HLX - Earnings call transcript Q2 2020 | Helix Energy Solutions Group, Inc.

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Operator

Greetings and welcome to the Helix Energy Solutions Second Quarter 2020 Earnings Conference Call.

During the presentation all participants will be in a listen-only mode. [Operator Instructions] And as a reminder, this conference is being recorded, Thursday, July 23, 2020. I would now like to turn it over to Mr. Erik Staffeldt, Executive Vice President and CFO. ahead. go Please

Erik Staffeldt

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

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

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

Ken Neikirk

slide Investors a variety During reconciliations, report of in provides comparable this our site forward-looking to XX-K and are with due historical Litigation a Harbor with this our recently press X accordance our the www.helixesg.com. statements may Act of in other the the most the made. certain statements statements call, disclosures other For this statements of available expectations. broadcast our at made anticipate and this than based the Web conference call, GAAP conference Private presentation All certain financial are and reconciliations this and making statements release, with and Reform the rules, presentation, the current provisions along factors, or under our of are non-GAAP from our set non-GAAP future Owen? measures. section forward-looking call, those presentation, in forth earnings be financial Securities the These materially annual SEC our in forward-looking results of annual actual XXXX. and replay may Safe number Form on Also including our final and projections certain report under differ we filings of SEC. during projections filed of associated In facts, on And measures to of Slide

Owen Kratz

morning morning staying our out our challenging everyone review their QX well This operations quarters. Good our safe. hope coming there environment families are we'll and in outlook performance doing provide We everyone. for the and this and

provides Moving of level X our to presentation, to a the summary X Slide results. high

results second in the quarter Our in the increase improvement reflected levels. from seasonal expected the activity

in segment increased were EBITDA the seasonal Our segments. from increase the benefited intervention North Sea. benefits and Gulf The and revenues in activity and well robotic the Mexico utilization well in intervention increases of are

income continued and As net activity from clearance X increased a the and reported quarterly the renewables that XXX million. in were EBITDA million for catalysts site with segment. of XX Revenues where trenching for QX in robotics, project, million improvements of

Our gross previous quarter. million profit to increased XX the million X from

negatively was Seawall costs. resulting quarter OFS impacted We the by their and market Our QXXXX reducing the stacked the from largely significantly warm COVID-XX. depressed

This depressed is In on. the logistics for challenges but and in head to until environment. our addressing market is requirements operations additional we've safety addition, pandemic continue costs this operational us incremental team continue will them and incurred behind

EBITDA end at XX first XX our with compared revenues X in compared On in cash temporarily of additional results, million short-term spent CapEx, by flow our operating million million net at half with million the debt of decreased XX depth were of results. the to net of over million, million. cash generated of in to Scotty to with and the restricted million I'll an loss an XXX income XXXX. of million We discussion our operating X now sheet call our revenues the in a from for the For year-to-date half a balance turn and XX on million Slide quarter of to the was XXX million of generated a XXX the in cash to balance LC. million of XXXX, XX of associated XXX first end perspective, XXXX. XX X, million net We quarter

Scotty Sparks

Thanks, good everyone. morning, Owen, and

to on Slide Moving XX.

and in currently We presented second four continue vessels continue XX to to to prior have and In vessels sufficient operating, have the and by surplus vessels on partners feel teams. continuously staff teams to place all control and for pre-testing of respond operate regular joining logistical on times and quarter, a had challenging different XX including offshore vessels us challenges well to vessels undertaken. COVID-XX. onshore so decree We environment, working they globally hire, corrective measures the both we is to wear in what mask Instruction vessels. our all at PPE that keep our offshore and acquired we all designed our the a enhanced is offshore

simulations uptime best and safety was operational of quarter second The statistics performance. of our one

and uptime our at extremely operated pleased staff efficiency, fleet times. grateful these know can performance XX% them. of And to operational solid proud such I'm produce that testing Our in

completed vessels, charter of to year. million both in XX for million well its quarter. well the Well the usual seven measures working very North to no in or of warm-stacked commercial a campaign downtime scheduled two Further, vessel XXK attainted the our is vessels utilization Schlumberger warm-stacked Africa North The support Slide in undertaking XX% have performed resulting X QXXXX second with XX results owned for and completed reduced those Nigeria considerably revenue test the The XX% first integrated uptime. first outside standards in levels compared profit the very Robotics spending. the in BP utilization reduced million yearly well this two a and the again, utilization clients. In for operations system two year. of Gulf for completed as a enhancement expected two success, the first globally depth on the strong followed the in commenced is XXk wells The remainder at to salvage to In of The the completing all excellent quarter Considering preparation intervention XX% Helix profit Gulf system. jointly and for with was for our happy Canary work in We QXXXX the high we've of later utilization two of XXX completing then system, work causing enhancement on provides and Mexico. then working the is of After very in together. the successfully and very well was on a QX response abandonment working profits million, one next the the in XX% our Intervention we're zero on and our strong and with reduced work of completed the contract ultra-deepwater the XX. completing gross work Islands one the successful operating The of chartered Robotics its deepwater been producing vessels. QXXXX of in The achieved well. deepest The vessel spreading production QXXXX effects today business has was Seawall a we commenced with client across revenues a Slide to gross review Intervention client working in in XXX of currently Sea fleet teams downtime. activity first utilization customer virus completed we start XXX well level ultra-deepwater next with of the to warm-stacking gas planned and active one one oil great Performance for the Mexico [ph] market. quarter, of well businesses in renewable the the In little of Scotland. completed of targeted performed quarter, Schlumberger the project the with The well and approach of utilization achieved annual reasonably very the ROV XX%, higher our client. with vessels by successful very of of working very well vessel cost was on to now identified at with globally. has its Sea, was are margin of and fleet subsea more and and XX% days the costs BP operations, a of The into opportunities achieving had August testing the our of well a West an detailed the has of Talking campaign working SG&A vessels downtime commitment two XXXX The increased through with possible in on innovative had the cutting well ultra-deepwater vessel Over Well including BP five with performing across clients. the QXXXX good QX [co-achieving] five Enhancer Brazil in wells. feet. production operations warm-stacked performing of the subsea vessel and vessels, team for abandonment client. is vessel completing trenching, program it's currently vessel commence Nigeria vessel contracted commercial projects undertook Leith And and two works QX. fleet Well for very between utilization. The

completed Seawall to requirements potential two Well The the work including in our to several the one We interventions vessel with business costs, successful into other wells Well reducing for programs operating manning] little downtime in cost completing four Slide identified the utilization however, vessel again by Intervention system. Canary warm-stack achieved Nigeria projects in on ever putting completing XX% in four North to significantly due Seawall. Leith and the Tenerife with the into it continuous completing Sea remains for scopes contracted in vessel The work first COVID-XX the exceptional mode, work daily The Moving of achieved been has clients. on operating two affected XX, quarter. subsea vessel. in significantly up utilization, the XX% of to our a as performance our Islands, in Scotland, wells project TheQXXXX September durations the leading On [ph] [ph] clients reduced completion, wells. [co-achieving] reduced then work most fourth two [recruits abandonment transited and and commercial longest reducing warm-stacking allowance. where Enhancer, of minimal the with five Enhancer its on working completing Well quarter warm-stacked

regarding performance will Both on be one enhancement vessels to number Petrobras. and we go completed achieved one efficiency. re-contractor continue back the extremely wells conducting X Siem in uptime QX. continued operational or XX% quarter. of work work in hopeful safety, to Brazil, work continue and another QX completed Slide and well to again three the at for to work enhancement well, four abandonment on Over are The excellence work work Petrobras quarter with in XX, be strong on We identified scopes in operations and three ranked vessel production Nigeria our utilization Siem production on wells. Helix X Helix producing wells

for robotics Slide to year expecting good very work in XX with five second on good Moving a and Robotics review. of gas and a have non-oil our projects. the is year half continues vessels to

fleet including our and Taiwan. chartered Candies Ross works In charter East geographically interest projects the energy and vessels is secure year. Four and ROV the XX a APAC good an the had completed the our working and In of Europe, currently renewable product services In were project work the five had Ross working the The will We expand on region, the the and the utilization in clients. on the Gulf XX% utilization, continue works in Grand The from North in in of line renewable utilization spot undertaken North in Pride for mostly salvage energy for renewable worked the by II vessels. utilization energy in Australia second trenching. XX days with Candies USA remainder and Mexico. energy vessel the Canyon XXX working XX% for quarter, Coast performing Gulf utilization, in APAC QX was and days renewable the of Grand Canyon had MV operated Sea. Pride Sea, II In mostly ROV in region Grand utilized MV XXX% Canyon to projects Taiwan support III be renewable the projects. in Mexico, expected days contracted the support in

East the site with clearance We and found work increasing added vessel TXXXX trenching continue renewable the the Due number third continued on Paradox the on client the throughout at quarter site, Glomar to The conducting wind work a and project. the farm projects. the working of unit long-term we've U.S. to the World a vessel, survey works. on provided to trenching the Kristiansand Wave Coast boulders

Slide slide, on details this to Moving are your I the in leave reference. in utilization trenching it XX, vessels for

of to job and working fleet the of this call to performing thank great great our and job their proud I are And turn exceptional our to our I Erik, continues partners again our businesses. remotely following a requirements Before our onshore They teams. to would Helix keep for the supporting a extremely really staff quarter. doing I'm offshore all work teams well. like most do

Erik Staffeldt

Thanks, Scotty.

on to update Slide their key I'll XX, sheet principal levels This Slide maturity and this profile. net metrics your provides move long-term reference including for balance Slide Difficulty]. instruments to debt debt our an [Technical and XX. debt leave Moving it and outlines

QX decrease driven Our operating million XX in X quarter. XX from The during million debt reduced XXX debt CapEx in long-term of QX. million million. million decreased our net by We XXX during QX net the to cash of by in debt was flow,

at excluding position QX cash cash. the of XX restricted was million XXX Our end million, of

quarter net was to capitalization book X%. debt end Our

on Moving to logistics to a our COVID-XX by outlook, continued Slide be impacted. be discussion XX, challenged significantly industry operations and our continues and to for XXXX

to recall for positive March, decision been remains have for have believe appreciation customer a XXXX environment the and time, today, that withdrew environment expectation for with we better flow operating operational market guidance may in five this cash operating in you now As withdraw XXXX. to almost our being understanding in of The late We uncertainty clear led with in guidance we months. we this challenges. along but a and that

information we guidance, XXX attempt feel a XX issue, is of in for the this as have appropriately revise setting feel to to that XX range million at the faith follows to revenues million. range appropriately million, and sufficient with environment. EBITDA risks XXXX we current cash the provided we backdrop investors some flow the we range million is free guidance best we revised XXX of million our million a have The visibility So good XXX wide, face. we time, in against caveated We're to of it of to XXX as in balances but provide XXXX can

work. guidance Our is based contracted primarily on

backlog balance XXXX Our approximately of is for XXX million. the

into BP for the Enhancer XXXX. working region change, to expect environment, in segment currently more of this working segment, work expected for Well contracted with September and Although work. for of the with hire Slide X The a Intervention one the with color of The QXXXX available of to is In the balance earliest to the Well Sea, region warm-stacked and QX. expect we and of Gulf be XXXX. majority especially contracted Helix subject remain we opportunities has for August region are on XX, balance through this be into the Helix vessel Brazil U.K. Providing balance higher QX. Siem for In has into on on with Mexico, remains is our X the opportunities first completed Siem Seawall late The by work in QXXXX opportunities contracted XXXX. for QXXXX warm-stacked this in QX. to work North XXXX.

the prospects in market Moving thereafter. in QX be mitigating mostly September near-term. work. markets in that through impact significant Canyon the over the than The basis pay farm the to activity have August, much the needed II operate remainder Sea commitment renewables reductions ongoing Ross continues in North by being during through our in to charter by costs this XXXX. to wind as continued Robotics are a guesswork and is on then Candies expected Well of to-date. good portion and renewables is the vessels segment, sector you Canyon in continued providing and to current are good for more trenching renewables Slide the levels sustained Work Projects go utilization has is of is III with Grand slowdown that XX. Robotics events. the signs resilient early The currently Robotics undeterred have on expected in this contract of all Grand Intervention. impacted time expires a

farm and wind to site survey VOOs QX. Our using expected clearance project two continue into

to North also expect in mobilize decommissioning an We the for August VOO project. XX-day expected Sea

no is X of Moving the balance facilities, contract XXXX to on change. the with production HP expected for

have we our previously levels by activity with we assets to aggressively As costs to stated of intend overhead. continue and commensurate reducing

the remains quarter. the scheduled vessels, Moving of of of at for our XX by as Reviewing of in forecast the spent million of debt scheduled principal comprised XX majority to is Slide decrease CapEx our to which the our sheet a our balance primarily already remainder costs funded million, year recertification payments. XX, first XXXX result

of X restricted West be if for XX Owen on at anticipate the skip to XX Our in million the million cash July million of back this CARES as I'll and a in reference. We I'll XX, it although to it the work XX XX the in result again, call return Africa. comments. was required position to for we to amount tax refunds released Slide Act. the changes turn months next time, of And closing from your XX leave tax may

Owen Kratz

vacillating continues but The pressure as down and assets been could new projects be to no assessment and anticipated, year a that drill what environment. were projects rather by surprise have expected. circumstance surprised expected, It's be foreseen. we across not where of stem for that but the our actually as could were the costs year. we the this Rates rigs, on the rates did other price carry Eric. awarded competitors as is in much as from uncertain as commodity board commercial wildly down on us like to Thanks, Utilization not declined from and not approved was

Of course, could chain putting supply well. on they're effects usual because rates they as the of pressure just

about to more chance as as we've pricing logistics. a high they'll commodity on we and anticipated as with protocols costs probably competitive as little the cost aren't a certainly March, fairly operating Our situation expect of we overreacted just with our should that to able might had concerns we to the crude is. We've safety rational utilization. rates The that Early added means perhaps reductions recover that, to quicker than be may remain declined that responses taken COVID-XX currently that in change always as it implemented there and as those for proven one in have seriously. offset protocols very been personnel effective. But

zero told late we've fact, entire a for several accepts had but protocols contaminations, down. their from no the been days that was fleet. work contracted address had our field Droshky couple due halted production we our surely our April platform of host while In revenue the adopted shut producers because we was Production Coronavirus. to suspensions We've have in

probably done but reductions. that more partially means This wells. require the its we'll don't field now support the the likely remaining economics the producing by deal, one is of with added two have field, have year to offset Droshky decommissioning the operational QX The production the been being not on cost our into improved of delay negatives of that XXXX. The we While profitability work would results. again profitability XXXX will slide in on see

Some are as such will and of sustainable. vary and structural are stacking, some with be should but work temporary these volumes vessel

has a reduction that's operational job our our on environment to assets. downtime result reductions, the In this being a In great overhead group the addition operating with truly done commendable. significant and in cost

feel to relatively in in-store for outperforming all year. be and has job stronger renewables in couldn't And including international our as state uncertainty group Helix likely like a we a seem year sustainable. expectations market withdrew most guidance, anticipated to companies what unfold. a Robotics Historically, started this Our resulted does Expansion Many great the than the this into with was so confidence well as has But markets year. done strong resulting far as are we ranges our strive outcomes we in we wherever looking that to We see. and insight guidance can XXXX provide provide honest meet always XXXX. to guidance, we know our ability confidence believe potential for how we investors we into we have annual that of possible. and should. ahead provided if challenges have always transparency transparency we are improved challenges we that and still the There is now in going and

have We million a annual XXXX million guidance of range revised issue XXX XXX of to decided EBITDA. with to

what way of too XXXX, year it'll variables early too For to many and kind be. say its

it'll to likely Our that to be occur view with best our guess strong is a XXXX. until not continue challenging in recovery

meaningful deferred the side, XXXX. we've seen was positive On now for work contemplated that XXXX into

our being The major work sufficient assessed of by continue its about price efforts outline decommissioning as add given low analysts New coming be is We'll well. the will deferred, relative at market The are and some and continues currently expansion to commodity that'll have work as renewables to favorable projects expand commodity discussion to work our cost our potential. point. our to international in Wells occur hope work, seemed a intervention projections There's warrant are also and clients. seems neglected, work. barrel. for strip being that intervention per some lot

conditions don't our XXXX the We there for a vaccine plus debt also market Uncertainties to XXXX resurgence therapeutics have on significant again impacts the reaction in the positive meet cash expect with react forecasted balance the to XXXX XXXX and that to will hold far, Droshky distress a cope uncertainties. cash ability on we a Will favorable be be do and for With We our free in similar will flow able still to near yet obligations. hand be to thus will our we to cash position based XXXX. all be and XXXX be spending? becoming additional there to cheap sufficient market future. more in for with steady, reduction feel for We COVID-XX sheets, even feel clarity commodity XXXX deals about price and upstream better see type if ability recovery? demand on drive sometime or a potential confident

We will, use might cash over look now. to Erick opportunities that ways on in provide call continue to our however, our back and I'll cash to turn flexibility how balance greater we strengthen flow. free for sheet the

Erik Staffeldt

take Operator at time, this Owen. we'll any questions. Thanks,

Operator

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

Ian MacPherson

Great the to that might year a better shaping than see recently. little have despite the is feared that chaos we up bit

the lot that a for work and was understand to outlook. there's like remains you there's likely in-store throughout if or It which expectations bit thank regard of wondering little that assume of Seawall, and And, guidance the year. year with late course, about the the So in sound I more next prevalent doesn't your you your bookends uncertainty I scenarios the warm-stacked still, but a talk for QXXXX range. could

the Or there is quarter well? Well and mainly fourth we the filling So guidance that as Enhancer? factors for should sensitivity more are up second other the around QXXXX half consider or

Scotty Sparks

No.

QXXXX end to of right unknown the think fairly the The Ian. that's we're think year towards a there will the about we the think it bit on be the year. I opportunities expect for the Seawall. way next as or clear of And early but is that expectations I

on filling the of that us. You curveballs can environment will could be, vessels. say the some of additional course, the course, throw in any work spot our And, of variables COVID-XX

Owen Kratz

Erik of it our work. think that in based I his the add, contracted said visibility is guidance on Just narrative might

whether the based of the on the unforeseeable the downside that guide on the upside And range, middle strongly we'd gets to but of we towards moved think into range XXXX. range based potential or see, as I not events. there's uncertainty work it basically of contracted is then or is

suffered be cushion We from revenue mean zero put in. any days there won't But doesn't that so haven't we COVID-XX. any a

Ian MacPherson

the uncertainty both. the the being? Thank enough priority resume the will be or of still you've backlog market again, still in I world But that Has negotiations renew to know next Understood. in there's for well starting shelf I down long-term been know extensions as overall. the to Brazil. on as able that the QXXXX on and instability settled you the is year time those that plenty

Owen Kratz

start the I on think this. for success very that outlook don't all comment They've Scotty are with vessels. further clients I'll much. has Both that our parties. contract on let changed happy been renewals commercial our

might seen year groups having that, I won't next haven't We until renewal and what achieved you a their forward. kind said it's be with that decide of budgets too the uncertainties but think can going of operating say corporate to just is XXXX early of perspective mandates take what deal they what groups there going their then of from corporate any the be, to on the and be indications or the rate But kind duration. their

Scotty Sparks

still very currently Translating Ian. in Brazil. I one number had that we're that the good with And BP agree is very we've year, vessel. they're ranked and happy the with a start for campaign this

They both So vessels down in there lot is with the scheduled have of Petrobras are happy there. very very work vessels. for efficient a them and

that job doing some for keep good a hopefully we So the discussions in later will And these lead to year. clients.

Operator

O'Leary. go ahead. Please is George of The from next line question

George O'Leary

helped just helpful of least be any kind on The the there magnitude color quarter, the could in work versus at particular impressive if Robotics you certainly and expectations? how the much materially beat, around wondered incremental nature anything would the had profitability benefited that that provide of our some that an given project business of business in results. the color salvage the there and of Was

Scotty Sparks

container Australia projects that salvage lasted from one. that was The containers actually was storm recovering a it it approximately vessel, job, interesting take XX were I'll very a days. So in in a washed overboard

every about a off, it have we So you odd a job. the one And get but that have to vessel. take spot as years, few we was salvage

oil Taiwan. really So gas this from continue geographic We've that trencher we coming uptick margins normal and on side And We've service offerings expect vessels product fourth the one. sort had the projects, for quarter. USA. Coast the it was a client And the of most our three changing work that's into and the into is continuing renewables and type expanded on of renewables. provided of vessels Robotic East clearance we their that to into and have on site on currently renewables expansion

side and So, up on of renewable ROV of less downside the the the days gas the helping of business market. is against prop oil for side the

Owen Kratz

to itself. the add transforming Scotty, the to ROV want really renewal, is business Just

in like And growing. the we XX plus revenues market. the from renewables derived see now percent is Something of our that robotics

Scotty Sparks

Yes.

backlog We renewables side. continue lock trenching to our on the

trenching. side work And contracts renewables we seen the rates have of on renewable XXXX now the trenching. We to and haven't erosion any

George O'Leary

answers So color going next that ask. actually that's the I was very helpful to question

has to move situation So provide be anticipated. more more different more if broadly, anything Owen little maybe you the that a driving rational that on might and you Wondered talk behavior. have think landscape could might you about more and than you just been there color mentioned topic. competitive rational competitive a

Owen Kratz

do. drill our main light we rigs. direct in vessels don't competition competitors. provide market our intervention comes in competition only from the there, the the have many others that really the or intervention we vessels, Most from direct on We're Well, that of what of competitors ones heavy the

It looks producers commercially. like go what to been was the at cash of a to the But and market when this for contracting have rig a drill why more though, probably this this anomaly. But make kind in to hold impetus that looking we pricing better to return for from with tremendous to a and the provide and trying need year a active. that's rigs rig conscious the about up to share we ahead That's went working order the by of rather with sort around, they're in on last been downturn, of the This to their comments, have market. aggressively seeing we're option beneficial. In we hasn't keep projects in extremely last for then, the rigs don't level that avoided said to attractive makes like try downturn. finished operators stack little being than at course, all my rationale, just and with work decisions crashing was What are was rigs work Typically opportunities. time for operationally. we're rates a work. stacked the sub Of it for assets historic saw their cut the I we business, into still will then pricing than -- downturn, in

Operator

of Mike go question is Sabella. from next ahead. Please line The

Mike Sabella

on of I you Robotics. dive if of little bit kind was side in a could wondering the cost

You comparable the costs. all I at one time Can rolled that off. in you how that manages big relatively side increase and of quarter-over-quarter the have been impacted know kind of chunky business costs talk with if small all some quarter-over-quarter? there's about cost of kind ramp revenues

Erik Staffeldt

Yes.

I'll fill that start then, in. Mike. can And Scotty So

that Grand the had think have I from Robotic off. first side, on we hedges the with did additional III through rolled those the the flow some associated we quarter cost and Canyon

cost fixed our So reduced. I think was overall,

utilization we're on also charters, I improved able to think long significant what driver improvements see in a the increase does see is long-term the that goes always chartered you utilization our the especially the quarter-to-quarter. of that when vessel we that on there, quarter-over-quarter, a fleet, cost way,

Scotty Sparks

year-over-year, charters dropped maybe long-term to And spot now and we've scenario. more off

side. had longer that working Robotic seven the vessels cheaper had. are vessels charters see we than for those we And the far can You term

Mike Sabella

we production, just are opportunities guys. there of one that shut in revenue getting Helix, now follow-up, Yes. normal Thanks, more there of for being That's or work were And operating create brought back wells just it's to a does environment? those then great. kind back is that think on is

Scotty Sparks

one. I'll take that

on it intervention; an could failure as the think the the of wells time, wax of on, could well for to you to they lead have if the that mechanical lead Obviously, left potential the a long world status have for of inside been some the the up. And potential depends it I it to have back components. comes work.

have for a year. regions next going of in long. That of these that So for wells of discussions work said so there's lot but yet decommissioning contracts but more a and year, discussions work. as shutting these as in the next online, come that Owen because on deferred there being year. activities said, been of lot lot of works for talk there's the healthy year has talk of potential been work as earlier, of got wells work next lot We've have for been next well not a is back all new shut Like a

Operator

Please from ahead. go line James The Schumm. of next question is

James Schumm

relative sense that's would how to vessel moving well about third a change wanted go of just you to Just around. little quarter? prior how get the the quarter the back first bit the to sort to quarter? And commentary can a roughly then intervention what percentage do on in second you the trying be expect in And I talk pricing. of pricing behaved

Owen Kratz

by I'll and But in dig take out. that while a saying to off find would just and little try us start

haven't that. We looked really at

my that, head. top off Just quarter was gut heavily the impacted. feel first of My is

more margin all first lot day maintenance it that because of utilization does. the into our all, by me lot we In saying, Let was of utilization than weighed preface a a quarter, put down first first primarily the rate periods quarter. vessel drives

do. them, compare is very difficult quarter-by-quarter to rate wise for So to us

quarter, were then we But fill had to think than we rates. lower a required in perhaps at that utilization legacy in second started probably I the market few by projects rates. giving

more just a on forward; does. aggressively drives this rest basis price we'll our than I fill But think margin year, think on because So sort year. you the the rationalize for on see percentage. you that order I back utilization that give bit a know in to going continue blended to next of to I of have then rate year, probably to for the I It's opportunity rates get a an little seen to that. we've based this we'd what doesn't

James Schumm

I vessel close your reasonable end of in or the given normal additional July? sound work missing what's up second outlook. then, of on of to Candies; you Robotics, XXXX in zero understand. I based the we're the XXX assuming likelihood from picking close totally that total quarter Ross quarter. that days utilization near that Does something QX had days third XXX get to Okay. on the were am then contribution I'm something? And And I the

Scotty Sparks

one. We Candies that in take I'll do have planned work Ross the for QX.

plan have at we the contract. vessel days. Sea will spot a for as type go already. But the also that Candies in pay XX a now North to contracts be Ross work you mentioned as take We've We it some for contract

days to similar be over think days, somewhat I are to they going QX.

continue are time. on QX. into fire We Grand the the Canyon on expecting will [indiscernible] to The whole Grand be II for And the Canyon the whole Q. project III will be fire

So very that's be going to similar.

Operator

question Gilbert from [Operator The ahead. next the line of go [ph]. Instructions] is Please Craig

Unidentified Analyst

Act XX you me know few million XX to the is had forecast. of just XX million a you that cash flow XX let million? CARES if can the within Can of I to recovery forecast on captured million

Erik Staffeldt

we I we've would I higher think XX the months. on in six to it next say disclosed end portion the expect is, that that of a

the I frequent that So of higher of little just would amount something there assume think is expect variability, I recovery on range uncertain. the certain it's there. a we our end it's think timings flow But bit really;

Unidentified Analyst

That's, XX cash working I taking so a have million. and have missing? the have That sense. at is there higher? to million then, million would then, cost, CapEx, Is little flow. there down flow, of less I depressing Is it might EBITDA XX EBITDA a cash of capital? bit is small, free on be Okay. less that, makes interest Is play And anything usage? bit that there I it mobilization with I little gotten would And there anything the was higher net midpoint fairly about thought thought from EBITDA XXX just I that would a going because free guess,

Erik Staffeldt

No.

I think uses no working all, capital. say of build up specific can of there's you in First

some estimates far I outlook capital collections, that what there have extension models our think targeted that as is And that we is conservative on in our other our the there and current as nothing working than there conservatism. assumptions a is specifically our environment. obviously think here assumption on into layered based but is I could be

Unidentified Analyst

Okay.

very And still -- be on better in even then that I previous that the was do pulled to the last year that XXXX. that Or was still hold is, to better? just Okay. front be is recall renewables going seem XXXX forward? within anything question Robotics is there expectation And Was should well. it a that expectations XXXX was

Scotty Sparks

But It's trenching line more offering works the this have that now. is we is that the of do a discussion have renewables XXXX. one very site work successful, product Yes. be the project. book And is in we been those year year, will lot happy. next clearance We from a don't mindful when coming client of very be

others bidding we side is work, of good. the with be trenching will type but discussions in and more that of we're very So

Operator

ahead. The is James go next up a question Schumm. from Please follow

James Schumm

a for from guys just COVID-XX think if And there wanted costs quantify remarks, the I and so, mentioned you of prepared be if stacking. in XQ additional these some know might absence the and benefit it? can costs, to you

Erik Staffeldt

and mid general I and incurred XX,XXX the I of XX,XXX in our we've for a disclosed forward. the in included vessels, costs I think QX and going the assumptions in in would being continue it's to think Also, we I we forecast. cost additional I day the stacking continue Seawall, have day roughly, a think think been cost those the think Jim, that environment expect time our we COVID the it's

James Schumm

Right.

mobilization Okay. there the not was I quarter, would just or stacking if but something third sounds really not the period in know like into one-time that meaningful. didn't costs it any, recur like

Erik Staffeldt

really. Not No.

Operator

go There the remarks? other questions you Would are in no or like to closing queue. to reprompt

Erik Staffeldt

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

Operator

the does thank you for disconnect conclude That and participation call can We you conference lines. now your today. for your

Helix Energy Solutions (HLX) 23 Jul 202020 Q2 Earnings call transcript