HLX - Earnings call transcript Q4 2021 | Helix Energy Solutions Group, Inc.

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Operator

Greetings and welcome to the Helix Energy Solutions Group 1 Fourth Quarter 2021 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 on Tuesday, February 22, 2022. I would now like to turn the conference over to Mr. Officer. Accounting Chief Arriaga, Brent Please go ahead.

Brent Arriaga

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

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

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

Ken Neikirk

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

Owen Kratz

families out We expectations morning, beyond our morning. year how hope results market and everyone and our for and and the provide performance, their it operations, XXXX [ph] underlying there XXXX XXXX. and environment doing QX we'll staying well will influence are our and view review our current preliminary we think of Good and full

a summary Moving to the provide high-level X results. of our presentation, slides through X

Brazil, and line continued year. intervention of Mexico delivering West the for winter quarter a quarter facilities to the steady for results into project Production $X the the million. Revenues operations million teams to of prices. were of for levels into commodity the increased Droshky operationally. and production $XX production In million The an with and high higher $XXX EBITDA performance and of production -- was worked and with field increased successful improve. our accommodation our The commenced with quarter loss We year which net increasing of quarter. continue QX, utilization Robotics for Africa. work Gulf performer extended and the XXXX. late in continues the Our for in Siem projects a season benefited limiting continues be and solid and from impact X QXXXX the Ghana. execute in Helix QX Siem expectations to entire as Helix at visibility benefit have from the transited of X

which negative negative was profit gross $X is X%. Our a million

$XXX to of revenues in million $XX our $XX EBITDA compared in results, net and XXXX of $XXX in For million were of our income $XXX net generated XXXX. compared year-to-date revenues loss million to with a $XX million We in million XXXX. million

sheet with balance $XX our short-term primarily a quarter associated On the perspective, in cash, LC Africa. an was million with balance Slide additional restricted of X; at the in $XXX temporarily cash from the for million, end the work West our

During million free operating cash flows of on $XX and cash the the $XX spent resulting $X with fourth million CapEx flow generated million. quarter, we of

For we flow free operating generated of and cash $XXX the million year, of flow. $XXX million cash

for year, discussion a now year debt X our the During we ours operating million. of I'll of to negative results. long-standing ending financial net turn net of call goal reaching over and balance the a $XX achieved debt an Scotty in-depth by the in

Scotty Sparks

Thanks, everyone. Owen and morning, good

operations keeping Slide Moving job and to onshore doing of safe. Both our functional XX. offshore all and a fantastic on teams are

well Our quarter, very operated operate the fourth full we offices. well XX impacted operate operational and as our to to disruption with swiftly to it variants challenging with handled for and year a In globally the continued for extremely continuing efficiency lines business vessels standards the XX.X% minimal uptime COVID-XX exceptional regions year.

recordable Our the year, incidents for safety culture teams the low globally. of with safety statistics, strong our again strong leadership completed a year emphasizing rate and including very safety

generating During resulting quarter, of the of of quarter we million. $X.X profit revenues producing of negative fourth margin the loss $X million, a fourth a X%, gross million, $XXX produced in EBITDA for

and XX% full utilization quarter. well warm-stacked Robotics site margin the chartered Seawell detailed of Slide undertaken Petrobras. EBITDA that In Intervention revenue, production construction equipment utilization the was for a first million Gulf performance working Africa QXXXX production Utilization for by a in X in works completed of prior enhancement in XX% was compared year to $XXX XX% and X work working utilization enhancement project. client. In Well low P&A QX, profit utilization XX client. for and XX% review QXXXX. the North vessels of Gulf of seasonal for in more XX% Subsea scope remediation increasing compared of for ultra-deepwater. uptime. of two the our spot the the to of utilization the trenching enhancement The work utilization Gulf planned reduced two fleet $XX ROV In produced the chartered in Sea, over and small Sea sea in clients XXK a vessel the usual With hydrate in last two most provides high daily in year, XXX% globally utilization QXXXX schedule completed XX Mexico, West the fourth were Enhancer clearance of the increased we gross quarter of Robotics P&A Helix very revenues is In for vessels using in for achieved at and numerous ongoing $XX our safe Well profit million expected quarter. of another their expected to Helix-Schlumberger of the Mexico. continually $XX.X campaign days the between of half gaps in commenced achieved fleet four undertaking and West into in the chartered multi-well contracted gross the one renewables and For system. to in region, with as team intervention a EBITDA the of the at owned in docking scope high ultra-deepwater clients. Pleasingly, XX% resulting the fourth numerous the a utilization prior achieved work with the installed during to the the Mexico. to utilization fourth we the vessel XX% Helix-Schlumberger margin in Robotics regulatory a quarter, producing some of of very damaged million, with generating million was to on the to operations high a Brazil and compared Hurricane utilize for to The undertaking to profit a temporary quarter, remained increased gross XX% productive impressive well The QX. the awarded XX% the n integrated of for being X%, to remainder with Nigeria The period quarter by working another globally. XXXX, of with increased million fourth XXXX. works the with with well quarter, in another performing during had seasonally teams $XXX have quarter, business in The quarter platform utilization standard vessels. a and operational quarter increased abandonment for approximately works both Siem on working Brazil a production small $XXX quarter million, activity on the days Then for Operating QX fleet Siem XX% XXXX. chartered first QXXXX a the Alliance to projects At to have Helix end globally, transit for the utilized the projects working XXX Ida, producing Africa third followed projects had by warm-stacked and with both vessel vessel complete part Both between the one XXX cost renewable quarter jointly North the QXXXX the support, QXXXX offering of and assist contracted Ghana. clients' benefits. client days and vessel campaign

we in further Gulf the good for for XXXX. have awarded been with the steady of of the activity have potential XXXX Mexico increase work visibility and rates in units We of remainder in key recently

XX. Slide to Moving

that hiring in The service The a division remained Robotics crews. cost and reduced Leith Seawell The Robotics completing be for most with XXXX. February costs crew Leith, reduced part in This diving a vessel the we for the on Our a The and quarter, then achieved affected XX% both Sea the warm-stacked COVID-XX operating in Intervention rather undertake clients enhancements to as a was low Seawell cost most site vessels and Seawell. of Well North significantly do the business chartered to reducing work crew with with The our November while warm-stacking than boulder by quarter reducing Scotland the benefit levels. also spot in Enhancer to in less quarter. a solution of duration, very business provided continues in QX, marine related utilization in for in pump clearance the small vessel vessel minimal working lasted into each renewables the warm-stacked winter fourth Well of opportunities scenario two lose project and removal utilization seasonally for quarter. operations

few we being with ahead, signs to QXXXX the with market in and teams. contracts numerous that to Helix-Schlumberger high working are albeit on vessel contracted vessels reactivated with performed expecting quarter, multinational Africa and been P&A lead Nigeria production and had to them rates trend improving this another busy, for possibilities QX into a contracted, we in Both awards conducting Looking QX have QX. extremely for integrated works to The remain and in QX have Sea in anticipate further the The performed utilization. are identified Vessel performing stay vessel in XX% Alliance are the West slow and of enhancements North West QX. extensions. in QX of seeing work activity. Provided quarter strong in uptime, would and being vessel and in what utilization. with a and QX the Further these has wells likely are work The wells well possibly perform work. QX improvement thereafter, Africa should hold

materialize, to in region for paid we the transit New preparation not would expect Zealand. work the work should in commence we contracted APAC our the However,

then arriving lose operational Petrobras X. completed in on Helix one Helix X last the scenarios abandonment on expected half in the extension X wells less a expected to it's Moving achieved is signed these mobilization with Helix contracted quarter. first on Petrobras fourth contract work that completed the commence Siem XX. project for will activity year two quarter well is maintenance for on lower December, anticipate it's In The the XXX% production customer The better for performance accommodation working and long-term the utilization decommissioning five Ghana, be to during Siem and and with late at into that for rates year year had Siem Brazil, early We regulatory QX. to docking wells X options enhancement extend. rates, to Slide period Helix work year Siem with and to we downtime multiple then three work for beginning In the a return the X one the in with we quarter. strong QX contracted well planned of

in is expected non-oil utilizing to QX. are In Siem renewables and for projects completing support, of III Guyana renewable XXXX. Salto, project we Moving well-head and successfully during beginning cable vessel [ph] tender transition which into then The II on The seeing the to QX, decommissioning utilized Slide XX chartered a green offer renewables review. good vessel quarter, clearance for for the globally. we into first for into trenching operating with the is demobilizing oil had and works undertaken Halifax Robotics the further The increase in in Dorado In The installation to trenching, and ROV continues Grand undertake keep on survey combined site along on gas QX. seven contracted secured services November, and and the the oil our activity projects. a work chartered Robotics in year renewable North in Vessel vessel QX. the we scopes XXX% the days to the are renewables-related group's has Seawell for the survey that and QX good South primarily for our working back for VOS project operations work sector days -- project Canyon and vessels, Grand they of and gas XXXX, a Canyon that in utilization APAC contracted decommissioning busy in most Thailand, site Robotics Sea, XXX quarter, continued have contracts Norway is XX%, continue between four undertaking had on projects vessels another in clearance work that trenching the Taiwan renewables The via offshore to gas and completed XX further clients. was contracted renewables and XXXX. Canada. and the anticipated as provide Heim working suite region,

further trenching and of in awarded XXXX of We QX have vessel XXXX. vessel Enabler trenching our part contracted for Horizon a for spot and been XXXX in and recently XXXX renewable with works QX also and second market have

a option safely more We new believe This balanced copy primarily chartered leave conventional efficient strong XX. our ROV governance some year, foresee U.S. XX and on ESG our your sustainability ESG our year, Slide can our and and the the a in a and part Mexico properly wells one second includes and to for more company's comes vessels of our are report, from I'll pivotal end energy latest when and that we to pollutive global website. We fossil Bordelon on corporate have relying largely Over transition renewable of have also less assets for approach is on alternatives. environmental, found a recently fuels and points our the of works of the life utilization be this help more we ESG is Slide on on a of works site available than initiatives. renewable which decommission for role fields programs. highlights key drilling clients clearing avoid time reference. slide trenching we our value vessel in Coast. Gulf an Shelia for story, Jones Act-compliant a our in detailing the plays We social for the proposition. East

close to and Before Brent, I key like call some the would turn to over other mention points. I

fuel, conventional far far activity well steadily expanding client personnel across business further increase and decommissioning is for vessels, As of mentioned, barrel well are be than to robotics produces our it undertaking and is and that improving. well compared support utilization geography lines meaningfully just to it and travel, to time, less emissions our And further. highlighted taking carbon base less intervention enhancements, better see XXXX, I helicopters also pleasing that less less visibility continues production ships, Tender emissions. per enhancement drill rates most and logistics our should reducing fleet

lose the the we expect We a schedule half the complicated first the projects for with headwinds of of for Siem after on the X Helix contracted could and QXXXX. year, deal less QX

in trending Helix team. market the to participation thereafter, global again feel recovery our would our I However, thank in favor. we is like our

so. a handling and variants COVID continue did great job to You the do

these Our entailing fantastic excellence performance. NPT our and circumstances very are while safety high offshore keeping standards partners Brent? with under and operational onshore job in challenging a doing personnel minimal

Brent Arriaga

Scotty. Thanks,

outlines December their at maturity Slide It to profile XX, Moving our XX. XXXX. instruments and debt

Our of total end the was at QX. funded debt million $XXX

Slide an million. and negative to metrics, position debt with over year-end, net long-term including of million slide on $XX update a net key $XXX This XX. cash levels Moving in sheet provides we year-end at restricted and were debt of balance debt cash of as

million Our end $XX had cash cash At the of resulting $XXX with over supports facility we credit. of no liquidity primarily now I'll of $XX and XXXX on restricted was a for with the an Erik our to at a project outlook. million of year-end, $XXX outstanding call ABL new temporary million. the that QX under discussion availability position letter of amounts approximately million, additional turn

Erik Staffeldt

Thanks, Brent.

find As we situation. in XXXX, ourselves an we enter interesting

recently of of markets of robust half the we recovery for the stages an pandemic. and by in still the awarded market by the We are at the evident commodity in this the improved our period yet XXXX. market in backdrop improving prices We contracted improving recovery are and 'XX, 'XX. utilization midst anticipated COVID the start improving contracting in working rate second is high and seeing 'XX the through but benefit macro COVID Helix the trough through of The end early structure the of the industry. market impacted in certain Yet for and into the is clearly see work market, hitting specifically of an

should point. this significant areas, we're it's said, say guidance near provide term we position to in areas this in a the many for the term. how we we in the being premature and Many see earnings Given of feel at year facing resolve can variability these we unfolding much quantitative near XXXX April provide in be guidance. in the on to That hope to quantitative

We believe weakest for be expect will quarter what represent in our the we market Helix. QX to bottom of the

In regulatory six maintenance in intervention in addition for seasonal to well the half we of the our of QX, winter undergo are planning vessels to first downturn XXXX.

to Beyond vessels in working well well seven both vessels and market. Both QX, work working the we vessels spot with of in opportunities Gulf mid-'XX all In thereafter. a see intervention, the Q recovery are 'XX. into Mexico intervention anticipate contracted have expect

with have expect Well strengthens. 'XX the to the vessels the to rates. the most we business, and of as pockets Intervention North if market to of the ability backdrop increasing utilization season, the utilization in both expect In Enhancer We have strong of have work Sea, added Seawell Well should add working the

to as Helix to brought recover by contract continue this In is contract into slowest is foresee X the We Siem X the the on market midyear. pandemic. rate on lower the Brazil, challenges from accommodations December, the into on Siem Helix

uncertain by renewables schedule In to the work to driven abandonment. of Tui opportunities planned spot prior the expect our commence trenching it's planned provides the thereafter. for into at we in We region the QX in with potential improvements to increased The North expect In the with driving XXXX of -- work. work QXXXX end projects of possibilities Sea are the year-over-year results decommissioning work to and transit opportunities Robotics, exploring work West QXXXX site variability Trident XXXX. clearance we APAC for Africa, to activity Africa prior commencement it's West field

including activity benefit XXXX. facilities with in renewables to variability to field should increased expect fairly of as deplete. Gulf developing consistent Droshky continues vessel activity Production be the We Mexico, production from the in

model seeing, exchange liability of light production. is many the uncertainties to with We continue feel we in are replicate taking that we for it currently to again, field opportunities decommissioning a for XX. for operators, provide Once at to position on guidance quantitative We April a to be quantitative a in color in hope segment point. premature this Slide and to by more to guidance. region Providing provide bit 'XX bit on look

it's work per maintenance Well In is North and is late work firm. In and continue idle QXXXX. undergo in X QX. vessels yet expected is the and Brazil, to rates 'XX periods should operations contracted mid-QX, May. approximately vessel There contracted have starting XX-month the with the vessel. maintenance for The potential to utilization is the vessel of Trident Helix approximately QXXXX extends likely X in regulatory work into into strongest mid-December timing in has scheduled our with accommodation duration XX abandonment West regulatory days work work is vessels is is May, work April, Helix are First, on seasonal market Sea, Seawell into with Petrobras, U.K. the The do improving is it of The good mid-'XX. to customer to period QXXXX during XX-day XX Siem In Contracted midyear expected this our prior the to Ghana. Gulf both contract performing late extend. for The an to Siem their begin to be early Trident expected Mexico, availability Well undergo Enhancer in additional period. to to with utilization strong maintenance The determined. options well in have is work Intervention. but Africa not Both contracted QX. a in

in The affected rebound to Moving APAC of contract in utilization XX. the Slide QX the and have slowdown Robotics utilization. good into to is that spring will is region. expected III be on the with expected for Grand for in to Robotics seasonal trenching strong multiple Grand the summer The months. in is Canyon in contracted by Canyon perform it's QX customers 'XX before likely II and expected balance Sea our winter typical North work segment,

secured VOO Enabler the work in of a in 'XX, QX. 'XX Sea and Horizon trenching awarded have for for QX We the North and parts

of utilization. Mexico expected Gulf are in We Shelia with on the Bordelon working the good

facilities, the change. HPX to 'XX production expected no on balance contract for with of is the Moving

to XX. Continuing the We field Slide as deplete. on Droshky have expected variability with continues production

forecast for regulatory our into with impacted currently CapEx be year, and majority maintenance 'XX our forecast volume is to our to range balance from 'XX million. The amounts decrease by million from is CapEx expected of budget to for sheet, funded pushed XXXX CapEx of 'XX Reviewing with heavy an project $XX related. our million by million as million debt $XXX a the XXXX our XXXX I'll cash. remaining which intend of principal the of result $XX we of the scheduled skip convertible our notes to slides, for XX includes in on remaining payments Slide maturity million a the leave and with which I'll $XX a Owen? 'XX them closing your At comments. beyond call time, Owen reference. starting this turn $XX to is Our our outlook continues and approximate discussion for $XX settle and back

Owen Kratz

to Erik. for I'd see Thanks, as to like Helix provide we forward. some going what insight

Some to what be 'XX having repeat half weak. already the to vessels first and of second half it's expect period be year scheduled for this regulatory slowdown of we lingering year This especially to will robust challenging With of We what a rather a going the in of all likely But be remainder effects heard. transitions pandemic to the it our will for The expect of weakness will seasonal year of a the Sea North in first the a most of and half factor. of currently combination factors, Helix. the you've with the maintenance. in XXXX. COVID be be recovery XXXX, normal of the unusual be into

visibility slow with in off First, to the start strong the North Sea half. is second a market

to anticipated Trident sitting It's The beginning lower as Helix tendered QX. QX. for idle Siem Petrobras to with and we to was the to and work contracted work in the return multiyear to has generate work X on been off award is EBITDA rates an at accommodations is meaningful until avoid losses contract the market. intervention Second, deployed accommodation

marginal accepted the expected year similarly, Visibility with smaller in for a X. we the the Petrobras to strong but Helix Helix vessels for Siem is profitability loss X from at Helix extension the Third, one XXXX. for Siem return than Siem -- we rates the

Given position or capture early 'XX we the of extended dry to the the improved all minimize in docks periods effect. effort are to Well what an Enhancer maintenance on put the to incur idle year, The EBITDA during planning we're and ourselves be and market anticipate leader to dock vessels much in in dry challenges a the normal be intervention of to period scheduled XXXX. in during to seasonal a Seawell

This likely would the full transit, in be work means falling XXXX. impact and XXXX these prior other issues EBITDA EBITDA in be availability QXXXX, half with backlog and should Fifth, second be out the to some be Helix By for during first we did accelerated a beginning the all and with would QXXXX XXXX Sixth, to half impact transit million and in with the in as at Asia as in point, rate both run recovery to been period. mobilization of will mobilization the further revenue in utilization amortized no effect the through this to hedge low year, rates over plan associated and QX. most the on the some them of have be as deferred we how and into on are QXXXX redeploy rates would north intend recovery these the full paid first times We contracts for Pacific the XXXX, EBITDA perform, early utilization. most through On to hand, year service accounting utilization Siem to realization the deferred of The X having with legacy planned the region to of work of for of a impacting to XXXX. at finally, half, QXXXX, of commit low of a some the 'XX XXXX that we to $XXX various during but meaningfully HX. HX. worked with contract cost

the for the is strong Sea of First, the North visibility for second half XXXX.

us to up it's to always, capture As it.

by it's work the on Second, early in XXXX. the of depending may XXXX, go in West Asia to But the and mobilization certainly, duration expectation Pacific as transit is complete work QX Africa. QXXXX as and the

the the Helix XXXX it's profitable contract XXXX. contracted The years. tendered are on is more for appears X complete what and a for is and Petrobras X it's Siem Helix Fourth, signed to Third, work will for for negotiations profitable with Siem marginal period. be will ongoing to multiyear being contract Brazil return deployment in additional

appears Assuming Sixth, the needs cover Africa, Siem be XXXX, dry in Fifth, for HPX the go work. riser X XXXX tendering is QXXXX West we're Asia in all here. where to will average be the now which transitioning Helix there upward from XXXX. to Brazil around will This are to dock that be regulatory working rates intervention leaves the Pacific North not during than only rates Sea bias likely undergo that rates higher for much midyear. and to and

strategy XXXX strengthen We're all be energy business, will story. transition. legs with Our our to planning move continue energy into to to three forward to to related transition our

we'll for to offer enhancement be which a want to extending some need solutions while production new we for to to fields. fields capabilities of emphasizing alternative life and We oil pertaining mature of We First, of assist of cost-effective drilling. marketing for the by offer continue abandonment providing our plan the assessing commercial fields our continue the of solution. fields and end their the and improve existing producers mitigates to gas highlighting existing and currently recovery life

had subsea to previously ways field a our subsea wells leg we abandonment architecture to full increase explore We success would abandonment and as Second be, beyond contractor. capabilities intend abandonment.

oil This that have from several current and accelerate in will from buzzword. of away. and not commodity P&A the abandonment believe push accelerated We renewables, gas demand growth the the the recent decommissioning pivot this prices, regulators interest go oil caused Before be the regions also At to of to transition can paid gas and events for niche. did was for. expected

see expanded can capabilities broaden renewables and site expansion. These and market company establish trenching. and can as We meaningful potential We continue three offer but cable be legs for transition the to provide our potential. as and growth further This to as grows the this also having Helix significant intend meaningful XXXX geographic market. currently beyond. we energy we with Third, clearance a offering

for but over lot market work it to XXXX is underestimated. In Q&A. very think get fact, this of With sometimes through, point Erik turn back our to recovery I a leverage that, I'll operating the to in bright future. a to though There's

Erik Staffeldt

any Owen. to Operator, ready we're Thanks, questions. take

Operator

[Operator Please have Cowen. Instructions] Schumm We James question proceed. a from with

JamesSchumm

it Thanks curious reasonable you guys. to year? capital be taking cash for morning, And positive year? free flow flat working this expect my just good then model this to Is question. Hey, whether

ErikStaffeldt

Thanks for the questions.

we I think as working capital. some there out there variabilities general, are in consider

assessment is capital. be think expectation initial would working flat I our

I cause identify to be that of some the talked shift we variables I could variables currently in picture, APAC would think working we the think that that that adjustment noise capital could provide would one That region. the about 'XX. towards longer-term type capital. But some any don't transit working big the of specific within

from And that until as we refrain far generation. that in flow can refrain the discussed we'll that, we quantify EBITDA time. think to cash well. line and it free top this forecast, we've variability I as see affects As I have and our issuing at our guidance from properly the 'XX Obviously, we addressing think

James Schumm

Africa. some If vessel work Okay. follow-on the so transit how And you a daily during we What cash like in potentially it OpEx not maintenance West X% and to model materialize we have for should periods? the third that and -- model quarter. for does QXXXX, then sounds utilization -- going you're

ErikStaffeldt

requirement to transit So are covered. where costs in during associated any this a transit our once of of is the again, cost. -- our any situation revenue with the type the defer The transit both and is

your then transit revenue. actually contract deferred the day the until only and not and So definitely time, mob you recognize is starts deferred that your rate but cost during also

the P&L small a to P&L small still the the it's period done near normal the period, but for, our the amount is the there that maintenance vessels. cost you regular vessel. hits impact it's not maintenance period -- But the during the on O&M that's daily operating not a say, On there maintenance on could is during

James Schumm

And on Okay. just defer the to clarify, like the transit, you cost.

would no vessel So basically the of have you depreciation, you OpEx? have depreciation like but

ErikStaffeldt

that think correct, big that's picture, directionally I Jim.

James Schumm

get back the Okay, thanks. in Appreciate queue. it. I'll

Operator

we And James Instructions] follow-up from [Operator Please have Schumm. a proceed.

James Schumm

Hey, long time, no speak.

in you however, to guys SG&A speak was the want operating years. was the SG&A that been like but -- to the it's So, or that loss, as it high as looked corporate

curious Just what expect forward Or from was going big all XXXX, of jump forward just And any wondering on XXXX pulled should accrued that that if if -- we in that there. why was it's the line? XXXX? all

ErikStaffeldt

Yes. Thanks, Jim.

saw look with if you our results 'XX. you in at I think I what our the SG&A, directionally on in picture there, first big XXXX line think

West picture, you of booking definitely up unusual additional could big in big if allowed quarter ended a and 'XX. shift. the units a We with there significant, Gulf that's at line we an think achieve business significant some our performing strong did you look XXXX. is of that to So segment It essentially have was very say, caused work And no from a you that such were the having picture, big there's entered fourth That variability But QX. the, Robotics in in I Intervention And as in forward what XXXX. Well metrics wasn't 'XX Mexico all pull Africa, could being say, fourth we the compensation and in targeted. variable, really our quarter.

James Schumm

for then And lastly Okay, got I me. it. guess,

ROV if wondering So a a help give economics Any you of sense us there? the an you to able offer guys spread? of spread typical could be versus trencher would

Scotty Sparks

Sure. Yes.

So on a trenching increasing well. both as between rates are But firstly, and hard there's trenching lines. ground the difference

of it's and RV mix XX,XXX and out sort which renewables a place quite for typical region on in. the depending it's a a currently Sea go XX,XXX to North trenching. So gas trenching Most of broad we're would oil in our day, takes between spread and

the XXX,XXX. will would our be about above that spread varies... XXX,XXX spread So trenching range Obviously hard and cutting be jet

James Schumm

just like and spread? ROV then materially trenching an to or be Okay, higher income gross would assume -- fair that spread than great. And the operating profit

Scotty Sparks

higher. slightly It's

more cost. have You

vessel. people on You the more have

We survey have survey more contractors, components. more

it's slightly a but cost goes it So higher. there's higher much that with

OwenKratz

of little discussion I the mention Just I with idle color that you're to quarter. add the a third heard him QX to having the thought Erik. possibility for of

a Just bit. address wanted little to that

flexibility of We in work starting Pacific. the some on have Asia the

we're to it materialize, of start we'd work accelerate -- West able in that Asia didn't Africa, the the the remaining looking the if So at be work Pacific work.

way Of the mob into XXXX work Africa, impact with accounting has 'XX which extent course, that we pushes then the different puts more potentially a of the demob. the the back the impact. on that transit all working Asia mob To into that with continue start Pacific and

now So to that's demob unable and outcome of of know why mob one quantitative work big forecasting. the Africa transit, our lot is the the creates is noise the and it a because which West of we're in of right the guidance just placement until variables we give and timing

James Schumm

that pull helpful that, didn't could Pacific the work. really that's was Okay, forward Owen. the you -- Asia assuming I for -- yes, I know because Because

Okay, so the so X% get that third flexibility quarter. don't gives you necessarily a little in you utilization

you great. Okay, for Thank that.

Operator

Mr. Staffeldt, there are this no further at time. questions

Erik Staffeldt

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

Operator

the That for today. thank you and Have for call participation ask great please We that does everyone. conference conclude day, a disconnect your you your line.

Helix Energy Solutions (HLX) 22 Feb 222021 Q4 Earnings call transcript