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Helix Energy Solutions Group, Inc. (“Helix”) (NYSE:HLX) reported a net loss1 of $25.9 million, or $(0.17) per diluted share, for the fourth quarter 2021 compared to $19.0 million, or $(0.13) per diluted share, for the third quarter 2021 and net income of $4.2 million, or $0.03 per diluted share, for the fourth quarter 2020. Adjusted EBITDA2 was $8.8 million for the fourth quarter 2021 compared to $26.5 million for the third quarter 2021 and $35.3 million for the fourth quarter 2020.
For the full year 2021, Helix reported a net loss of $61.5 million, or $(0.41) per diluted share, compared to net income of $22.2 million, or $0.13 per diluted share, for the full year 2020. Adjusted EBITDA for the full year 2021 was $96.3 million compared to $155.3 million for the full year 2020. The table below summarizes our results of operations:
|
Summary of Results |
||||||||||||||||||||
|
($ in thousands, except per share amounts, unaudited) |
||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 12/31/2021 | 12/31/2020 | 9/30/2021 | 12/31/2021 | 12/31/2020 | ||||||||||||||||
| Revenues |
$ |
168,656 |
|
$ |
159,897 |
|
$ |
180,716 |
|
$ |
674,728 |
|
$ |
733,555 |
|
|||||
| Gross Profit (Loss) |
$ |
(5,361 |
) |
$ |
13,695 |
|
$ |
3,000 |
|
$ |
15,393 |
|
$ |
79,909 |
|
|||||
|
|
(3 |
)% |
|
9 |
% |
|
2 |
% |
|
2 |
% |
|
11 |
% |
||||||
| Net income (Loss)1 |
$ |
(25,908 |
) |
$ |
4,163 |
|
$ |
(19,043 |
) |
$ |
(61,538 |
) |
$ |
22,174 |
|
|||||
| Diluted Earnings (Loss) Per Share |
$ |
(0.17 |
) |
$ |
0.03 |
|
$ |
(0.13 |
) |
$ |
(0.41 |
) |
$ |
0.13 |
|
|||||
| Adjusted EBITDA2 |
$ |
8,764 |
|
$ |
35,283 |
|
$ |
26,532 |
|
$ |
96,276 |
|
$ |
155,260 |
|
|||||
| Cash and Cash Equivalents3 |
$ |
253,515 |
|
$ |
291,320 |
|
$ |
237,549 |
|
$ |
253,515 |
|
$ |
291,320 |
|
|||||
| Cash Flows from Operating Activities |
$ |
18,865 |
|
$ |
40,172 |
|
$ |
28,712 |
|
$ |
140,117 |
|
$ |
98,800 |
|
|||||
| Free Cash Flow2 |
$ |
17,929 |
|
$ |
39,146 |
|
$ |
28,138 |
|
$ |
131,846 |
|
$ |
79,519 |
|
|||||
Owen Kratz, President and Chief Executive Officer of Helix, stated, “Our results for 2021 highlight our company’s resilience and execution in another challenging year. We delivered on the higher end of our EBITDA outlook and exceeded our free cash flow guidance with free cash flow of $132 million. We continued to de-lever our balance sheet and managed our liquidity with a new five-year credit facility. We achieved zero net debt in 2021 and were net debt negative at year-end. We maintained a strong safety record and minimized operational disruption due to COVID. As we look forward, we expect the first half of 2022 will be a transitional period as we still face headwinds in the near-term with a slow recovery in the North Sea, cost escalations and our continued integration of the Siem Helix 1 into the spot market. We are optimistic about the future and believe we will see a stronger second half of 2022 and continuing into 2023, as reflected by recent awards for decommissioning campaigns in the Tui field offshore New Zealand and with Trident Energy offshore Brazil, both expected to commence late 2022. We believe we’re well positioned to take advantage of the improving market conditions. In addition, our Robotics business continues to thrive in the renewables market, where we are a market leader in trenching. We remain committed to executing our strategy and maintaining operational excellence.”
| 1 |
Net income (loss) attributable to common shareholders |
|
| 2 |
Adjusted EBITDA and Free Cash Flow are non-GAAP measures; see reconciliations below |
|
| 3 |
Excludes restricted cash of $73.6 million as of 12/31/21 and $71.3 million as of 9/30/21 |
|
Segment Information, Operational and Financial Highlights |
||||||||||||||||||||
|
($ in thousands, unaudited) |
||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 12/31/2021 | 12/31/2020 | 9/30/2021 | 12/31/2021 | 12/31/2020 | ||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Well Intervention |
$ |
119,177 |
|
$ |
111,953 |
|
$ |
131,314 |
|
$ |
516,564 |
|
$ |
539,249 |
|
|||||
| Robotics |
|
40,865 |
|
|
42,122 |
|
|
42,623 |
|
|
137,295 |
|
|
178,018 |
|
|||||
| Production Facilities |
|
20,131 |
|
|
15,002 |
|
|
18,552 |
|
|
69,348 |
|
|
58,303 |
|
|||||
| Intercompany Eliminations |
|
(11,517 |
) |
|
(9,180 |
) |
|
(11,773 |
) |
|
(48,479 |
) |
|
(42,015 |
) |
|||||
| Total |
$ |
168,656 |
|
$ |
159,897 |
|
$ |
180,716 |
|
$ |
674,728 |
|
$ |
733,555 |
|
|||||
| Income (Loss) from Operations: | ||||||||||||||||||||
| Well Intervention |
$ |
(21,063 |
) |
$ |
1,945 |
|
$ |
(13,343 |
) |
$ |
(35,882 |
) |
$ |
26,855 |
|
|||||
| Robotics |
|
3,505 |
|
|
1,815 |
|
|
4,936 |
|
|
5,762 |
|
|
13,755 |
|
|||||
| Production Facilities |
|
6,621 |
|
|
4,833 |
|
|
5,089 |
|
|
22,906 |
|
|
15,975 |
|
|||||
| Goodwill Impairment |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(6,689 |
) |
|||||
| Corporate / Other / Eliminations |
|
(15,923 |
) |
|
(7,750 |
) |
|
(7,013 |
) |
|
(41,473 |
) |
|
(36,871 |
) |
|||||
| Total |
$ |
(26,860 |
) |
$ |
843 |
|
$ |
(10,331 |
) |
$ |
(48,687 |
) |
$ |
13,025 |
|
|||||
Fourth Quarter Results
Segment Results
Well Intervention
Well Intervention revenues decreased by $12.1 million, or 9%, in the fourth quarter 2021 compared to the previous quarter. The decrease was primarily due to lower utilization in the North Sea and Brazil, offset in part by higher utilization in the Gulf of Mexico and higher operating rates in West Africa during the fourth quarter 2021. North Sea utilization declined with the seasonal slowdown, and our Brazil utilization declined as the Siem Helix 1 had minimal utilization during the fourth quarter 2021 following the completion of its long-term contract in August 2021 and scheduled regulatory inspections. Overall Well Intervention vessel utilization decreased to 56% in the fourth quarter 2021 compared to 72% in the previous quarter. Well Intervention net loss from operations increased to $21.1 million in the fourth quarter 2021 compared to $13.3 million in the previous quarter. The increased loss was due to lower revenues, offset in part by reduced operating costs in the North Sea during the fourth quarter.
Well Intervention revenues increased $7.2 million, or 6%, in the fourth quarter 2021 compared to the fourth quarter 2020. The increase was primarily due to higher utilization in West Africa, offset in part by lower utilization in Brazil and lower rates in the Gulf of Mexico during the fourth quarter 2021. Our fourth quarter 2021 utilization in West Africa benefitted from near-full utilization on the Q7000which had no utilization during the fourth quarter 2020. However, our fourth quarter 2021 revenues were negatively impacted with the completion of our long-term contracts during 2021 on the Q5000which had lower rates compared to the prior year, and the Siem Helix 1which had minimal utilization following the completion of its long-term contract in August 2021 and scheduled regulatory inspections, compared to near-full utilization in the prior year. Well Intervention vessel utilization was 56% in both the fourth quarters 2021 and 2020. Well Intervention incurred a net loss from operations of $21.1 million in the fourth quarter 2021 compared to operating income of $1.9 million in the fourth quarter 2020. Operating income decreased, despite higher revenue, due to lower margins in West Africa and the Gulf of Mexico compared to the prior year.
Robotics
Robotics revenues decreased by $1.8 million, or 4%, in the fourth quarter 2021 compared to the previous quarter. The seasonally lower revenues were driven by a decrease in ROV activity and lower seasonal vessel rates in the North Sea, offset in part by a higher number of vessel days. ROV and trencher utilization decreased to 38% in the fourth quarter 2021 from 43% in the previous quarter, while trenching days remained flat quarter over quarter. Chartered vessel utilization was 99% in both the third and fourth quarters 2021, although there were 419 total vessel days during the fourth quarter 2021 compared to 358 total vessel days during the previous quarter. Vessel days during the fourth quarter 2021 included 197 spot vessel days performing seabed clearance work in the North Sea and 40 spot vessel days completing the ROV support work for a telecom project offshore Guyana compared to 99 and 77 of such spot vessel days, respectively, during the previous quarter. Robotics operating income dec reased $1.4 million during the fourth quarter 2021 compared to the previous quarter due to lower revenues during the fourth quarter 2021.
Robotics revenues decreased by $1.3 million, or 3%, in the fourth quarter 2021 compared to the fourth quarter 2020. The decrease in revenues year over year was due to lower rates on our vessels, offset in part by an increase in vessel and ROV activity during the fourth quarter 2021 compared to the fourth quarter 2020. During the fourth quarter 2021 our spot vessel days completing the telecom project offshore Guyana were at lower demobilization rates and our site clearance projects were on average at lower overall rates compared to the fourth quarter 2020. Total vessel days during the fourth quarter 2021 increased to 419 days compared to 336 days during the fourth quarter 2020. Vessel days during the fourth quarter 2021 included 197 spot vessel days performing seabed clearance work and 40 spot vessel days completing ROV support work for a telecom project offshore Guyana, compared to 74 spot vessel days performing seabed clearance work and 78 spot vessel days performing decommissioning proj ects and ROV support work during the fourth quarter 2020. Chartered vessel utilization was 99% …
Full story available on Benzinga.com
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