Helix Reports Second Quarter 2021 Results
Helix Energy Solutions Group (NYSE: HLX) reported a net loss of $13.7 million, or $(0.09) per share, for Q2 2021, a decline from a net income of $5.5 million in Q2 2020. Revenue for the quarter was $161.9 million, down from $199.1 million year-over-year. Adjusted EBITDA fell to $24.8 million compared to $47.9 million in Q2 2020. For the first half of 2021, Helix reported a net loss of $16.6 million compared to a $6.5 million loss in the same period in 2020. Operating cash flows increased to $52.7 million, reflecting improvements in working capital despite ongoing market challenges.
- Operating cash flows increased to $52.7 million compared to $39.9 million in Q1 2021 and $23.3 million in Q2 2020.
- Free cash flow rose to $47.2 million from $38.5 million in Q1 2021 and $18.6 million in Q2 2020.
- Strong cash positions with $243.9 million in cash and cash equivalents as of June 30, 2021.
- Net loss of $13.7 million in Q2 2021, down from a profit of $5.5 million in Q2 2020.
- Revenue decreased by $37.2 million, or 18.7%, compared to Q2 2020.
- Adjusted EBITDA decreased to $24.8 million from $47.9 million year-over-year.
Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX) reported a net loss1 of
For the six months ended June 30, 2021, Helix reported a net loss of
Summary of Results |
|||||||||||||||||||
($ in thousands, except per share amounts, unaudited) |
|||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| 6/30/2021 | 6/30/2020 | 3/31/2021 | 6/30/2021 | 6/30/2020 | |||||||||||||||
| Revenues | $ |
161,941 |
|
$ |
199,147 |
|
$ |
163,415 |
|
$ |
325,356 |
|
$ |
380,168 |
|
||||
| Gross Profit | $ |
3,130 |
|
$ |
29,576 |
|
$ |
14,624 |
|
$ |
17,754 |
|
$ |
31,586 |
|
||||
|
2 |
% |
|
15 |
% |
|
9 |
% |
|
5 |
% |
|
8 |
% |
|||||
| Net income (Loss)1 | $ |
(13,709 |
) |
$ |
5,450 |
|
$ |
(2,878 |
) |
$ |
(16,587 |
) |
$ |
(6,488 |
) |
||||
| Diluted Earnings (Loss) Per Share | $ |
(0.09 |
) |
$ |
0.04 |
|
$ |
(0.02 |
) |
$ |
(0.11 |
) |
$ |
(0.06 |
) |
||||
| Adjusted EBITDA2 | $ |
24,812 |
|
$ |
47,915 |
|
$ |
36,168 |
|
$ |
60,980 |
|
$ |
67,258 |
|
||||
| Cash and Cash Equivalents3 | $ |
243,911 |
|
$ |
178,367 |
|
$ |
204,802 |
|
$ |
243,911 |
|
$ |
178,367 |
|
||||
| Cash Flows from Operating Activities4 | $ |
52,671 |
|
$ |
23,264 |
|
$ |
39,869 |
|
$ |
92,540 |
|
$ |
6,042 |
|
||||
Owen Kratz, President and Chief Executive Officer of Helix, stated, "Our performance in the second quarter 2021 reflected the seasonal increased activity in the North Sea in both our Well Intervention and Robotics segments as well as continued steady performance by the Q7000 in Nigeria. Also evident in our performance is the challenged utilization and rates in the Gulf of Mexico as the Q5000 rolled off its long-term contract and the impact of lower rates on our short-term contract extension on the Siem Helix 1 in Brazil. Despite these challenges, we nonetheless generated strong cash flows due to improvements in working capital and disciplined capital spending. As expected, 2021 remains a challenging year. The relative strength and stability of oil prices continues to be a positive development that could yield benefits in 2022 and beyond. We remain committed to operational excellence and executing in this challenging market."
1 Net income (loss) attributable to common shareholders |
2 Adjusted EBITDA is a non-GAAP measure. See reconciliations below |
3 Excludes restricted cash of |
4 Cash flows from operating activities during the six months ended 6/30/20 include |
Segment Information, Operational and Financial Highlights |
|||||||||||||||||||
($ in thousands, unaudited) |
|||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| 6/30/2021 | 6/30/2020 | 3/31/2021 | 6/30/2021 | 6/30/2020 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Well Intervention | $ |
132,305 |
|
$ |
145,841 |
|
$ |
133,768 |
|
$ |
266,073 |
|
$ |
286,493 |
|
||||
| Robotics |
|
31,651 |
|
|
50,836 |
|
|
22,156 |
|
|
53,807 |
|
|
86,094 |
|
||||
| Production Facilities |
|
14,218 |
|
|
13,593 |
|
|
16,447 |
|
|
30,665 |
|
|
29,134 |
|
||||
| Intercompany Eliminations |
|
(16,233 |
) |
|
(11,123 |
) |
|
(8,956 |
) |
|
(25,189 |
) |
|
(21,553 |
) |
||||
| Total | $ |
161,941 |
|
$ |
199,147 |
|
$ |
163,415 |
|
$ |
325,356 |
|
$ |
380,168 |
|
||||
| Income (Loss) from Operations: | |||||||||||||||||||
| Well Intervention | $ |
(6,719 |
) |
$ |
11,758 |
|
$ |
5,243 |
|
$ |
(1,476 |
) |
$ |
6,066 |
|
||||
| Robotics |
|
255 |
|
|
7,781 |
|
|
(2,934 |
) |
|
(2,679 |
) |
|
4,957 |
|
||||
| Production Facilities |
|
4,682 |
|
|
3,365 |
|
|
6,514 |
|
|
11,196 |
|
|
7,008 |
|
||||
| Goodwill Impairment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(6,689 |
) |
||||
| Corporate / Other / Eliminations |
|
(9,159 |
) |
|
(8,710 |
) |
|
(9,378 |
) |
|
(18,537 |
) |
|
(18,175 |
) |
||||
| Total | $ |
(10,941 |
) |
$ |
14,194 |
|
$ |
(555 |
) |
$ |
(11,496 |
) |
$ |
(6,833 |
) |
||||
Segment Results
Well Intervention
Well Intervention revenues decreased
Well Intervention revenues decreased
Robotics
Robotics revenues increased
Robotics revenues decreased
Production Facilities
During the second quarter 2021, Production Facilities revenues decreased
Selling, General and Administrative and Other
Selling, General and Administrative
Selling, general and administrative expenses were
Other Income and Expenses
Other income, net was
Cash Flows
Operating cash flows were
Capital expenditures totaled
Free cash flow was
Financial Condition and Liquidity
Cash and cash equivalents were
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly teleconference to review its second quarter 2021 results (see the "For the Investor" page of Helix's website, www.HelixESG.com). The teleconference, scheduled for Tuesday, July 27, 2021 at 9:00 a.m. Central Time, will be audio webcast live from the "For the Investor" page of Helix’s website. Investors and other interested parties wishing to participate in the teleconference may join by dialing 1-800-954-0656 for participants in the United States and 1-212-231-2919 for international participants. The passcode is "Staffeldt." A replay of the webcast will be available on the "For the Investor" page of Helix's website by selecting the "Audio Archives" link beginning approximately two hours after the completion of the event.
About Helix
Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, is an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. For more information about Helix, please visit our website at www.HelixESG.com.
Non-GAAP Financial Measures
Management evaluates performance and financial condition using certain non-GAAP measures, primarily EBITDA, Adjusted EBITDA, net debt, net debt to book capitalization and free cash flow. We define EBITDA as earnings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets and gains and losses on equity investments are also added back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude the gain or loss on disposition of assets and the general provision for current expected credit losses, if any. In addition, we include realized losses from foreign currency exchange contracts not designated as hedging instruments, which are excluded from EBITDA as a component of net other income or expense. Net debt is calculated as total long-term debt less cash and cash equivalents and restricted cash. Net debt to book capitalization is calculated by dividing net debt by the sum of net debt and shareholders’ equity. We define free cash flow as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets.
We use EBITDA and free cash flow to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial and strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measures of EBITDA and free cash flow provide useful information to the public regarding our operating performance and ability to service debt and fund capital expenditures and may help our investors understand and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA, Adjusted EBITDA and free cash flow differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA and free cash flow should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income, cash flows from operating activities, or other income or cash flow data prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures. See reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding the ongoing COVID-19 pandemic and oil price volatility and their respective effects and results, our protocols and plans, our current work continuing, the spot market, our spending and cost reduction plans and our ability to manage changes; our strategy; any statements regarding visibility and future utilization; any projections of financial items; any statements regarding future operations expenditures; any statements regarding the plans, strategies and objectives of management for future operations; any statements regarding our ability to enter into, renew and/or perform commercial contracts; any statements concerning developments; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to the results and effects of the COVID-19 pandemic and actions by governments, customers, suppliers and partners with respect thereto; market conditions; results from acquired properties; demand for our services; the performance of contracts by suppliers, customers and partners; actions by governmental and regulatory authorities including recent regulatory initiatives by the new U.S. administration; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; our ultimate ability to realize current backlog; employee management issues; complexities of global political and economic developments; geologic risks; volatility of oil and gas prices and other risks described from time to time in our reports filed with the Securities and Exchange Commission ("SEC"), including our most recently filed Annual Report on Form 10-K and in our other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. We assume no obligation and do not intend to update these forward-looking statements, which speak only as of their respective dates, except as required by the securities laws.
Social Media
From time to time we provide information about Helix on Twitter (@Helix_ESG), LinkedIn (www.linkedin.com/company/helix-energy-solutions-group), Facebook (www.facebook.com/HelixEnergySolutionsGroup) and Instagram (www.instagram.com/helixenergysolutions).
| HELIX ENERGY SOLUTIONS GROUP, INC. | |||||||||||||||||
| Comparative Condensed Consolidated Statements of Operations | |||||||||||||||||
| Three Months Ended June 30 | Six Months Ended June 30, | ||||||||||||||||
| (in thousands, except per share data) | 2021 |
2020 |
2021 |
2020 |
|||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||
| Net revenues | $ |
161,941 |
|
$ |
199,147 |
|
$ |
325,356 |
|
$ |
380,168 |
|
|||||
| Cost of sales |
|
158,811 |
|
|
169,571 |
|
|
307,602 |
|
|
348,582 |
|
|||||
| Gross profit |
|
3,130 |
|
|
29,576 |
|
|
17,754 |
|
|
31,586 |
|
|||||
| Goodwill impairment |
|
- |
|
|
- |
|
|
- |
|
|
(6,689 |
) |
|||||
| Gain (loss) on disposition of assets, net |
|
(646 |
) |
|
473 |
|
|
(646 |
) |
|
473 |
|
|||||
| Selling, general and administrative expenses |
|
(13,425 |
) |
|
(15,855 |
) |
|
(28,604 |
) |
|
(32,203 |
) |
|||||
| Income (loss) from operations |
|
(10,941 |
) |
|
14,194 |
|
|
(11,496 |
) |
|
(6,833 |
) |
|||||
| Net interest expense |
|
(5,919 |
) |
|
(7,063 |
) |
|
(11,972 |
) |
|
(12,809 |
) |
|||||
| Other income (expense), net |
|
960 |
|
|
(2,069 |
) |
|
2,577 |
|
|
(12,496 |
) |
|||||
| Royalty income and other |
|
249 |
|
|
117 |
|
|
2,306 |
|
|
2,296 |
|
|||||
| Income (loss) before income taxes |
|
(15,651 |
) |
|
5,179 |
|
|
(18,585 |
) |
|
(29,842 |
) |
|||||
| Income tax benefit |
|
(1,968 |
) |
|
(271 |
) |
|
(1,852 |
) |
|
(21,364 |
) |
|||||
| Net income (loss) |
|
(13,683 |
) |
|
5,450 |
|
|
(16,733 |
) |
|
(8,478 |
) |
|||||
| Net income (loss) attributable to redeemable noncontrolling interests |
|
26 |
|
|
- |
|
|
(146 |
) |
|
(1,990 |
) |
|||||
| Net income (loss) attributable to common shareholders | $ |
(13,709 |
) |
$ |
5,450 |
|
$ |
(16,587 |
) |
$ |
(6,488 |
) |
|||||
| Earnings (loss) per share of common stock: | |||||||||||||||||
| Basic | $ |
(0.09 |
) |
$ |
0.04 |
|
$ |
(0.11 |
) |
$ |
(0.06 |
) |
|||||
| Diluted | $ |
(0.09 |
) |
$ |
0.04 |
|
$ |
(0.11 |
) |
$ |
(0.06 |
) |
|||||
| Weighted average common shares outstanding: | |||||||||||||||||
| Basic |
|
150,028 |
|
|
148,971 |
|
|
149,982 |
|
|
148,917 |
|
|||||
| Diluted |
|
150,028 |
|
|
149,691 |
|
|
149,982 |
|
|
148,917 |
|
|||||
| Comparative Condensed Consolidated Balance Sheets | ||||||||
| June 30, 2021 | Dec. 31, 2020 | |||||||
| (in thousands) | (unaudited) | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents (1) | $ |
243,911 |
$ |
291,320 |
||||
| Restricted cash (1) |
|
71,282 |
|
- |
||||
| Accounts receivable, net |
|
125,569 |
|
132,233 |
||||
| Other current assets |
|
78,869 |
|
102,092 |
||||
| Total Current Assets |
|
519,631 |
|
525,645 |
||||
| Property and equipment, net |
|
1,735,177 |
|
1,782,964 |
||||
| Operating lease right-of-use assets |
|
125,481 |
|
149,656 |
||||
| Other assets, net |
|
37,418 |
|
40,013 |
||||
| Total Assets | $ |
2,417,707 |
$ |
2,498,278 |
||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ |
70,105 |
$ |
50,022 |
||||
| Accrued liabilities |
|
83,618 |
|
87,035 |
||||
| Current maturities of long-term debt (1) |
|
70,492 |
|
90,651 |
||||
| Current operating lease liabilities |
|
50,769 |
|
51,599 |
||||
| Total Current Liabilities |
|
274,984 |
|
279,307 |
||||
| Long-term debt (1) |
|
265,222 |
|
258,912 |
||||
| Operating lease liabilities |
|
76,934 |
|
101,009 |
||||
| Deferred tax liabilities |
|
97,906 |
|
110,821 |
||||
| Other non-current liabilities |
|
2,601 |
|
3,878 |
||||
| Redeemable noncontrolling interests |
|
- |
|
3,855 |
||||
| Shareholders' equity (1) |
|
1,700,060 |
|
1,740,496 |
||||
| Total Liabilities and Equity | $ |
2,417,707 |
$ |
2,498,278 |
||||
(1) Net debt to book capitalization |
||||||||
| Helix Energy Solutions Group, Inc. | ||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (in thousands, unaudited) | 6/30/2021 | 6/30/2020 | 3/31/2021 | 6/30/2021 | 6/30/2020 | |||||||||||||||
| Reconciliation from Net Income (Loss) to Adjusted EBITDA: | ||||||||||||||||||||
| Net income (loss) | $ |
(13,683 |
) |
$ |
5,450 |
|
$ |
(3,050 |
) |
$ |
(16,733 |
) |
$ |
(8,478 |
) |
|||||
| Adjustments: | ||||||||||||||||||||
| Income tax provision (benefit) |
|
(1,968 |
) |
|
(271 |
) |
|
116 |
|
|
(1,852 |
) |
|
(21,364 |
) |
|||||
| Net interest expense |
|
5,919 |
|
|
7,063 |
|
|
6,053 |
|
|
11,972 |
|
|
12,809 |
|
|||||
| Other (income) expense, net |
|
(960 |
) |
|
2,069 |
|
|
(1,617 |
) |
|
(2,577 |
) |
|
12,496 |
|
|||||
| Depreciation and amortization |
|
34,941 |
|
|
33,969 |
|
|
34,566 |
|
|
69,507 |
|
|
65,567 |
|
|||||
| Goodwill impairment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,689 |
|
|||||
| EBITDA |
|
24,249 |
|
|
48,280 |
|
|
36,068 |
|
|
60,317 |
|
|
67,719 |
|
|||||
| Adjustments: | ||||||||||||||||||||
| (Gain) loss on disposition of assets, net |
|
646 |
|
|
(473 |
) |
|
- |
|
|
646 |
|
|
(473 |
) |
|||||
| General provision (release) for current expected credit losses |
|
(83 |
) |
|
108 |
|
|
100 |
|
|
17 |
|
|
694 |
|
|||||
| Realized losses from foreign exchange contracts not designated as hedging instruments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(682 |
) |
|||||
| Adjusted EBITDA | $ |
24,812 |
|
$ |
47,915 |
|
$ |
36,168 |
|
$ |
60,980 |
|
$ |
67,258 |
|
|||||
| Free Cash Flow: | ||||||||||||||||||||
| Cash flows from operating activities | $ |
52,671 |
|
$ |
23,264 |
|
$ |
39,869 |
|
$ |
92,540 |
|
$ |
6,042 |
|
|||||
| Less: Capital expenditures, net of proceeds from sale of assets |
|
(5,432 |
) |
|
(4,692 |
) |
|
(1,329 |
) |
|
(6,761 |
) |
|
(17,081 |
) |
|||||
| Free cash flow | $ |
47,239 |
|
$ |
18,572 |
|
$ |
38,540 |
|
$ |
85,779 |
|
$ |
(11,039 |
) |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005805/en/
FAQ
What were Helix's Q2 2021 earnings per share?
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