HLX - Earnings call transcript Q3 2024 | Helix Energy Solutions Group, Inc.

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Operator

Thank you for standing by. My name is Andrea, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2024 Helix Energy Solutions Group, Incorporated earnings conference call.

[Operator Instructions]

I would now like to turn the call over to Brent Arriaga, Chief Accounting Officer. you. Thank ahead. go Please

Brent Arriaga

and XXXX joining Earnings everyone, our today Third Quarter Conference thanks morning, us for on Good Call.

our our Participating today on our Erik Vice Sparks, and Daniel are Helix Neikirk, Staffeldt, COO; Owen Kratz, President, General this our CEO; Stuart, call Counsel; CFO; Ken for myself. our Commercial; Scotty

an review presentation our had night. last released release and you've Hopefully, press opportunity to slide the related

our materials, the Investor be do you not on at If Relations can the accessed through accessed Events copy press these have The be both of can page release News website www.helixesg.com. slides tab. a and & under

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

Kenneth Neikirk

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

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

These statement. accordance do statements update not financial this In to be reconciliations, presentation, the non-GAAP call, our reliance and replay presentation SEC written annual on broadcast rules, undue to earnings Investors reconciliations of a statements, during along financial our our any may section We www.helixesg.com. GAAP XX-K of non-GAAP call. Also press available -- the final undertake this forward-looking provide with party comparable conference made this Form at third for the by disclaim certain disclosures duty release, website any oral measures. of regarding measures slides subject any this not of we the certain and the on made. of or any be should with place under matter You report forward-looking will

information October of be Please therefore, longer XX, today, conference you time-sensitive remember only advised any of that Scott? any of that on speaks this XXXX, as as and this may are replay information call. call no accurate

Scott Sparks

team's and we quarter, positive a of cash morning, and with The million, our in We you resulted results the summary of for everyone $XXX a $XX Thanks, Ken, EBITDA X is of of $XX.X $XX hope well-executed and quarter. provide $XX had market financial of results, today. presentation, doing Third call our joining resulting again, offshore the for million. free guidance and with well. and cash of review million morning, everyone. our producing and Thank our for Slides performance in good our $XX and the Quarter and a profit highlights million, This was onshore quarter the We'll we flow year-to-date Adjusted million. view were quarter. another operating for high-level which income gross for the net Revenues update operations. current provide XXXX. Starting X key million flow strong outperformed will

remains cash with $XXX Our cash $XXX cash equivalents and strong liquidity of of liquidity and million, million. and

Australia. accounting to impacted and the significant reporting. total northwest QXXXX the Southeastern for mobilizations QX costs were revenues days negatively the deferral Gulf from QXXXX in in transferring from impacted by Nigeria XXX locations Mexico of and results the the of of financial Our the of Australia

to quarter commence due approximately our costs, of X-month high strong regions: robotics downtime Water in meaningful without revenue Abandonment in options; utilization, plus arrival Northwest Helene. This QXXXX to campaign reduction in renewables to Francine EBITDA. loss a significant hurricanes and of X to performing Highlights resulting commencement Additionally, a the we the the weather-related Australia; a of million in results Nigeria QXXXX to contract an include: for higher-than-expected works any up incurred days final $XX with of and in XX the estimated of caused region. Shallow transit hit in in our

over had X the operations sorry, options of a Helix with these of plus Slide long-term utilization. Brazil, years results Africa, the We're Siem in contracts Helix per operate QXXXX Coast. in all Gulf year-to-date Gulf our of X-year profit in million, operating cash and with year Europe, Mexico. XXXX segment million, results. Over provides we of our XXX review Contracts of $XXX to continued billion resulting cash our Petrobras. East X million In resulting with operational globally business. At and quarter, new with EBITDA over revenues we excited days U.S. positive of $X adjusted Mexico key These X improved minimal Slide in were quarter committed million $XXX Contracts $XXX segment $XXX for metrics to disruption positive end, was financial of income $XX gross was backlog to net minimum in of with the Asia detailed X-year multiple the had are are the it both and more the million. commitment third and Shell Siem a a that with contracts million. utilization Year-to-date, in flow of Pacific, -- free flow $XX X.

Interventions line improved overall the Robotics core Shallow and results our globally, group driven by expectations, markets quarter-over-quarter strong Water results in quarter Well impacts the Abandonments were our of of with Our despite third hurricanes.

Well provides efficiency Australia utilization Slide well for of Gulf achieved XX. Mexico, Interventions Slide with of detail in our working the with well utilization a segments. quarter. overall performed XXX% uptime solid Australia. Sea, performing QXXXX to Moving North the XX% Brazil extremely We strong of XX in further the and very The

the expected which extended campaign, in paid and XXX-day the the has is commence complete solid to in a had Nigeria then been minimum Australia complete Mexico vessel shortly transit Brazil for of Shell the Gulf units for The Shell contract. mobilization QXXXX Brazil for the utilization accounting to transit with working both Helix now paid the very SO Mexico. decommissioning and to the We for to long-term Gulf minimum with QX we paid X-month vessels oil are the commenced were campaign that for the of the this transit as Petrobras deferred. Again, announced pleased in QXXXX for and Siem for recently contracts both month. the earlier in The impacted fees

XX quarter Robotics our The had X Robotics Slide very trenching, XX. support Slide further high provides during the another business to at of detail vessels ROV between operating Moving performed standards, business. quarter. strong utilization site all the oil and strong survey vessels on had working projects quarter, projects. work X on and on globally. gas-related projects within and vessels trenching and All vessels renewables X renewables-related with worked

enabled for trenching Coast, reflect year. Slide and Taiwan. of and the well, another on deployed U.S. trenching for our Water The Siem in undertaking related on of performing in Bordelon improvements business. was worked the Shelia the the strong over classes. U.S. most quarter trenching XX Topaz Shallow in QX from Europe the GC client-provided expect East The III [indiscernible] provides seasonal Sea QX very the a various East renewables to on Coast, and the asset North Abandonment renewable-related them have detail we is Robotics vessel. always have activities projects

the to support dive business continues the the the a few in project experience and noted, Shallow the vessels business in In full hurricanes vessels, larger quarter, project as market utilized two less-than-expected utilization, some However, decommissioning Hedron by Water heavy barge, was QX, XXXX. with the Abandonment continued Epic and field impacted on lift during leading we to of the sluggish grids.

Mexico segment of offline. QXXXX Hawk and downtime by at on negatively QX. very Facilities the unplanned the the during and was summary, Production been could the mobilizations the a better, remaining in had the Gulf shutting strong July, have of Our quarter, we QXXXX end the from it with field of absent the web In and impacted even the Thunder production

XXXX decree now backlog we to secured for intervention efforts, execution. the turn their securing newly contracts for the delivering come legacy our contracts thank like market level mentioned, over at a years. I'd I'll coming with contracted improved and Brent. assets, to our previously of strong a As and employees rates work entering call good a of with entered well off with high

Brent Arriaga

Thanks, Scotty.

$XXX Moving the of million $XXX the At key in with to September Slide increased basket. of the under and balance we resulting debt we extended XX. instruments LC sheet It of of of our availability outlines $XX our the cash In quarter liquidity and million. had August, terms million, ABL of ABL end, size as metrics XX.

LC usage our to Our contract. decreased in due to ABL QX increases Nigeria in availability our related

Erik net million Our now the for funded beyond. our a have at quarter and XXXX debt over outlook million, $X we was negative to discussion and of for end. I'll of $XXX turn debt call

Erik Staffeldt

Brent. Thanks,

Our quarter, the QX mobilization year-over-year. well days and with weather transit line and quarter by historically in was has results our were been Nonetheless, team highest and improved downtime. our but performed quarter. in the expectations, higher year-to-date impacted our results

North to we key particularly metrics are As in our tightening said, region. APAC certain expect of our Mexico seasonal we our operations, Sea, financial impacts That do and guidance the shelf from of QX, forecast. enter we Gulf

$XXX billion $X.X $XXX million. revenue to to is EBITDA, guidance Our billion. $X.XXX million

We guidance. EBITDA have narrowed our

including $XXX results, impacts of million flow, guidance Mexico to Our events wells. shut-ins new offshore shelf cash our to Free range are actual the production weather of the unplanned Gulf our in increasing year-to-date our reflects in $XXX million. and we

lower The contemplates to range improved to by in in expected into XXXX, the right variability is outlook spend outflows due the spending capital possibly the shifting XXXX. cash working capital some flow driven and provided

free made year impact the also note QX. cash our that earn-out in includes that guidance million payment from was We $XX flow full the

our range The to Excluding that we year XXXX. moving spending, $XXX improved million $XXX the would is million. Capital amounts on full impact our million to flow lower million. guidance are reducing end into based $XX be cash of $XX forecast free the to of earn-out,

to and ROVs. our cause These a and these fall significant estimates results our and maintenance from mix key renewal ranges. regulatory of estimates ranges Our to fleet be spend outside and variation assumptions in the any these assumptions continues some could of involve vessels Robotics

Slide to on XX. Moving

guidance range Robotics will in seasonal namely The winter fourth results operations impacted our our in Shallow is in and Water the our Asia extent dependent Robotics Sea, the Pac Mexico fourth for length of in Gulf Intervention weather operations North discussed, the quarter the by Northern quarter of working the on Hemisphere. As Well into in and season, and variability be businesses winter Abandonment.

of length our that and of contract. expected duration Droshky commenced may into And be affected production in work expect depending on ultimate gas Nigeria fourth the on the quarter results and QXXXX we our on oil We October, our variability wells QX. by

Reviewing until stands our balance with debt $XXX our significant at million funded no sheet, maturities XXXX.

XX with We are XXXX million repurchases share XX to done XX still million program, our year-to-date. million targeting in

the Providing assumptions region Slide key by XX. for the remainder of year starting segment in some and

strong segment. contracted is First QXXXX The on with minimum Intervention QXXXX of our -- through the and per the to The the Mexico beginning market year, Well in year we for Helix. continues XXX-day of commitment be Gulf a remainder XXXX.

through we West revenue transit the of in The With or duration to on and season Sea, months working into The Helix within expected Well the Siem to its within on hire QXXXX expect by mobilization project campaign our is a in followed commence this working contracted with in Helix Brazil, in is period followed by guidance Seawell QX. will that application North X-month mobilization would its scheduled be The Nigeria. Siem QX Brazil XXXX. continue return costs midpoint abandonment our 'XX. In contracted currently provides to vessel deferred Australia, and winter X on and in its utilization in the accounting October, depend a into the and provides contract potential range. work reporting contract. Petrobras new Africa Enhancer ultimate this QXXXX work anticipating on minimum of winter other which Nigeria. In final transit went expected of and is guidance for early later to variability for project, has the mid-October our X-year to The into range. contract completed in extend September rules our duration its with opportunities through utilized and of are of X performing U.K. seasonally-adjusted the upside mobilization of for will QX operations in Trident contracted Possibility that acceptance mid-December the

the benefit XXXX. Trident We expect Petrobras to contract contracts rates extension an and from in improved

assets. renewables both gas Moving markets are and competing continues tight to to from and extremely our active Robotics benefit for the market segment, for oil

segment the impacted Robotics renewables in in support both the region, is into seasonality December. by as work in and offshore the APAC and for APAC Grand Glomar the winter provides North and Canyon the is Sea, Malaysia Grand affected II The Topaz is to North the projects of expected within utilized by year. October. CM Our through be operations North seasonality performing in months. expected potential usual the clearance expected for Sea December are ROV Taiwan, activity forecasted to the the offshore The Sea trenching providing are performing neighbor on-site guidance. In further remain remainder are Wave remain Canyon upside our trenching to is III and levels

our Gulf potential within Mexico providing range. further expected In off work the East is guidance for the November Coast of windfarm on or U.S., U.S. the the Shelia potential year Coast, provide and Bordelon this upside support the into East

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

the earlier in in X are will facilities the approximately wells shut and call, owner. work Thunder mentioned be to expect temporarily we X Hawk our for facility conducted wells be the by As weeks to Droshky in, shut for

Our the could of going duration shut-ins takes these but forward. Continuing into results Water. our Shallow the forecast account, shut-ins affect

line be this continue in investment in of seasonal weather with to decline with in anticipate a Gulf business We Mexico. the arrival to the winter activity

this on still solid business, Shelf properties term, and extent but a the continued of for market. the Our includes foundation bankruptcy, winter a reversion customer call-off depending needs, outlook season. for timing in the decommissioning given we variability long believe range of is

turn back our I'll for discussion and to closing beyond comments. of time, a for the XXXX this At call Owen outlook

Owen Kratz

is EBITDA Thanks, the Water results. the are and mentioned quarterly were shape segment third I'm XXXX, despite QX, everyone. Things to Shallow in well in earlier. for with future. and and largest and slow Helix Erik, pleased its morning great that EBITDA good in good, Helix that's and one-offs $XX since Helix's positioned the generated Abandonment million

is in performing market to is to clearance. results the year Shallow site with Robotics intervention trenching enhancement softer Abandonment with growth and exceeding in for currently than strong foreseeable well demand as more our supply. due capacity very slow and the previously is experiencing covered wind market. and initial our negative production both water well farm expectations

for Hurricane costs a we keep disruptions, in in in need XXXX. the be feel rebound place to we carrying to order ready

half been as and this in results, year, Erik noise going has earlier As to was mentioned there covered. be, there has second our reported

the 'XX. positive disruptions the greater deferred Water hurricane will an a in typically Shallow the in which Brazil, impacted to that early margin Australia, extension extent overall the than contracted now our in Two, First, to lower considered. of QXXXX is work than legacy work although start be for next

Most to There as the effects million EBITDA Robotics XXXX, offsetting capture downs see Water. offline. performance We are onetime impacts. Shallow guidance. initial creates of the July rebound reporting were and its more accounting The treatment. Thunder the Northwest Australia in segments our -- in expected and these mobilization recognized a Southeast production but the paid QX treatment are of revised of in interventions, offline QXXXX from XX our $XX over Nigeria expected accounting to amortized or due to XX noise and X-month executing continued days $XXX and QX adds are we noise ups should net remains paid and went well XX-day for in costs contract The or to increase of Hawk in always improvements better, We've contract. the business transit the mobilization in as reiterate fees the term Australia million in the and and tried the the QXXXX to business. to not

During that from there's the of been questions have inbound couple past dominated topics our investors. the a quarter,

story First, there on was M&A an Helix. anonymous potential activities at

company comment on As and don't policy, a rumors we speculations.

chatter. to investors, we As strong growth and that will to sheet, we've of options entertain communicated generate outlook, with evaluation continue strategic healthy M&A market consistently recognize opportunities our willingness balance

Second, softer largely business OpEx are XXXX which downstream line on there's service Helix providers. spending. has intentionally and by upstream been developed gas, market driven a of significant oil than a CapEx of for rather segments our to focus for messaging the

model As softer a the believe models. Helix a business resilient most we more CapEx-dependent is result, that than in market

well is committed on assets X- already major contracts. to Helix by X X also positioned X-year our having of

anticipate offshore feel good is bad focused us stronger to we which cash we be thing us. business as Robotics and generation Our is actually flow A primarily may on positioned market, not wind Helix market to softer visibility. free continue a the stronger for with oil for well even for get gas

cycle more for greater alliance noise back point XXXX cash and that and price April, ahead. than even in free rational XXXX has better takes noise flow year for and Helix recall as back been looking may Erik. And paid growth would aside as been Thanks, and moving full into for and absent earnout cash year for XXXX capital become expected. free consideration. Accounting the give predicted, the generation The allocation flow we our up the for have higher. is you, to There's are been but directionally expected in overall, the

Erik Staffeldt

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

Operator

[Operator Instructions]

Raymond first from question your Jim line of Rollyson with comes And the James.

James Rollyson

$XXX pretty got recent the it your mention into well contract year signings EBITDA. now $XX like going next visibility and seems million Owen, the of given of good million you've to incremental intervention for

you business of into the also improvement the in visibility to with shaped You've year just Shallow year, strong have out -- that from things kind on year about of you kind are year. do how how next relative for you really have talking on last this how going 'XX? comfortable are Water been Like the view Abandonment What comfortable softness improvement? this

Owen Kratz

the we If a But for guys, $XX our I you. we budgeting now, for were made we're Jim, year. if million from pass, to have which somewhere around the million is our you you quantify but showing tell year a you year. I'm don't yet. the of do a $XX process things budget to right -- is back can -- $XX million million, when a bottom-up -- trying this that the acquisition, in We remember it expectations improvement a budgeting and first We're over middle $XX

to -- we're we're the we're year up. reach was pick level, an say picking activity not but this up. And in activity truly The year actually is is to that late I'd that bidding the general -- going starting Last anomaly. definitely just the seeing

So I the say range be it's should a for that as typical this we that say would fair range predicted back to in originally we business. that

James Rollyson

Got it. And year-over-year nice that well. be will as improvement pretty a

water we flow incrementals $XXX and I quarter are So context now getting this year. are you on million. what of with thinking in intervention basically free of then Erik you on But then next almost minus about thinking the cash next think think the doing the the how about if maybe earnout, out think you mentioned actually you're it? part, the year free well next I How ago, CapEx from like or cash flow fact, stripped talked should north year next And flow roll into X about be plus some from or might track and free a cash maybe year. shallow year? about there to the you And

Erik Staffeldt

talked Obviously, about. to and part generation, our we on as take cash free we've first Owen. back bullish pass then it So I'll are the flow

we're from experienced in benefiting this from the, of definitely we back flowbacks overall, working think capital XXXX. growth the you that could year, say, our some I

fluctuations, any an we free our absent in working cash would next so capital And expect improvements significant flow year. definitely

year. elements that about I this key impact think, We talked the that. obviously, CapEx

CapEx year. still through be In to to of general, per But million guided we'll We'll manage that. $XX range. ability range. the to $XX I in within work need to have million believe that we've probably about we that

And that cash the for a will being that probably we of $XXX we've bit talked feel for as taxpayer higher free far range I as in But million Owen. the to year. next little as our And flow year. we think think taxes end about towards it, uses I about be it a turn U.S. very our generation. I'll back good become

Owen Kratz

say that our sentiment growth. be easy rationalization back in going process. the look pause first think to then The would to and past softening cycles. you a gives continue cycles remainder sort and going we're allocation here, wary and extending allocation. capital to growth in is for to impact recent be that market potential That would growth towards share effect returns. But industry repurchase for build. it and opportunity the down of Well, I've major for for looking generates should best in We're said a makes shareholder allocation the to companies market cyclical be for about a is pricing surrounding capital a program, a dynamics market our an there we're pull the you me up capital what going that in their of cash of deploy would to I the cash greatest about the then have would always be or look on in start decision-making

Operator

Your with of comes James Cowen. TD the line next from question Schumm

James Schumm

without You loss mentioned $XX of really the there. Water, revenues QX in any in relief cost Shallow million

there -- recouped be no be QX? So is benefit impact will this in just QX? Or deferred curious, and to that will

Scott Sparks

recouping pure won't of we be Unfortunately, hit a in path hurricanes So that the the of went work through QX. was our in of lot back. a any those It monies sites.

that clients just Shallow us So unfortunately, the in hire. Water, event set the that off the are contracts put in

So unexpected. was it

As I see we don't the horizon. the at on move into QX, hurricanes moment, any

season start we're hurricane the but we in into entering hopefully, will coming mode. the winter So of out season,

of So October on normally will coming in towards into into down the when we that of will or come blows Gulf end that work expect Mexico. depending drop November, off here the the

James Schumm

help more us you separately and like then Droshky on the going Droshky color the from looks Thunder Can can you have on to Okay. shut-ins EBITDA some quantify -- Hawk? and you're And Thunder it fields. the give Hawk

Erik Staffeldt

to here Droshky the we -- to shut in on early standpoint, mid-November. Jim, until it from be expect So

it's, X weeks. say, X let's So to

it's a standpoint, it's -- that from So very significant hit. not

right undertaking investigations that. once I think the we're think into Thunder I Hawk, again, now,

and And assume production so that we couple the for dollars at a that, no least is are in of from million our assumptions quarter.

James Schumm

just well transit you many a how expect housekeeping QX? days intervention like then one. do And vessel in Like

Erik Staffeldt

in we QXXXX, QX, hire mobilization the went early so on and transit So on to the the completed we mid-October. --

So rest days essentially quarter And into Australia there'll once be transit a be few of there. QXXXX, the its end work October, completes November, it the mode then of early for will the in QX.

James Schumm

So that's like XX-ish days?

Erik Staffeldt

On the...

James Schumm

Sorry, I didn't hear many? you, Scotty, how

Scott Sparks

days is plan. current XX the

Operator

the Your Pickering Partners. next question line Smith of Energy with David

David Smith

Owen, pressure your circle about wanted business impacted to about We're fleet. your generation stock topics price potential sixth-gen got investor rig seeing that on the deepwater pricing to And impact interest. the has I market, pricing a year. of competition could that softening to some think sixth growing just concern with also of back I perception that remarks a concern your next

and probably vessel of So than intervention actually less is than half XX%, ask, open 'XX? less thinking next well I just for year heavy to your wrong wanted that availability am probably open I is

Scott Sparks

I'll take that.

the improved X-year contract the X-year new will sizable January at be at on in existing rates. Petrobras as a and better on with know, then contract much And market here in transfer will Petrobras Petrobras contract on we'll be contract months for contract. with over over options with The days SHX to a The of QXXXX to rates. from much with the Shell a XXX will be transfer the QXXXX, options -- good So minimum the we Nigeria Triton will X SHX options.

which into days, So time a with of already that work is leaves for the QXXXX, have on booked and really we only contracted bit that. minimum to Shell XXX us find a

year The we see see. virtually vessels, we Sea that are next on assets already no North left QXXXX. I spot-related they have time the So

for expect in We through -- at have that warm get we also. in and strong winter, some the and then QX again summer those assets the we'll a both QX going and will summer of for should months QX and stack point through

good of much to the in XXXX. Sea is contracted But activity market assets North rates think it improved seasonal to back now. the with are best at at the way all right heavy Again, contracts

David Smith

those than you real the It on if turned you're well heavy certainly activity? we your I year. intervention this availability the trajectory toward see sixth-gen assets? Or that. vessels discussions remarkable up, appreciate I ask wanted a spot clutter different 'XX have is likely contracting do how having market have a for to return the seen

Scott Sparks

more decide other this shape. working that's the think in happy if Shell contracted whether options the the its line But and be with and for so activity. With that we further we contract high up. sixth-gen Shell QXXXX. for Africa they clients we good will Shell XXXX, Gulf keeping we Gulf. the spot to the back QXXXX In backstop that The on Brazil, back the so back We'll the the visibility -- contracts, QXXXX be in a of will come will with showing have come have 'XX. QXXXX And in taking do good and have ever work good to QXXXX, gives us to

Operator

Daniel from the line Next question with comes Energy Jayne of Josh Partners.

Joshua Jayne

year have at as over you able just about guys I First, market look been the looking course of this to achieve wanted the and talk robotics to what we forward.

ROV trenching utilization utilization the and high So chartered in vessel in the XXs. mid-XXs,

a into as and next market. just beyond? the are for curious, for You just bit intervention haven't robotics have Maybe talked next year How to about as much respect detail of have year? talk more for, I'm that assets the could you the But spoken today business the business. visibility essentially you around many little 'XX into you with well

Scott Sparks

X So have working currently, we vessels in Robotics.

we I have vessels would ever probably say the We expect to in had X trenching. visibility go next best stay to year. with we've

to out tenders undertaking are We XXXX. XXXX and

'XX from Nobody perspective. tight market into trenching over from the gas We is any and few parts years business. have the also . The a oil perspective. an and renewals and trenching, It's is has the contracted 'XX Robotics work last tight niche through of built for ROV.

So there's the and ROV renewables gas. both in oil market actually and services, shortage in a for

increased and a similar to expect would I for and trenching hopefully continued robotics in rates utilization So for better see trenching also. outlook

Joshua Jayne

of more I and get we as guys it's intervention. about of the then cash double in to do comments ultimately, the -- Owen sort as into back with all well that strength most one you including wanted made forward interest of going a flow year to of improving what move free I assume to with to And businesses as lot just next the it, the

the when Just number, have next that been that what should any there guys in of from cash flow free first, you about spending deviate CapEx is talk you years? reason couple

grow, around are would to that and an or Or portfolio? offshore into when things to you potentially would your asset And types opportunities space? there intervention look add look nature? then the maybe it of opportunities else an be convert in the to vessel of what something the -- idle something second, another you Are to to

Owen Kratz

far the there's Well, is in as our -- increasing now. we for question. that the visibility of niches quite No, a I go, occupy each demand think as one opportunities I right think

So there market. is growth opportunity. Scotty the in mentioned trenching the

Robotics of there. there's a adding the I adding potential see capacity The of So segment, do capacity there. potential

a the as we In and that market of nascent prove a going the the Australia. Shallow Water a strategic because why see Mexico made strong and wait potential it's Abandonment, anticipate the in in to and itself be market of reasons of in saw we're but as there's acquisition we sort we Brazil the was also one Gulf let

Brazil. for -- we're So work some actually tendering in and

deploy to to new capital enter that be So there an market. could opportunity

X.X Right long we're downturn, we're then I have heavy intervention one, capacity. the -- too the probably told too have probably they for you we we really -- the now, pricing big X.X recent a the And to the look market, opportunity assets now, vessel X expectations through exploded through from on were but now vessel years ago. the light. and in term full years a probably think cycle. is I right There work And more were where

a right So to need But a then our and to I the it. have you services wants think us and vessel, client contract, we'd patient. comes if they be for consider

Erik Staffeldt

obviously, $XX there believe as our will $XX managing to think be assets be in for that manage feel but I I range, feel in able variability comfortable far CapEx, that As there, within existing that comfortable range. to million we million we to

addressed. growth any Owen include doesn't that opportunities that course, Of has

Operator

your And from Greg. question the next of line comes

Unknown Analyst

good up in and QX the West to it's Africa. Scotty, running see that

lead options in to unit. just those you for You those continue get for they called the exercise the time What when out need that you options of do QX? to as outlook play kind on for sense the

Scott Sparks

the think will year. I don't of of have be until up think that but firmed QX good I next that portion options we'll there's what chance a taken,

Unknown Analyst

Okay.

XX Okay. then Great. from days? about we think was of the Gulf Mexico mobilization as that, about And just time

Scott Sparks

dock get it quite I or had did about number all the take XX we set vessel partner mobilization paid a we that think usually before So security vessel days. paid to and actually Africa. -- get We good off up, -- the that we that to for was we and to

Unknown Analyst

And there's too, a right? demob

Scott Sparks

a It's as Yes. sizeable demob well.

Unknown Analyst

much How oil it guess pretty of out of Okay. terms guess I And of how side, appreciate revenue of kind didn't guys Robotics an split Any then renewable lay I is you -- traditional in versus can mix mean and you'll what about business Robotics clearly. is? the energy? that on between I talk -- I the maybe

Scott Sparks

that hand Brent. I'll over to

Brent Arriaga

Yes.

On about which renewables our is typically business, company. of Robotics side, about the XX% is half the of robotics

So at about looking XX% you're overall.

Unknown Analyst

about I largely between is -- like guess I but the like like to renewable? that all assets, the all and it -- does they're And just kind then assume safe the Okay. as think of trenchers robotics, are --

Scott Sparks

in in only but expand seeing Coast not Asia And and a Yes, assumption. that's well. the U.S. also good we're trenching East market as Europe, the Pacific

Operator

from question Partners. with David line your the Pickering Energy And Smith comes final of

David Smith

-- if by the million $XXX 'XX. In EBITDA but million XX you I'm touched versus this I about could little expected and $XX there's factors that the increases your to presentation, missed sorry range? increase a on to you rate talk about intervention please impacting well comments it,

Erik Staffeldt

impact And so the big the or I been issue new the -- that the think the in obviously, announced here has third big contract is quarter. we

And we're over year. realized improvements in to in new to higher this we're in Shell than rates rate we approximately think contracts XX% those what talked contract, able what able realize date about deliver what approximately with to 'XX Brazil, higher XX% we've 'XX. is the I with

we under working generating the than where Brazil. today of Also components in generate that's talked it. standpoint, we're about one better big the we've are I that think that the expect those From contracts that APAC So what on vessel QXXXX in to region. margins

David Smith

factors because understand The range. million. just $XX impacting that thinking about million $XX about $XX was that of that behind the to factors that million of comment I increase, up I the million range 'XX EBITDA $XXX by

Erik Staffeldt

impact higher mobilization early say at you day, would a that if it would the the Also if could the overall impact well. it that on obviously, the think lot utilization March. on starts of period I in as starts it -- end be January, obviously, that QXXXX, than So

and as into give that as million. to built working assumption $XX that $XXX there are so assets when And million the are of far are takes

David Smith

the appreciate curious And being option much if the contract are the Africa I for and you beyond in I the seen might an could it. not interest any work period? West about option? If circling reasons question one keep slip extended you've Africa QXXXX firm there follow-up. West so, in to Very the QXXXX exercised. And was for back in that QXXXX if

Scott Sparks

take I'll clients away now. region working there the in we're aware But in other obviously, Nigeria are the that that.

intervention over an vessel not it's So often to Nigeria. goes

a mindful there's its other to for of with of we've good Gulf We long share with So the that backstop Gulf X Mexico market degree Mexico, taken with want QXXXX contract. the Shell contract. as had be But of clients lose after want with the in the Exxon well. don't a time or we to in do have to what operators interest we X the of

the in that how Gulf So us to other it compared offered works Nigeria. busy about is to be are will the

Owen Kratz

that would comment the to demand is This there. short X.X now. There market circle that strong we're is QXXXX where we I Africa. the meeting a the my back a West taken to of vessel have We've right

is of also We we're demand penetrate of course, down an asset taking intervention haven't on there. yet. out well of needing started horizon up to Guyana assets And the Angola down there's there. even Australia, built which is

it's the a for vessel that being seeing. short that's me we're that very demand easy where to X.X we're to able from say So meet

Operator

question comes James from final line TD Schumm the with your of Cowen. And

James Schumm

to the to, guys things guidance EBITDA lower a number like see driving how but what framing I what I to point want of is want ask you this could year? just are that just -- There's I that.

Erik Staffeldt

In reference to our the guidance quarter for essentially full or... fourth year,

James Schumm

I guidance lowered midpoint, mean Yes. million. $X the the at Yes. EBITDA 'XX is

So it do What some There's I'll to? in what's QX? it driving point you that? let you answer. incremental XQ weakness? -- Is weakness Is

Erik Staffeldt

did think very negatives in obviously, we I obviously, have some quarter, third that overall was for impacted So us overall, in strong a quarter what the still us.

flows think for And the there. weather I I about think obviously, our production. shut-in of And the -- that we through a overall guidance course, still have and impact then we to talked impact wide the range overall, in in quarter, really is and fourth the in Mexico really seasonal driven by fairly of the the Jim, the timing of Gulf that Sea. our hit and the will assets when North

So those the variables. are

to I year. one-offs overall through the hit in us of flowed obviously the think that some the QX

our the that back anticipating, ability the but we've seasons than all into the range go built what market. provided we're make to if have We that longer that's

James Schumm

me ROV next like for that market pricing what one could last And Scotty, your see it expectations tight. give was wondering, is is and a mentioned of just me. this then where XX%? year? are then ROV you sense you the you -- just up for I very year? And it. Got like Or

Scott Sparks

a last the going The certainly still rates increases increased tightening out tenders currently that years. in XX I The have them. are to think the have we of months market. will X over see

at I'd stays if increase XX% say we that least ROV up. market a and personnel go the should So see in tight,

into then further year. the we're increased, The that I'd of On we And have rates the tenders to trenching going some on, rates. the side, look certainly increasing next say, XX% obviously, have even years There go well. will into those higher. we we additional around. expand and some will further crewing we cost be as costs creep as But as that stuff

Operator

questions time. are no at There this

Erik Staffeldt

Thanks look Fourth Call forward appreciate to and We in for having February you very on us Quarter interest XXXX much our you. XXXX. your today. joining Thank and participation

Operator

concludes that gentlemen, Thank all and today's call. Ladies joining. you. you Thank for

disconnect. now may You

Helix Energy Solutions (HLX) 24 Oct 242024 Q3 Earnings call transcript