HLX - Earnings call transcript Q1 2024 | Helix Energy Solutions Group, Inc.

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Operator

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2024 Helix Energy Solutions Group Incorporated Earnings Conference Call. [Operator Instructions] Thank you.I would now like to turn the call over to Brent Arriaga, Chief Accounting Officer. Please go ahead.

Brent Arriaga

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

a accessed our a the regarding do information. of accessed those releases www.helixesg.com. be not website prepared webcast can statement today's on page have press copy clicking we press by be for you slide forward-looking can investor remarks, begin If both the the make be release accessed our Ken? The at Neikirk materials, Ken icon.Before on presentation under can and tab, will

Kenneth Neikirk

earnings third of not any or statement. In or comparable XX-Q, we accordance party We of statements business made provide not These update along forward-looking our of uncertainties, business Report GAAP in place our statements should our with in during a disclaim non-GAAP our statements this and website presentation, Report Private available During presentation, call.Also the and of of to call, Securities set most the projections as variety broadcast and release, are fact, Litigation X a assumptions, actual or expectations rules, For Form making of remember with any XX-K, include of slides of projections at reliance reports the duty of certain this reconciliations Form Slide presentation, filings the in do those will in this by historical our our SEC presentation section other and our Annual the are the this and Investor may than non-GAAP quarterly trends, press and forward-looking under made with including on Reform oral replay www.helixesg.com.Please matter may be certain and assumptions may filed information associated in this subject provisions Form recently be of or XX-K, not as XXXX.Our of risks, forth Scotty? that you that undertake materially undue on forward-looking and call on other on measures based certain of this any to financial SEC.You measures. the on April results forward-looking statements as made. Annual and therefore or of written any advised number financial from on safe statements, XX, call, reconciliations, Act of final estimates factors, differ and conference be financial anticipate only disclosures are to accurate this replay may our regarding we future speaks and information events, the time-sensitive under due the statements conference XXXX, conference call. call statements industry current of conference any today, statements this our Such forward-looking today. any All projections future harbor results.

Scott Sparks

million, million, another profit again, with results QX safely $XX the key $XX producing a XXXX. guidance and of of and provide you were our a review We'll for very and onshore compared outperformed The for presentation, we morning, performance our and the first today. to market quarter Slides Good financial well. doing considering on for of update morning, operations. X quarter. the million joining high-level the gross seasonal teams quarter months.Revenues quarter, of an Thank is of Thanks, This X XXXX.Moving well-executed call view summary offshore Ken. winter and everybody hope to will current in the everyone. for highlights, We our our provide highlights $XXX our

shallow of campaign. water utilization XXXX, Pacific, renewables the seasonal water restructuring across in shallow results market.In in XXXX Coast.Our million, for of working XX of quarter results we year in utilization. Europe, of transit lead in a Australia. for provides quarter, conditions, of million then Our well of business. working further the quarter, abandonment extension trenching, improvements with without well in now the SHX, announced, provides extinguishment winter, at vessels vessel Mexico, $XX more of Adjusted overhang.Our portion good decommissioning the second XXXX, primarily costs had the permanently the to Favorable with the provides This the operate was our cash performing happy the its the going on results was strong gas-related and sales initiated worked and utilize Africa remaining of extremely expected, docking spreads quarter XXXX.During Australia the shelf significant Hedron work well low performed completed enhancer emissions general free our some and our overall XT site patterns overall Robotics to vessel intervention results for segment. line summary, XX with and abandonment equipment X the Africa, detail front, globally, Grand is vessels shallow the a weather and high liquidity than commence Highlights a operations, enhancer, seasonal convertible Robotics cash a continue expected operations. with year-over-year and we remains anticipate the Canyon barge, by completes achieved cash quarter. wells, million disruption, and seasonal cash resulting as QXXXX, utilization should we we to support solid million, year, traditional QXXXX abandonment water of over Asia the we oil liquidity the results. auto-renewed and our working QX, scheduled we dive larger projects expectations, our on QX the decommissioning the several well, notes, P&A on weather.Slide the for Slide with after the the The QX, XXX% $XX expect driven and contract segment winter we the debt quarter, the in simplified, was to months to stack as North Brazil, in of West and and better with vessels, strong commencement of between globally.All extinguished the a softening and And seasons utilization equipments were are more another with the project restoration full-field the the Mexico, awarded and pre-tax have improvements over net Brazil impact million. winter support, projects notes. the lower were operating lift and X the the of back and the slow EBITDA EPIC seasonal HWCG as the this driven break, until of by vessels, to forward. utilization, into and of related established U.S. of and the vessels with in production detail of start our to to which quarter.Moving due strong the on million, Brazil contract in as winter projects utilization, the of had a results secured $XXX back Brazil, winter shallow should the of of III for The Slide all convertible representing Also spreads XXXX, of in survey the our well spending loss. $XX stacking Hawk X. half regions, both mode high good we The due and XX. at QXXXX having $XXX RV year.Slide segment during flow well recommence for from well provides the Gulf regulatory loss losses the $XX the across with first flow months. near-term and a million, dock vessels business March very of resulting QX heavy uptime first debt in the fleet, remaining previously in on to rest of Slide for dry and operational $XX structure on performed we to cash XX the and will with activate Gulf and a will to days pleased for and renewables-related strong, of of core that start X primarily more Robotics considering XX.X% Gulf the intervention in include regulatory mode trenching to detailed quarter work Trident commenced through continue have in Australia the have XXXX, within other spreads.In markets efficiency QX, operations XX-month of the our minimum with battery XX Economics.Over globally business. installed Sea Europe, fuel in the in standards, a Considering quarter.The of X-month are intervention In with lower view we operating overall fuel-saving Mexico, impacted well The and into quarter, with winter scheduled Robotics had Shell by Slide our globally, water detail further minimal to the in operations of quarter East Thunder

Delivering now level poised like operations and the QX, increase our established segments expected are would customers and benefit activity execution. as Our leader turn high to QX call a in for over has business our thank efficient Brent. us efforts employees of their I our Thank during will you.I to from industry. for and to safe, in

Brent Arriaga

Scotty. Thanks,

our debt March balance debt to key XX, instrument's sheet of Slide XX. as it instrument, Moving metrics outlines

During QX, our and simplified have we structure. retired capital convertible securities our remaining

amount.I increased was out availability of over reduced debt will the $XXX for million, end.Following liquidity same of cash we debt we Alliance million, settled with cash debt end had XXXX to million. million cash the funded quarter, outlook had acquisition, now by to call of $XX quarter paying also at under discussion resulting ABL of our earn and our related Erik negative $XX turn and We of $X end At the $XXX and on $XXX the million. the of the quarter and quarter net liquidity end, Our at net for beyond. which million

Erik Staffeldt

million, performance million. million energy the million to billion approximately ROVs.Moving $X.X $XX in by to our Based Capital first to of metrics markets, dry continued the The is we Brazil. Brent. we XX-day of its have from $XXX a partially to flat Robotics $XXX that essentially made from last mix over the dock. key with million to and our our QXXXX positive impacted maintaining Revenue currently renewal our is once range, billion earn-out certain quarter fleet the $X.X completed docking payment guidance bit on XX, flow, again, are Slide to regulatory slightly the during period spending $XX strength HPX million maintenance in in million. MOB softer well and to financial on enhancer market.Free a maintenance of of on its vessels the schedule QX. cash dry upset forecast. Thanks, offshore our range, in abandonment early water intervention, specifically mobilizing slight the the will April, year, by in well a improvements again $XX Once $XXX $XX this on 'XX, shallow

which funded be the our maintenance, our regulatory notes. convertible continues CapEx Our falls $XXX forecast flows.Reviewing by balance debt primarily towards our million, extinguishment to of cash reduced sheet, operating stands into the at XXXX weighted

significant next not maturity XXXX. is Our until

QX shareware program, with quarter the expect relatively targeting follow expected third being and purchases QX.Our results strong similar performance quarters, the impacted free $XX quarters XXXX Alliance stronger We $X we completed we generated earn-out to a our in in cash and winter active payment. with in are million to currently the first million cash We of cadence is free second and be most 'XX, a 'XX million in quarterly half financial weaker our $XX expect half. likely by than to our in as second quarter the flow, first and flow fourth with first weather.Overall,

white QXXXX expected cash X-month strong contract enhancer The North a the improving contracted limited flow it vessel paid quarter the year market impact The be payment, Mexico. timing this is Sea, rates of Gulf we into The the through of U.K., to Sea assumptions most Mediterranean expect to for With scheduled scheduled the the the work utilization strong at very demob.In the of fill a starting West year.Providing and Africa has and free of XX, The continues earn-out currently of supported for is good QX QX. schedule. well to work seawall and by in a minimum work. transit is has some the contracted the to intervention, utilization QXXXX. quarterly contracted skewed impacts working with key the in in year. by and to return mobilization Nigeria with the segment for half of Gulf to on to North contracted QXXXX our seasonal before Mexico the being on the in QXXXX, space to Slide likely work region, every the well second

of Petrobras. return adjusted different the to in scheduled projects scheduled by Siem anticipating have utilization on on in Hawk production Trident mid-year, long continue with provide and contract benefit transit Grand utilization to Helix is are supporting trencher trenching to to Topaz strong has contracted Shelia 'XX into remain of North the to The oil East Mexico renewables North months rate have weather. pack neighbor its commenced mid-December to mid-April. Sea.QXXXX The year.In producing battery contract U.S. its XX-month Siem segment after January.Moving U.S., in Brazil operations. starting performing and change. at clearance in expected tight the contracted expected where projects Droshky Trident the It's as of The in and working to robust production expected X are mitigate and The completion to TXXXX with to QX.Glomar projects of Canyon of performing for activity, deplete. with support.Moving clean-out Helix forecasted of renewables we have this continues back to projects The to the gas Sea, seasonal Topaz the for the transit into have is after winter is into after mid-QX contracted Siem QX Taiwan Coast working winter through for X shallow completing variability QX III water from a the markets XXXX. to scale good active expected wind seeing operators our farm Grand seasonally the with competing XX market field contracted The both and projects utilization work second Bordelon no is QX. benefit followed We in facilities, into X HPX activities the work contracted Canyon region, half do and Taiwan to is installation the Australia Brazil.In in well is We the We are Siem the abandonment, in and do in Sea site mobilization we're Brazil, Wave the operators. from is to continues XXXX. of of the markets impact expect North APAC assets. in and extremely field Thunder XXXX.Moving for Robotics. to for along expected are in on trenching to The to period extension Gulf

part be Owen to potential schedules very to competition as in this do third business do this Owen? for results variability Following assets, out.We expect we seasonal remain for to outlook for on and back believe if and discussion is for the be 'XX in active but and demand increase.At the the second on quarters of a with in will call outlook the I time, we QX, we long-term to turn closing beyond anticipate the slower with our likely comments. operator depending confident as fill spending, business,

Owen Kratz

Thanks, morning. Erik. Good

the split further seasonality then to continues evenly meaningful other XX between XX If improving with not is return in efficiencies potential to additional the the long-term. working Mexico. of season. also markets We'll market APAC strong to for renewables Africa services, to and the We'll globally, we it services incremental offshore place, another for for work right countries.We Our capitalize on the sending near-term and abandonment with on supply work. the looking rig market but quarter and for in to in work-over increasing, West markets impacted by rates performance for With for expansion increases and the us.The only of relocating pleased from right than provided with rates, U.S. winter color performance markets better tight market. supply the year-over-year other that enhancement. with very our by looking offset strong opportunities on is weather year-over-year abandonments. Intervention deepwater We're their Gulf Angola our first fleet intervention is support to our at We Nigeria, facilities good both activity and well tighten. Overall, winter, driven worked and geographical we're for and to gas market there's expense the Brazil Hawk demand Australia The is in be a our potential the multiyear results.With in market. are demand we're us Gulf variable in segments solid and drivers in contract with the what scheduled on enough significant and the intervention seeing rig well the to guidance. active continues rates. in we and having would expected, demand. upside meet demand Abandonment we're abandonment QXXXX do, as the Have support at in was anticipate The market water we're a the The our us, continues multi-year planned. our overall be holding Well market energy segments only are decommissioning declined for becoming energy near for don't a the the to in improvements this field.As Petrobras, for and also to The of the demand expect our are more to production from by be pullback the reassessing than happy winter Brazilian Thunder pace Africa. We'd and the driven show in market, where that and additional but for and to all increasing think including well for shallow by the Robotics our dynamics also investment and we're for with of Nigeria, increasing rates. needs there's cycle deliver pretty customers expansion be we're us. consistent oil is improvements solid production continuation the with strength The are market Sea, marginally from XXXX well work best to the and Robotics demand. The market the maintaining intervention expected well benefiting market favor.The that the start believe Water XXXX, current the from the intervention from is premise new strength seeing Shallow the from West in offshore significant operators. with experiencing increases, intervention of North support Shell, to of All in continues longer-term regulatory as markets by provide like and SHX.All evidenced Petrobras discussions Australia demand on current of sector, activity U.K. segment meaningful in say market.To drivers our more demand a activity. QXXXX we're to overall

market expected looking at years. operating our continue strong and have presence X We're increasing on at market.Moving assessing doing We're capacity wind is we're the work capacity always, for multiple the to our best marginally. now Robotics. is Demand are capture for in front, market near in As wind Taiwan. and this proud our to the full in growing. and options farm We vessels the renewables site options of farm clearance we're working to

the the X X have further a EU, the beginning another the in demand just trenching vessels believe deploying U.S., trencher X potentially on see the market. that farms from with East off including the and wind performing finalizing working the currently to as capacity we of well We this site ramp-up vessels Taiwan.We're more as -- deal EU, add trenching working in new horizon. would in demand on to and Coast clearance We're we're

for We the do to expectations rate. $XX EBITDA this share.Our for U.S. GOM believe million significant the with decommissioning communicated, an full capital for and strong with a expected was for Our to business.As cycle XXXX assets shallow $XX could further Helix market the million expect shelf, to potential approximate deploy expecting to XXXX. from was exciting current Mexico maintaining continue, Robotics EBITDA. market $XX initial and upside a improving It's we're in business water segment and the time run come, years an decommissioning of We contribution in banner Gulf business is year have million this to we've accretively. of robust that with back market pull a

work shelf. the towards reassess this for These bankruptcy, mean Fieldwood the halting to be will their Fieldwood Our new for of both Cox the conservative. and was EBITDA to lag previous the few as A $XX This market. they market.Our potential expectations million that bankruptcy, things slower occurring developments demand.Similar work in extraordinary declared XXXX expect results from we significantly Apache earnings may work indicated that to $XX associated will XXXX. have in been at we the XXXX has to expect they're plans. a Exxon, with million to my are results reverting come the on in year, leading adding end the a XXXX an this XXXX, benefited XXXX, bankruptcy year work perhaps Apache indication begin and of period

we We expected assets, cycle would to opportunities. provide our a the million $XX with with down is still be in XXXX we to be -- and pressure decommissioning producers. this up shelf significant bankruptcies, as for the to recommence held work work near X the addition fields and current spikes to is full expect to This awarding expect XXXX.In from in led expect Talos us their to work future ongoing what drive business decommissioning in regulatory as However, EBITDA on flowing years. by work next

looking XXXX, XXXX big our at while So remain is picture, we a pullback this we're and beyond. well for positioned in for confident to in the our for long-term.Helix positioning and outlook market deliver

full yield have markets on million can for for on on growth beyond payment debt. core generate when Erik for growth without for don't in deploy mentioned cash of as for look with we then generating cycle also our the maintaining in turn going the the for Alliance pricing do present potential flow forward.With approved and we our We'll is company successfully double-digit open long-term strong to repurchase of utilize the sheet.With growth cash permits, cash so the low buyback opportunities share $XXX back sheet, simplified basis. sustained we'll balance relatively opportunities for and a and sheet competencies. taking prioritize accretive We'll growing sustainable the balance to earn-out If need free Board. balance Q&A. marketing and share the the After is a strong. the by million cash growth strong segment financially to Our it We've to can final $XXX I'll and price that, added capacity. with value acquisition, seek search facility the flow we'll We're each where be the debt cash on the free deploying deploy advantage to and have cash cash, net balance to now areas the we growth, growth to

Erik Staffeldt

ready Operator, Owen. at questions. Thanks, time, this we're for

Operator

Your Cowen. first question of Instructions] James TD Schumm line the comes with [Operator from

James Schumm

of just It I to business. like year? with to question. this the revenues I first on lower. the we guess, lot million looks the you of sure of going want $XX a water the shallow Are make million sticking I That's, EBITDA expectation -- So, by understand. are revised you part the $XX

So, are just your on thoughts updated that. what curious

Owen Kratz

we $XX that million year, we to exceed EBITDA the will I more that acquisition. believe was initial time of for Now, mentioned that. at gave million I guidance the $XX than the of the this

James Schumm

just business. Okay. to It's trying Gulf to about of this be talked the understand, a in It's in Mexico. you And then, seasonality going business. the seasonal

Your the is intervention in Mexico deepwater well not seasonal. Gulf of

than other seasonal? heavy business the is So, lift barge, shallow why water the

Scott Sparks

weather basically I'll here. down It's patterns. take just it's that, Scotty, to the

shallow You're water. working in

So, the seas are those rougher in shallow waters.

You've the got diving lift barge. just facilities, heavy the not

have heavy You've with to that lift boats the in more all water, are bit affected the got we by Obviously, water, shallow deeper a weather. room play around the vessels.

So, it's pattern. just a weather literally

James Schumm

on on well and tight. the Mexico, intervention very QXXXX You've taken mentioned are out could you intervention, look Gulf rate color globally? you of think sort market, if you you And give it's the like? increases, there, what think up rates then leading-edge well in on Owen, pushing but of maybe just does And broadly specifically touched that that I Okay. any of I

moving in seen stuck a a think being for, I lull rig know, bit little we've some rates sort months. up XX of I after to don't XX

I'd So, if you about could talk appreciate rates, it.

Owen Kratz

bag. mixed a It's

the constitutes We us against moving rates. floaters. up. the There's harsh rig slight the rates are and rates UDW to up. rig not compete we -- rates discount are Leading-edge The that pushing for environment rates a a rig are

of rates, would the a to UDW leading pushing down the cut market.We on remain commitment balance a to for out what view but of our step a commit negotiations number producers a there's from market there's a discount and -- willing discount seeking a we the to be of by now strength slight would and, you these a how bit are take are leading of to that multi-year then seeking want are consider kind in trying and little very giving rates, down were to able strong for versus utilization.We're of going rate to there's more environment course, commitments, what multi tight. the market's harsh producers and multi-year they -- kind So, the That rates we our that that's far we're willing we compounded rates.

So, rates, it's our we during the of are bit of a gave say, the would a down period. little that off I bag.We working last legacy mixed of

I be this the of those think gone year, will end will be the rate. and new by on

do in 'XX we significant in our a from rates. increase these of EBITDA rollover expect legacy So, pretty just contribution a

James Schumm

many follow-up to geographies. And, Owen, moving just that on There's pieces. there's Like maybe that. different I so know

You've got of decent they rates be year Or that? you average, versus I generally year? think Or about think legacy would way higher this would vessels. lot leading-edge it? how is rates like would to that XX% these last you But, on about a about on a mean, think

Owen Kratz

is XX% Let's tried we're say, at -- see. look our rates at a looking haven't percentage from higher. -- This would leading-edge being roughly but it rates to I basis, are I

Operator

next of Johnson Don comes question Your from the line Crist Rice. with

Donald Crist

of do Cox in you kind do start 'XX the we the put put that the Owen, are amount kind of back are I to wanted with original the operators. in any doing wells in bankruptcy that to being and to start, a significant think Where of fourth that think Or that you of that's -- work? quarter? still issue? to contracts hits place Is discussions

Owen Kratz

by operator-by-operator. goes it Again,

was it I month. it the just past think year, quite I big finalized work while. be last thought but the bankruptcy occurred last the a of at until was to it's for finalized a been going year. with That beginning this end delay. fairly wasn't Everyone this year mean, obvious

I little said, that's operator-to-operator. So a of bit a surprise.The like been process, from varies

yet, have back. been of they the want knowledge, They fields know to notification precisely it mandates like have my do. them they're of have which I said, pretty anticipating received to and a pretty and much they idea. from government good not Some what But getting a

Fieldwood of Some 'XX, been of context, until didn't July-August To see some work really you the you work them the we and 'XX. planning.I occurred potentially. have of could think bankruptcy that August of in see some give

known lag.I So was long this an XX-month good to don't Cox, think that or it'll XX-month, that because was everyone's XX- on coming. that take a

begin the then most to this then how going the handle getting out take to year and work and of rest figure properties they I what to negotiate year, the late want some tendering see You for back, of but work, could out go contracts. it's they're this them contracting, to the think

year. until think doing year, of of until we they all anything decided expect to haven't as this they has from they operations And were next begin again shut down or later included takes don't the this it, the way on quarter and occur.So for Cox. year their that to fourth I early Apache reassessed course, to

expectations pulling demand what's that's slow. was really, over-the-top just going an about back everyone here. just being 'XX sort and that to then of But that's talking be 'XX the just driving So band, the is rubber

Donald Crist

remind Cox back put Okay. And are you wells through believe can bankruptcy? us being the many how you

Owen Kratz

being exact put count X,XXX to It wells. list of depends from estimates on on duration how you back but what's I've anywhere work have is heard of coming not but years. sounds like XX dodge, I I've that requiring the back. the the the from wells a X seen know heard number I Cox,

capacity demand-driven in and the be multi-year, Gulf it's to long, work do the a the on the work execute depends the that producers to the going cycle. pace But at. course, Of that

Donald Crist

in vessels Right. that kind seasons? could had as that and were to short the deepwater couple today, still Guyana are start Exactly. grow fairly given into side, But new how to a and do demand. Do think that other the current we calls, over as And age, vessels the progress? we short that conference past you 'XX basins I switching move know 'XX we see you and as said of you several we're

Owen Kratz

Gulf Gulf the to the in in we're QX seeing the Mexico, because demand Mexico, Asia-Pacific the the to the back mentioned the We of of QX need the demand bring of for Yes. market leaving Brazil. and

that West the very rig rigs to going we system do X we rig at us working X strategy of were also so cover. that intervention was tight. that do floating without thinking that have can't is work asset very, Africa some pay But to was year, is and add of So to off. our required that be on asset market and Australia, an a that -- off We Australia.Last leaves the starting a to time new cover did systems,

that fact to the we're up, the The asset is at Africa pricing rates still rig to going an and short, looking cover West we're cover and Australia. are the continuing Now -- market tighten another asset basically further. to

though. explore to starting we're do tight. now that conclusions this if So to our We any have right options to market as how to the rig don't share, is

Operator

Daniel comes W. Sean the Mitchell Partners. Energy from with of next line Your question

Sean Mitchell

ton have balance guys done on work sheet. You the of a

of seems in with rig position, offshore be a seen there You cash with the in multi-year profitability business runway to currently respect net convert. in drilling improvements significant and kind sit 'XX. intervention, taken where are, out rates coming that a for We've have to

a are take flow repurchase to you Just we the into shareholders a capital the thinking be generation outside years of should minute. free next returning significant? couple move of cash about maybe where in period How as

Owen Kratz

on that do share we now, during facility $XXX Right have we're the working million repurchase.

of a continue with Our level a do least the at plan share cash is priority to of to repurchase targeting. minimal

Some of in and areas capacity. market could the we're really add where the tight

be to you bit, moving say, I'd that, to on and the sustainable cash white would see was don't little contribution better if elephants, or accretive to Warren searching grow opportunities long priority like immediately to then we growth sheet value carry Buffett, borrow we be would repurchase. cash a go gun. from term.That'll the phrase first able the that our be share beyond the for To isn't deploy balance loaded the where areas to balance a think the we in first EBITDA our And fast value So, it going the you're I would achieved, priority. to extent revert a shareholder for to

Sean Mitchell

me. Maybe X more for

with assets Just the higher, intervention It Owen, about about do think how outside years? could economics, you given well you over day few elevated but where rates like just higher? of continuing growing a rates seems of assets next business day the you be in? rig how just are new Are have to, non-starter there would rates interested moving be growing that outside business thinking

Owen Kratz

new question think is right of out build now. the I

say of from availability might that's build even a a ways you off capital, of but are If I'd and going cost new it's they're the projected the market, of back day that day table being be, of things and couple few combine what for consideration. you to or the to assets rates market viable.So, there When propositions building soared, commercially rates now. and with we're long you're cost a assets are the right from work between, this tight very interest. value talking The be about that adding so far have floating in the

been talk Beyond done. think seen there's lot that, lot of in you're be the difficulties caused some economics hard about returns there's wind some you've derive and have to think a looking which of how economics a some at the with delays. the have caused market, market, work it's The I that.But to of wind I

been just that's market long-term exponential the the that but think curves sustainable. of wind I a do it's believe growth growth in, I've never I believer and

Gulf of expectations, only what but do little the add abandonment at, could that where to areas own of shallow the in between asset all after blue we farm again, look a deploy we and water There of that all add Mexico. have doing.And we X/X in market X/X ones year capital other finally, XXXX. where the So wind on we're we're I the required could such think the pricing X sky are Depending market, to you water asset the in that, classes to shallow are robust to there then which assets. class a were are areas already

a see in being as the XXXX I bad So thing. really don't necessarily pullback

among market, you're thought inject wanting to add capacity some sellers. some If rational in that could it of the

Operator

from question Schumm the with next Your TD James of line Instructions] comes [Operator Cowen.

James Schumm

vessel might be be, Owen, cold-stacked on would what what are potential good any interest at a semi-subs of are thoughts following-up strategy, are economics price, the what you and the that maybe or there? the to there Just around retrofit a

Owen Kratz

I It's the just been in cold-stacked the right don't don't for make so now long that retrofit at numbers engaged that sense. much looking we're think commercial fleet. cold-stacked

be assets there of few working are are that a marketplace, could interest. very are in assets that the there but few think a and I few, existing

James Schumm

the I was wondering, XQ. Okay. XQ, cadence of guys And from you could give then earnings XQ, directional if comments some on

You've got, I the the quarter, QXXXX. and going QXXXX the think in you're to transit third

is about works, and Just is unusually way this the accounting QX wondering we unusually I'm year. high that? low think should QX if your How

Erik Staffeldt

going strongest be Jim, quarter I to our the mix Yes, quarter think are is, still months. second the and third

make unusual going if some the in than do it be we are the are otherwise You weren't have to we strongest quarters. identify will and what still, second items that our that quarter impact that third But quarter, deferring probably quarter that lower will the third would mobilizations.

James Schumm

Siem then X And Helix yes, one, just ahead. last the -- go

Erik Staffeldt

that's clear, just deferring accounting Yes, to treatment, be not mobilization. the deferring the

James Schumm

Yes. Right.

vessel? Petrobras Brazil. reports, that bidder When on is you contracted expectations December. Okay. think your work lowest The on get Siem are X some Helix we do update you an What that There's for maybe, been until will the there? in incremental some were

Owen Kratz

peculiar the be You'll know style. When? Petrobras very tendering first to a when know. has we

for commercial terms. for vessels tender process issued. for the The works then vessel lay way you, and riser they another X negotiate that that your X are then out asked there's to riserless submit that a the you is tender the facts basically bidders Just lowest to issued contract. Petrobras The was

the vessels, bidder, which So start fresh we invited off the only our that riserless first vessel.We We the the presentation. written recent the of very vessel where on X riserless riserless only the as not riser the press. bidder. is SHX low were process have is of mentioned is were in we as bidder were the been the announcement The the well very, low stands right now vessels the negotiating to

know honestly, quite going to go that. with don't So is we Petrobras where

any sequentially So everything are process-driven, that the tells on They put process. you times and take very it. where are exactly in they don't but we

the share So with best that's can I now. for you

James Schumm

in point a you contract of there mean, where Petrobras? the in to Is year time vessel keeping would Brazil. in outside I it look a

Owen Kratz

I Brazil market in think very Petrobras a for us. important is strategically

wind offshore potential think future abandonment I as a a it's and market got gas shallow the water as market most well market. and it's oil robust the up-and-coming in also world,

represents it's value depending rates, very the or greater anyone we said market to contract a anywhere the Having shareholders. on important So that, the strategically. vessel that will to

James Schumm

sorry, one for And me. last then,

That's lot cash. got, a after cash You've of of said pay earn-out. the $XXX I you million think you

for with of more is repo vessels more your believe stock seems additional given your that else? fact if worth maybe it for only now. it right does $X to you're repo? You're is the very Why keeping get have doing share open intervention options than share do the million quarter, not And a something or something with you which low aggressive well

Owen Kratz

I that open. options main say keeping driver is the wouldn't

Our being considered. options are open always and

outperformed number that share fact on fact where the is of that underperformed we've a reflection to the of we of our date this the actually think just we've at expectations point. sort to we repurchases I thought would be compared

Operator

to further are There Staffeldt turn ahead. time. over will closing Please back call this go at I remarks. Erik the questions for no now

Erik Staffeldt

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

Operator

Thank all today's your concludes that you gentlemen, may joining and for disconnect now Ladies call. lines. you and

Helix Energy Solutions (HLX) 25 Apr 242024 Q1 Earnings call transcript