HELIX ENERGY SOLUTIONS GROUP INC Q4 FY2024 earnings call

• Thanks to Helix team for efforts in 2024, with strong Q4 and full year results.
• Key highlights include commencement of Q4000 in Nigeria, strong robotics performance, long-term contracts secured (e.g., Petrobras contracts), and strong balance sheet with cash/cash equivalents $368M and liquidity $430M.
• Acknowledgment of seasonal impacts in North Sea and US Gulf, but positive outlook for 2025 with expected improved financial performance.

Well Intervention: In Q4 2024, strong utilization in Africa, US Gulf, Brazil, and Australia. North Sea vessels (Well Enhancer and Seawell) were impacted by winter slowdown, while Q7000 had 99% utilization in Australia, Q4000 commenced operations in Nigeria, and Q5000 worked in the US Gulf. Full year 2024 revenues were $1.36 billion, gross profit $220 million, net income $56 million, adjusted EBITDA $303 million. Robotics: Strong quarter with high utilization, operating six vessels on trenching, ROV support, and site survey work. Renewables and trenching outlook robust with contracts into 2027. Shallow Water Abandonment: Q4 activity reflected seasonal slowdown, with weak market in US Gulf Coast shelf.

• Revenue forecast $1.36B - $1.5B, EBITDA $320M - $380M, Free cash flow $175M - $225M.
• CapEx $70M - $90M, including $30M shifted from 2024.
• Contract details: Q5000 has multiyear contracts, Q4000 to return to US Gulf with planned work, robotics has strong bidding activity and contract visibility out to 2029.

• Geopolitical environment impacts.
• Softer rig market in 2025.
• Uncertainty in US Wind farm market.
• Seasonal weather impacts in North Sea and US Gulf Shelf.
• Timing variances in vessel maintenance and project mobilizations.

Q: Jim Rollyson asked about M&A opportunities, asset targets, and well intervention pricing trends.

A: Owen Kratz mentioned high probability of M&A activity, with opportunities in geographic areas and wind market; Scotty Sparks noted well intervention pricing still increasing slightly on spot side.

Q: Greg Lewis inquired about guidance details, robotics margins, and trencher addition.

A: Brent Arriaga discussed well intervention guidance balance between risk and reward; Scotty Sparks noted robotics backlog and trenching rates improving, with cost of adding a trencher around $25M CapEx and 18 months to build.

Q: Josh Jayne asked about Q4000 and Q5000 contract opportunities and capital allocation.

A: Scotty Sparks spoke to potential term contracts for Q4000 upon return to US Gulf; Owen Kratz explained aggressive share repurchase plan as a function of strong balance sheet and current equity price, targeting 25% of free cash flow for repurchases with potential for M&A use of funds.