quarter 2025.
Well Intervention revenues decreased $12.9 million, or 6%, during the first quarter 2025 compared to the first quarter 2024. The decrease was primarily due to lower utilization on the Seawell and the Q7000, offset in part by higher rates during the first quarter 2025. Revenues decreased on the Seawell, which was idle during the first quarter 2025 compared to being nearly fully utilized operating in the western Mediterranean during the first quarter 2024. Revenues on the Q7000 were lower due to the vessel recognizing only six days of revenue in Brazil during the first quarter 2025 compared to being fully utilized in Australia during the first quarter 2024. The Q7000 completed its mobilization and regulatory docking and commenced its 400-day contract in Brazil at the end of March 2025. During the first quarter 2025, the Q4000 generated higher integrated project revenues while the Q5000 worked at higher contracted rates compared to the first quarter 2024. Additionally during the first quarter 2025, the Siem Helix 1 operated at higher rates on its contract extension with Trident compared to the first quarter 2024 and the Siem Helix 2 operated at higher rates on its new contract with Petrobras that commenced early January 2025. Overall Well Intervention vessel utilization decreased to 67% during the first quarter 2025 compared to 90% during the first quarter 2024. Well Intervention operating income increased $1.3 million during the first quarter 2025 compared to the first quarter 2024 primarily due to lower idle vessel costs in the North Sea and cost deferrals on the Q7000 during its mobilization and regulatory docking, offset in part by lower revenues during the first quarter 2025.
Robotics
Robotics revenues decreased $30.6 million, or 37%, during the first quarter 2025 compared to the prior quarter. The decrease in revenues was due to seasonally lower vessel days and trenching and ROV utilization compared to the prior quarter. During the first quarter 2025, chartered vessel activity decreased to 244 days, or 67%, compared to 508 days, or 98%, and ROV and trencher utilization decreased to 51% compared to 64%, during the prior quarter. Integrated vessel trenching decreased to 135 days during the first quarter 2025 compared to 269 days during the prior quarter, whereas standalone trenching on third-party vessels increased to 90 days compared to 26 days quarter over quarter following the return of the Siem Topaz chartered vessel and transition of the T1400-1 trencher onto a third-party vessel. Site clearance operations using our IROV boulder grabs generated 21 days of utilization during the first quarter 2025 compared to 65 days during the prior quarter. Robotics operating income decreased $14.0 million during the first quarter 2025 compared to the prior quarter primarily due to lower revenues, offset in part by a reduction in vessel charter costs, during the first quarter 2025.
Robotics revenues increased $0.7 million, or 1%, during the first quarter 2025 compared to the first quarter 2024. The increase in revenues was primarily due to increased trenching activities, offset in part by a reduction in other ROV and vessel utilization compared to the first quarter 2024. The first quarter 2025 included 135 integrated vessel trenching days and 90 days of trenching on a third-party vessel compared to 85 integrated vessel trenching days during the first quarter 2024. Chartered vessel activity decreased to 244 days, or 67%, during the first quarter 2025 compared to 333 days, or 74%, during the first quarter 2024. Overall ROV and trencher utilization decreased to 51% during the first quarter 2025 compared to 58% during the first quarter 2024. Robotics operating income decreased $0.1 million during the first quarter 2025.
Shallow Water Abandonment
Shallow Water Abandonment revenues decreased $20.9 million, or 55%, during the first quarter 2025 compared to the prior quarter. The decrease in revenues reflected seasonally lower vessel and system utilization during the first quarter 2025. Vessel utilization (excluding heavy lift) decreased to 31% during the first quarter 2025 compared to 65% during the prior quarter. Plug and Abandonment (“P&A”) and Coiled Tubing (“CT”) systems activity decreased to 264 days, or 11% utilization, during the first quarter 2025 compared to 416 days, or 17% utilization, during the prior quarter. The Epic Hedron heavy lift barge was idle during the first quarter 2025 compared to having 41% utilization during the prior quarter. Shallow Water Abandonment operating loss increased $8.0 million during the first quarter 2025 compared to the prior quarter primarily due to lower revenues, offset in part by lower costs during the first quarter 2025.
Shallow Water Abandonment revenues decreased $10.0 million, or 37%, during the first quarter 2025 compared to the first quarter 2024 due to lower system and vessel utilization during the first quarter 2025. P&A and CT systems utilization decreased to 264 days, or 11%, during the first quarter 2025 compared to 626 days, or 26%, during the first quarter 2024. Vessel utilization (excluding heavy lift) was 31% during the first quarter 2025 compared to 44% during the first quarter 2024. The Epic Hedron heavy lift barge was idle during the first quarters of both 2024 and 2025. Shallow Water Abandonment operating loss increased $1.0 million during the first quarter 2025 compared to the first quarter 2024 primarily due to lower revenues offset in part by lower costs during the first quarter 2025.
Production Facilities
Production Facilities revenues increased $1.4 million, or 7%, during the first quarter 2025 compared to the prior quarter primarily due to higher oil and gas production from the Droshky wells, which had a full quarter of production during the first quarter 2025 but were shut in for one month during the prior quarter. Production Facilities operating income increased $1.4 million during the first quarter 2025 compared to the prior quarter primarily due to higher production revenues during the first quarter 2025.
Production Facilities revenues decreased $4.3 million, or 18%, during the first quarter 2025 compared to the first quarter 2024 primarily due to lower oil and gas production and prices during the first quarter 2025. Oil and gas production during the first quarter 2025 did not include production from the Thunder Hawk wells, which were active during the first quarter 2024 but have been shut-in since the third quarter 2024. Production Facilities operating income increased $8.5 million during the first quarter 2025 compared to the first quarter 2024 primarily due to the incurrence of well workover costs related to the Thunder Hawk wells during the first quarter 2024.
Selling, General and Administrative and Other
Selling, General and Administrative
Selling, general and administrative expenses were $19.4 million, or 7.0% of revenue, during the first quarter 2025 compared to $27.6 million, or 7.8% of revenue, during the prior quarter and $21.0 million, or 7.0% of revenue, during the first quarter 2024. The decrease in expenses during the first quarter 2025 was primarily due to lower compensation costs compared to the prior quarter and prior year.
Other Income and Expenses
Other expense, net was $0.4 million during the first quarter 2025 compared to $1.3 million during the prior quarter and $2.2 million during the first quarter 2024. Other expense, net in the first quarter 2025 primarily included net foreign currency losses related to the approximate 3% appreciation of the British pound during the quarter on net U.S. dollar cash balances in our U.K. subsidiaries. Other expense, net in the fourth and first quarters 2024 primarily included foreign currency losses related to the depreciation of the British pound of approximately 6% and 1%, respectively on net U.S. dollar liabilities in our U.K. subsidiaries.
Cash Flows
Operating cash flows were $16.4 million during the first quarter 2025 compared to $78.0 million during the prior quarter and $64.5 million during the first quarter 2024. First quarter 2025 operating cash flows decreased compared to the prior quarter primarily due to lower earnings and higher regulatory certification costs on our vessels and systems, which were primarily related to the dockings of the Q7000 and the Seawell during the first quarter 2025. First quarter 2025 operating cash flows decreased compared to the first quarter 2024 primarily due to higher regulatory certification costs on our vessels and systems and lower working capital inflows during the first quarter 2025. Regulatory certifications for our vessels and systems, which are included in operating cash flows, were $17.9 million during the first quarter 2025 compared to $6.1 million during the prior quarter and $9.6 million during the first quarter 2024.
Capital expenditures, which are included in investing cash flows, totaled $4.5 million during the first quarter 2025 compared to $12.5 million during the prior quarter and $3.6 million during the first quarter 2024.
Free Cash Flow was $12.0 million during the first quarter 2025 compared to $65.5 million during the prior quarter and $61.2 million during the first quarter 2024. The decrease in Free Cash Flow in the first quarter 2025 compared to the prior quarter and the first quarter 2024 was due primarily to lower operating cash flows during the first quarter 2025. (Free Cash Flow is a non-GAAP measure. See reconciliation below.)
Financial Condition and Liquidity
Cash and cash equivalents were $370.0 million at March 31, 2025. Available capacity under our ABL facility at March 31, 2025, was $62.7 million, and total liquidity was $404.7 million, excluding cash pledged toward our ABL facility. Consolidated long-term debt was $311.1 million at March 31, 2025, resulting in negative Net Debt of $58.9 million. (Net Debt is a non-GAAP measure. See reconciliation below.)
* * * * *
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly teleconference to review its first quarter 2025 results (see the Investor Relations page of Helix’s website, www.helixesg.com). The teleconference is scheduled for Thursday, April 24, 2025, at 9:00 a.m. Central Time. Investors and other interested parties wishing to participate in the teleconference should dial 1-888-596-4144 within the United States and 1-646-968-2525 outside the United States. The passcode is “Staffeldt.” A live webcast of the teleconference will be available in a listen-only mode on the Investor Relations section of Helix’s website. A replay of the webcast will be available on Helix’s website shortly after the completion of the event.
About Helix
Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, is an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention, robotics and decommissioning operations. Our services are key in supporting a global energy transition by maximizing production of existing oil and gas reserves, decommissioning end-of-life oil and gas fields and supporting renewable energy developments. For more information about Helix, please visit our website at www.helixesg.com.
Non-GAAP Financial Measures
Management evaluates operating performance and financial condition using certain non-GAAP measures, primarily EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt. 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 back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude gains or losses on disposition of assets, acquisition and integration costs, gains or losses related to convertible senior notes, the change in fair value of contingent consideration, and the general provision (release) for current expected credit losses, if any. We define Free Cash Flow as cash flows from operating activities less capital expenditures, net of proceeds from asset sales and insurance recoveries (related to property and equipment), if any. Net Debt is calculated as long-term debt including current maturities of long-term debt less cash and cash equivalents and restricted cash.
We use EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial and strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt provide useful information to the public regarding our operating performance and ability to service debt and fund capital expenditures and may help our investors understand and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income, cash flows from operating activities, or other income or cash flow data prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures. See reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. We have not provided reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures due to the challenges and impracticability with estimating some of the items without unreasonable effort, which amounts could be significant.
Forward-Looking Statements
This press release 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 statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding: our plans, strategies and objectives for future operations; any projections of financial items including projections as to guidance and other outlook information; future operations expenditures; our ability to enter into, renew and/or perform commercial contracts; the spot market; our current work continuing; visibility and future utilization; our protocols and plans; future economic or political conditions; energy transition or energy security; our spending and cost management efforts and our ability to manage changes; oil price volatility and its effects and results; our ability to identify, effect and integrate mergers, acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition and any subsequently identified legacy issues with respect thereto; developments; any financing transactions or arrangements or our ability to enter into such transactions or arrangements; our sustainability initiatives; our share repurchase program or execution; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to market conditions and the demand for our services; volatility of oil and natural gas prices; complexities of global political and economic developments, including tariffs; results from mergers, acquisitions, joint ventures or similar transactions; results from acquired properties; our ability to secure and realize backlog; the performance of contracts by customers, suppliers and other counterparties; actions by governmental and regulatory authorities; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; the effectiveness of our sustainability initiatives and disclosures; human capital management issues; geologic risks; and other risks described from time to time in our filings with the Securities and Exchange Commission (“SEC”), including our most recently filed Annual Report on Form 10-K, which are available free of charge on the SEC’s website at www.sec.gov. We assume no obligation and do not intend to update these forward-looking statements, which speak only as of their respective dates, except as required by law.
HELIX ENERGY SOLUTIONS GROUP, INC.
|
|
|
Three Months Ended Mar. 31, |
||||
(in thousands, except per share data) |
|
|
2025 |
|
2024 |
||
|
|
|
(unaudited) |
||||
|
|
|
|
|
|
|
|
Net revenues |
|
|
$ |
278,064 |
|
$ |
296,211 |
Cost of sales |
|
|
|
250,526 |
|
|
276,657 |
Gross profit |
|
|
|
27,538 |
|
|
19,554 |
Loss on disposition of assets, net |
|
|
— |
|
|
(150) |
|
Selling, general and administrative expenses |
|
|
(19,366) |
|
|
(20,680) |
|
Income (loss) from operations |
|
|
8,172 |
|
|
(1,276) |
|
Net interest expense |
|
|
|
(5,706) |
|
|
(5,477) |
Losses related to convertible senior notes |
|
|
— |
|
|
(20,922) |
|
Other expense, net |
|
|
(357) |
|
|
(2,216) |
|
Royalty income and other |
|
|
1,416 |
|
|
1,906 |
|
Income (loss) before income taxes |
|
|
3,525 |
|
|
(27,985) |
|
Income tax provision (benefit) |
|
|
453 |
|
|
(1,698) |
|
Net income (loss) |
|
|
$ |
3,072 |
|
$ |
(26,287) |
|
|
|
|
|
|
|
|
Earnings (loss) per share of common stock: |
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.02 |
|
$ |
(0.17) |
Diluted |
|
|
$ |
0.02 |
|
$ |
(0.17) |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
|
151,039 |
|
|
152,369 |
Diluted |
|
|
|
152,174 |
|
|
152,369 |
|
|
|
Mar. 31, 2025 |
|
Dec. 31, 2024 |
||
(in thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
369,987 |
|
$ |
368,030 |
Accounts receivable, net |
|
|
|
258,485 |
|
|
258,630 |
Other current assets |
|
|
|
107,735 |
|
|
83,022 |
Total Current Assets |
|
|
|
736,207 |
|
|
709,682 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
|
1,434,365 |
|
|
1,437,853 |
Operating lease right-of-use assets |
|
|
|
327,732 |
|
|
329,649 |
Deferred recertification and dry dock costs, net |
|
|
89,115 |
|
|
71,718 |
|
Other assets, net |
|
|
|
47,604 |
|
|
48,178 |
Total Assets |
|
|
$ |
2,635,023 |
|
$ |
2,597,080 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
159,835 |
|
$ |
144,793 |
Accrued liabilities |
|
|
|
90,606 |
|
|
90,455 |
Current maturities of long-term debt |
|
|
|
9,412 |
|
|
9,186 |
Current operating lease liabilities |
|
|
|
63,542 |
|
|
59,982 |
Total Current Liabilities |
|
|
|
323,395 |
|
|
304,416 |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
|
301,697 |
|
|
305,971 |
Operating lease liabilities |
|
|
|
281,146 |
|
|
285,984 |
Deferred tax liabilities |
|
|
|
113,416 |
|
|
113,973 |
Other non-current liabilities |
|
|
|
70,104 |
|
|
66,971 |
Shareholders' equity |
|
|
|
1,545,265 |
|
|
1,519,765 |
Total Liabilities and Equity |
|
|
$ |
2,635,023 |
|
$ |
2,597,080 |
HELIX ENERGY SOLUTIONS GROUP, INC.
|
|
|
Three Months Ended |
||||
(in thousands) |
|
|
3/31/2025 |
|
3/31/2024 |
||
|
|
|
(unaudited) |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income (loss) |
|
|
$ |
3,072 |
|
$ |
(26,287) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
42,482 |
|
|
46,353 |
Deferred recertification and dry dock costs |
|
|
(17,855) |
|
|
(9,594) |
|
Losses related to convertible senior notes |
|
|
— |
|
|
20,922 |
|
Working capital and other |
|
|
|
(11,257) |
|
|
33,090 |
Net cash provided by operating activities |
|
|
16,442 |
|
|
64,484 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Capital expenditures |
|
|
|
(4,488) |
|
|
(3,605) |
Proceeds from insurance recoveries |
|
|
|
— |
|
|
363 |
Net cash used in investing activities |
|
|
(4,488) |
|
|
(3,242) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Repayments of long-term debt |
|
|
|
(4,537) |
|
|
(65,021) |
Repurchases of common stock |
|
|
|
— |
|
|
(4,177) |
Other financing activities |
|
|
|
(6,538) |
|
|
(106) |
Net cash used in financing activities |
|
|
(11,075) |
|
|
(69,304) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
1,078 |
|
|
(280) |
|
Net increase (decrease) in cash and cash equivalents |
|
|
1,957 |
|
|
(8,342) |
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
Balance, beginning of year |
|
|
|
368,030 |
|
|
332,191 |
Balance, end of period |
|
|
$ |
369,987 |
|
$ |
323,849 |
Helix Energy Solutions Group, Inc.
Reconciliation of Non-GAAP Measures
|
|
|
|
Three Months Ended |
|||||||
(in thousands, unaudited) |
|
|
|
3/31/2025 |
|
3/31/2024 |
|
12/31/2024 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
||
Net income (loss) |
|
|
|
$ |
3,072 |
|
$ |
(26,287) |
|
$ |
20,121 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
|
|
|
453 |
|
|
(1,698) |
|
|
3,880 |
Net interest expense |
|
|
|
|
5,706 |
|
|
5,477 |
|
|
5,572 |
Other expense, net |
|
|
|
|
357 |
|
|
2,216 |
|
|
1,275 |
Depreciation and amortization |
|
|
|
|
42,482 |
|
|
46,353 |
|
|
40,564 |
EBITDA |
|
|
|
|
52,070 |
|
|
26,061 |
|
|
71,412 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Loss on disposition of assets, net |
|
|
— |
|
|
150 |
|
|
429 |
||
General release of current expected credit losses |
|
|
(85) |
|
|
(143) |
|
|
(200) |
||
Losses related to convertible senior notes |
|
|
— |
|
|
20,922 |
|
|
— |
||
Adjusted EBITDA |
|
|
|
$ |
51,985 |
|
$ |
46,990 |
|
$ |
71,641 |
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
$ |
16,442 |
|
$ |
64,484 |
|
$ |
77,977 |
|
Less: Capital expenditures, net of proceeds from asset sales and insurance recoveries |
|
|
(4,488) |
|
|
(3,242) |
|
|
(12,523) |
||
Free Cash Flow |
|
|
|
$ |
11,954 |
|
$ |
61,242 |
|
$ |
65,454 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt: |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt including current maturities |
|
|
$ |
311,109 |
|
$ |
318,164 |
|
$ |
315,157 |
|
Less: Cash and cash equivalents |
|
|
(369,987) |
|
|
(323,849) |
|
|
(368,030) |
||
Net Debt |
|
|
|
$ |
(58,878) |
|
$ |
(5,685) |
|
$ |
(52,873) |
|
April 24, 2025 First Quarter 2025 Conference Call EXHIBIT 99.2 |
|
2 2 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 statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding: our plans, strategies and objectives for future operations; any projections of financial items including projections as to guidance and other outlook information; future operations expenditures; our ability to enter into, renew and/or perform commercial contracts; the spot market; our current work continuing; visibility and future utilization; our protocols and plans; future economic or political conditions; energy transition or energy security; our spending and cost management efforts and our ability to manage changes; oil price volatility and its effects and results; our ability to identify, effect and integrate mergers, acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition and any subsequently identified legacy issues with respect thereto; developments; any financing transactions or arrangements or our ability to enter into such transactions or arrangements; our sustainability initiatives; our share repurchase program or execution; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to market conditions and the demand for our services; volatility of oil and natural gas prices; complexities of global political and economic developments, including tariffs; results from mergers, acquisitions, joint ventures or similar transactions; results from acquired properties; our ability to secure and realize backlog; the performance of contracts by customers, suppliers and other counterparties; actions by governmental and regulatory authorities; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; the effectiveness of our sustainability initiatives and disclosures; human capital management issues; geologic risks; and other risks described from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our most recently filed Annual Report on Form 10-K, which are available free of charge on the SEC's website at www.sec.gov. We assume no obligation and do not intend to update these forward-looking statements, which speak only as of their respective dates, except as required by law. INTRODUCTION Forward-Looking Statements |
|
3 3 • Executive Summary (pg. 4) • Operational Highlights (pg. 7) • Key Financial Metrics (pg. 12) • 2025 Outlook (pg. 15) • Non-GAAP Reconciliations (pg. 20) • Questions and Answers PRESENTATION OUTLINE Agenda |
|
4 Executive Summary |
|
5 5 EXECUTIVE SUMMARY Summary of Results ($ in millions, except per share amounts, unaudited) Three Months Ended 3/31/25 3/31/24 12/31/24 Revenues 278 $ 296 $ 355 $ Gross profit 28 $ 20 $ 59 $ 10% 7% 17% Net income (loss) 3 $ (26) $ 20 $ Basic earnings (loss) per share 0.02 $ (0.17) $ 0.13 $ Diluted earnings (loss) per share $ (0.17) 0.02 $ 0.13 $ Adjusted EBITDA1 Business segments 61 $ 57 $ 89 $ Corporate, eliminations and other (9) (10) (18) Adjusted EBITDA1 $ 47 52 $ 72 $ Cash and cash equivalents 370 $ 324 $ 368 $ Net Debt1 $ (6) (59) $ (53) $ Cash flows from operating activities 16 $ 64 $ 78 $ Free Cash Flow1 $ 61 12 $ 65 $ 1 Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below Amounts may not add due to rounding |
|
6 6 First Quarter 2025 Financial Results • Net income of $3 million, $0.02 per diluted share • Adjusted EBITDA1 of $52 million • Operating cash flows of $16 million • Free Cash Flow1 of $12 million Financial Condition at March 31, 2025 • Cash and cash equivalents of $370 million • Liquidity2 of $405 million • Long-term debt3 of $311 million • Negative Net Debt1 of $59 million Operations • Commenced Q7000 operations in Brazil with Shell on 400-day contract plus options • Siem Helix 2 commenced new three-year contract with Petrobras at higher rates • Commenced charter with the Trym for site clearance operations in the North Sea Commercial • Renewables trenching contract in North Sea for the Hornsea 3 Offshore Wind Farm expected to last 300 days beginning 2026 • Renewal of HWCG contract through March 2027 EXECUTIVE SUMMARY First Quarter 2025 Highlights 1 Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures; see non-GAAP reconciliations below 2 Liquidity is calculated as the sum of cash and cash equivalents and availability under Helix’s ABL Facility, and excludes cash pledged to the ABL Facility 3 Long-term debt is presented net of unamortized discounts and deferred issuance costs 4 Revenue percentages net of intercompany eliminations Production Maximization 50% Decommissioning 42% Renewables 6% Other 2% Revenue By Market Strategy4 Quarter Ended March 31, 2025 |
|
7 Operational Highlights |
|
8 8 OPERATIONAL HIGHLIGHTS Segment Results ($ in millions, unaudited) Three Months Ended 3/31/25 3/31/24 12/31/24 Revenues Well Intervention 198 $ 211 $ 226 $ Robotics 51 50 82 Shallow Water Abandonment 17 27 38 Production Facilities 20 24 18 Intercompany eliminations (8) (16) (9) Total 278 $ 296 $ 355 $ Gross profit (loss) % Well Intervention 24 $ 12% $ 23 11% $ 34 15% Robotics 8 16% 8 16% 23 28% Shallow Water Abandonment (12) (69)% (10) (36)% (3) (9)% Production Facilities 7 38% (1) (5)% 7 36% Eliminations and other (1) (1) (1) Total 28 $ 10% $ 20 7% $ 59 17% Utilization Well Intervention vessels 67% 90% 79% Robotics vessels 67% 74% 98% Robotics assets (ROVs and trenchers) 51% 58% 64% Shallow Water Abandonment vessels 30% 41% 64% Shallow Water Abandonment systems 11% 26% 17% Amounts may not add due to rounding Well Intervention • Fleet utilization 67% • 98% in the Gulf of America (includes Q4000 operations in Nigeria) • 17% in the North Sea • 96% in Brazil • 48% on the Q7000 (includes 37 mobilization and transit days prior to commencing operations for Shell in Brazil) • 15K IRS idle; 10K IRSs idle; ROAM idle Production Facilities • Helix Producer I operated at full rates • Thunder Hawk wells shut in Robotics • 244 chartered vessel days (67% utilization) • 135 integrated vessel trenching days • 1,885 work class ROV days • 51% overall ROV and trencher utilization Shallow Water Abandonment • 35% liftboat, offshore supply vessel (OSV) and crewboat combined utilization • 11% diving support vessel (DSV) utilization • 0% utilization on Epic Hedron heavy lift barge • 264 days, or 11%, combined utilization on 20 plug and abandonment (P&A) systems and six coiled tubing (CT) systems First Quarter Utilization |
|
9 9 OPERATIONAL HIGHLIGHTS Well Intervention Utilization • Q4000 (Gulf of America, West Africa) – 95% utilized in Q1; continued production enhancement and abandonment work on nine wells for customer offshore Nigeria; project completed and vessel commenced return transit to the Gulf of America mid April • Q5000 (Gulf of America) – 100% utilized in Q1; completed production enhancement and decommissioning scopes on six wells for one customer • Well Enhancer (North Sea) – 34% utilized in Q1; resumed seasonal operations in March performing decommissioning operations for one customer • Seawell (North Sea) – idle during Q1; completed regulatory dry dock, then entered stacking mode where it’s expected to remain during 2025 • Q7000 (Brazil) – 48% utilized in Q1; arrived in Brazilian waters early January and underwent an approximate 47-day regulatory docking, followed by mobilization activities; vessel commenced operations and revenue recognized beginning late March on 400-day contract with Shell; vessel utilization includes 37 days of transit and mobilization with related fees and costs deferred and recognized over the 400-day contract period • Siem Helix 1 (Brazil) – 100% utilized in Q1; completed decommissioning scopes on three wells and production enhancement scopes on two wells for Trident Energy, performed one production enhancement scope at higher rates for another customer, then resumed operations for Trident at quarter-end • Siem Helix 2 (Brazil) – 92% utilized in Q1; completed vessel acceptance and commenced three-year contract with Petrobras early January; performed production enhancement scope on one well and decommissioning scopes on two wells • 15K IRS – idle during Q1 • 10K IRS – idle during Q1 • ROAM – idle during Q1 1 Gulf of America utilization includes Q4000 utilization offshore Nigeria during Q4 2024 and Q1 2025 on a six-month contract 2 North Sea utilization includes Seawell utilization in the western Mediterranean between Q4 2023 and Q2 2024 3 Q7000 utilization includes utilization in New Zealand in 2023, Australia in 2024 and Brazil in Q1 2025 |
|
10 10 OPERATIONAL HIGHLIGHTS Robotics Utilization 1 Integrated vessel trenching days represents trenching activities utilizing Helix trenchers on Helix-chartered vessels and excludes stand-alone trenching operations on third-party vessels of 90 days, 58 days, 49 days, 92 days, 26 days and 90 days during Q1 2023, Q2 2023, Q2 2024, Q3 2024, Q4 2024 and Q1 2025, respectively 2 Total ROV utilization includes 39 work class ROVs and six trenchers; IROV boulder grabs placed into service end of Q3 2022 and Q1 2024 3 Utilization percentages exclude approximately 13 days on the Grand Canyon II and 25 days on the Shelia Bordelon during which the vessels were off-charter and no charter costs were payable by Helix • Grand Canyon II (Asia Pacific) – 45 days (59%) utilized3 in Q1; completed deepwater salvage project offshore Japan and commenced approximate three-month oil and gas ROV support project offshore Malaysia; underwent approximate three-week regulatory drydock during Q1 • Grand Canyon III (North Sea) – 80 days (89%) utilized in Q1; performed oil and gas trenching projects for one customer and renewables trenching project for another customer; incurred short scheduling gap during Q1 • Shelia Bordelon (Gulf of America / US East Coast) – four days (7%) utilized3 in Q1; underwent regulatory drydock through late-February 2025 and performed short ROV project for oil and gas customer in Gulf of America • North Sea Enabler (North Sea) – 59 days (97%) utilized in Q1 performing renewables trenching for one customer; underwent approximate 30-day docking during quarter • Glomar Wave (North Sea) – 35 days (100%) utilized in Q1 performing site clearance services for windfarm project; vessel on flexible 270-day charter in 2025 • Trym (North Sea) – 21 days (56%) utilized in Q1 performing renewables site clearance project following charter commencement late February 2025 • Trenching – 135 integrated vessel trenching days1 on renewables and oil and gas trenching projects on Grand Canyon III and North Sea Enabler; 90 days stand-alone trenching on the T1400-1 on a third-party vessel • Site Clearance – 21 days utilization on IROV2 boulder grab on the Trym |
|
11 11 OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Utilization 1 Systems utilization includes six CT systems; 15 P&A systems until August 2023 and 20 P&A systems beginning September 2023 Q1 activity levels reflect the expected seasonal slowdown in utilization in the Gulf of America shelf; several vessels temporarily stacked as a cost reduction measure based on current market levels Offshore • Liftboats – nine liftboats with combined utilization of 41% in Q1; three liftboats stacked during Q1 • OSVs – six OSVs and one crew boat with combined utilization of 27% in Q1; three vessels stacked throughout Q1 Energy Services • P&A Systems – 204 days utilization, or 11%, on 20 P&A systems in Q1 • CT Systems – 60 days utilization, or 11%, on six CT systems in Q1 Diving & Heavy Lift • Epic Hedron – heavy lift barge idle in Q1 • DSVs – three DSVs with combined utilization of 11% in Q1 |
|
12 Key Financial Metrics |
|
13 13 Total funded debt† of $319 million at 3/31/25 • $300 million Senior Notes due 2029 – 9.75% • $19 million MARAD Debt – 4.93% • Semi-annual amortization payments through maturity in Q1 2027 KEY FINANCIAL METRICS Debt Instrument Profile † Excludes $8 million of remaining unamortized debt discount and issuance costs $4 $10 $5 $300 $0 $50 $100 $150 $200 $250 $300 2025 2026 2027 2028 2029 Principal Payment Schedule at 3/31/25 ($ in millions) MARAD 2029 Senior Notes $189 $332 $368 $370 ($264) ($362) ($315) ($311) $285 $431 $430 $405 $(75) $(30) $53 $59 ($400) ($300) ($200) ($100) $0 $100 $200 $300 $400 $500 Cash Long-term debt Liquidity Net Debt 12/31/22 12/31/23 12/31/24 3/31/25 Debt and Liquidity Profile at 3/31/25 ($ in millions) 1 Long-term debt net of debt issuance costs 2 Liquidity is calculated as the sum of cash and cash equivalents and available capacity under Helix’s ABL facility but excludes cash pledged to the ABL facility 3 Net Debt is a non-GAAP financial measure; see non-GAAP reconciliations below 1 2 3 Amounts may not add due to rounding |
|
14 14 Historical Quarterly Revenue, Earnings and Cash Flow • Seasonal activities generate stronger performance during Q2 and Q3 and a decline in activity during Q1 and Q4: • Seasonal peaks generally in Q3 and troughs in Q1 • Business units most impacted by seasonality include: • Well Intervention and Robotics in the North Sea • Shallow Water Abandonment • Quarterly activity also influenced by the timing of regulatory dockings and long-term transits and mobilizations 1 EBITDA is a non-GAAP financial measure; see non-GAAP reconciliations below |
|
15 2025 Outlook |
|
16 16 2025 OUTLOOK Forecast ($ in millions) 2025 Change in Outlook Midpoint3 Revenues $ 1,250 - 1,410 (100) $ Adjusted EBITDA1 248 - 303 (75) Capital Additions2 65 - 75 (10) Free Cash Flow1,3 100 - 160 (70) Revenue Split: Well Intervention $ 750 - 850 (70) $ Robotics 290 - 315 (13) Shallow Water Abandonment 180 - 205 (18) Production Facilities 65 - 75 (5) Eliminations (35) 5 Total Revenue $ 1,250 - 1,410 (100) $ 1 Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below 2 Capital Additions include regulatory certification costs for our vessels and systems as well as other capital expenditures 3 Change in Midpoint reflects the current midpoint compared to the midpoint of the 2025 Outlook provided on February 24, 2025 Our 2025 outlook has been reduced primarily to align with the expected decline in activity in our North Sea Well Intervention segment and our decision to warm-stack the Seawell for the remainder of 2025; remaining reductions to the 2025 outlook reflect increased risk in our other segments due to the uncertainties in the current economic climate Our outlook for the remainder of 2025 will be affected by, among other things, the reaction of our customers to the evolving significant global market events and the following expected key drivers: Well Intervention • North Sea – utilization on the Well Enhancer • Q4000 – utilization in late 2025 • Q5000 – operating efficiency • Brazil – Siem Helix 1 transition from Trident to new Petrobras contract; Siem Helix 2 operating efficiency • Q7000 – operating efficiency Robotics • Seasonal utilization in the North Sea and Asia Pacific on chartered vessels Shallow Water Abandonment • Strength of contracting for oil and gas properties in bankruptcies reverting to former owners; seasonal utilization of shallow water operations Production Facilities • Thunder Hawk timing of remediation efforts Key Financial Metrics Key Forecast Changes and Drivers Amounts may not add due to rounding |
|
17 17 Well Intervention • Q5000 (Gulf of America) – contracted work into Q4 2025 with high expected utilization through 2025 • Q4000 (Gulf of America / West Africa) – contracted work in Nigeria through mid-April; vessel subsequently demobilized and commenced transit back to Gulf of America for contracted three-well abandonment project and other identified opportunities during remainder of 2025 • Well Enhancer (North Sea) – contracted work during Q2 and combination of contracted work and identified opportunities during Q3 and Q4; all North Sea Well Intervention work expected to be concentrated onto the vessel • Seawell (North Sea) – vessel warm-stacked with work concentrated onto the Well Enhancer; no utilization expected during 2025 • Q7000 (Brazil) – under 400-day contract for Shell into 2026 • Siem Helix 1 (Brazil) – under decommissioning contract for Trident Energy into Q4 2025, followed by commencement of three-year contract with Petrobras • Siem Helix 2 (Brazil) – under three-year contract with Petrobras into 2028 • IRS rental units (Global) – 15K IRS being marketed globally with identified opportunities for Q3; 10K IRS rentals being marketed globally Shallow Water Abandonment • Liftboats – expect seasonal utilization on up to seven liftboats during remainder of 2025 • OSVs – expect seasonal utilization on up to four OSVs during remainder of 2025 • P&A Systems – expect seasonal utilization on up to 12 P&A systems during remainder of 2025 • CT Systems – expect seasonal utilization on up to three CT systems during remainder of 2025 • DSVs – expect seasonal utilization on all three diving vessels during remainder of 2025 • Epic Hedron – expect good seasonal utilization during remainder of 2025 Robotics • Grand Canyon II (Asia Pacific) – vessel expected to be highly utilized during 2025 with contracted ROV support work in Malaysia and Thailand through Q3 and identified opportunities in Q4 • Grand Canyon III (North Sea) – expected to be highly utilized on contracted trenching scopes for both renewables and oil and gas customers throughout 2025 • Shelia Bordelon (U.S.) – expected to be highly utilized through July on contracted work on the U.S. East Coast and Gulf of America, with identified opportunities for remainder of 2025 • North Sea Enabler (North Sea) – expected to have high utilization during 2025 performing trenching and ROV support on both oil and gas and renewable projects • Glomar Wave (North Sea) – under flexible charter with contracted UXO and boulder clearance work into November • Trym (North Sea) – performing contracted renewable site preparation and site clearance work expected into Q3; vessel expected to pursue follow-on site clearance opportunities for remainder of 2025 • Trenchers (Global) – six trenchers with expected two ongoing working integrated vessel trencher spreads in the North Sea, one trencher working on third-party vessel in Taiwan, one trencher contracted to work on third-party vessel in the Mediterranean beginning mid-2025 and the i-Plough contracted on a Helix-chartered vessel in Baltic Sea for approximately 75 days commencing Q2 • ROVs (Global) – expect strong ROV utilization similar to 2024 Production Facilities • Helix Producer I – under contract throughout 2025 • Thunder Hawk – wells expected to be shut in throughout 2025 • Droshky – ongoing production expected throughout 2025 2025 OUTLOOK Segments Outlook |
|
18 18 2025 Capital additions1 are forecasted at approximately $65 – $75 million: • Capital Additions during Q1 included approximately $26 million for regulatory certification costs for our vessels and systems (principally on the Q7000 and Seawell), which are reported in operating cash flows, and approximately $5 million for capital expenditures • Capital additions during the remainder of 2025 are expected to be: • Approximately $21 – $26 million for regulatory recertifications of our vessels and systems, reported in operating cash flows • Approximately $14 – $19 million for capital expenditures, reported in investing cash flows Free Cash Flow2 • Free Cash Flow outlook includes approximately $65 – $75 million of capital spending, $30 million of cash interest, and cash taxes expected between $40 – $50 million • Working capital expected to be impacted by seasonality and the timing of payments related to extended mobilizations Balance Sheet • No significant debt maturities until 2029; semi-annual maturity of our MARAD debt of $4 million remaining in 2025 • Targeting a minimum 25% of Free Cash Flow for share repurchases 2025 OUTLOOK Capital Additions, Cash Flow and Balance Sheet 1 Capital additions represents accrued capital additions; total cash capital spending was approximately $18 million for regulatory certification costs and $4 million for capital expenditures during Q1 2 Free Cash Flow is a non-GAAP financial measure; see non-GAAP reconciliations below |
|
19 Capital Allocation Strategic Capital • Build cash surplus to deploy opportunistically Return to Shareholders • $200M share repurchase plan • $42M of repurchases to date under plan Maintenance Capital • Regulatory certification of vessels and systems Balance Sheet • Simplified capital structure • Maintain sufficient liquidity, low net debt $405M Liquidity at 3/31/25 ($59M) Net Debt1 at 3/31/25 Targeting minimum 25% FCF $65-75M Forecasted in 2025 Opportunistic KEY FINANCIAL METRICS 1 Net Debt is a non-GAAP financial measure; see non-GAAP reconciliation below |
|
20 Non-GAAP Reconciliations |
|
21 21 NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations Year Ended ($ in thousands, unaudited) 3/31/25 3/31/24 12/31/24 12/31/24 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income income (loss) 3,072 $ (26,287) $ 20,121 $ 55,637 $ Adjustments: Income tax provision (benefit) 453 (1,698) 3,880 26,427 Net interest expense 5,706 5,477 5,572 22,629 Other expense, net 357 2,216 1,275 3,922 Depreciation and amortization 42,482 46,353 40,564 173,292 EBITDA 52,070 26,061 71,412 281,907 Adjustments: Loss on disposition of assets - 150 429 479 Losses related to convertible senior notes - 20,922 - 20,922 General release of current expected credit losses (85) (143) (200) (161) Adjusted EBITDA 51,985 $ 46,990 $ 71,641 $ 303,147 $ Free Cash Flow: Cash flows from operating activities 16,442 $ 64,484 $ 77,977 $ 186,028 $ Less: Capital expenditures, net of proceeds from asset sales and insurance recoveries (4,488) (3,242) (12,523) (22,840) Free Cash Flow 11,954 $ 61,242 $ 65,454 $ 163,188 $ Net Debt: Long-term debt including current maturities of long-term debt 311,109 $ 318,164 $ 315,157 $ 315,157 $ Less: Cash and cash equivalents (369,987) (323,849) (368,030) (368,030) Net Debt (58,878) $ (5,685) $ (52,873) $ (52,873) $ Three Months Ended |
|
22 22 NON-GAAP RECONCILIATIONS Non-GAAP Reconciliations ($ in thousands, unaudited) 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income income (loss) (5,165) $ 7,100 $ 15,560 $ (28,333) $ (26,287) $ 32,289 $ 29,514 $ 20,121 $ 3,072 $ Adjustments: Income tax provision (benefit) (2,018) 3,312 8,337 8,721 (1,698) 14,725 9,520 3,880 453 Net interest expense 4,187 4,228 4,152 4,771 5,477 5,891 5,689 5,572 5,706 Other (income) expense, net (3,444) 5,740 8,257 (6,963) 2,216 382 49 1,275 357 Depreciation and amortization 37,537 39,227 43,249 44,103 46,353 43,471 42,904 40,564 42,482 EBITDA 31,097 59,607 79,555 22,299 26,061 96,758 87,676 71,412 52,070 Adjustments: (Gain) loss on disposition of assets (367) - - - 150 - (100) 429 - Acquisition and integtation costs 231 309 - - - - - - - Change in fair value of contingent consideration 3,992 10,828 16,499 10,927 - - - - - Losses related to convertible senior notes - - - 37,277 20,922 - - - - General provision for (release of) current expected credit losses 141 548 331 129 (143) 137 45 (200) (85) Adjusted EBITDA $ 71,292 35,094 $ 96,385 $ 70,632 $ 46,990 $ 96,895 $ 87,621 $ 71,641 $ 51,985 $ Free Cash Flow: Cash flows from operating activities (5,392) $ 31,501 $ 31,611 $ 94,737 $ 64,484 $ (12,164) $ 55,731 $ 77,977 $ 16,442 $ Less: Capital expenditures, net of proceeds from asset sales and insurance recoveries (6,300) (1,255) (8,245) (2,859) (3,242) (3,989) (3,086) (12,523) (4,488) Free Cash Flow $ 30,246 (11,692) $ 23,366 $ 91,878 $ 61,242 $ (16,153) $ 52,645 $ 65,454 $ 11,954 $ Net Debt: Long-term debt including current maturities of long-term debt 260,460 $ 260,968 $ 227,257 $ 361,722 $ 318,164 $ 318,629 $ 314,673 $ 315,157 $ 311,109 $ Less: Cash and cash equivalents and restricted cash (169,182) (182,651) (168,370) (332,191) (323,849) (275,066) (324,120) (368,030) (369,987) Net Debt $ 78,317 91,278 $ 58,887 $ 29,531 $ (5,685) $ 43,563 $ (9,447) $ (52,873) $ (58,878) $ Three Months Ended |
|
23 23 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 back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude gains or losses on disposition of assets, acquisition and integration costs, gains or losses related to convertible senior notes, the change in fair value of contingent consideration and the general provision (release) for current expected credit losses, if any. We define Free Cash Flow as cash flows from operating activities less capital expenditures, net of proceeds from asset sales and insurance recoveries (related to property and equipment), if any. Net debt is calculated as long-term debt including current maturities of long-term debt less cash and cash equivalents and restricted cash. We use EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial and strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt provide useful information to the public regarding our operating performance and ability to service debt and fund capital expenditures and may help our investors understand and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income, cash flows from operating activities, or other income or cash flow data prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures. See reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. We have not provided reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures due to the challenges and impracticability with estimating some of the items without unreasonable effort, which amounts could be significant. |
|
At Helix, our purpose is to enable energy transition through: Maximizing Existing Reserves Enhancing remaining production from existing oil and gas wells Lowering Decommissioning Costs Restoring the seabed in an environmentally safe manner Offshore Renewables & Wind Farms Transitioning our energy economy to a sustainable model |
