HLX - Earnings call transcript Q4 2018 | Helix Energy Solutions Group, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter 2018 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Tuesday, February 19, 2019. I would now like to turn it over to Mr. CFO. Staffeldt, Erik Sir. ahead, Please go

Erik Staffeldt

Kratz, Good related Hopefully, morning our release. us on review release General is for on COO; press Sparks, Alisa our Johnson, presentation had and call for an released thanks our last Owen today conference Helix earnings and call joining CEO; our night. Scotty this our slide myself. today Counsel; for everyone the our you've QX, Participating to and XXXX opportunity

a copy accessed Releases have be these webcast materials, Relations If on can be not you the at tab can of both can slide today's presentation icon. press be through page Press do the accessed under release Investor accessed the and on www.helixesg.com. by our website The clicking

our will Before forward-looking prepared statement regarding Johnson Alisa? remarks, a Alisa information. make we begin

Alisa Johnson

During forward-looking and made fact statements any safe certain provisions of than the this statements expectation. of under harbor anticipate this statements Reform based associated conference call, conference All making Litigation and are current XXXX. or forward-looking statements Securities of call other in our projections Act the we presentation are Private on historical

Our The on with and of final presentation, a of Owen? from of and statements variety our ended to release, non-GAAP XX, Annual our certain broadcast financial reconciliation a to XX-K the press comparable financial differ may may Form measures forward-looking website. be for in accordance report and actual rules, XXXX. reconciliation, are those this year this call of annual presentation December a two our projections number certain made. set disclosures including and this in results In due factors, along Also, provide forth available future material replay slide materially earnings SEC our measures. Report our during slides on the our with non-GAAP the GAAP

Owen Kratz

QX Good morning, level summary X, the high you'll everybody. a of results. slide On see

XXXX cash $XXX EBITDA related reduction to XXXX, XXXX in in of segment. services, income Net income full results cost QX the in million. compared million impact over to flat for lower well was from of Operating benefit tax to to U.S. XXXX of from our Well slide typical improved XXXX $XXX $XX $XXX to slowdown on with excluding were million, market. million in million. structure fourth as million robotic the in was financial the Brazil flow Revenues $XX million in increased Gulf rates $XXX XXXX. seasonal Well results. our affecting of our in quarter and typical, for impacted is in as focus by the utilization $XXX in results for net QX XXXX $XX down Intervention improved Robotics our like the cash As in essentially year the with on year by We've to from both operating by the in and Mexico the Northsea million the the working our X, year resulting spot tax $XX free reform, from full of year-over-year. from two vessels But -- benefited million flow I'd the Intervention

perspective, well except the for X, shift QX by production versus end in QX. to typical schedule impacted from the demand quarter $XXX levels On Slide our to normal. balance decreased QX at $XXX Mexico from of as stayed which in operations, was sheet million resulting Gulf Turning end cash expected of million slowdown from utilization to as X, Slide a at weak seasonal as our our facilities Brazilian in the

capital $XX debt expenditures in of made repayments. payment invested other and made million additional QX, scheduled a $XX we shipyard During we $XX and million an million

the in Scotty call million Our of million now turn for results. compared in-depth $XXX an the quarter. was over debt at $XXX to to year-end the I'll net discussion third operating

Scotty Sparks

And everyone. good Owen. morning Thanks

not recent performance. lines XX, in We days. XXXX utilization terms been contracted across best all performance had our intervention only strong our but the regard the safety Slide in revenue, against on of of strong years one efficiency has Moving of excess in company, in business operational and global XX% with with earnings, fleet, to generating across times, uptime also uptime of

safety $XXX achieved ever lowest increased million performance, from In to levels terms of $XXX year-over-year year. TRI Revenue equaled for million. [ph]

of resulting resulted gross $XXX margin we Performance period, efficiency the profit hundred profit entered from million very in Mexico, the Our $XXX QXXXX renewables well, utilization XX% XX% seasonal one trenching considering in Sea X% revenues and $XX annual the million, our very North Canyon resulting commitment two two October, with fourth business, three XX%. over the on Brazil of North our profits working in achieved all In in to was vessels, in utilization the $XXX good million. to completed and quarter, In EBITDA strong. we to utilization a for achieved of vessels of and in Grand BP of Robotics a million. Gross operational we quarter, of Sea. of QXXXX the organizational work projects continued of winter focus clients. the and achieving Both to vessel operational high $XXX for in of additional increased combined no commenced increasing intervention vessels achieved performed gross campaign. on million. slower throughout profit with the margin the The XX-well utilization then downtime. Gulf slightly of completed In December achieved the expected XX%

in then XXXX, two commercial work Slide of Spot operations business in commitment review Well our The Intervention for project of detailed for experienced finishing January went October, downtime. our on Mexico. the projects works zero Gulf early provision QXXXX and some of achieved as annual complete includes The the campaign on commercial program. X December utilization full Helix working until QXXXX performed XX XX% recommenced through also well with BP The stimulation XXK on We first its an performed vessel for XX contracted for In the clients, downtime, our of only which is vessels. early BP, to globally we commenced then XXXX. quarter vessel alliance with another expected a project worldwide of hired The a system and expected. subsea of currently well the P&A One provides no half days client. additional for the clients to IRS for

and were units, IRS at our in rental X facility Houston. Our X IRS sold

maintenance on Intervention both our XX, conducting with on clients Sea vessels seasonal zero mix XX% quarter, slide year The we period, regulatory the wells a the docks during Well Intervention business maintenance working good programs. products working Seawell experienced of with for January, quarter, programs. both worked abandonment three to The downtime. systems. during for Intervention and and of dry end. undertook production-enhancement production was two in is contracted In the Well on now for both Moving clients quarter, working subsea until slower commercial we period entered quarter, considering a for enhancement vessels the on North this work Enhancer winter XX% The well XX vessels that's of and commenced complete contracted

enhancements vessels well we temporally Siem for works. Helix Petrobras. working on In our decreased XX quarter, utilization, operations undertaking and achieved to The XXXX well on completed and the achieved further work equipment Brazil, the continued Both our infrastructure have Throughout we in on to for both maintenance abandonment strong In working enhancements subsea fourth year on wells, and to extremely X XX. wells work. quarter. X Helix Siem Moving we go wells performing the XX% replacement perform activity production continues some work XX% Helix Siem cost utilization, achieved to another vessels. four slide Petrobras well daily due on four and operation

XX%, on to support charter projects the on In projects the trenching with on fourth of slide XXXX duration XX was for Sea improved ROV a in contracted much one Robotics a utilization year review. fleet two vessels utilized shorter and in Gulf vessel Moving vessel number for Mexico. renewable the North quarter, our of Robotics. was

Canyon client projects. taken project-orientated Canyon The North achieving Grand on contracted back-to-back on market with The the XX We with in Mexico days Sea, also utilization works XXX% short Grand Canyon globally trenching IRM trenching vessels the Gulf performing requirements. scope. utilization, spot on a X had XX% X worked utilization mostly scopes. XX% construction deepwater two on had Grand project on of located in

your Robotics in ROV XXXX and outlook. utilization our for for support. vessels to for we ROV balance implement the improvements utilization over for and I turn in to Over outlook improve and cost further detailing trenching slide to Erik slide the secured already will continues this working both trenching Our XXXX as sheet and call the on a now meaningful reference. discussion leave we've I'll fleet, XX.

Erik Staffeldt

Scotty. Thanks,

on reference key sheet provides instruments and debt slide XX, Moving Slide And slide to outlines leave XX debt XX. year-end. your of balance including maturity to our net move this on update for I'll slide and levels it as the growth profile. and metrics, an

CapEx to payment. directly debt the is net attributable during million QX to net The Our from the million $XXX including in in shipyard debt QX $XXX million QXXXX outflows, increased increase in $XX QX. of

partially cash flow. paydown Our of of million, of cash $XXX million $XX outflows operating debt, $XX position at quarter to offset reflecting the CapEx end decreased by and million

of operating XXXX. free we of improvement For a flow million, the and year generated significant $XX flow cash million $XXX cash from

debt-to-book capitalization net year end Our was X%.

production, in is months. currently related assets transactions well the on the pay per XX impact Two wells HFRS acquired XXXX our from In will slide and and the enhancement outlook P&A infrastructure. a Droshky that nominal to are we transaction, of agreement. with The wells price We shut-in as comprised discussion likely the basis. upside. Moving two our Marathon, XXXX. four production Assets a one the wells of of over which well acquisition to have outlook. Two for extension of P&A X compared fixed XX announced the a to subsea Marathon within having non-cash Assets Droshky of for the a January, on with us

expect production this income, vessels guidance. our We by from our efficiencies benefit Intervention possible benefit included no is production from for operating and utilization providing in upside transaction and Well to although

extended for a both customer agreement with exception stated, Mexico nontraditional evergreen agreement of previously agreement the The secure including these this notice. was is our strategic the the January, retainer. of XXXX now The partying our provisions merits to production guidance. agreement. the The an impact in we of transactions As vessels a cancellation P&A way included Gulf significantly base work agreement. reduces number significant based of HFRS to the a are with is not on is for the Also XX-month contract work. and with our in secured benefits, transaction This of

estimates. XXXX slide This forecasting and forecast. $XXX range in to a $XXX for some to We're EBITDA range million. XX Moving of of key a includes our discussion million assumptions

for Siem benefit year full the Siem assuming and are in Brazil. Helix X We X Helix

Well of We a XXXX markets expect maintain North Intervention that Sea will high-level activity.

We XXX cost expect and is hedges. to the good foreign during QXXXX agreement. for from for have our continue with we BP the the charter benefit in with vessel days structure QXXXX from opportunity utilization expect benefit reductions gap. to XX-day Robotics, to In Droshky cost currency The forecasted and

And expect the the And key year, for finally, of consistent Any improvement impacted contracts. Brazil facilities of market a mobilization variation second gas to the range, of reduction and also paid the would negatively the $XX To range in approximate ROV oil previously XXXX. to new provided. assumptions guidance to working but related utilization We previously higher mentioned, fall our costs by & with cause EBITDA trenching over related include outside term to as the these for last EBITDA range the any not Production significant agreement. is the in from end the achieve XXXX. our benefit the the includes marginal our half XXXX production could acquisition. contracts, an million similar of QXXXX does expensed Droshky HFRS be

Moving estimated XX. billion with XXXX. was XXXX currently of million entered $XXX scheduled We backlog to slide be to of $X.X in and which completed

worked has the identified our the opportunities of the aided utilization and HPX a vessel by the In of from market on program similar Intervention is In QX Petrobras rate the opportunities QXXXX the our Well and BP utilization currently backlog is through contract, expected QX. the The two near-term XXXX. for IRS heavily its our sourcing assuming Our Intervention work continued activity BP the contracts XXX-day the we're XXK contract with the currently Sea weighted Assets. has is provided by and the internal Gulf into a support Well system market, a contract. market, with utilization vessel vessels. with two market Droshky day on thereafter. The strong base of vessels. we to be The expect level year, North spot Last to Mexico QXXXX for to driven QX

We The completed vessels expect in in start XXXX. is to XXXX mobilized mid-February Both the work March. in to Seawell be Well regulatory their similar. expected Enhancer dry-dock and early

full expect maintenance. Helix typical we and during scheduled Siem winter and expect in weakness Both operations Helix X and X between and downtime have year seasonal X Siem XX QX Siem We between days X will of Helix X In Siem Brazil, of the both QX. Helix for days X. in months. XX vessels

in schedule charter benefit shipyard to may business improvements from and market. continued costs vessel slide expected maintenance structure, Robotics their its and segment Over However, all XX. the hedge and marginal change. of improvements to -- timing cost reductions the both in is The

to due Canyon charter on to owner associated return the associated of to QX, its of due Canyon XXXX. X Deep in Cygnus improvements Grand midyear performance the and off lower the QX, in in expect -- XXXX lower the with Grand the hedge in rolling segment charter return its the over We costs cost

once approximately The most the HPX, CapEx delivery. includes at The impact including not in CapEx in We to at market. trenching for to this expect EBITDA. the with forecasted are the expected year the XX. marginal Over payment again capital be slide the dry-docks rental to for ROV shipyard Maintenance dry-docks QXXXX, to is improvement XXXX similar and the market Seawell Enhancer of Well $XXX million, forecasted and QX. of completing

year debt the million. payments approximate for $XX Our

to this We comments. the expect approximately million your turn flows, to year. of higher impact per to to and than Brazil to for I'll our skip which expected I'll trend closing EBITDA of our non-cash the the strong generate At cash for cost operating call leave are Owen it in $XX slide due reference. continue back of expense XX time, deferred

Owen Kratz

Thanks, Erik.

the provided While a top year. well, end achieving we Operationally, our full good of had is performing year, full Helix guidance results the and costs year outperformed controlling for utilization.

have Helix improvement the not demonstrated greater this process. We and ahead. creativity Deals in control have our still so downtime margins. included the scheduling such that work recent and resulted in contracting We've improve as normal like Droshky reduced allow to far budgeting adding in award

QXXXX of This their QX. and We work spot have as BP in with and performed uncertainties occurred QXXXX led This but consistently a in originally in year, done we a expected QX their QX. all in doing stronger to to well rescheduling QX. utilization pointed work to result achieve the QX it from QXXXX to be than with the left

year While QX challenges and utilization the better utilization and we achieve slowest up given QXXXX being the was seasonal the slower, we with expected and ended we did quarter exceeding the it QXXXX, full guidance. of than

$XXX million throughout can EBITDA. components going million proposed, in better but there that creative number at visibility Going for provide presentation, include we have in captured a We Droshky; work we we provided not have positives downtime, that into into on on other XXXX detail. a this are guidance, at of our to terms work a Droshky we've XXXX fully could QXXXX been still occur but not range we've other risk-weighted feel XXXX $XXX bias. quantified include guidance of for that guidance than are production. components fully of this than work reduction and on time potential did contribution, continued These in asset variables narrower our XXXX. outstanding; such execution as There in The

services are apply and upside company production enhancement we the our production While end. we've to that not look we'll a included in to guidance, service

and overhang. picture impact our investors We of announce the signed the not seek in mode. of future, update the presentation. given we has to producing vessel assets as occur. the steady, well to contribution been keep doing way of transfer the a and on entrants While general, positives likely signed, point XXXX. we market yet an active. timing still absorbing aggressive Petrobras the not results improving is of in to not but meaningful. our by the steady a these Sea to workforce see these The cannot in to slowly as to yet the be more more become XXXX. it's supply as enhancement. producers are to market recovery energy The into on we be cannot the actual Gulf expectations should contract the contract full is Brazil still Africa Mexico volumes to and stabilizing, By on macro therefore new details. North for added and but could view, risk-weighted QXXXX, probability, of vessel could certain continue is production consider in regions showing Color Until informed in and other start our we'll indications West a have new the will potential intention do the be deploy be players is In therefore in generate recovery toward

see activity, does While future. it we don't pickup an well the for immediate in bode

to expenditures. CapEx major base We’ve conclude approximately to While million a be to market certainly expected major is improvements at growth. future this our see now is can and looking expected we and Norway the very for our better improving assets active exploring to to program. XXXX without further Helix options is XXXX. hope completed than benefit $XXX CapEx-build market adding heavy for is we’ll we in time be XXXX conditions availability Norway, beyond and our and XXXX from there not consider have we capital

cash a is result proxy of million Beyond that to by flow for reported Keep cash cash positive. strongly be the we free $XX a expect understates flow, roughly until on contracts will negatively EBITDA our flow XXXX, the the the as mind time at the to affected. longer initial of of be the SHX, Brazil term the will which non-cash deferred results. end charge SHX and continue no EBITDA in This

continue to is nearing by the with end our of XXXX. of the reduction debt goal objective Our zero debt net

see. a is the we'll scheduling for of do turn our It assets, driver see time for Just the a We'll it to the to for not will be of quantify brief on which upside we avoidance is it more misleading of give occur. producer. and the market an have us over work keep include objective deal Therefore, justification services Consistent The it Erik. deal back idle a analyze deal. economic increasing is economic upside. in enhancements flow. enhancement typical but opportunity, asset short-term and control on build with of I'll our this backlog of execute And updates quarterly XXXX significant opportunistic utilization that, on. operating we'll and/or execute eye Droshky opportunity the Throughout a the proper beyond, we potential there's our to than word we production for based would can't we may it production say an this it be and The without we production on consider analysis. required, we all no are work upside company from options type enhancement and is Having If any should this of said margins. cash the we and for not for opportunity that, guidance. production-enhancement to is free

Erik Staffeldt

questions. we'll time, take this at Operator,

Operator

Please from [Operator Ian of Instructions] ahead. the is go line question first And Macpherson. the

Ian Macpherson

production points Hi. you well between that could of lines from production help morning, kind color of Droshky of speak in the upside everybody. recent reference us Thanks. Good to be? the could Owen, what can

Owen Kratz

we acquired -- There's can't. just I just the field. No, no

that's lot And a at You options, that. of at we're do reservoir. And being then the to not have of look able a analysis. point takes to if that just your

Ian Macpherson

call. what to dynamics Well enough. edge you leading continue XXXX rates outperform were Enhancer if -- Sea, fair for the how are I wonder North discussed the for compared think, the more, could to XXXX? to broader Switching I Transocean's pricing the this Seawell rig There on Okay, speak over market to looking there. rates and stronger the rig morning And

Scotty Sparks

year, we’ve year, expect increase XXXX, the our we I'll significantly that one. Since rates take in as we this increased Sea. rates and Last increased rates slightly to well. Okay. North

XX, However, of North more a We've a good we very seeing seeing Sea we're work are set the the got outlook long-term not and XXX day but fragmented -- for projects. of projects.

or region. continue increase keep a So slight one there we in idle we in be will rates seeing may that two pushing but and rates days, to are

Ian Macpherson

Scotty you of priced Would say terms two? year? how much of is today the or exposure of firmly you're that it the past the versus your back Or similar for in pricing committed open is with year half more backlog

Scotty Sparks

less rates than to that so, years. Slightly there. materialize look, should the give some previous And on us opportunity

Ian Macpherson

more, Very but requeue. you. good. I some maybe Thank have I'll

Scotty Sparks

Thank Okay. you.

Operator

the from is question Please Adkins. next Marshall ahead. The line of go

Marshall Adkins

a that bit Couple ones, gentlemen. morning, to Good guess, of we’re quick me. I little surprising

with like awfully start with looks maintenance those just you oil the is this those just send an this for change online. on to CM Let's those? since or going quick, some seems in It going -- year, what's brought you're vessel. What which of kind

Owen Kratz

Marshall, it offset few small contracts from respects, we're like an a undertake that portion there Hey, oil We've that to periods and going maintenance of Petrobras. time's good a change. got our with in some is

lead sure So downtime, need make preventative. topside that which to there's one is two we changes that or to doesn't

Marshall Adkins

and modeling take down of just obviously this particularly tremendous of for you'll that the quarter add last utilization need fair? in we terms in full somewhat XXXX, So latter half obviously, year, to the

Owen Kratz

Yes, yes.

Marshall Adkins

Okay.

I was on other would surprise, good got seems have seemed it QXXXX you've visibility Owen, work. The thought. and than more outlook like just your bullish It QXXXX pretty

Gulf year? or that Just this what Or you're give the it right, in more color outlook seems for like you're reading just those on us a commentary I little confident am seeing the in there? more

Owen Kratz

let more to we are confident. yes, say start I'll but that, and I'll speak Scotty

than going we work. work point much visibility better on did We into have the see year. last We at more this XXXX

does in and utilization any year. signed the a de-risk time our that And do us is schedule it and that fill projects are already up we have assumptions. our of therefore what We that number than gaps last this project we to Droshky allows have -- greater at did

Marshall Adkins

Okay. back All to, been ago, returning enough the one years all to away that really follow-up ago Well, this like pointed kind right. know you at is XX effort I've like doing stuff just doing This am of good long you on gotten you the Droshky. quick Is successful to guys were covering that? from. may Droshky were when what a that draw this things plus you've I XX misreading at years or

Owen Kratz

Yes and no.

think XX in ago, what XX's similar XX, I slump. in we was at actually, it we're Fast assets started it our a situation. method a years the XXXX, better did out of creating of for backlog coming very forward, margins

when So to started to our in that looking in build that's very extent, it's help control What's is We're hold to XXXX, took it de-risk that quickly. similar. utilization. dissimilar backlog our we

a producers their liability. to expectation You from high had

had who You and producers -- motivated exiting shows sellers. major producers the therefore were

contracting new we're of producers So that as We're but -- component market. deals a tempered. therefore, This it expectations, we're we that think little year, of major right was around, more grow amount time lot business, grew entering a well-received production the we did I to plus is we'll of a another not this faster we seeking a book to than the probably model. our seeking little production our you even To have end, backlog. now are a difference continue,

deal. sure in criteria our feel are deals being of I'm XXXXs. selective downturn have which at not therefore, it as this for buyers we now. exists But the kind that they continue adding to a The us are for right utilization out So a were as enough not of And volume you that intense the this very expectation probably liabilities and of than there comfortable the and looking de-risks of are extent sellers same more the because there model. at

Marshall Adkins

in the Well, I on resurgent like in I want phenomenal model. in remember business returns is guess, to back returns Is currently, you XXXXs. know, that I that but type of model, the us of there sounds you put possibility those don't if a it had accurate? this, guys that

Owen Kratz

a is possibility. There

that But very brings from think I have be our de-risk what of just be and to this to at aggressive to market patient I and want state we just to us. looking see cards ahead model get point. intention We're our don't to the [Indiscernible]. the the it's

Marshall Adkins

guys. Got it. Thanks,

Operator

Instructions]. [Operator

have a Please go the from We question of ahead. line Macpherson. Ian

Ian Macpherson

you the wanted the on extension. new HFRS follow-up. for Thank I ask to

from contract $XX with really revenues is million the $XX is HFRS? in to $XX the as Is And revenue at something all -- million that HFRS that million. a of in Or that Your to the XXXX guidance down think degradation? Producer detrimental margins the we has there Helix that facilities this operating since for a -- new also on on production essentially XXX% are retainer without significant material costs? is

Owen Kratz

of contract That continuing There's the the the HPX. no reduction a entire impact quo. from status is The impact from is basically retainer. HFRS and

Ian Macpherson

Yes.

there and EBITDA are the assume the on side? close would to that detrimentals XXX% -- I so And

Owen Kratz

Yes.

Ian Macpherson

say light EBITDA it. overall would Got of to in Well, I that. guidance favorable

to again I'd for So thanks follow-up. like note the that and

Owen Kratz

Thank you.

Erik Staffeldt

Thank you.

Operator

next go The of ahead. Please Marshall Adkins. line is question from the

Marshall Adkins

Ian few hour. just more keep We'll I and Yes. this the here. got Marshall a

that On half. ready you the mentioned be should second QXXXX, it

color little think more your And a on guess me to is actually that best generating give when you revenue? when Just that? starts

Owen Kratz

four We're say, from given on not site, Africa, going from to West it to money, significant about which It's mobilization the Marshall. to commit we go to require said to work. on is hard being but the to months Singapore having spending to ready six to contracts that, the pretty get being

start determine given, of contract. green light the the the when that pending will So is

months four we and So, to see then need it you'll six working.

Marshall Adkins

that shakedown right? there time? a QX? would Or Is available, when I guess be technically Is

Owen Kratz

the continuous We of vessel of -- time. to down, are we to But the you job. have vessel, on the board, we problems; sail mean, period the out and don't do I have could could crew come want working. the with cruise any a have a so ships for Yes, vessel, criteria both you we board on go employment on shaking while

and sea a to there and is period testing the do trials run some then intend we on of So expensive training way.

between, given the time the green vessel So a there want positive start-up, is and just are it's once to really we issues. taking sure the the working, that's what's that contribution and no make light

Scotty Sparks

we'll months four crewed six leave that Singapore, the we Yes, And fully when be to shakedown includes period. up.

We about will to be fully crewed up two prior for that. months

make sea So transit and be shaking trials will the certain we areas, vessel to our undertaking as as we get. around we down

Marshall Adkins

Got it.

Any we here. Schlumberger on couple any aware the things be alliance? on going And update activity of there? Another should

Scotty Sparks

updates. as the It's new No same before.

XXK owned jointly contract service the our QXXXX. more. on That's clients. contract of to possibly and one asset QXXXX and jointly continue wells the and system four the we expect We to is there offer on the work currently

sales to multi-skill we more we have sort and looking that And continue to cruise their sales mode capability. then well that will go overall be bring as don't of into our still cost access and areas And QXXXX. us more together. So effort ready the allows designed in we're in vessel on Their well. work cost services marketing to on of down QXXXX and to

So...

Owen Kratz

have a I in plan how on in, improve with between think making we this but some still us just the OneSubsea spent to we forward proposal we're can changes order about management moving the finalizing, and little to a bit. time impact some add, we've enhance we that do talking

Marshall Adkins

Right.

a there been has not like sounds it's so maker the meaningful due modest deal, to some but pull-through difference it So far?

Scotty Sparks

to help, the and we get of the it helped forward. online with regions say periods the mobilization mean, cruise like on should utilization we go I'd the multi-skill other the and really said shorter it years, QXXXX we for in most previously, on assets as to QXXXX and I allow, as on last two

then benefit can the hard can helps enhance up further open to see the times it and it that's through We on that and regions believe us So really other plan. greatly the we benefit, QXXXX. we

Marshall Adkins

one last other in me. Brazil in It operators other seems seems given In work opening be where change for there like a And up we Brazil, that Perfect. there? lot for a outlook trend? get words, operators more opportunity as for Petrobras. lot for to more is Any the than other

Owen Kratz

are of are operators already other them The A lot there. coming.

We're and very a to bullish little period plans them their gestation on what going take to order. Brazil. think I they to while, get it's in for absorb required

we're watching strong Brazil new I one with of of producers. think a that is expect near-term recovery in I lot closely we're would the dialog a the it and spots in and

Marshall Adkins

out XXXX So a that's to XXXX, demand scenario, fair? looking like type more

Owen Kratz

predict Certainly to not timing. little XXXX. a And I beyond it's early think that, the

Marshall Adkins

our any better areas markets other may in you seen be four little last three think keep eye just international years? a or to offshore on, Owen, we've than the

Owen Kratz

the to should and more said, changes continues as Sea Sea show been North North producers Well, a lot I in the be property think improvement. There's the new of aggressive. I

Gulf still it's improvement. North see I So the on Mexico, of bottom. modest bouncing some the think Sea, you'll

I where think that back getting point yet should work done done. that the come to to is really see it's the we be

It's time. you're regulatory for there the But a to region a there It's needs I that knows hotspot, and because it timing that. not really of then some to the look big that hard really are now. and predict long can on everyone at potential, of allowed that course, Africa, deal region got of but Africa just a to a park me, out new Norway has not lot is that's the in asset is making modest you've required. of we've pitfalls most country-by-country at. in West an So, right been approvals mature West think we We're and is work great West looking improvement. to the there, active Africa, but

years. it's presence So actually Marshall, times think extremely certainly that between recent mentioned transit It's long. locations Pacific, one little where, Brazil. area the start, And region, very visible but four a than a Asia in takes an I work to about in. it's Then, is has Asia-Pacific, that's in it time a the work today to more is difficult I backlog not region been we and then had

You there. have a lot that of to expensive content makes requirements work it local very

that's options say we're the focused I'd are region So the not on as as exploring we on regions. probably where other our one

Marshall Adkins

helpful. Very again, guys. Thanks

Erik Staffeldt

you. Thank

Operator

There are no other questions.

Erik Staffeldt

forward look We call appreciate much participation and our on Thanks for having interest first in to joining you us Thank very your you. April. and quarter XXXX today.

Operator

call for your participation you thank conclude you Ladies for lines. can that will your now conference and today. gentlemen, the and We disconnect

Erik Staffeldt	Senior Vice President and Chief Financial Officer
Alisa Johnson	Executive Vice President, General Counsel and Corporate Secretary
Owen Kratz	President and Chief Executive Officer
Scotty Sparks	Executive Vice President and Chief Operating Officer
Ian Macpherson	Piper Jaffray
Marshall Adkins	Raymond James

Helix Energy Solutions (HLX) 19 Feb 192018 Q4 Earnings call transcript