HELIX ENERGY SOLUTIONS GROUP INC Q1 FY2025 earnings call

• Delivered strong first-quarter results with revenues $278M, gross profit $28M, net income $3M, adjusted EBITDA $52M, positive operating cash flow $16M, free cash flow $12M. - Macro backdrop includes U.S. tariff hikes, OPEC production increases, oil price drop to low 60s. - Segment highlights: Q7000 commenced operations in Brazil; Siem Helix 2 started new contract in Brazil; Trym commenced operations in North Sea; signed large trenching contract in UK. - Balance sheet strong with $370M cash, $405M liquidity, negative net debt $59M at quarter end.

Well Intervention: Revenues for the quarter were $278 million with gross profit $28 million, net income $3 million, adjusted EBITDA $52 million. In Q1, strong utilization in West Africa, Gulf of America, and Brazil; North Sea vessels impacted by winter slowdown. Robotics: Strong quarter despite winter conditions, operating six vessels globally on renewables and oil/gas projects. Renewables and trenching outlook robust. Shallow Water Abandonment: Q1 activity low due to seasonality, expected improvement in Q2/Q3; some vessels stacked as cost reduction.

• Revised 2025 guidance: Revenue approximately $1.3B (range $1.25B-$1.41B), EBITDA approximately $275M (±10%), free cash flow approximately $130M (±$30M). - Impacted by UK North Sea market weakness, stacking of Seawell. - Second quarter expected to be approximate first quarter results due to vessel maintenance; free cash flow generation skewed to latter part of the year.

• Macro-economic uncertainties including oil price volatility, OPEC production changes. - UK North Sea regulatory challenges, operator M&A activity, lower oil prices causing operators to pause work. - Market variability in robotics and shallow water abandonment segments due to dynamic factors like U.S. wind farm moratoriums.

Q: Jim Rollyson asks about the $70 million revenue change in well intervention revenues being all North Sea.

A: Erik Staffeldt responds that the net impact to the North Sea is greater than $70 million.

Q: James Schumm asks about framing the lowered EBITDA guidance.

A: Owen Kratz and Erik Staffeldt state the primary driver is the UK North Sea, with minor adjustments in other segments.

Q: James Schumm asks about UK North Sea operations peak EBITDA, trough, warm stack costs, and 2026 outlook.

A: Erik Staffeldt provides peak and trough EBITDA ranges, Scotty Sparks discusses stack costs and potential remobilization, Owen Kratz talks about P&A activity expectations.

Q: David Smith asks about North Sea well intervention vessels' opportunities in other regions and T4000 in Nigeria.

A: Owen Kratz discusses need for capital upgrades to redeploy vessels, Scott Sparks talks about T4000 returning to U.S. Gulf and no pricing pressure in U.S. Gulf heavy well intervention market.

Q: Greg Lewis asks about drag in revenue and well intervention affecting robotics and SWA, and EBITDA guide margin.

A: Erik Staffeldt and Scott Sparks explain minor impacts on other segments due to macro backdrop and main impact from North Sea, and step down in EBITDA mainly due to Seawell stacking.