Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX)
reported net income of $32.3 million, or $0.21 per diluted share,
for the second quarter 2024 compared to a net loss of $26.3
million, or $(0.17) per diluted share, for the first quarter 2024
and net income of $7.1 million, or $0.05 per diluted share, for the
second quarter 2023. Net loss in the first quarter 2024 included a
pre-tax loss of approximately $20.9 million, or $(0.14) per diluted
share, related to the retirement of our Convertible Senior Notes
due 2026. Helix reported adjusted EBITDA1 of $96.9 million for the
second quarter 2024 compared to $47.0 million for the first quarter
2024 and $71.3 million for the second quarter 2023.
For the six months ended June 30, 2024, Helix reported net
income of $6.0 million, or $0.04 per diluted share, compared to net
income of $1.9 million, or $0.01 per diluted share, for the six
months ended June 30, 2023. Adjusted EBITDA for the six months
ended June 30, 2024, was $143.9 million compared to $106.4 million
for the six months ended June 30, 2023. The table below summarizes
our results of operations:
Summary
of Results
($ in thousands, except per
share amounts, unaudited)
Three Months Ended Six-Months Ended
6/30/2024 6/30/2023 3/31/2024 6/30/2024
6/30/2023 Revenues
$
364,797
$
308,817
$
296,211
$
661,008
$
558,901
Gross Profit
$
75,486
$
55,349
$
19,554
$
95,040
$
70,533
21
%
18
%
7
%
14
%
13
%
Net Income (Loss)
$
32,289
$
7,100
$
(26,287
)
$
6,002
$
1,935
Basic and Diluted Earnings (Loss) Per Share
$
0.21
$
0.05
$
(0.17
)
$
0.04
$
0.01
Adjusted EBITDA1
$
96,895
$
71,292
$
46,990
$
143,885
$
106,386
Cash and Cash Equivalents
$
275,066
$
182,651
$
323,849
$
275,066
$
182,651
Net Debt1
$
43,563
$
78,317
$
(5,685
)
$
43,563
$
78,317
Cash Flows from Operating Activities
$
(12,164
)
$
31,501
$
64,484
$
52,320
$
26,109
Free Cash Flow1
$
(16,153
)
$
30,246
$
61,242
$
45,089
$
18,554
Owen Kratz, President and Chief Executive Officer of Helix,
stated, “We generated strong second quarter 2024 performance, which
benefitted from the seasonal pick-up in activity in the North Sea
and the Gulf of Mexico shelf and reflected improvements in all
segments. Our Robotics segment outperformed during the second
quarter, delivering strong results with trenching and renewables
operations in the North Sea and Asia Pacific. Our Shallow Water
Abandonment segment results continue to reflect the near-term
softening in that market. The settlement of the Alliance earn-out
obligation this quarter and the recent retirement of our 2026
convertible notes enable us to present financial results and cash
flows that more clearly capture our performance. We look forward to
further expected improvements in 2025 as we continue to focus on
the execution of our Energy Transition strategy in this
market.”
Segment
Information, Operational and Financial Highlights
($ in thousands,
unaudited)
Three Months Ended Six Months Ended
6/30/2024 6/30/2023 3/31/2024 6/30/2024
6/30/2023 Revenues: Well Intervention
$
224,679
$
154,221
$
216,459
$
441,138
$
296,659
Robotics
81,249
70,050
50,309
131,558
119,272
Shallow Water Abandonment
50,841
76,306
26,853
77,694
125,687
Production Facilities
25,400
23,128
24,152
49,552
44,033
Intercompany Eliminations
(17,372
)
(14,888
)
(21,562
)
(38,934
)
(26,750
)
Total
$
364,797
$
308,817
$
296,211
$
661,008
$
558,901
Income (Loss) from Operations: Well Intervention
$
29,299
$
3,380
$
18,679
$
47,978
$
(4,763
)
Robotics
28,400
17,467
5,450
33,850
22,561
Shallow Water Abandonment
(281
)
19,762
(12,428
)
(12,709
)
26,584
Production Facilities
9,097
7,774
(1,543
)
7,554
12,931
Change in Fair Value of Contingent Consideration
-
(10,828
)
-
-
(14,820
)
Corporate / Other / Eliminations
(13,322
)
(17,350
)
(11,434
)
(24,756
)
(30,591
)
Total
$
53,193
$
20,205
$
(1,276
)
$
51,917
$
11,902
Segment Results
Well Intervention
Well Intervention revenues increased $8.2 million, or 4%, during
the second quarter 2024 compared to the prior quarter primarily due
to higher utilization and rates in the North Sea on the Well
Enhancer and higher rates in the Gulf of Mexico, offset in part by
lower utilization in the Gulf of Mexico and lower revenues on the
Q7000 and Seawell. Utilization on the Well Enhancer increased
following its scheduled regulatory dry dock during the previous
quarter, and both vessels in the Gulf of Mexico generated higher
day rates compared to the previous quarter. These improvements were
offset in part by lower utilization in the Gulf of Mexico as both
vessels had short gaps between jobs during the second quarter and
higher aggregate transit days on the Q7000 and the Seawell during
which periods revenues were not recognized. Overall Well
Intervention vessel utilization was 94% during the second quarter
2024 compared to 90% during the prior quarter. Well Intervention
operating income increased $10.6 million during the second quarter
2024 compared to the prior quarter primarily due to higher revenue
and lower overall project costs during the second quarter.
Well Intervention revenues increased $70.5 million, or 46%,
during the second quarter 2024 compared to the second quarter 2023.
The increase was primarily due to higher utilization and rates in
the Gulf of Mexico, higher rates on the Seawell and higher revenues
on the Q7000 during the second quarter 2024. The Gulf of Mexico had
higher vessel utilization during the second quarter 2024 as the
Q4000 spent most of the second quarter 2023 performing its
regulatory dry dock. Revenues on the Seawell were higher year over
year as it was contracted in the western Mediterranean at higher
rates through most of the second quarter 2024, and the Q7000
benefitted from a full quarter of utilization during the second
quarter 2024 whereas the vessel recognized revenues over only
approximately 27 days during the second quarter 2023 following its
paid transit and mobilization to New Zealand, a period during which
revenues were deferred and not recognized. Overall Well
Intervention vessel utilization increased to 94% during the second
quarter 2024 compared to 84% during the second quarter 2023. Well
Intervention operating income increased $25.9 million during the
second quarter 2024 compared to the second quarter 2023 primarily
due to higher revenues during the second quarter 2024.
Robotics
Robotics revenues increased $30.9 million, or 61%, during the
second quarter 2024 compared to the prior quarter. The increase in
revenues was due to seasonally higher vessel, trenching and ROV
activities compared to the prior quarter. Chartered vessel activity
increased to 528 days utilization, or 97%, during the second
quarter 2024 compared to 333 days utilization, or 74%, during the
prior quarter. Chartered vessel days during the first quarter 2024
also included approximately 64 days of standby utilization at
reduced rates. ROV and trencher utilization increased to 76% during
the second quarter 2024 compared to 58% during the prior quarter,
and integrated vessel trenching days increased to 232 days during
the second quarter 2024 compared to 85 days during the prior
quarter. Robotics operating income increased $23.0 million during
the second quarter 2024 compared to the prior quarter primarily due
to higher revenues.
Robotics revenues increased $11.2 million, or 16%, during the
second quarter 2024 compared to the second quarter 2023 primarily
due to higher chartered vessel days and trenching and ROV
activities during the current year. Chartered vessel activity
increased to 528 days, or 97%, during the second quarter 2024
compared to 435 days and 96%, during the second quarter 2023. ROV
and trencher utilization increased to 76% during the second quarter
2024 compared to 58% during the second quarter 2023. The second
quarter 2024 included 232 days of integrated vessel trenching
compared to 194 days during the second quarter 2023. Robotics
operating income increased $10.9 million during the second quarter
2024 compared to the second quarter 2023 primarily due to higher
revenues and higher profit margins during the second quarter
2024.
Shallow Water Abandonment
Shallow Water Abandonment revenues increased $24.0 million, or
89%, during the second quarter 2024 compared to the previous
quarter. The increase in revenues reflected the seasonally higher
activity levels on the Gulf of Mexico shelf. Overall vessel
utilization increased to 58% during the second quarter 2024
compared to 41% during the prior quarter. Plug and Abandonment and
Coiled Tubing systems achieved 632 days utilization, or 27%, during
the second quarter 2024 compared to 626 days utilization, or 26%,
during the prior quarter. The Epic Hedron heavy lift barge had 46%
utilization during the second quarter 2024 compared to being idle
during the prior quarter. Shallow Water Abandonment generated an
operating loss of $0.3 million during the second quarter 2024, an
improvement of $12.1 million compared to the prior quarter
primarily due to higher revenues during the second quarter
2024.
Shallow Water Abandonment revenues decreased $25.5 million, or
33%, during the second quarter 2024 compared to the second quarter
2023. The decrease in revenues was due to lower activity levels and
an overall softer Gulf of Mexico shelf market in 2024 resulting in
lower vessel and system utilization during the second quarter 2024
compared to the second quarter 2023. Overall vessel utilization was
58% during the second quarter 2024 compared to 78% during the
second quarter 2023. Plug and Abandonment and Coiled Tubing systems
achieved 632 days utilization, or 27% on 26 systems, during the
second quarter 2024 compared to 1,554 days utilization, or 81% on
21 systems, during the second quarter 2023. The Epic Hedron heavy
lift barge had 46% utilization during the second quarter 2024
undergoing an approximate three-week regulatory certification
period compared to having 79% utilization during the second quarter
2023. Shallow Water Abandonment operating income decreased $20.0
million during the second quarter 2024 compared to the second
quarter 2023 primarily due to lower revenues during the second
quarter 2024.
Production Facilities
Production Facilities revenues increased $1.2 million, or 5%,
during the second quarter 2024 compared to the prior quarter
primarily due to higher oil and gas production and prices.
Production Facilities generated operating income of $9.1 million
during the second quarter 2024 compared to losses of $1.5 million
during the prior quarter primarily due to workover costs on the
Thunder Hawk wells of approximately $8.6 million incurred during
the prior quarter and higher revenues quarter over quarter.
Production Facilities revenues increased $2.3 million, or 10%,
during the second quarter 2024 compared to the second quarter 2023
primarily due to higher oil and gas production during the second
quarter 2024 due to both fields being shut-in for maintenance
during portions of the second quarter 2023. Production Facilities
operating income increased $1.3 million during the second quarter
2024 compared to the second quarter 2023 primarily due higher
revenues during the second quarter 2024.
Selling, General and Administrative and
Other
Share Repurchases
Share repurchases totaled approximately 0.5 million shares for
$5.2 million during the second quarter 2024.
Selling, General and Administrative
Selling, general and administrative expenses were $22.3 million,
or 6.1% of revenue, during the second quarter 2024 compared to
$21.0 million, or 7.0% of revenue, during the prior quarter. The
increase in expenses during the second quarter 2024 was primarily
due to higher compensation costs compared to the prior quarter.
Other Income and Expenses
Other expense, net was $0.4 million during the second quarter
2024 compared to $2.2 million during the prior quarter. Other
expense, net during the first quarter 2024 primarily included
foreign currency losses related to the approximate 1% depreciation
of the British pound on U.S. dollar denominated intercompany debt
in our U.K. entities. The change in the British pound exchange rate
during the second quarter 2024 was inconsequential.
Change in Fair Value of Contingent Consideration
Change in fair value of contingent consideration of $10.8
million in the second quarter 2023 related to our acquisition of
Alliance and reflected an increase in the fair value during the
second quarter 2023 of the estimated earn-out that was paid in
April 2024.
Cash Flows
Operating cash flows were $(12.2) million during the second
quarter 2024 compared to $64.5 million during the prior quarter and
$31.5 million during the second quarter 2023. Operating cash flows
during the second quarter 2024 included $58.3 million related to
the Alliance earn-out payment. Excluding the impact of the earn-out
payment, operating cash flows declined during the second quarter
2024 compared to the prior quarter primarily due to working capital
outflows during the second quarter 2024 compared to working capital
inflows during the prior quarter, offset in part by higher earnings
during the second quarter 2024. Excluding the impact of the
earn-out payment, operating cash flows increased during the second
quarter 2024 compared to the second quarter 2023 primarily due to
higher earnings and lower regulatory certification costs during the
second quarter 2024. Regulatory certifications for our vessels and
systems, which are included in operating cash flows, were $10.7
million during the second quarter 2024 compared to $9.6 million
during the prior quarter and $24.2 million during the second
quarter 2023.
Capital expenditures, which are included in investing cash
flows, totaled $4.0 million during the second quarter 2024 compared
to $3.6 million during the prior quarter and $1.3 million during
the second quarter 2023.
Free Cash Flow was $(16.2) million during the second quarter
2024 compared to $61.2 million during the prior quarter and $30.2
million during the second quarter 2023. The decrease in Free Cash
Flow in the second quarter 2024 compared to the prior quarter and
the second quarter 2023 was due primarily to lower operating cash
flows in the second quarter 2024. (Free Cash Flow is a non-GAAP
measure. See reconciliation below.)
Financial Condition and Liquidity
Cash and cash equivalents were $275.1 million on June 30, 2024.
Available capacity under our ABL facility on June 30, 2024, was
$95.1 million, resulting in total liquidity of $370.1 million.
Consolidated long-term debt was $318.6 million on June 30, 2024.
Consolidated Net Debt on June 30, 2024, was $43.6 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 second quarter 2024 results
(see the "For the Investor" page of Helix's website,
www.helixesg.com). The teleconference is scheduled for Thursday,
July 25, 2024, at 9:00 a.m. Central Time. Investors and other
interested parties wishing to participate in the teleconference
should dial 1-800-715-9871 within the United States and
1-646-307-1963 outside the United States. The passcode is
"Staffeldt." A live webcast of the teleconference will be available
in a listen-only mode on Helix’s website under "For the Investor."
A replay of the webcast will be available on the "For the Investor"
page of Helix's website by selecting the "Audio Archives" link
beginning approximately two hours 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; 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;
future economic conditions or performance; 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;
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; complexities of global political
and economic developments; 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.
Comparative Condensed
Consolidated Statements of Operations
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands, except per share data)
2024
2023
2024
2023
(unaudited) (unaudited)
Net revenues
$
364,797
$
308,817
$
661,008
$
558,901
Cost of sales
289,311
253,468
565,968
488,368
Gross profit
75,486
55,349
95,040
70,533
Gain (loss) on disposition of assets, net
-
-
(150
)
367
Acquisition and integration costs
-
(309
)
-
(540
)
Change in fair value of contingent consideration
-
(10,828
)
-
(14,820
)
Selling, general and administrative expenses
(22,293
)
(24,007
)
(42,973
)
(43,638
)
Income from operations
53,193
20,205
51,917
11,902
Net interest expense
(5,891
)
(4,228
)
(11,368
)
(8,415
)
Losses related to convertible senior notes
-
-
(20,922
)
-
Other expense, net
(382
)
(5,740
)
(2,598
)
(2,296
)
Royalty income and other
94
175
2,000
2,038
Income before income taxes
47,014
10,412
19,029
3,229
Income tax provision
14,725
3,312
13,027
1,294
Net income
$
32,289
$
7,100
$
6,002
$
1,935
Earnings per share of common stock:
Basic
$
0.21
$
0.05
$
0.04
$
0.01
Diluted
$
0.21
$
0.05
$
0.04
$
0.01
Weighted average common shares
outstanding: Basic
152,234
150,791
152,301
151,275
Diluted
155,024
153,404
155,072
153,873
Comparative Condensed Consolidated
Balance Sheets
June 30, 2024 Dec. 31, 2023 (in thousands)
(unaudited)
ASSETS
Current Assets: Cash and cash
equivalents
$
275,066
$
332,191
Accounts receivable, net
283,636
280,427
Other current assets
65,213
85,223
Total Current Assets
623,915
697,841
Property and equipment, net
1,500,812
1,572,849
Operating lease right-of-use assets
347,608
169,233
Deferred recertification and dry dock costs, net
78,044
71,290
Other assets, net
46,558
44,823
Total Assets
$
2,596,937
$
2,556,036
LIABILITIES AND SHAREHOLDERS'
EQUITY Current Liabilities:
Accounts payable
$
144,830
$
134,552
Accrued liabilities
88,662
203,112
Current maturities of long-term debt
8,965
48,292
Current operating lease liabilities
57,717
62,662
Total Current Liabilities
300,174
448,618
Long-term debt
309,664
313,430
Operating lease liabilities
302,941
116,185
Deferred tax liabilities
120,169
110,555
Other non-current liabilities
67,201
66,248
Shareholders' equity
1,496,788
1,501,000
Total Liabilities and Equity
$
2,596,937
$
2,556,036
Helix Energy Solutions Group, Inc. Reconciliation of
Non-GAAP Measures Three Months Ended
Six Months Ended (in thousands, unaudited)
6/30/2024
6/30/2023 3/31/2024 6/30/2024 6/30/2023
Reconciliation from Net Income
(Loss) to Adjusted EBITDA: Net income (loss)
$
32,289
$
7,100
$
(26,287
)
$
6,002
$
1,935
Adjustments: Income tax provision (benefit)
14,725
3,312
(1,698
)
13,027
1,294
Net interest expense
5,891
4,228
5,477
11,368
8,415
Other expense, net
382
5,740
2,216
2,598
2,296
Depreciation and amortization
43,471
39,227
46,353
89,824
76,764
EBITDA
96,758
59,607
26,061
122,819
90,704
Adjustments: (Gain) loss on disposition of assets, net
-
-
150
150
(367
)
Acquisition and integration costs
-
309
-
-
540
Change in fair value of contingent consideration
-
10,828
-
-
14,820
General provision (release) for current expected credit losses
137
548
(143
)
(6
)
689
Losses related to convertible senior notes
-
-
20,922
20,922
-
Adjusted EBITDA
$
96,895
$
71,292
$
46,990
$
143,885
$
106,386
Free Cash Flow:
Cash flows from operating activities
$
(12,164
)
$
31,501
$
64,484
$
52,320
$
26,109
Less: Capital expenditures, net of proceeds from asset sales and
insurance recoveries
(3,989
)
(1,255
)
(3,242
)
(7,231
)
(7,555
)
Free Cash Flow
$
(16,153
)
$
30,246
$
61,242
$
45,089
$
18,554
Net Debt:
Long-term debt including current maturities
$
318,629
$
260,968
$
318,164
$
318,629
$
260,968
Less: Cash and cash equivalents and restricted cash
(275,066
)
(182,651
)
(323,849
)
(275,066
)
(182,651
)
Net Debt
$
43,563
$
78,317
$
(5,685
)
$
43,563
$
78,317
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724471973/en/
Erik Staffeldt email: estaffeldt@helixesg.com Ph:
281-618-0465
Grafico Azioni Helix Energy Solutions (NYSE:HLX)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Helix Energy Solutions (NYSE:HLX)
Storico
Da Nov 2023 a Nov 2024
