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• Revenue: $342 million for Q3 2024.

• Gross Profit: $66 million for Q3 2024.

• Net Income: $29.5 million for Q3 2024.

• Adjusted EBITDA: $88 million for Q3 2024.

• Operating Cash Flow: $56 million for Q3 2024.

• Free Cash Flow: $53 million for Q3 2024.

• Cash and Cash Equivalents: $324 million at quarter end.

• Liquidity: $399 million at quarter end.

• Year-to-Date Revenue: $1 billion.

• Year-to-Date Gross Profit: $161 million.

• Year-to-Date Net Income: $36 million.

• Year-to-Date Adjusted EBITDA: $232 million.

• Year-to-Date Operating Cash Flow: $108 million.

• Year-to-Date Free Cash Flow: $98 million.

• Debt: Funded debt of $324 million with negative net debt of $9 million at quarter end.

• 2024 Revenue Guidance: $1.3 billion to $1.365 billion.

• 2024 EBITDA Guidance: $280 million to $310 million.

• 2024 Free Cash Flow Guidance: $120 million to $150 million.

• 2024 Capital Spending Guidance: $55 million to $70 million.

• Warning! GuruFocus has detected 3 Warning Signs with HLX.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Helix Energy Solutions Group Inc (NYSE:HLX) reported strong financial performance with Q3 revenues of $342 million and a net income of $29.5 million.

• The company secured over $800 million in backlog through new contracts, ensuring multiple years of committed utilization.

• Robotics division showed strong performance with high utilization across six vessels, particularly in renewables projects.

• Helix Energy Solutions Group Inc (NYSE:HLX) has a strong cash position with $324 million in cash and cash equivalents.

• The company expects improved EBITDA in 2025, driven by new contracts with higher market rates.

Negative Points

• Financial results were negatively impacted by significant mobilizations and weather-related downtime, leading to deferred revenues and costs.

• The shallow water abandonment business experienced a sluggish market and was further impacted by hurricanes, resulting in lower than expected utilization.

• Production facilities were negatively impacted by unplanned shutdowns, particularly in the Thunder Hawk Field.

• There is uncertainty regarding the duration of contracts and potential extensions, which could affect future financial performance.

• The company faces challenges in balancing vessel deployment between regions, potentially impacting market share in key areas like the Gulf of Mexico.

Q & A Highlights

Q: How confident is Helix Energy Solutions about the improvement in the shallow water abandonment business for 2025? A: Brent Arriaga, Chief Accounting Officer, stated that the initial budgeting process indicates improvement over this year. While last year was an anomaly, the bidding activity is picking up, suggesting a return to the typical range initially predicted for this business.