Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the second quarter Helix Energy Solutions 2023 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session at that time.

If you have a question, please press the one followed by the 4 on your telephone. If any time during the conference, you need to reach an operator.

of conference would recorded the now to Arriaga, this XXXX, July conference reminder, Brent I and like CAO a is Thursday, being XX, over As Energy. Helix to turn ahead. Please go

Brent Arriaga

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

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

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

Ken Neikirk

presentation, statements Private this Such or Securities conference conference expectations Litigation of this or results. or statements harbor future the trends we as of business are and projections or include safe All provisions statements financial assumptions in and made Reform of are on certain and of in other today. the statements forward-looking call fact, associated events, making based statements and than forward-looking estimates our may historical under industry projections of During business forward-looking anticipate XXXX. call, the Act

those report quarterly our Form and assumptions other filed in and the a results our Slide from projections statements forward-looking Form and due and set variety reports on differ annual X in risks, number XX-Q recently materially and of future with our actual forth filings most uncertainties, SEC. XX-K on may factors, including Our to our

call. oral and duty statement. statements to disclaim any forward-looking not update undue or not we on subject written We third regarding matter any statements, should party You forward-looking this any place the do conference made reliance by undertake any of

non-GAAP In along presentation, slide Also, may our earnings reconciliations, and of a SEC information available non-GAAP measures. call, financial be replay website made. at These Please that this remember disclosures are the press therefore, section GAAP final advised release, reconciliations of conference accurate our presentation rules, information longer July certain speaks and provides comparable during with sensitive certain measures be Owen? are XXXX, of the our that annual this of to today, with the on this financial accordance of -- For no under the webcast any call. as as only you of may Investors call of replay this XX, time any www.helixesg.com. this report

Owen Kratz

we'll operations key morning, provide to outlook financial results the review and the for QX performance, our our into and This morning. we'll highlights Good our of insight and balance drivers QX.

Lastly, opportunities continued we'll energy our provide of energy 'XX. our model the beyond within development the market, on and transition insight opportunities offshore into focus

Helix delivered uncertainty economic our for prices the and XXXX. shelf. results, and in supportive volatility the of Gulf investment second Moving current a strong Slide the improved X Mexico weather cycle. summary of provide markets, Despite into results quarter North to by key Sea to in oil high-level assisted commodity current part highlights the the of and of presentation, remain

market environment Asia rate into has Pacific the the enhanced continued current for U.S. of markets the and the geographic our services. addition, In expansion renewables offshore

income improved from the dry of Helix the quarter. Helix And QXXXX results. million, well our of Robotics flow. positive in decommissioning net an more $X contract strong million quarter EBITDA Adjusted $XX field cash Energy dock quarter Highlights XX-well for in million of and from increase results vessel include previous utilization a Mexico. of awarded was in of North $XXX and Epichedran on with the utilization the high trenching full offshore operating front, free loss and Zealand, achieved and We Brazil. for of first generated compared a execution Alliance Revenues Sea most New in operations and improved intervention was the were million. for in to commenced net the quarter-over-quarter The for sales quarter the results the continued million cash to Gulf QXXXX of activity. Marine QX Services doubled generation the Alliance activation than and quarter. strong $X the divisions. $XX with

million $X of during million in flow dry the million generated costs. we CapEx, on and $XX quarter, strong cash the of resulting recertification operating free cash dock quarter. $XX During in million including spent flow We $XX

results regulatory by and the of the significantly impacted Our certification maintenance QXXXX. were

the late mobilizing costs Asia addition, XX to QXXXX and until In commencement in May. regions Pacific spent project revenues the days deferred with

net net $XX a revenues EBITDA to year-to-date of $X at million -- income has $XXX to time XXXX. an generated in Our million million were compared of $XXX time Adjusted million million, year the by this increased we increase million. from $XX loss of for this $XXX

was even in XXXX. For compared outlook The our and that year, strong results, repurchase XXXX. in And number remain our strong, executing maintenance regulatory further improvement $XX $XX we're is offshore in for and opportunity efforts share our has results in leader significant the With guidance improvements Slide of provided to solid for goal like an the operations results we to These our start a XXXX employees established high continues negative to to to increasing I'd with execute our million for year-over-year. hallmark. but on year-to-date On days program. to an operating for XXXX industry. our improve, million to represent X, always cash flow tempered their has an customers continue and thank efficient our a safe our XXXX. been

second repurchased stock for shares During million. approximately we quarter, the XXX,XXX our of $X

to term, manage capital operations. and on call fund now, opportunities, along maturing Scotty operations investment repurchase now need executing over to #X, with #X I'll program. in-depth strategic our for the debt #X, Alliance to As of including an discussion our we the balance the turn share continue the program, our we'll the spend,

Scotty Sparks

Thanks, Owen, come good XX. and Slide you to morning,

I continues offshore years. very to and operate we and like of thank be best-performing the many another our all to There teams onshore quarter markets for for quarter, well-executed Firstly, second In off Mexico the operate that positive would our of are again Asia, businesses and with to offshore operations of for being U.S. momentum the the continue global -- well in in, Europe, East Coast. of we positioned XXXX, XXXX operational and Gulf remainder minimal disruption. globally of in beyond. the Brazil, quarter our

high efficiency. with operate to with standards continue uptime strong We

$X in quarter, gross gross second the XXXX. profit the generated quarter of of from gross $XX second million During XX%, of we profit a million a margin loss of a up

a X quite first profit of from an gross improvement XXXX. we $XX margin the a loss the For of million generated XXXX, a months and months for first of profit of million gross $XX gross of X

on QXXXX further intervention XX demand We our the more of in for a Unfortunately, the business dock the half dry additional conducted recertification regulatory X expecting of year, to taken July. quarter production for utilization The scheduled of XX% work had for Slide compared of ultra-deepwater the working longer second of a an as of the commenced excellent for our subsequently scheduled grow. and of Mexico. a performed of in provides and are continues in utilization very XXXX maintenance has completing under enhancements wells tighten, and half remainder The planned with are X% work. well continues the vessel for X-well services scheduled Shell. the the abandonment the X second of than Gulf we dry abandonment to well review QXXXX client campaign originally complete that dock now even completion periods ultra-deepwater multiyear in regulatory had quarter market the first improved since end campaign to most the our larger that undertook

of key Positively, the Alliance activity expect already XXXX. for rates Service utilization further awarded half contracted Helix to the high well to Subsea increased vessels operate under Both vessels with of continue into good visibility awarded We've XXXX. work package. potential we and integrated both in QX, remainder to and the work first XXXX. we -- have FLB have compared of

Slide to XX. Moving

terms in both X enhancement wells. also on vessels continues well utilization. our for on works decommissioning Our North to wells well for conditions for for the to demand U.K. respond Seawell increased utilization a to seeing good then the continues works having and enhancement region, work business our of for free in and rates, customers very another operations XXX% completed Demand working is enhancement production Intervention the terms business quarter, customer. improved on much Sea, for in had X a performed well production wells and decommissioning The customers achieving contracting one performing numerous services quarter, well The second strong and improve, free very on very

is remainder rates. transit XXXX scheduled decommissioning work in the Seawell to QX in New further vessel has the into increased its XXXX. work commence QXXXX New for docking to of recently QX The fully Mediterranean, in completion clients scopes and hand expected year Malaysia, remainder in half works quarter. XXXX contracts The of second and of XXXX for also has contracted XXX-day the has contract then in completed awarded to project well dry completion the Australia an the out of the On undertake On the contracted to decommissioning keeping the second and XXXX. carry the decreasing in at contracted vessel been in the transit is the and pay numerous wire for of paid Zealand of into several Zealand,

contracted paid fares on with post visibility then now is and XXXX, QX, good in Shell QX of work expected work following months commence we end XXXX. have Brazil, of to has options contracted in abandonment well XXXX including Brazil. QXXXX and and to the to undertake into is QXXXX the The XX early work well globally transit The for

wells second was Moving seem XX% performing the Trident work utilized had CMHLX-X work Energy, in decommissioning we for in quarter to enhances in on will wells a on X a quarter. with wells Brazil, The undertaking good Helix strong completing Petrobras. with Slide XX% quarter. had utilization of production on decommission The the X-year and project on utilization XXX% work QX, activity In XX. X X

of there tender in XXXX, the are contracted in globally, post-XXXX and vessels end is SH vessels in activity Brazil. demand increased the including to SH Both

quarter, the Slide had and in contract, performance strong the trenching, another Brazil vessels continued X revenue review. during being moving good to utilization, their performed since quarter, and XXXX. on on have Slide for primarily fleet XXXX. of projects. standards survey X region in ROV between the And high terms to work contracted our strong XX The we Robotics and With in pleased working with EBITDA the site The and support renewables-related QXXXX performing utilization. Shell XX gas prevention provides details are business of our Robotics vessels operating best quarter oil at globally and loan

the works for In acquired a trenching vessel Thailand. The and season vessels performed in oil same Canyon utilization utilization on well our with the The days and utilization Horizon X completed the backlog APAC gas II XXX-day had they papers, of in renewable to of undertaken trenching the X projects in other had renewable Grand trenching performing options completing the for a remainder one XX%, spot North project-chartered renewable XXX% claims. in mix we an the Grand trenching days region, customer. trenching free on XX long-term strong commenced XXXX noted project. the well North board utilized have work QX. Sea, customers plus and Sea on renewables XX oil sizable In Taiwan the of The the estimated and vessel, trenching Both the gas the project a vessel performing decommissioning mobilization of for trenching quarter, Canyon newly CXXXX trenching. project trenching for was system

work the Sea, the the renewable site performed vessel, to SutarBoard expected U.S.A., well is North of to x-combined In vessel seismic and Wave to project the utilized along completed ordinance undertaking the the which in that Grama operations. support operations Jones of XX% Mexico node extend. installation in and QX with The Gulf survey in QX. Also XX a options into days continue

sector. days performance XXXX. good Helix year very renewable a the provided services that Coast, our preparation backlog we acquired the to working offer the our on visibility is completed utilization undertaking well performing robotics and in we We're globally. since should the U.S. expecting have project, XXXX, fiance vessel XX have On farm support system again, wind iCloud East and best renewables strong we on recently site client expanding trenching of

Offshore decommissioning X X of X,XXX for and the boats in increased of quarter. QX Our the with completed utilization countries decommissioning XXX vessels and renewable details division group from renewable days service the crew increased X X overview XX geographical The days decommissioning quarter in combined of the or operations already the date. for achieving had XX% also in quarter, conduct utilization in operating utilization XX an water work of and had an sector in X disputes this XX% deployed trenching and vessels services. OSVs our X PMA had with services. division continues, Robotics expansion had an robotics Services utilization operating increased sector second the division our shallow strong or Alliance of utilization. XX XX% Energy very increased combined Slide The XX%. to perform provides business, best operations systems systems. a The producing Helix performing supplied an core Slide offshore

Diving XX% dry The QX, utilization heavy heat increased diving of with the division of maintenance commenced free XX%, undertaking the parts platform for the the dock of decommissioning other undertaking Lift combined season one removal most lift utilization Patriot vessels In Heavy activities. increased had run and with planned the vessels, regulatory and quarter. across the of

to In of removing Alliance quarter, months $XX the commenced an each most Helix awarded XX of and of XX contract spread acquisition. second to of value million recently the pipelines XXXX. structures. is next dispose in The work decommissioning platform $XX sizable was contracts the the XX since is and disposal out X wells, million decommission The estimated and over Helix XXXX remove and with

The headroom. contracting Alliance we only again multiple full Helix offer Alliance that can field the services lift abandonment. all company offers the of contract water RSPs, spreads, boats, one lift utilize This vessel heavy contracts Helix that including of some in PMA diver shallow the is highlights that the

XX, recent utilization. Systems detail Slide Alliance provides Investment for the Helix

best would I hand our over Helix very I our global and to results in years. Before many quarter employees a producing thank and partners Brent, like quarter, to strong good

keep So thank the you, work. safe good and stay up

XXXX half and first expect shaping Helix, year. well the of of As a mentioned up this year half stronger second the earlier, we half second is for really the of than

services For call and generally and the we over across we a improving years, strong now sectors with be and regions few for expect I'll all in, position in operate to to terms next conditions. demand the with Brent. rates high our turn better

Brent Arriaga

Scotty. Thanks,

million to We XX, profile Moving it and outlines instruments funded Slide our maturity of total had debt as quarter end. of $XXX XX. debt at June

include in August remaining matured $XX converts, Marat maturities manning September Our in million installment have XXXX of which million. $X principal a our and XXXX debt and in

using communicated notes long have to settle intention cash our hand. on those We cash

net With cash, Moving balance on our position debt and to was provides Slide $XX million, key quarter update XX, million. including liquidity on metrics, debt at sheet long-term net levels. an of debt, end $XXX cash

to gross our ABL under remaining size increased of under Erik the now our During capacity beyond. After end, quarter of million. facility was the $XXX for availability borrowings LCs, considering $XXX and call a $XXX million of with $XXX over discussion liquidity we from on At outstanding. outlook no had quarter, the million to I'll we ABL our turn for million. the second ABL XXXX and $XXX net resulting million

Erik Staffeldt

Thanks, Brent.

to renewables traditional offshore start solid strength. continues we've a market, discussed, XXXX. we've its and oil gas As and had And show the to

ranges $X.XXX increase $XXX our flow, million midpoint. our a and from CapEx variation key key estimates to $X.XX a $XX million include 'XX and follows: $XX We in Free ranges some billion, provided. the to increase the as from cash EBITDA outside guidance $XX $XXX million million million these cause $XXX million and $XXX from to million could to are increasing for revenue, range. to significant assumptions assumptions estimates any midpoint, These $XX our fall results million,

and the primarily Gulf results weather quarter. continue quarter North to first in shelf, in to Sea and the quarterly Our are be seasonal impacted by fourth of Mexico likely

maintenance of cause mobilizations addition, timing In periods the and quarters. vessel will between our project variances

which in the days dry For resulted QXXXX in at the available extension the fewer launch impact dock has QX. instance, of

half nevertheless with half XX. by expect regions Slide the our stronger XXXX stronger assumptions be being the quarter starting segments and than likely We to second of third quarter. Providing first the on key

hire First, to is complete to Gulf by of currently well Mexico on Activity our and our expected the be in is vessels In continue be QX strong well The of QXXXX both XXXX. market market work invention continues into stocking vessels levels the to segment. improving through work robust. QX its and be a QXXXX, end this rates strong Seawell contracted the QXXXX to have intervention and 'XX and on with expected expected of the U.K. July. with having Sea, in for utilization North

year, to transit project During in QX project, Zealand in the expected operating the the well X-to-X-week contracted XX that second half of performing for on has the New into contracted Seawell APAC work into Mediterranean. of vessel into In the is mid-December scheduled Brazil, XXXX. of work is the Tui in this Tritec undertake QX a The for abandonment region Petrobras. smHelixnis contractors XXXX. currently QXXXX And a with CMTX,

the is region. the expected that the our Grand our work and services. XX II assets XX. in to contracted segment the renewables for and are into to benefit in market utilization Robotics In robotic support active good a currently market Thailand decommissioning from segment QX tight ROE where perform with Moving extremely to region, Canyon gas The both competing continues APAC Slide and oil market of on and balance for

is contracted trenchers and the addition, In have QX. TXXX working we'll acquired recently into

In the in line expected expected during projects ROV and with has Gulf operations perform is and the flexible The at working for the the In removal is clearance the charter trenching bar Gulf Celia to East II Grand a to Horizon the U.S. forecasted year. good is is QX. The with into XXXX. of realization have contracted its remainder the the strong HLX Mexico of opportunities site trenching utilization vessel in Sea, performing with utilization 'XX. Globe to have the Canyon wave Mexico U.S., Coast, work North in of strong enabler for the

continues as HPX production with market active. Slide with segment, is of have contract the to Benet expect to not shallow our Droshky the facilities, fuel for for change, to production Continuing shelf we very expected deplete. XX water For on the do XX balance variability be on continues to decommissioning

For XXXX, XX maintain units we seasonality utilization to and coiled X P&A X X expect on X the some and crude for tubing XX with the strong division Services division good to to OSVs Marine boats. XX. The Energy Offshore have relation variable to should during spreads lift on boats

late During seasonality Hedrin is Heavy in where QX. the Diving division, the Mobileye, both into and expected Lift

on to Slide Moving XX.

QXXXX, Alliance, million XXXX is and on CapEx year forecast did QXXXX capital CapEx on Our by scheduled its range for We resulted and the QXXXX in the additional periods recertification heavily and regulatory periods and docks our XXXX the for is the July. in our now million. is Helix QXXXX which key $XX a undertake their $XX work late maintenance increased heavy additional dry to of days completed inclusion yard maintenance to With impacted TRADOC the The complete vessels. spend. in

of primarily leave of turn on remaining June the funded which $XX QX principal this maintenance maturity our was converts. decrease I'll Owen your at of into $XX million $XX million, million to to and and further the balance continues call for million million CapEx by scheduled expected closing skip At time, the for falls balance Reviewing XXXX on of approximately them to primarily related, remaining operating our back slides the reference. the our with Our I'll clients. cash the for outlook is the during our $XXX our flows. sheet, $XX and XX project in debt majority cash spend be payments, discussion

Owen Kratz

towards Last to have Erik. were trending end we and Thanks, upper the thought quarter, guidance, initial our improve. we that continued we of indicated things

we've Erik doubled by by million despite the our exceeding In of of for mentioned. raised not has opportunities a the raised built XXXX our market, by we're anomalies. the our EBITDA more EBITDA started our operational even strong. execution This especially guidance performance the strong In our XX fact, there forecast the upper our and is QX, few $XX million, and a going people. robust $XX and XXXX. end offshore than further We've for our QX to as and a as forecast business testament remains lower we rest only end identifiable is, improvement well into current forward, service but diversification for are as

all well First, intervention X,XXX year. have X well of our enhanced and maintenance dockings or planned this the QX Seawell vessels,

As recertification occurred dry significant of QX expense. dock you've already significant unanticipated issue in which an QXXXX, heard, required maintenance the the unexpected additional and the resulted CapEx work most in with regulatory

have our of these None days potential in million XXXX could just Also days. well from on to earlier shipyard scheduled XXXX. should days. incremental our and costs, million in fewer returns. segment. the the XXXX maintenance extra to we recur based should $XX delays vessel the this as impacting QXXXX XXXX Intervention year, negatively We to QXXXX $XX be Using weather sell on potential and up in number benefit performance XXX rates -- of experienced of a these a result approximately in events

with partially SX on regions. particular supply contractual contract extensions costs. improvements to market are improve -- -- rates In and addition, to greater are services the The to and constraints that improve visibility. for for and discussions already offshore in on leading vessels. rate assets continues There many under they're by service continuing higher SX with with QXXXX rate labor rates XXXX, higher increases offset are these the further

of work Of commitments. higher working creating upside further at prior X legacy and for trenchers environment. each We long-term acquired, point rate continue systems market the are on a XXXX, on X work contracted in intervention current the weaker future one rates the through recently currently to to

originally additional expected. for -- could meaning other potential water to has just see are systems than the better Shallow X abandonment the far, upside. increases. forecasted bring begun demand So the returns the

labor only and this come. somewhat But gas expected are well transitional We're markets. to Rates offset to by have to escalate oil in in improve higher the strong for positioned costs. for outlook appears space and decommissioning demand to started in years the segments going forward, be the

sustained poised energy Our the businesses as for market transitions. demand long are

many While contractors not returns struggled of returns for markets, the to but an growth only have in suitable approach specialty Helix providing is satisfactory maintain sustainability, as the well. wind with services generating outlook offshore

X decommissioning our The our opportunities being buckets promise for growth each shows within believe prioritize of with and dynamic. to continue and one being markets support these selective existing growth. our we're current always shareholder remains business capabilities. model, renewable with opportunities sustainable reserves, patient We focus maximizing We and existing that on foundation and be our explore our return

cash We flow going expect yield double-digit to free generate forward.

what a be capital to balanced to believe to I'll growth building will to manner in structure it attention will you. return cash, greatest as yield the We repurchase our shareholders. represent paying back with to share and well capital that, allocation turn and the debt we as And

Brent Arriaga

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

Operator

Instructions]. [Operator

from first question is coming Lewis. Greg Our line the of

Greg Lewis

look kind like -- what to these farther equipment seeing are you -- even I pricing. of visibility starting i.e., started to swing for of off market, to X-plus around those conversations look pretty pendulum the in about intervention are has how starting it to of we're your rig terms in customers clearly, to the well like of months. kind the started customers of What you start seems vessels wanted push next customers 'XX. is your in to assets? kind core that guys definitely realizing customer curious kind contract have in How if ability towards talking But out, good

Scotty Sparks

Sea, In here. Petrobras got we're than QXXXX others the vessels It's we discussions from SH take that. Down take Shell many, in out extend to XXXX. all had the XXXX, to options up North going the way in taken I'll down Yes, that the in to many Brazil, a X XXXX. and there seeing outlook. we've back they has that outlook it We're future vessels the clients have with Scotty better probably years, looking way could are XXXX. we've seeing the into

have had lot days We we've XXXX more years awful of an time. going right in booked into than right now out

seeing that -- take Mexico the Oxy have So this up like been we're to agreements with definitely clients of Gulf Shell got the we've and forward recently set in on a long-term Hess. that look the

these the looking future and than in towards with better out So us clients a while. providing we've a are backdrop had

Owen Kratz

just to I'll bit little a add that.

are XXXX, There was on I go looking therefore, the still we think we clients providing legacy there we demand years. a part consider multiple market if now back was which were a to starting downturn. be And our for out reluctance you below because to well were rates current in what rates.

clients realizing there though, escalators. be market multiyear were I has So to we the to around that right contracts, dynamic reluctant is the come to that get have A in think pricing out. now, for

booking going more and gives our more being confidence in contracts. about That starting we're into successful us ahead future. into a additional So out little the in multiyear building escalators discussions

being are think I pivoting rate lowest than of availability -- concerned towards the possible. more achieving sort clients that's about So the

Greg Lewis

exceeded I at been the hold we've that in mean least do kind this And been next pent-up Alliance. market things we any I it, us point. this to asking expectations guidance, as color I about I was multiyear certain see as are been on I this of to the for on but in to guys' little couple your what just space. over think I'm just absolutely. I I not guess there? demand? to some I acquisition mean, Alliance a like of give you what -- Yes. think why of years, think in in of that want a least hindsight, is and lot really wondering business, reason I able No, assume we Or more guess congratulations said, then people about has recently happening it's And as that impressive. abandonment it's I what's happening have there just guess, what mean, we at is can't

Owen Kratz

I -- decommissioning result decommissioning from declared marketplace. selling but not -- occurred. in decommissioning going think to be We cash the that -- starting been years selling negative bankruptcy, recent of a -- lesson about future. The waters. been last just for shove I smaller to a a shallower is water and sell their value on to potential and is years. and I the into then believe of we've And And of smaller there's net optionality always the that, you're in X different of seen -- these it the mean, going comments, the therefore, market. the onto I abandonment we're the for in the structures, the time, lot just is never happening, demand. result properties just and that no in Helix -- this -- Cox point of see there learning out as a the now few properties reached these them has demand there's come vengeance end work back out just forcing with is on Yes. is them the my most inflection to the see bankruptcies though, we hockey stick you've And I Alliance. come end of a to of which company's back producers shallow asset ramp-up going production major industry and the why producers the historic to bankruptcies The are was the the this said because here. I we're color model have business though, now, was there's What's the think saw back that is mean, in on we're -- of sunomaly bought industry it's that stripped to demand just decommissioning

So going is see to Alliance. in the to and work results get starting reflected that done you're actually now with our

Scotty Sparks

the all remove have water, that decommissioning we package do XX the shallow that XX think company Alliance, full to I field award we the shows you we've capabilities wells, and that pipelines of are also decommissioning had danime just the big and X structures full have can together. or only to packages recent

Greg Lewis

question exciting Anyway, Yes. hey, my watch. for great pretty day. And that's have taking thanks and been to

Operator

next Our from Schumm. James is the question of line coming

James Schumm

the in contracts. some the rates you on So, much, at might of move trying contracts a XXXX sense get I'm longer-term if this these of least Gulf Brazil in well scenario? just have typically vessels at for like Mexico long-term to and up look how all, intervention what some

Scotty Sparks

do increasing we that fair rates think especially clients the say we're legacy with some XXXX. those have past those to I Brazil extensions in in discussing with will the it's be over down on contracts. So, left we And for XXXX,

rates of the Some longer-term a just past. better you've in far legacy in of rates than the contracts Gulf new we've we've placed been place the Mexico at legacy the contracts the had been just in in

be can in on the in outlook longer-term what with far we've up contracted contracts And just I the space had rates recently past. out Owen the as better legacy we've So, than X-year days pointed next Gulf majors X the well. the in for utilization and increases think teams year the

Owen Kratz

Just already to escalators does have that through on QXXXX, It into we that, XXXX vessel. built multiyear expand have a contract on the do the on contract.

we for mentioned we there. what improvement beyond vessels do our built Petrobras visibility already in it. then as have And multiyear forward. and going of presentation, with also those have extending built-in into that with So the in of also discussions both contracted escalators would about currently have along we SHX all with we're the on Same SHX

right in pretty some very high increases vessels days a already already North we are XXXX. work meaningful with have Sea rate The the utilization And over are instance, X we XXX and for in basis. on contracted in of contracts Sea partial North now, multiyear booking the demand

or have early last already year, this. to quantify at we for about we you X gave things time this were we knew X going of little a to all have maybe So, that we us

are it, but have positive are to We that there work contracted. number of a through already things

We have improvement over XX XX. visibility on that have in built

James Schumm

items year? what's ask anything strength could here, mix, and I if mean, Okay. driving versus robotics? particular, were where then comment closeouts, to unusual on high-margin And in rates of sort onetime the is in there are last there any just you just wanted

Scotty Sparks

Okay.

So, take I'll that.

jobs we expansion transient expand. to some where well. new lumps, seen them into Taiwan some were favor of items trenching lot obviously, by the a this trenches our year But of you've had a in the has build-out big bought in good driven this to when has A and our sector of been the Taiwan, market. improvements. very year and onetime very a performed couple obviously, renewable put this into we've and in So, the market work We've performance Tin robotics, couple

primarily of U.K.-based expansion we're basis. in There's now just so tranching seeing the work that renewables other a East on transient And U.S. It's global gone talk We've on from been was that trending services a Coast. we've not Taiwan. business. but in careers an

say, see rates year-over-year. that and XX% our XX% continuing I to up, and are So, expanding

James Schumm

Okay. then vessel that? to rates great. if in. a well rig think or do Is how similar any just Hedrin, of in that be about terms I similar squeeze to Great. day more a The intervention And like there would one could Epic and we OpEx or

Owen Kratz

lift The is hydrant shelf heavy a asset. No.

So to it bears or no resemblance other vessels. rigs the

margins sort achieve, think The summer heavy Abuli have only seasonal market. months. it during you more the a that safely the understand benign can the It lift to is I market. of market operate can

discounts the to going probably X,XXX if to also there's So, remaining There's that it's to in or fruition, and exposure you Gulf to Mexico. But X abandonment wanted utilization be removed. realize about lift of there's well lower And that only wintertime. taken in the have be work be over talking structures as heavy you this we're seasonality. and to to need work then comes typically, assets

be The going platform is the doing focus pipeline. very all your they're well In busy. time your field, and making the it But safe, coming. platform first to flushing thing decommissioning very all P&A the the you and then of on is So last removal.

a yet we've work for utilization platform first the you're of I the Hedron safe you'll think while seen in for activity rates asset the is make on the the real see work improve portion right lot utilization this And that increase heavy wells to forward. going year. to come just and now, still So, and lifting seeing as it went

James Schumm

some sure change to well intervention? And just that to Owen, correctly. or that. seasonality, I'm got Is is similar I general? know I economics. just Or going asking that which in about above? But is there's make want to that But I the below

Owen Kratz

below It's So, intervention well high-end it construction more rates. vessel. is in line with the

investors our that obtain the of for similar would is we entrenched to high that One vessel. rates

James Schumm

Appreciate thanks. it. Okay,

Operator

[Operator Instructions].

go of Our Please Smith. coming the line from next question is ahead. David

David Smith

a good quarter. solid Hey, on Congratulations morning.

Owen Kratz

you. Thank

David Smith

you $XX that take of big And them expected million contract $XX contract heard I to in million to $XX million. won't back circle revenue your to announced. be to $XX decommissioning correctly, if I from that comments to each million

drilling that's at the segment. midpoint, million quarter your which XX% in revenue months, about over almost XX $XX So that fourth of

Owen Kratz

Sorry.

have over that do out for heavy XX months. remember There it's You spread to be like we parts can't will the winter lift. the certain months

So be of the first year. quarter that towards of might next the end

each good it So, to XX out is guidance million but spread on it. year XX million is a

David Smith

Perfect.

that term So, I color project. operator execute love If previously thinking nature. would at availability about plan. share And in short more seeing is plug if all getting I'm about the curious operators than they and the a being relatively to you nervous you're did. this to an taking I'm about P&A approach used their holistic abandonment any market can

larger playing they're market. first a spot maybe the is for contracting So is program

Owen Kratz

there's structures, to get do. wells Yes. There's in years. to on excess out understand focus now could right the in done right The work but entire well you've more got these next now industry than is far X our all that to of X there X,XXX on the

the awareness is get done of what producers work There's that availability. real now just means this at So, a on same time. is producers occurring that to since wanting the the all the concern by

asset fact anywhere the we're talking work the are about garnering asset a which XX% think, get little queue on assets work class all depending ones classes XX%, I the producers a their available, getting to have is about own availability the the think were of that required from you're only the I we from attention done. lot and to actually that to having do concerned all of that and So the in of

So, us. it's positive all very for

Scotty Sparks

talking could about have gave that that done, everything different they project contractors we're provide to in typical schedules just producer a to one in different manage this all, the whole realized to for all we with making and come so we and that come to and us they didn't come thing they think get only have shop have the of I that assets, manage to together them assets have. the we us, those sure all environment to

David Smith

that quick add if And maybe you see fleet? Yes. out solid alliance. I I curious if abandonment a color. there appreciate on water your in question opportunities that to could all follow-up I'm other to

Owen Kratz

The to in opportunities are bottleneck is be There people. more the to buy equipment. industry going

think approach processes, slow the that of on our in it the over brings would that think Helix the thing like of a of that SOPs and to our I on decades we shelf. degradation is work the to the One to have quality I you is quality past shelf, remain the contractors standards.

look in more to as So people, little and add we going more out we'll little be adding then a go the buy going We're and bodies. equipment reluctant just for just people. find we're be to and a cautious to that quality

David Smith

Thank time you. Great. Appreciate your today.

Operator

questions. further no have We

Owen Kratz

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

Operator

conference the lines. for concludes and today. your ask participation you that please That your thank We call for disconnect you

Helix Energy Solutions (HLX) 27 Jul 232023 Q2 Earnings call transcript