Q3 2021 Helix Energy Solutions Group Inc Earnings Call

Please standby the conference will begin momentarily we thank you for your patience and I say you. Please remain on the line.

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Greetings and welcome to the third quarter 2021 earnings Conference call.

The.

The presentation, all participants will be in a listen only mode.

Afterwards, we will conduct a question and answer session.

At that time, if you have a question. Please press the one followed by the four on your telephone.

If at any time during the conference you need to reach an operator, Please press star zero.

As a reminder.

France is being recorded Thursday October 21st 2021.

I would now like to turn the conference over to Eric Stifled CFO. Please go ahead.

Good morning, everyone and thanks for joining us today on our conference call for our third quarter 2021 earnings release.

Participating on this.

This call for helix today are Owen Kratz, our CEO, Scotty Sparks, our CFO and Ken Neikirk, Our general counsel and myself hopefully you've had an opportunity to review our press release and the related slide presentation released last night.

If you do not have a copy of these materials both can be accessed through the.

The Investor page on our website at Www Dot helix ESG Dot Com press release can be accessed under the press releases tab and the slide presentation can be accessed by clicking on todays webcast icon before we begin our prepared remarks, Ken Neikirk will make a statement regarding forward looking information Ken.

During this conference call, we anticipate making certain projections and forward looking statements based on our current expectations. All statements in this conference call or in the associated presentation. Other than statements of historical fact are forward looking statements and are made under the safe Harbor provisions of the private Securities Litigation Reform Act of 1095.

Actual future results may differ materially.

From our projections and forward looking statements due to a number and variety of factors, including those set forth in slide two and our most recently filed annual report on Form 10-K and in our other filings with the SEC also during this call certain non-GAAP financial disclosures may be made in accordance with SEC rules. The final slide of our presentation provides reconcile.

Serial aviation's of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations along with this presentation. The earnings press release, our annual report and a replay of this broadcast are available under the for the investors section of our website at Www Dot helix ESG Dot com.

Yeah.

Good morning.

We hope everyone.

Reconcile their and their families are doing well, helping things safe. This morning, We will review, our Q3 and year to date performance our operations our view of the current market dynamics and provide our outlook for the balance of 'twenty one.

We will also discuss the underlying market environment and how we think it will influence 2022 and beyond.

I'll get into the presentation slides five through seven provided a high level summary of our results.

Our performance for the quarter and year to date.

To be in line with expectations as our teams continue to execute at high levels of upper operationally.

The 207000 continued successful.

It's full operations in West Africa.

North Sea intervention activity increased with both vessels the well enhancer of if you will working parts of the third quarter Gulf.

Gulf of Mexico intervention continues to improve we benefited from increased utilization have visibility for work into Q1 of 'twenty two.

In Brazil.

The Siem helix two work the entire quarter the Siem helix one completed its contract with Petrobras in August the vessel was in dry dock at the end of the quarter.

Robotics benefited from good weather season in the North sea with increased activity and trenching and site clearance work and production facilities continues to be a steady.

The former benefitted from the production enhancement efforts completed on our Droshky field during Q2 with increased production.

Our results for the third quarter of 2021 were largely in line with our results from the second quarter of 2021 revenues are report reported a 181 million.

With a net loss of $19 million and EBITDA of $27 million or gross profit was $3 million or 2%.

On to slide eight from a balance sheet perspective, our cash balance at the end of the quarter was $238 million with an additional $71 million and temporarily restricted cash associated.

Thirdly with assured LLC.

Short term LC for our work in West Africa. During the third quarter, we generated $29 million of operating cash flows and spent $1 million on capex with the resulting free cash flow of 28 million year to date, we've generated $121 million of operating cash.

So Seattle and $114 million of free cash flow during.

During the quarter, we entered into a new $80 million asset based revolving credit facility and paid off our term loan.

We achieved our long standing financial goal of ours by reaching net debt zero and ended the quarter with a negative net.

Cash flow debt balance of $4 million.

I'll now turn the call over to Scotty for an in depth discussion of our operational results.

Thanks, Brian and good morning, everyone, maybe another platform.

We continue swap rates all of our business lines from a challenging year with the ongoing COVID-19 pandemic.

Im showing offshore.

And then a phenomenal job keeping our operations functional insight.

Office and facilities in Houston, and the magazine highlights and fully operational and shortly we will commence reopening offices in Singapore.

Safety measures and protocols remain in place and the team some clients to these allow safe access to work in these locations.

The COVID-19 pandemic presents many logistical challenges. However, we continue to successfully transport personnel to our SaaS globally.

Well, keeping file protocols testing and staying on our personnel subcontractors and clients I'll teach offshore work location.

Most of our personnel and a vaccine is available hopping back to Nathan when we announced.

And that's COVID-19 related incidents at <unk>.

And some parts of the world travel restrictions have been eased on nice clients some extended today offices and <unk>.

Finally, after <unk>, some clients and all of that in person meetings.

In the first quarter, we continued to operate hosting vessels globally with minimal operational disruption.

Continuing to our pricing at the exceptional standards with 98, 5% uptime efficiency.

Dedicated and committed personnel continued to third quarter with very satisfied <unk> safety statistics again.

Emphasizing our strong supportive safety culture and leadership globally.

I'm going to slide 11.

During the first.

Third quarter, we produced revenues of $191 million, resulting in a gross profit margin of 2% producing a gross profit of $3 million producing EBIT for the first quarter of $27 million.

To a $162 million revenue 3 million gross profit and EBIT and our $25 million in the second quarter.

Sure.

In the first quarter.

The well intervention fleet achieved utilization of 72% globally with 72% utilization in Brazil with the completion of the long term Siem helix one contracts with Petrobras.

Utilization increased to 74% in the Gulf of Mexico, with 67% utilization in the North Sea and utilization increased to 100% in West Africa.

Robotics chartered vessel fleet achieved utilization of 99% globally, increasing to 358 vessel days during the quarter compared to 246 days in the second quarter.

In the Gulf of Mexico, we have both the Q4 and the Q 5000, working with increased utilization over the second quarter with some surety of gaps between projects will continue.

Most clients.

In the North sea, the well enhancer was operational prior to being warm stacked for part of the quarter and the Seawell was again reactivated two onsite projects prior to returning to warm stack mode.

In the West Africa region. The key seven had an impressive quarter working in Nigeria for two clients undertaking production enhancement works.

Operating performance in Brazil was at their usual high standards with the Siem Helix one safety completion works with zero MPT and then D mobilizing from the Petrobras contract.

The Siem helix, two was 100% utilized producing a strong quarter.

The robotics chartered vessel fleet achieved high utilization in the quarter welcome between RV support.

Trenching and renewable works globally.

<unk> 358 days.

276 days work was undertaken on full projects using spot charter vessels, including one vessel conducting our first project offshore Guyana.

Slide 12 provides a more detailed review of our operations for our well intervention business in the Gulf of Mexico.

Support for key 5000 increased utilization to 77% compared to 72% in Q2 performing production enhancement operations in ultra deepwater for free clients with some small schedule gaps between projects.

The key for increased utilization to 71% compared to 45% in Q2.

Production enhancement works with two clients and ultra deepwater followed by two small construction projects with two clients.

Additionally, we provided eight to one of our clients with platform repair work caused by storm damage from Hurricane Ida.

<unk> units have integrated helix Schlumberger alliance teams and equipment installed proactively working as one complete production.

<unk>.

Most of our key unit intervention contracts undertaken in the Gulf of Mexico, and our single point contract mechanism allows for easier contracting for our clients.

In the fourth quarter the helix Schlumberger Alliance team was successful in the award of the BP Gulf of Mexico, Roger based well intervention vessel and services package for free Nicola.

Completions plus options, whilst the contract does not provides a guaranteed days withheld where the contractor of choice for any riser based interventions with BP in the Gulf of Mexico, and we do expect panel utilization for one to three wells each year.

Pleasingly, both vessels have high utilization contracted work in Q4 with contracted and awarded works into 2022.

Moving to slide 13, our north Seawell intervention business continues to be licensed.

Most affected by reduced work opportunities related to COVID-19.

The 100 achieved 57% utilization in Q3 working for two clients in the quarter, including completion production enhancement scopes for vessels and warm stacked and leaf Scotland significantly reduce invest operating costs from current levels.

The Seawell achieved 56.

6% utilization working with free clients.

After completing the diamond spectrum, one customer and completed production enhancement works for the following customer followed by full well abandonment program for the third customer the vessel has been warm stacked on leach, Scotland, which significantly reduced costs and reduced crews for the remainder of the quarter.

The key seven had a stronger.

Strong performing quarter in Q3 divested performed extremely well we're from a multinational unintegrated helix Schlumberger Alliance team.

The vessel work from two wells in the quarter for key clients and now has contracted work and luxury well into Q4 with potential further works identified at the end of 2021 and in 2023.

Moving to slide.

Slide 14.

And Brazil, both vessels achieved strong performance with zero commercial downtime in the third quarter. The Siem helix, one at 45% utilization in Q3 with no commercial downtime criticized completion of the Petrobras contract and demobilization in mid August.

Completed abandonment work on one well on production enhancement.

Some traditional wealth the basketball has completed its planned five year regulatory maintenance stocking period.

<unk> is now on pursuing other works for the vessels in Brazil, and other markets internationally.

<unk> identified and are in discussions regarding numerous opportunities that we hope will have the vessel contracted in the coming months.

The Siem helix two has 100% usage.

Vibration and completed abandonment welcome three wells on production enhancement work on two wells during the quarter.

We're currently discussing a possible extension with Petrobras regarding the same here as to the outcome of those discussions remains to be seen and we are identifying other opportunities globally.

Moving to slide 15 for our Robotics review.

<unk> had another good quarter continue continuing another good year in 2021 operating six vessels during the quarter, primarily working between trenching R&D decommission in non oil and gas and renewables related projects.

In the APAC region, the Grand Canyon, III had 100% utilization in Q3 divestments contracts and in Thailand.

The Baltic and unexpected 210 day wellhead decommissioning projects, we're moving 125, well hedged on the sequel is expected to continue into Q1 of 2022.

In the North Sea, the Grand Canyon previous utilized 98% undertaken to oil and gas trenching projects renewable trenching project for another client.

On the telecom stringent project for new clients. The vessel is contracted oil and gas and renewable trenching scopes utilizing the vessels for most of the remainder of 2021 and a good portion of 2022.

The chartered vessels the software and the bus suites continued site clearance and survey works with 53 days on a wind farm project that is now expected to last until.

Late Q4 for <unk>.

Project chart itself I'm commenced work on the <unk> clearance in destination project to 46 days and is also expected to continue into the latter part of Q4.

In the Gulf of Mexico, RV activity remained strong and we continue to market. This year the board alone as our plans regarding vessel going forward this year.

And the 10 project chartered seemed rather it was contracted for a cable installation projects on our first offshore work beyond up to 77 days in the quarter.

The robotics group transition severance for the Green renewable sector continues adding new clients and more services. We have recently been contracted to undertake further site Samson survey projects and assumed.

Tender activity increase for all the services, we provide globally.

We have also recently been awarded February renewable Trenching works in 2022, and 2023 that may require a second tranche investment in 2022.

Over to slide 16, I will.

I'll leave this slide detailing the vessel was already entrenched in utilization for your reference.

I would like to mention some other key points.

We have commenced programs to reduce our carbon footprint and greenhouse gas emissions across all of our business regions and recently appointed a senior manager of its type on the plans and work closely with our operations and sustainability teams.

Which is also very pleasing to see far better visibility across our business.

Before I, especially within the Gulf of Mexico, Brazil, and our newer international markets tender activity has increased and the number of available working days appears to be recovering.

<unk> on February awards for the New services, we have been offering.

Before I turn the call over to Eric I would again like to thank our Phoenix Global team, our offshore personnel, our onshore personnel and our partners to continue to innovate and evolve and doing a fantastic job under these challenging circumstances, maintaining operational excellence with minimal MPT, while keeping very high standards.

In safety performance.

Thanks Scotty.

Moving to slide 18 outlines our debt instruments and their maturity profile at September 30.

Total firm and the $314 million at the end of Q3 next scheduled principal payments are in 2022.

Moving on to slide 19.

19. This slide provides an update on key balance sheet metrics, including our long term debt and net debt levels at year end in September 30th.

With $309 million of cash and restricted cash as of September 30, we are in a negative debt position of $4 million at quarter end, our cash position at the end of Q3 was 238 million.

With an additional $71 million of restricted cash that supports a temporary project LC <unk>.

During the quarter, we paid off our term loan and entered a new $80 million ABL revolving credit facility with availability driven primarily by our U S and UK based receivables at quarter end, we had no amounts outstanding.

$20 million of availability under the ABL.

For a discussion on our outlook, we move to slide 'twenty two 'twenty three we continue to operate in a challenging market our customers continue to be very cautious and committing to spending in 'twenty one.

Currently.

<unk> stable macro backdrop has increased customer interactions.

And sort of increased activity in regions like the Gulf of Mexico, but it has been slow to develop in areas like the north Seawell intervention market.

Covering their markets, but primarily beyond 2021, we have made flight updates to our Q2 guidance our.

Actions as a good faith attempt to provide investors information that its approximate appropriately caveat. It as best we can against the backdrop of the current environment our guidance for 'twenty. One is as follows revenues $600 million to $645 million EBITDA, 85% to $100 million and free cash flow 80 to 100.

<unk> 20 million.

Our EBITDA outlook is based on the following we expect visibility and utilization will continue to be on a quarter to quarter basis. We have increased the bottom end of our EBITDA range based on work that has been contracted into Q4. We have also increased our cash flow forecast.

Our free cash flow outlook.

Outlook is supported by the strong year to date cash generation and highlights both the challenges and the range of possibilities during the fourth quarter range provided it acknowledges the expected range of Q4 EBITDA in the range of our annual capital spending of 15% to $25 million.

We received an approximately $12 million cares.

Wondered tax refund in Q3 working capital levels are assumed to support the 2022 activity provide.

Providing a bit more color to our key assumptions by segment and region on slide 22, first with our well intervention segment in the Gulf of Mexico, well intervention business. Both vessels have contracted work in Q4 extending.

<unk> for Q1, 2022 with expected high utilization in the North Seawell intervention business. Both vessels are stacked with limited opportunities in Q4.

In Brazil, the Siem helix shoes on contract into December the <unk> completed its dry dock in mid October and is available in the spot market.

In West Africa, we expect to work.

For Q seven into late Q4 with possibilities thereafter.

Moving to our robotics segment on slide 23, robotics should continue to be a steady.

Early in the quarter project in the North Sea will likely begin to taper off with the coming winter months.

The Grand Canyon, II and APAC is on contract in Thailand into Q.

Q4, and possibly longer vessel is expected to have strong utilization for the balance of 'twenty, one and that region. The Grand Canyon III is contracted to be performing trenching in the north sea with expected strong utilization in Q4.

To follow on wind Farm survey and site clearance and the North Sea is now continuing into Q4.

Moving.

Moving to production facilities HP ones on contract with no expected change production facilities should benefit from the Droshky production.

Our agreement with H WCG, continuing on slide 24.

Just to go for our Capex forecast range is 15% to $25 million the majority of our Capex.

Capex forecast is maintenance and project related. It also includes the production enhancement opportunity of Droshky completed in April the downward revision for Capex is based on timing shifting into 2022.

Reviewing our balance sheet, our funded debt decreased to $314 million with a retirement of our term loan.

Cash position at the end of Q3 was $238 million. This does not include the 71 have temporarily restricted cash that supports our project LC.

We have received 7 million tax refund in Q1 and $12 million in Q3, a product of the tax changes from the care Act as previously stated we achieved.

Can net debt zero during Q3 and ended the quarter with a negative net debt of $4 million.

Skip slide 26 for your reference at this time I'll turn the call back to Owen for closing comments.

Thanks sure.

Unlike many.

Businesses globally.

Parts of the helix strategy, where necessarily deferred due to COVID-19 and the resulting downturn, but essentially it's not changed.

We will endeavor to deliver free cash flow once we're confident about market outlook and our ability to meet all obligations, we plan to start to return value to.

To shareholders through dividends or share repurchase.

We've been focused on positioning our balance sheet to assure being able to weather. The storm of what we believed would be a prolonged downturn. This belief was based on the oversupply in New York market that might hinder our recovery cycle once COVID-19 impacts subsides.

However, things are never simple.

Simple. In addition, we're seeing COVID-19 linger longer than many believe we're seeing a significant pivot to renewables impacting traditional recovery type capital allocations, and we're seeing a meaningful divestment of producing fields to newer producers with requisite digested period.

Having said all that the prison.

In general more from swings too far in some are beginning to notice our balance sheet is strong and we're starting to see signs of recovery. It may not be a hockey stick, but over the next few years, we believe the recovery will be robust.

Seeing this across all of our markets with each region, having some variations.

The.

North Sea is usually the first to fall off in the first recover this time seems a bit different many properties have changed hands COVID-19 shutdown seem to have had a significant impact on planning and the Green Party now shares more power. The result has been a slower pickup in the North Sea work.

But this is a new.

Mature basin.

So we are seeing and expect to continue to see a pickup in production enhancement work.

Also been a shift in the government position from wanting to preserve infrastructure to promote marginal production development to Republic, driven stance to want more field abandonment and removal.

The government or beyond.

To fund a portion of those were seeing the direction from them as to taken over time approach.

We expect our field commissioning to grow and remain a strong market over time.

Helix is well positioned and we plan to take steps to expand our presence in this niche.

Not only with our current <unk> capability in the North sea, but with the introduction of the first non rig riser based assets in the North Sea.

The Gulf of Mexico was severely impacted by Covid and the drop in the commodity price in 2020, we were fortunate to have had a legacy contract with BP that was originally signed.

<unk> back in 2013.

That contract came to an end of this year and the market is reverting back to a more traditional spot market. This negatively impacted the results from our two Gulf of Mexico assets. This year. Fortunately the visibility on demand is increasing and the potential exists that both assets will be highly utilized in 2020.

22, our rates are still relatively low.

We were impacted by the alternative rig rates. However, rig availability has tightened and most forecasts are for a significant improvement on rig rates, which is starting to happen.

We accept we expect improvement through 2022, and a strong 2000.

23.

We've also broadened our surface offering to include hydraulic stimulation. We did this initially the bolts or bolster utilization, but it may actually grow to be a new market for us is the volume of work increases.

In 202014 following the downturn of 2015, we began this strategy.

To increase demand for our services by expanding geographically.

Brazil was the first region that we targeted to establish a presence and we were able to achieve four year contracts for two monohull riser based intervention vessels. We were the first in our industry's history to successfully deploy in non rig monohull.

<unk> developed for riser based inhibition and intervention. These vessels remain the only non rig monohull is available with that capability along with the well enhancer the first vessel.

Siem Helix one has now completed its four year contract and the Siem helix two contract expires at the end of the year.

There's been a significant amount of field divestment of Petrobras. The result is that Theres, a growing client base for our services other than Petrobras our intentions are to redeploy the S. H one out of Brazil for most of 2022.

We're in negotiations with Petrobras for an extension of the contract for the Siem helix.

Two.

Our intent is to keep the S. H two in Brazil. We believe there is a long term market there for at least one of our vessels.

In late 2019, we deployed our first major asset in West Africa, The Q 7000 to Nigeria. After a COVID-19 delay we continued work in earnest at the start of 2000.

'twenty one.

The West Africa market is a prime market for primarily production enhancement, we expect strong demand for this service in the region. We initially believed that there was potential for 150 day campaign every other year. The Q4. The Q 7000 has worked continuously however throughout.

Out the year with very little Nonproductive time, we have visible work in Nigeria potentially through the first half of 2022.

And Thats, just Nigeria, and we're now starting to market and gained interest from the Angolan market, which is potentially even larger we believe the west African market has the potential.

Fully utilized one of our riser based assets on a permanent basis.

The latest region that we've been working towards establishing a presence in the Asia Pacific market.

This market is trends transitioned over time from a development market to be one that in the future. We anticipate will be dominated by field abandonment work.

The Australian government is increasingly demanding to see decommissioning occur following a significant bankruptcy, which left the decommissioning liability with the government. We expect this to be a strong market, which could potentially utilize one of our assets on a permanent basis, we already have our first contract.

In place in Australia, although that's starting to work.

Been delayed now.

Now expected in the second half of 2023, we expect this will provide the opportunity to secure additional work likely ahead of that time or after.

As you can see we have multiple sources of potential.

Utilization, we have seven intervention assets two vessels in the North sea and two vessels in the Gulf.

Which will continue to support these regions with expected improvement on utilization and overtime significant improvement on rates.

For the remaining three assets, although we're not there yet.

We see demand.

Probably to exceed our supply.

To recap, we see one vessel in the North Sea supporting rights are basically decommissioning one vessels supporting production enhancement in Nigeria, and Angola, one vessel supporting decommissioning work in Asia Pacific and one or two vessels in Brazil beyond that the potential market is developing.

Da Vinci, Guyana, and we're seeing further actively activity potentially in the Mediterranean in Canada.

Rates are below where they need to be but we're generating free cash flow, we're seeing gradual improvement in rates offset by the loss of the legacy rates on our three long term contracts.

We are anticipating meaningful rate increases by 2023.

Between a variety of global utilization opportunities and the chance for meaningful rate improvement, we feel the market offers us a lot of upside.

You can cumbent upon us to prioritize those decision points and deliver results.

So try and give.

<unk> on our Robotics group, let me begin by saying that this is where we report our involvement in the offshore wind market.

There are four components of our robotics contribution rovs vessels with Rovs rovs in support of our intervention vessels and trenching.

And USO Boulder clearance.

Trenching and <unk> Boulder clearances derived from the offshore wind market, it's a bit lumpy as it is.

As the market.

But the expected EBITDA contribution on a lumpy basis is anywhere from 8 million to $20 million a year.

We have plans to increase our volume of work in these niches as well as.

Gibson car offering and capabilities for site assessment, and perhaps beyond new XO Boulder clearance with relatively low capital cost.

Of our work class Rovs were roughly half plus or minuses in support of our intervention assets.

If.

That in utilization improves so will.

Expand the segment the remaining work for our work class Rovs is from providing rovs on vessels of opportunity to our Rovs on third party vessels in support of construction support primarily with the potential to add work from the offshore wind market.

Expanding our involvement in the offshore wind market is the goal for.

So we plan to be prudent and avoid EPC works or.

Provision of new vessels other than those we already operate.

As I stated at the beginning our strategy is to increase free cash flow and return value to shareholders. The tactics, we intend to focus on to achieve an increase in pre.

A slower one increased demand for our assets through geographic expansion increased demand results in greater utilization, which results in pricing leverage which would be in addition to demand leverage from us from simply a market recovery.

Two we will expand our offerings in field decommissioning.

Free cash flow first where we are.

<unk> technologies that provide a step change in capability with our existing assets for decommissioning and second we will launch an aggressive new marketing campaign, highlighting our broadened decommissioning capabilities.

Three we have potential to reduce our operating costs and we will pursue.

We will pursue the cost reductions.

Four we will explore and implement plans to expand our offerings to the offshore wind market in a prudent manner steering clear of the risky and low margin vessel and EPC niche.

And five we will maintain capital spending discipline with a focus on return on capital for any.

Well expenditures.

The next year will be a transition year for us as we further establish these markets and redeploy our three non north sea or Gulf of Mexico assets, We may accept some lower than cost contracts during 2022 to bridge as we build the demand.

That's.

Potential here and including the potential for servicing wind farm developments.

We see work building 2022 may be a transitional year.

But we have initiatives.

Better in place and a bright future beyond.

With that I'll turn it back for questions.

Operator at this time, we'll take any questions.

Thank you.

Just a question. Please press the one followed by the four on your telephone.

<unk> telecom to acknowledge ofer.

My question has been answered and you would like to withdraw your registration. Please press the one followed by.

Listed.

Please for the first question.

Yeah.

Our first question comes from the line of James Schumm with Cowen. Please proceed with your question.

Hey, good morning, guys. Thanks for taking my question.

So.

You touched.

But my my first question was to ask about.

Some additional color on the market in Brazil.

Petrobras has been selling some non core assets.

And so that potentially reduces their well intervention needs, but presumably now you have a new.

<unk> opportunity from new clients.

So can you just talk a little bit about that you mentioned a digestion period.

So could you explain that and then.

Just wondering if these if these new operators might prefer local Brazilian.

Competitors I know, there's a lot of old rigs down there that is accepted some very low day rates. So just curious to get your thoughts on all that.

Okay, well first of all.

For that I was talking about applies more to the north sea than Brazil, where you've had a large number.

New produce divested into the hands of smaller companies and there's been some consolidation which will take some time.

For the integration and everything to occur.

With respect to Brazil, I think the divestments occurred a couple of years ago.

Really leading us in.

So assume that theres visible work in fact, we're tendering on anywhere from two to four years worth of work.

Thats not Petrobras related.

So that's that.

The real potential.

I don't know that all of the properties the Petrobras.

Divested has lessen their demand for intervention, though.

Still have a high requirement to increase their production and well intervention is the lowest hanging fruit method of achieving that so I think Petrobras is.

It's about their intent to extend the current contract we just need to arrive at rates that are that are fair.

Jamie I'll add to that Matt good morning.

A couple of things versus.

Well counts is significant in size are currently after the divestiture, especially.

We still have a wale cabinets and similar size because the entire north sea or the U K section of the North Sea and you mentioned that the local rig rates.

Well rigs that have been taken up now they're all contracted any rigs coming in that would be international globalization. So.

So we do see a tightening market in Macau and says we are in quite significant tender activities.

Sir in Brazil, and then finally the.

Most of the people that the divested properties to our international agencies.

Therefore.

As far as the.

The strict requirements for local content and I think as long as you comply with the local content requirements, which we do then.

Two real preference between Brazilian.

Remember, we've been down there for a number of years right now and we do have an established Brazilian helix still Brazil.

Well most of our onshore employees in Brazil are local nationals and a good portion of 70, 75% on the vessels.

These interactions.

Great. Thank you for that and so just to sort of follow up on that so.

Maybe putting Petrobras aside and you talked about the overall well count it is a huge market down there is there any reason.

Other than your negotiation.

<unk> with Brazil.

<unk> that that should be a two vessel market for you guys at some point in the future.

But for now you are going to move the Siem helix one out of there is that fair is it fair to think that it might get moved back in 2023.

That's correct in fact.

It may be a little earlier I think we.

You might see us move it back there depending on the contract negotiations that are going on right now it could be that we move the vessel back towards the end of 2022, but I do see at least a two vessel market potential and in Brazil, and quite honestly Petrobras shoot.

Have to Russell and Theres, probably enough work considering the overlap of the schedules of the work that we're that we have visibility on there's probably a market for two vessels outside of Petrobras.

Okay, great. Thanks, and my my last question is.

Just you know I guess I think a lot of people have been surprised that oil prices are very high now.

A lot of these operators.

Pay you guys out of their opex budgets not capex. So.

I guess a lot of people are sort of thinking you would would have a more robust demand.

Manned environment right now.

Just curious are you seeing increased competition for your services from like Riser less light well intervention vessels or are you seeing increased competition from drilling rigs or anything.

Related to that.

Well.

Let me talk to you all.

Well intervention vessel first we were the first to develop a light well intervention capability with those vessels those two vessels still dominate the work in the North Sea.

We do see that.

Competition in the North sea, but we've been.

We've been facing competition for a number of years island offshore.

Four vessels three of them working in the North Sea. So that's not not new by the island is sort of.

Diminished and you're seeing others step.

Stepping up and Youll always have people are stepping up ryzen lists intervention.

<unk> is fairly simple to deploy on a.

On a vessel of opportunity and therefore in downturns, you usually see best vessel owners seeking to increase their utilization by offering riser list intervention after vessel tip.

Typically what happens is the producers will try it it doesn't go that well.

And then they revert back to the.

That to us basically.

And the rest of the world.

We are seeing yet theres been several attempts in the Gulf of Mexico to provide the riser lifts intervention.

More recently had sort of taken up the banner and they intend.

We've tried to listen intervention, which is what led partially too.

The.

Restructuring of the contract that we have with BP.

We are not going to be doing the riser intervention for them, we will be doing the riser based intervention for them.

And then and the rest are in Asia Pacific We are seeing one compare.

They don't have an asset finished yet but they are.

Marketing that there'll be available for a riser lists.

That I believe they have a five year call off agreement with Chevron.

We will see ryzen lithium Asia Pacific.

But there's a vast difference.

<unk>.

Demand for riser lists and demand for a riser base the capabilities of riser based are so much greater than the ryzen lists and if you look at it.

Fishing sea of running the systems is not that different.

And actually the commerciality of riser versus.

Verizon was but we can offer both.

We've just been doing it for decades, now and where we're a firm believer that riser base provides the producer with the greatest service.

That's great.

Well just one key point here is developing.

Between decommissioning market cannot be finished by ryzen. This intervention you have to advisor base.

Pricing is down the texel.

P&A activity and decommissioning activities, we're seeing an increasing pain activity in Australia, and Brazil and in Australasia.

North Sea.

Keith.

<unk> demand coming for P&A activity. The company finished by rising less intervention.

Great. Thank you very much I'll turn it back.

Thank you.

Thank you. Our next question comes from the line of Igor Levi with BTG. Please proceed with your question.

Alright, Thank you guys.

Good morning.

When I look at the Gulf of Mexico, Q vessels working largely in the spot market utilization has averaged in the 70% range for much of the year. So my first question is whether that's a reasonable assumption going into 2022 for those vessels and then as we.

Trying to think about the Siem one now being in the spot market after leaving Brazil.

What kind of a utilization can that natural expect.

Hey, good morning, Sarah.

The Gulf of Mexico in the last quarter, we had about SaaS.

75% utilization increased.

Q2, we all seem very fun utilization into Q4 and Q1 of next year.

Usually as we go into a new year, we would see about 700 a day.

Or is the visibility for the key units in the Gulf of Mexico, Obviously, we wouldnt win that work and somewhat would get cancelled coming into 2022, we're seeing much higher.

Visibility either 1000 days, Mark and we have pretty much the vessels picked for all of Q4, now going forward and well into Q1 and numerous discussions with other clients.

Regarding the Siem helix one.

Having said that we would take it out of Brazil, and we'll finance it Mike.

Realize that vessel on a number of different types.

Types of work, we're looking at all sorts of opportunities before we see the P&I market reactivate coming into 2020 free.

Oftentimes.

Let's say that we might take less of works that we're looking at.

Wind farm work, especially with construction work might be even sanction what we've got quite a few opportunities for that vessel.

It might be that.

Other countries.

So I can kind of open up and we go back and <unk> expansion.

Great. Thank you and.

I know you talked about the wind up of community, but I was hoping you could provide more color going into 2022, because I remember you previously mentioned that while it's a growing market the competition is quite steep.

So I was hoping to understand.

I understand how 2022 when compared to 2021 and are in that scope of work and are are you you know.

Are you staying disciplined to maintain margins in such a competitive market.

The 'twenty to 'twenty, one is actually a down year from 'twenty and that's the result, we achieved our first go <unk> contract in 2020.

Quite honestly the survey grossly underestimated the number of <unk> and boulders.

Hi.

Track ran most of that year and into the next year. So that was sort of a banner beginning.

This year we were.

We've been working hard to take the credibility from that first job and qualified to tender on additional jobs.

The volume of work this year available.

As I mentioned in my comments, it's a bit lumpy.

In 2021 was.

A softer year volume wise for the work, but we were able to secure new contracts and that's bolstered our credibility and we're now on the tender list for most of the work going forward in that area.

We're.

We're going to grow it's not only growing in chasing the USO and Boulder clearance work and.

Trenching.

Boulder clearance work at site preparation of our site clearance site prep.

Theres an opportunity for us to expand on our services there through alliance.

<unk> and organically with minimal capex to be able to provide a broader excited assessment service to the project owners.

That's a that's working for the project owners.

And while the competition is fierce it is a specialty niche and I think.

Hans.

They better margin than the more commoditized segments.

The construction support which is where trenching is we again this was a bit of an off year, but we're seeing strong demand increase and trenching. In fact, I think Scotty mentioned were actually contemplating adding.

Capability going forward, so that mix will grow because of the expertise required there.

I think where we've been successful in maintaining our margins and while.

The number of <unk>.

Vertically integrated trenching, that's been added to cable layers has.

Has sort of diminish the number of clients we work for the broader market is growing at a much faster pace than the market share that we're losing so therefore, our outlook is already strong.

Strong growth in that segment.

And then beyond that.

Just in general.

We've seen recent headlines.

<unk> this year about EPC contractors, taking huge losses on these wind farm works.

I think with the pivot towards renewables all of the contractors sort of lemons going over the cliff chasing the same contracts in the.

The margins were squeezed to.

I think where we're going to focus going forward is on the less capital intensive, but specialty niches, providing support both into construction support.

And then upstream in the site clearance area, where the future towards developing O&M wet.

Capabilities.

That's where our strategy lies.

Great. Thank you and I'll turn it back.

Thank you as a reminder to register for a question. Please press the one followed by the four on your telephone. Our next question comes from the line of David Smith.

Pickering Energy partners. Please proceed with your question.

Hey, good morning, and thank you for taking my question.

So sorry.

Alright.

Hey, congratulations on getting to net neutrality.

I hope, it's not too early to ask this but.

Given the improving outlook for Europe Youre.

With essentially assets, especially into 'twenty three.

Wanted to ask how you think about the merits of share repurchases versus a regular dividend or maybe a special dividend.

Hum.

Uh huh.

Ill.

I'm I'm stuttering, because that's actually a board decision and I don't want to speak for the board.

Wellington.

But.

My personal.

Opinion is that I don't think that you'll see us establish a regular dividend.

If our dividend just pay to be a special dividend.

My personal preference is I'd like to see share repurchase, but I think most shareholders would prefer to see a dividend.

I think going forward, you would see some kind of a hybrid Glenn.

Okay. Okay.

Sure that.

Yeah.

And the second just regarding the updated guidance kind of a wide range and the implied Q4, well intervention revenue.

Think about that range it it kind of feels like the low.

So it would have some some schedule slippage versus your expectation.

It seems like you could get to the high end.

Near full utilization and Gulf of Mexico, and West Africa.

Does that sound right.

High end revenue in a moment you mentioned some work in the North Sea.

No I think you are.

Youre Directionally correct and then how youre looking at this week.

The Gulf of Mexico market in the fourth quarter is really solidified for us and so I think we we expect strong utilization there.

In the West Africa region, I think we definitely have a path towards strong utilization.

I think there is still.

Some exposure there so I think thats why you see the wide range.

Sure.

I appreciate it and if I could just sneak one last one in.

Thinking into 'twenty, three and the opportunity opportunity for riser based.

DNA and decommissioning in the North Sea is it fair to think.

About the Siem helix vessels is relatively competitive compared to the Q seven.

And whole shape kind of reduce the operating window it seems.

Siem helix vessels versus the Q seven.

There's a difference between the capabilities of the two vessels the two vessels in the North Sea are riser less vessels.

I was thinking about the siem helix vessels right as potentially.

Oh, and Oh potential candidate that too.

Uh huh.

Capability wise, they're very similar.

So they are we can mix and match them and ship the fleet around in fact that we've got.

So for a vessel in the U K a vessel in West Africa or multiple vessels in Brazil, a vessel in Asia Pacific and Canada in the Merit has opportunities. So we have we have a large geographic area to try and cover with three vessels.

And I think they are fungible to a certainty.

10%.

We are starting to take steps to qualify.

The vessels in all the regions because you know the North Sea you have to have a special safety case in order to operate there Australia. It's the same.

So we are starting to get all of the certifications in place for all three.

Certainly close to be able to work in all regions.

Yeah.

Okay.

Technically the top sides on the vessels that are exactly the same it's the same power since the same skidding systems. The same safety systems same walk to work system.

Exactly the same equipment that can be utilized.

No I appreciate that Scott and I was just wondering if the ship shape all of the Siem helix vessels versus the semi hall at the Q 7000 made a difference.

How long in the year each survey each vessel.

And the North Sea.

The primary differences in the trends.

Our semi submersible has perhaps better motions, one stable, but trends looks at a slower speed. Although the Q 7000 was designed with ship shaped Paul So that one is the performance pontoons, it's able to achieve a higher trying to speed the most semi submersibles.

One of the model.

<unk> vessels are much faster than transit.

Borrowers are applying them to the different regions of the world, It's probably more accurate to think of the Q 7000, covering a strong demand single region or two regions and then the S. H vessels transiting quickly to cover the rest.

Okay.

Thank you all for your time.

Thank you.

Thank you.

Do have any follow up question from the line of James <unk> from Cowen. Please proceed with your question.

Hey, Thanks for letting me back in.

So I was wondering if if you could help.

Let me think.

What utilization is needed for let's say this the siem helix one to be breakeven so its going to be dependent on day rate. So.

Maybe pick a day rate don't tell me what it is but is there any way you can help me think about what the minimum.

Think of Battle of utilization you need is to get that vessel to be breakeven for you.

It's going to depend on the type of work we take on James.

And well intervention by then we should get to breakeven, but right now to get through this winter we are targeting.

Lose less tight works, but it will be in.

Women led instruction supports a wind farm support or even cytotoxic.

And our first part of the year, we're definitely going to have I'd say strong utilization, but the Reits rent supports a breakeven position and it will depend on how quick we can get the vessels back into the well intervention market and like Chris said, we're we're chasing work so that in the North Sea and Angola.

Right.

It's really dependent on the new marriage of work we take on.

Okay, and then just I guess lastly for me.

What does the vessel maintenance and dry dock schedule look like next.

Next year relative to this year I think you just mentioned you pushed some capex into 2000.

'twenty two so any early thoughts on what Capex might look like next year would would be much. Appreciate it yes. So I think in general Jim we have talked about in the past high level that our capex between $20 million to $40 million per year in that range. I think this year, we'll probably going to be at the lower end.

As we mentioned some of our Capex spending has been pushed I think that.

Next year will probably be a little bit heavier drydock here, we have the the Q4 thousand has a scheduled one.

The Siem helix two the HP one.

And I think the well.

In Hampshire as long as the Seawell. So it is going to be a heavier year. So I think it will probably be on the higher end of the range that we provided to maybe even exceeded a little bit just because of the capex has been pushed into 'twenty two.

Great. Thank you very much guys.

Changes if it's okay, I'll just get that GFS.

First question I, just wanted to point out I should assurance.

Our cost base and the various different merge is markedly different well intervention that we have.

It will be less the cost basis will be different as well.

Okay.

Great. Thanks Scotty.

Okay. Thank you.

Yeah.

So I think it's worth.

Just just to follow on on that I think it's worth noting that we see.

That's why I call. It 22 of transition here, because I think we will need to do that with the Siem helix one vessel for 'twenty, two and then by 'twenty three I would express.

The vessels to all be back into fold intervention mode.

Thank you and we do have another follow up question from the line of David Smith from Pickering Energy Partners. Please proceed with your question.

Hey, Thanks for letting me back in.

Just wanted to circle back.

Back to your comments about the strategy to increase free cash flow I think the third pillar you mentioned was to reduce the cost structure I'm wondering if you could help us with any color on.

Maybe what items have been identified and maybe the magnitude of what you're targeting.

It's a bit early for.

<unk> mentioned everything, but one thing I'll mention is a continuation of our program in conjunction with our Schlumberger Alliance to cross train personnel.

So that we can reduce personnel on board.

That's the only possible because of the alliance and the team and the single point contracting nature of what we offer.

The clients, but that would that would have.

The ability to lower our offshore operating costs.

Alright, I appreciate it and look forward to.

Then when you can tell us more of the cost out plan. Thank you.

Thank.

And we do have another follow up question from the line of James <unk> from Cowen. Please proceed with your question.

If you guys don't close the call I'm, just going to keep going here.

I'm just kidding.

So I guess lastly, and I promise. This is my last one is there any is there any commentary on robotics.

As.

As a whole I mean, you guys have talked about it I'm just just directionally for next year I mean, it seems like a lot of renewables work is picking up is there any anything you can offer in terms of like your visibility going into 'twenty two versus what it was last year.

Air or just anything to help to help us gauge how this business looks next year would be great.

Hi, John.

I would say we have seen improving yet for next year certainly.

And one of the vessels will be in APAC region and on a full contracted yet.

So thats stabilized.

Sure.

And we felt that large decommissioning projects in China and that will carry on into Q1 and potentially further.

UK Europe West Africa Renewables area, we're definitely seeing an increase in pension we have awards that will most likely see us take on a second trenching vessel. So we should see an improved.

Are you there.

There's a lot more tender activity on the bone of clearance side.

And site survey and prep, so I would expect to pick up some of those works.

Been doing a very good job on those projects that we've undertaken and starting to be quite a good reputation so I see.

Increase in RFP activity as well.

Or are these that were destined for oil and gas split I love it.

I shall now format over into the wind farm markets as well so we should see an improvement not sure yet how much of an improvement it's not gonna be a vast improvement, but it will be an improvement.

Okay. Thanks, so much I appreciate it.

Thank you.

Thank you and there are no further questions at this time.

Thanks for joining us today, we very much appreciate your interest and participation and look forward to having you on our fourth quarter 2021 call in February of 2002. Thank you.

Thank you that does conclude the conference call for today, we thank you for your participation and ask that you. Please disconnect your lines.

Okay.

Sure.

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Greetings and welcome to the third quarter 2021 earnings Conference call.

During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session.

At that time, if you have a question. Please press the one followed by the four on your telephone.

If at any.

Any time during the conference you need to reach an operator, Please press star zero.

As a reminder, this conference is being recorded Thursday October 21 2021.

I would now like to turn the conference over to Eric Stifled CFO. Please go ahead.

Good morning, everyone and thanks for join.

Today on our conference call for our third quarter 2021 earnings release.

Participating on this call for helix today, our own Pratt our CEO, Scotty Sparks, our CFO and Ken Neikirk, our general counsel and myself.

You've had an opportunity to review our press release and the related slide presentation.

US to lease last night.

If you do not have a copy of these materials both can be accessed through the investor page on our website at www Dot helix ESG Dot com.

These can be accessed under the press releases tab and the slide presentation can be accessed by clicking on todays webcast icon.

<unk> was before we begin our prepared remarks, Ken Neikirk will make a statement regarding forward looking information.

This conference call, we anticipate making certain projections and forward looking statements based on our current expectations. All statements in this conference call or in the associated presentation. Other than statements of historical fact are forward looking statements and are made under the safe.

If harbor provisions of the private Securities Litigation Reform Act of 1095.

Our actual future results may differ materially from our projections and forward looking statements due to a number and variety of factors, including those set forth in slide two and our most recently filed annual report on Form 10-K and in our other filings with the SEC also during this.

Certain non-GAAP financial disclosures may be made in accordance with SEC rules. The final slide of our presentation provides reconciliations of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations along with this presentation. The earnings press release, our annual report and a replay of this broadcast are available under the 40 investors section of our website.

At Www Dot helix ESG dot com.

Sure.

Good morning.

I hope everyone out there and their families are doing well healthy and staying safe. This morning, We will review, our Q3 and year to date performance our operations our view of the current market dynamics and provide our outlook for the balance of 'twenty one.

This call. We will also discuss the underlying market environment and how we think it will influence 2022 and beyond moving to the presentation slides five through seven provide a high level summary of our results are.

Our performance for the quarter and year to date.

Continues to be in line with expectations as our teams continue to execute at high levels.

Our Peru operationally.

The 207000 continued successful operations in West Africa.

North Sea intervention activity increased with both vessels the well enhancer of the seawell working parts of the third quarter Gulf of Mexico intervention continues to improve.

We benefited from.

Utilization have visibility for work into Q1 of 'twenty two in.

In Brazil, the Siem helix two worked the entire quarter.

Jim Helix, one completed its contract with Petrobras in August the vessel was in dry dock at the end of the quarter.

Robotics benefited from the good weather season in the North Sea with increased.

Increasingly entrenching and site clearance work and production facilities continues to be a steady performer benefited from good production enhancement efforts completed on our Droshky field during Q2 with increased production.

Our results for the third quarter of 2021 were largely in line with our results from the second quarter.

Active 'twenty, one revenues report reported $181 million with a net loss of $19 million and EBITDA of $27 million or gross profit was $3 million or 2%.

Onto slide eight from a balance sheet perspective, our cash balance at the end of the quarter was 200.

$238 million with an additional $71 million and temporarily restricted cash associated with the short LLC.

Short term LC for our work in West Africa. During the third quarter, we generated $29 million of operating cash flows and spent $1 million on capex with the resulting free cash flow of 20.

<unk> hundred million year to date, we've generated $121 million of operating cash flow at $114 million of free cash flow during.

During the quarter, we entered into a new $80 million asset based revolving credit facility and paid off our term loan.

We achieved a long standing.

<unk> goal of ours by reaching net zero and ended the quarter with a negative.

The balance of $4 million.

I'll now turn the call over to Scotty for an in depth discussion of our operational results.

Thanks, Brian and good morning, everyone moving on to slide 10.

We continue to operate all of our.

Financial lines from a challenging year with the ongoing COVID-19 pandemic.

Onshore and offshore obtaining has done a phenomenal job keeping our operations functional in place.

Some facilities in Houston on innovating and highlights and fully operational and shortly we will commence reopening offices in Rio in Singapore safety measures and protocols.

Business and in place and the team's compliance to these allow safe access to welcome these locations.

The COVID-19 pandemic presents many logistical challenges. However, we continue to successfully transport personnel to our soft globally.

Well, keeping file protocols testing and sustaining our personnel subcontractors and clients will teach offshore.

Loans from medical attention.

Most of our personnel and a vaccine is available hopping back to license when we announced the inverse COVID-19 related incidents at our clubs.

And some parts of the world travel restrictions have been eased unless classroom attendance at our offices and finally after all these months some clients in all of our in person meetings.

So in the fourth quarter, we continued to operate 14 vessels globally with minimal operational disruption continuing rail pricing exceptional standards with 98, 5% uptime efficiency.

Dedicated and committed personnel continued to third quarter with very satisfied neitzel safety statistics again.

Emphasizing our strong supportive.

The culture and leadership globally.

I get to slide 11.

During the third quarter, we produced revenues of $191 million, resulting in a gross profit margin of 3% accretion at gross profit of $3 million.

EBIT for the third quarter of 2007 compared to $162 million revenue 3 million gross profit.

And EBIT $25 million in the second quarter.

In the first quarter, the well intervention fleet achieved utilization of 72% globally with 72% utilization in Brazil with the completion of the long term Siem helix one contracts with Petrobras.

Utilization increased to 74% in the Gulf of Mexico with six.

67% utilization in the North sea and utilization increased to 100% in West Africa.

The robotics chartered vessel fleet achieved utilization of 99% globally, increasing to 358 vessel days during the quarter compared to 246 days in the second quarter.

In the Gulf of Mexico, we had booked for Q4.

Profit nearly 5000 workings of increased utilization over the second quarter with some surety of gaps between projects welcome to numerous clients.

In the North Seawell enhancer was operational prowess of being warm stacked for part of the quarter on the Seawell was again, we activated two onsite projects pricing right sand into warm stack mode.

And West African regions.

And the key seven had an impressive quarter working and largely I mean, if the two clients undertaking production enhancement works.

Operating performance in Brazil was a usual high standards with the Siem helix, one slightly complete somewhat since narrow MPT and then D mobilizing from the Petrobras contract.

The Siem helix two was 100% neutralized.

<unk> a strong quarter.

The robotics chartered vessel fleet achieved high utilization in the quarter welcome between RV support Trenching and renewable was slightly completing 358 days.

176 days work was undertaken on four projects using spot charter vessels, including one back in conducting our first project offshore Guyana.

Producing.

Slide 12 provides a more detailed review of our operations for our well intervention business in the Gulf of Mexico.

The key 5000 increase utilization to 77% compared to 72% in Q2.

Following production enhancement operations in ultra deepwater for free clients with some small schedule gaps between projects.

The key for increased utilization to 71% compared to 45% in Q2 completion production enhancement works with two clients and ultra deepwater followed by two small construction projects with two clients.

Additionally, we have provided by each one of our clients with platform repair work caused by storm damage from Hurricane Ida.

<unk>.

<unk> have integrated helix Schlumberger alliance teams and equipment installed proactively working as one complete productive and safe thing.

Most of our key unit intervention contracts undertaken in the Gulf of Mexico, and a single point contract mechanism allows for easier contracts and for our clients.

In the fourth quarter, the Phoenix someday along this team was successful in.

Key unit of the BP Gulf of Mexico, Raj based well intervention vessel services package carefree Nikola contract plus options, whilst the contract does not provide for guaranteed days. We had told me are the contractor of choice for any rise device interventions for BP in the Gulf of Mexico, and we do expect final utilization philosophy royalty check.

Thank you.

The award vessels of high utilization contracting work in Q4 with contracted and awarded works into 2022 and much better visibility of potential flavor activity in 2020 compared to 2021 and recently we have been awarded approximately 250 days for the Gulf of Mexico Keynotes from non clients for work in the fourth quarter and the first quarter of 2020.

In the pipe.

Moving to processing and North Seawell intervention business continues to be most affected by reduced work opportunities related to kind of accounting.

$102, 57% utilization in Q3, working for two clients in the quarter, including completion production enhancement scopes.

I was in one setting.

Secondly, Scotland significantly reduce invest operating costs from current levels.

The seawell achieved 56% utilization with a free clients the vessel completing the diving scope for one customer and completed production enhancement works for the following customer followed by Paul well abandonment program for the first customer the vessel is in warm stack can be Scotland.

With significantly reduced costs and reduced crews for the remainder of the quarter.

The key seven had a strong performing quarter in Q3, the vessel performed extremely well with multinationals and integrated helix Schlumberger Alliance team. So that's the work from two wells in the quarter for key clients and now has contracted work in Nigeria, well into Q4 with potential.

So I think probably at the end of 2021 and in 2022.

Moving to slide 14.

And Brazil, both vessels achieved strong performance with zero commercial downtime in the third quarter. The Siem helix, one at 45% utilization in Q3 with no commercial downtime criticized completion of the Petrobras contract.

Central from demobilization in mid August.

The vessel completed development work on one well on production enhancement work on two additional wells.

Vessel has completed its planned five year regulatory announcements stocking period FX is now pursuing other work for the vessel in Brazil and other markets internationally.

We have identified and are in discussions regarding numerous opportunities.

<unk> will have the vessel contracted in the coming months.

The Siem helix, two has 100% utilization and completed abandonment welcome three wells on production enhancement work on two wells during the quarter.

We're currently discussing a possible extension with Petrobras regarding lithium here as to the outcome of those discussions remains to be seen and we are identifying.

But we have <unk> globally.

Moving to slide 15 driver of opportunity.

<unk> had another good quarter continue yet continuing another good year in 2021 operating six vessels during the quarter, primarily welcome between Trenching R&D decommission in non oil and gas and renewables related projects.

In the APAC region, and the Grand Canyon, II had 100% utilization in Q3 divestments contracted in Thailand undertaken unexpected 210 state wellhead decommissioning projects, where maybe 100, some slides well hedge fund sequel is expected to continue into Q1 of 2022.

In the North Sea the Grand Canyon previous utilized.

98% undertaken to oil and gas trenching projects renewable trenching project for another client and a telecom stringent project for new clients. The vessel is contracted oil and gas and renewable trenching scopes utilizing the vessels for most of the remainder of 2021 and a good portion of 2022.

The chartered vessels, the SaaS turn the box suites.

Continued site clearance and survey works with 63 days on a wind farm projects that is now expected to last until late Q4.

The project chart itself I'm commenced work on the <unk> clearance in destination project to 46 days.

I expect it to continue into the latter part of Q4.

In the Gulf of Mexico RV activities.

Two remained strong and we continue to market the <unk> board alone as our plans regarding vessel going forward this year.

The project chartered in Nevada that was contracted for a cable installation projects on our first offshore work.

Loss of 77 days in the quarter.

The robotics, great transition severance and agreement in renewable sector continues at a new.

Clients with more services, we have recently been contracted to undertake service satisfaction survey projects and while seeing tender activity increase for all the services we provide globally.

We hosted recently been awarded several of enabled Trenching works in 2022, and 2023 that may require a second tranche investment in 2020.

I have a.

Slide 16.

Leave this slide detailing the vessel resolve in trenching utilization for your reference before I close I would like to mention some other key points.

We have commenced programs to reduce our carbon footprint and greenhouse gas emissions across all of our business regions and recently appointed a senior manager type on the plans and work closely with our operations.

And sustainability teams.

It is also very pleasing to see far better visibility across our business lines, especially within the Gulf of Mexico, Brazil, and how many were international markets tender activity has increased and the number of available working days appears to be recovering.

We've added to our sales force in many areas recently.

And welcome.

Robotics fleet, we continued to increase activity in the green and renewables markets and we expect an increase trenching activity and favorable for the new services, we have been offering.

Before I turn the call over to Eric I would again like to thank our Phoenix publishing our offshore personnel, our onshore personnel and our partners to continue to innovate and evolve on doing a fantastic job.

Under these challenging circumstances, maintaining operational excellence with minimal MPT, while keeping very high standards and safety performance.

Thanks Scotty.

Moving to slide 18 outlines our debt instruments and their maturity profile at September <unk>.

Our total funded debt was $314 million.

And at the end of Q3, our next scheduled principal payments are in 2022.

Moving onto slide 19. This slide provides an update on key balance sheet metrics, including our long term debt and net debt levels at year end in September 30th.

$309 million of cash and restricted cash as of September 30, we are in a negative.

Debt position of $4 million at quarter end, our cash position at the end of Q3 was $238 million with an additional $71 million of restricted cash that supports a temporary project I'll see.

During the quarter, we paid off our term loan and entered a new $80 million ABL revolving credit facility with availability driven prime.

<unk> already by our U S and UK based receivables at quarter end, we had no amounts outstanding and $70 million of availability under the ABL.

For a discussion on our outlook, we move to slide 'twenty two 'twenty three we continue to operate in a challenging market our customers continue to be very cautious and committing to spending in.

Primarily on the.

Currently relatively stable macro backdrop has increased customer interactions and increased activity in regions like the Gulf of Mexico, but it has been slow to develop in areas like the north Seawell intervention market.

Positive developments globally and within our sector, providing a positive foundation for recovery in our markets.

'twenty, primarily beyond 2021, we have made flight updates to our Q2 guidance. Our guidance is a good faith attempt to provide investors information that its approximate appropriately caveat. It as best we can against the backdrop of the current environment our guidance for 'twenty. One is as follows revenues 600 to six.

$645 million EBITDA, 85% to $100 million in free cash flow $80 million to $120 million.

Our EBITDA outlook is based on the following we expect visibility and utilization will continue to be on a quarter to quarter basis. We have increased the bottom end of our EBITDA range based on work that has been.

<unk> contracted into Q4, we have also increased our cash flow forecast.

Our free cash flow outlook is supported by the strong year to date cash generation and highlights both the challenges and the range of possibilities during the fourth quarter. The range provided in acknowledges the expected range of Q4 EBITDA in the range of our annual capital.

<unk> spending of $15 million to $25 million.

We received an approximate $12 million of cares Act tax refund in Q3 working capital levels are assumed to support the 2022 activity.

Providing a bit more color to our key assumptions by segment and region on slide 22, first with our well intervention segment.

In the Gulf of Mexico, well intervention business, both vessels have contracted work in Q4, extending into Q1 2022 with expected high utilization in the North Seawell intervention business. Both vessels are stacked with limited opportunities in Q4.

In Brazil, the Siem helix two is on contract into December the <unk>.

<unk> hit its dry dock in mid October and its available in the spot market.

In West Africa, we expect to work through Q seven into late Q4 with possibilities thereafter.

Moving to our robotics segment on slide 23, robotics should continue to be a steady.

Early in the quarter project in the North Sea will likely begin to taper.

The Grand Canyon, II and APAC is on contract in Thailand into Q4, and possibly longer vessels are expected to have strong utilization for the balance of 'twenty one in that region.

<unk> III is contracted to be performing trenching in the north sea with expected strong utilization in Q4.

Bravo on wind farm survey and site clearance and the North Sea is now continuing into Q4.

Moving to production facilities HP once on contract with no expected change production facilities should benefit from the Droshky production.

And our agreement with H WCG continuing on slide 24.

Moving.

The cycle for our Capex forecast range is 15% to $25 million. The majority of our Capex forecast as maintenance and project related. It also includes the production enhancement opportunity of Droshky completed in April the downward revision for Capex is based on timing shifting into 2022.

Reviewing.

Reviewing our balance sheet, our funded debt decreased to $314 million with our retirement of our term loan cash position at the end of Q3 was $238 million. This does not include the 71 have temporarily restricted cash that supports our project ELC.

We have received 7 million tax refund in Q1 and $12 million in.

Just brief a product of the tax changes from the care Act.

As previously stated we achieved net debt zero during Q3 and ended the quarter with a negative net debt of $4 million.

I'll Skip slide 26 for your reference at this time I will turn the call back to Owen for closing comments.

Q2.

Yes.

Unlike many businesses globally.

Parts of the helix strategy, where necessarily deferred due to COVID-19 and the resulting downturn, but essentially it's not changed will.

We will endeavor to deliver free cash flow once we're confident about the market outlook and our.

Our ability to meet all obligations, we plan to start to return value to shareholders through dividends or share repurchase.

We've been focused on positioning our balance sheet to assure being able to weather. The storm of what we believed would be a prolonged downturn. This belief was based on the oversupply in the market that might hinder our.

Of recycled once COVID-19 impacts subside.

However, things are never simple. In addition, we're seeing COVID-19 linger longer than many believe we're seeing a significant pivot to renewables impacting traditional recovery type capital allocations, and we're seeing a meaningful divestment of producing fields to newer producers.

With requisite digested period.

Having said all of that but in general more from swings too far in some are beginning to notice our balance sheet is strong and we're starting to see signs of recovery. It may not be a hockey stick, but over the next few years, we believe the recovery will be robust.

Seeing this across all of our markets.

Our recoveries and having some variations.

In the North Sea is usually the first to fall off in the first recover this time seems a bit different many properties have changed hands COVID-19 shutdown seem to have had an insignificant impact on planning and the Green Party now shares more power. The result has.

Rohit slower pick up in the North Sea work.

But this was the new mature basin.

So we are seeing and expect to continue to see a pickup in production enhancement work. There has also been a shift in the government position from wanting to preserve infrastructure to promote marginal production development to Republic driven.

It's been more field abandonment and removal since the government will be on the hook for to fund a portion of those were seeing the direction from them as to taken overtime approach, we expect fuel to commissioning to grow and remain a strong market over time.

Helix is well positioned and we plan.

<unk> strategic steps to expand our presence in this niche.

Not only with our current ryzen was capability in the North sea, but with the introduction of the first non rig riser based assets in the North Sea.

The Gulf of Mexico was severely impacted by Covid and the drop in the commodity prices in 2020.

Plans are fortunate to have had a legacy contract with BP that was originally signed back in 2013.

That contract came to an end of this year and the market is reverting back to a more traditional spot market. This negatively impacted the results from our two Gulf of Mexico assets. This year Fortunately the visibility on demand is increasing.

<unk> and the potential exists for both assets will be highly utilized in 2022.

Rates are still relatively low.

We were impacted by the alternative rig rates. However, rig availability has tightened and most forecasts are for a significant improvement on rig rates, which is starting to happen.

We.

We expect improvement through 2022, and a strong 2023, we've also broadened our surface offering to include hydraulic stimulation. We did this initially the bolts or bolster utilization, but it may actually grow to be a new market for us is the volume of work increases.

In 2000.

In 2014, following the downturn of 2015, we began a strategy to increase demand for our services by expanding geographically.

Bill was the first region that we targeted to establish a presence and we.

We were able to achieve four year contracts for two monohull riser based intervention vessels, we were the first.

In our industry's history to successfully deploy in non rig monohull developed for riser based innovation and intervention. These vessels remain the only non rig mono holds available with that capability along with the well enhancer the first vessel.

Siem Helix one has now completed its four year.

Correct and the Siem helix two contract expires at the end of the year Theres been a significant amount of field divestment by Petrobras. The result is that there's a growing client base for our services other than Petrobras.

Our intentions are to redeploy the S. H one out of Brazil for most of 2022.

Our Condor in negotiations with Petrobras for an extension of the contract for the Siem helix two.

Our intent is to keep the assets two in Brazil. We believe there is a long term market there for at least one of our vessels.

In late 2019, we deployed our first major asset in West Africa, the Q seven.

With Nigeria after a COVID-19 delay we continued work in earnest at the start of 2021.

The West Africa market is a prime market for primarily production enhancement, we expect strong demand for this service in the region. We initially believed that there was potential for 150 day campaign every other year.

For Q4, the Q 7000 has worked continuously however throughout the year with very little Nonproductive time, we have visible work in Nigeria potentially through the first half of 2022.

That's just Nigeria.

And we're now starting to market and gained interest from the Angolan market.

Which.

Year potentially even larger we believe the west African market has the potential to fully utilize one of our riser based assets on a permanent basis.

The latest region that we've been working towards establishing a presence in the Asia Pacific market.

This market is trends transitioned over time from a development market to.

As for abundant in the future, we anticipate will be dominated by field abandonment work. The Australian government is increasingly demanding to see decommissioning occur following a significant bankruptcy, which left the decommissioning liability with the government. We expect this to be a strong market, which could potentially utilize.

To be one of our assets on a permanent basis.

We already have our first contract in place in Australia, Although that's starting to work.

Been delayed now expected in the second half of 2023, we expect this will provide the opportunity to secure additional work likely ahead of that time.

<unk>.

As you can see we have multiple sources of potential utilization, we have seven intervention assets two vessels in the north sea and two vessels in the Gulf.

Which will continue to support these regions with expected improvement on utilization and overtime significant improvement on rates.

Or are the remaining three assets, although we're not there yet.

See demand eventually to exceed our supply to.

To recap, we see one vessel in the North Sea Sporting rights are basically decommissioning one vessels supporting production enhancement in Nigeria, and Angola, one vessels supporting decommissioning work in Asia Pacific.

One or two vessels in Brazil beyond that the potential market is developing in Guyana, and we are seeing further actively activity potentially in the Mediterranean in Canada.

Rates are below where they need to be but we're generating free cash flow, we're seeing gradual improvement in rates offset by the loss of the.

And we will see rates on our three long term contracts.

We are anticipating meaningful rate increases by 2023.

A variety of global utilization opportunities and the chance for meaningful rate improvement, we feel the market offers us a lot of upside.

You can come and upon us to prioritize.

The legacy those decision points and deliver results.

So try and give some color on our robotics group, let me begin by saying that this is where we report our involvement in the offshore wind market.

There are four components of our robotics contribution rovs vessels with Rovs rovs in support of our intervention.

<unk> vessels and trenching.

And USO Boulder clearance trenching, and <unk> Boulder clearances derived from the offshore wind market, it's a bit lumpy.

As the market.

But the expected EBITDA contribution on a lumpy basis is anywhere from 8 million to $20 million a year.

We have plans to increase our volume of work in these niches as well as expand our offering and capabilities for site assessment and prep beyond new XO bolger clearance with relatively low capital cost.

Of our work class Rovs were roughly half plus and minuses in support of our intervention assets.

If.

And that in utilization improves so will this segment the remaining work for our work class Rovs is from providing rovs on vessels of opportunity to our Rovs on third party vessels in support of construction support primarily with the potential to add work from the offshore wind market.

Expanding our involvement in the offshore wind market is the goal for us, but we plan to be prudent and avoid EPC works or provision of new vessels other than those we already operate.

As I stated at the beginning our strategy is to increase free cash flow and then returned value to shareholders. The tactics we.

We intend to focus on to achieve and the increasing pre cash flow of one increased demand for our assets through geographic expansion increased demand results in greater utilization, which results in pricing leverage which would be in addition to demand leverage from us from simply a market recovery.

<unk>.

We will expand our offerings in field decommissioning.

First we are developing.

Technologies that provide a step change in capability with our existing assets for decommissioning.

Second we will launch an aggressive new marketing campaign, highlighting our broadened decommissioning capabilities.

Three we have potential to reduce our operating costs and we will pursue will pursue the cost reductions.

Four we will explore and implement plans to expand our offerings to the offshore wind market in a prudent manner steering clear of the risky and low margin vessel and EPC Mitch.

And five we will maintain capital.

Discipline with a focus on return on capital for any potential expenditures.

The next year will be a transition year for us as we further establish these markets and redeploy our three non north sea or Gulf of Mexico assets, we may accept some lower than cost contracts during 2022.

Two the bridge as we build the demand.

Thats listed here and including the potential for servicing wind farm developments.

We see work building 2022 may be a transitional year.

But we have initiatives.

Better in place and a bright future beyond.

Spending.

With that I'll turn it back for questions operator at this time, we'll take any questions.

Thank you if you would like to register a question. Please press the one followed by the four on your telephone.

Thank you have a three pronged to acknowledge Joe Macquarie.

My question has been answered and you would.

Beyond withdraw your registration. Please press the one followed by the three one moment. Please for the first question.

Okay.

Our first question comes from the line of James Schumm with Cowen. Please proceed with your question.

Hey, good morning, guys. Thanks for taking.

Two question.

So.

And you touched on this but my my first question was to ask about some additional color on the market in Brazil.

Petrobras has been selling some non core assets.

And so that potentially reduces their well intervention.

Taking my call needs, but presumably now you have a new opportunity from new clients.

So can you just talk a little bit about that you you mentioned a digestion period.

So could you explain that and then I'm just wondering if these if these new.

Venture operators might prefer local Brazilian.

Competitors.

I know, there's a lot of old rigs down there that have accepted some very low day rates. So just curious to get your thoughts on all that.

I'll take it first.

Adjusted for that I was talking about applied more.

New RC than Brazil, where you've had a large number of properties divested into the hands of smaller companies and there's been some consolidation which will take some time.

For the integration and everything to occur.

With respect to Brazil, I think the divestments occurred a couple of years.

Or to them that are really leading us in.

Too soon to thirds visible work in fact, we're tendering on anywhere from two to four years worth of work.

Thats not Petrobras related.

So.

That's a real potential.

Sure.

I don't know that all of the properties the Petrobras was divested.

Lessen their demand for intervention, though.

We will have a high requirement to increase their production and well intervention is the lowest hanging fruit method of achieving that so I.

I think Petrobras is.

Serious about their intent to extend the current contract.

Just need to arrive at rates that are better trigger.

Jamie I'll add to that.

Couple of things with Petrobras.

Wow.

<unk> significant in size and are currently after the divestitures that you still have a well cabinets and synthesize the anti NFC on the UK section of the MLC and you mentioned that the local rig rates.

Rigs are hoping taken out and have their own contracts at any rigs coming in.

The international mobilization so.

I mean do you see a tightening market in Macau and since we are in quite significant tender activity in Brazil, and then finally.

Most of the people that the divested properties to our international agencies.

Therefore.

As far as the store.

Tricked requirements for local content and I think as long.

As you comply with the local content requirements, which we do then there is no real preference between Brazilian.

Remember, we've been down there for a number of years right now and we do have an established Brazilian helix still Brazil entity.

Most of our onshore employees in Brazil like home.

Old Nationals and a good portion of 70, 75% on the vessels nationals.

Great. Thank you for that and so just to sort of follow up on that so.

Maybe putting Petrobras aside and.

You talked about the overall well count it is a huge market down there is there.

Any reason.

No other than your negotiations with Brazil.

Presumably that that should be a two vessel market for you guys at some point in the future.

But for now Youre going to move the CME helix one out of there is that fair is it fair to think that it might get moved back in.

'twenty three.

That's correct in fact, I think it may be a little earlier, but I think we you might see us move it back depending on the contract negotiations that are going on right now it could be that we move the vessel back towards the end of 2022, but I do see at least the two vessel market potential.

<unk> 23 in Brazil, and quite honestly Petrobras should have to vessels and theres probably enough work considering the overlap of the schedules of the work that we're that we have visibility on is probably a market for two vessels outside of Petrobras.

Okay, great. Thanks.

My My last question.

Is just you know I guess I think a lot of people have been surprised that oil prices are very high now.

Lot of these operators.

Pay you guys out of their opex budgets not capex so I.

I guess a lot.

And people are sort of thinking you would we'd have a more robust demand environment right now.

Just curious are you seeing increased competition for your services from like Riser less light well intervention vessels or are you seeing increased competition from drilling rigs.

Or anything.

Related to that.

Well let.

Let me take the light.

Well intervention vessel first we were the first to develop a light well intervention capability with the spot vessels those two vessels still dominate the work in the North Sea.

We do see.

<unk> potential competition.

Competition in the North sea, but we've been we've been facing competition for a number of years Island offshore.

Four vessels three of them working in the North Sea. So that's not new by the island it sort of.

Diminished and Youre seeing others.

Stepping up.

What was that people are stepping up ryzen lists intervention is fairly simple to deploy on the.

On a vessel of opportunity and therefore in downturns, usually keep that vessel owners seeking to increase their utilization by offering a verizon lift intervention after vessel typically.

And lessens as the producers will try it.

It doesn't go that well and they revert back to.

That to us basically.

And the rest of the world.

We are seeing theres been several attempts in the Gulf of Mexico to provide the riser lists intervention.

More recently, you had sort of taken up the banner and they intend to use rides Atlas intervention, which is what led partially to the.

The restructuring.

The restructuring of the contract that we have with BP.

We're not going to be doing the riser intervention for them, we will be doing the riser based intervention for them.

And then and the rest are in Asia Pacific We are seeing one competitor, who don't have an asset finished yet but they are.

Marketing that there'll be available for a riser lists.

I believe they have a five year call off agreement with Chevron.

We will see ryzen listening.

In Asia Pacific.

There's a vast difference between <unk>.

Demand for riser lists and demand for a riser base the capabilities of riser based are so much greater than ryzen lists and if you look at it the efficiency of running the systems is not that different.

So actually the commerciality of riser versus.

Riser less but we can offer both.

We've just been doing it for decades, now and where we're a firm believer that riser base provides the producer with the greatest service.

That's great.

As well.

One key point here is the hugely developing.

Commissioning market cannot be finished by rise of this intervention you have to advisor base.

Pricing is to undertake.

P&A activity and decommission activities, we're seeing an increase in activity in Australia, and Brazil and in the.

Australasia, sorry, North sea.

Chase demand coming 15 activity that cant be finished by rising less intervention.

Great. Thank you very much I'll turn it back.

Thank you.

Thank you. Our next question comes from the line of Igor Levi with <unk>.

Please proceed with your question.

Alright, Thank you guys and good morning.

When I look at the Gulf of Mexico, Q vessels working largely in the spot market utilization has averaged in the 70% range for much of the year. So my first question is whether that's a reasonable assumption going into 2000.

22 for those vessels and then as we try to think about the Siem one now being in a in the spot market after leaving Brazil.

What kind of a utilization can that natural expect.

Hey, good morning.

So the Gulf of Mexico in the last quarter, we had.

G fast 70 odd percent utilization increased.

From Q2, we are seeing very strong utilization into Q4 and Q1 of next year.

Usually as we get into <unk>, we would see about 700 days of visibility for the key and it's in the Gulf of Mexico, Obviously, we wouldnt win that we're concerned.

Canceled carrying into 2022, we're seeing much higher visibility over the 1000 days Mark.

And we have pretty much the vessels booked for all of Q4, now going forward and well into Q1 and numerous discussions with other clients.

Regarding the Siem helix one.

As Ivan said, we would take it out of Brazil.

And we'll finance it and I realize that that's on a number of different types of work. We're looking at all sorts of opportunities before we see the P&I market reactivate coming into 2020 free.

Okay.

Let's say that we might take less of west that we're looking at.

Wind farm work vessel construction work, maybe even changing what we've got quite a few opportunities.

Chances for that vessel and it may be that.

Our countries that can kind of open up and we can check that influenza pension right.

Great. Thank you and.

I know you talked about the wind up of community, but I was hoping you could provide more color going into 2022, because I remember you previewed.

So you mentioned that while it's a growing market. The competition is quite fierce there. So I was hoping to.

I understand how 2022 when compared to 2021.

In that scope of work and are you.

How are you staying disciplined to maintain margins.

And in such a competitive market.

Our 'twenty to 'twenty, one is actually a down year from 'twenty and that's the result that we achieved our first go UX, our boulder clearance contract in 2020.

Quite honestly the survey grossly underestimated.

The number of <unk> and boulders in Cogs.

Track ran most of that year and into the next year. So that was sort of a banner beginning.

This year.

We've been working hard to take the credibility from that first job and qualified.

Tinder on additional jobs.

The volume of work this year available.

I've mentioned in my comments, it's a bit lumpy and 2021 was.

A softer year volume wise for the work, but we were able to secure new contracts and that's bolstered our credibility and we're now on the tender list for.

Most of the work going forward in that area.

When I said that we're going to grow it's not only growing in chasing the USO and Boulder clearance work and.

Trenching.

Boulder clearance work at site preparation of our site clearance site prep.

Think there's an opportunity for.

For us to expand on our services there through alliances and organically with minimal capex to be able to provide a broader site assessment service to the project owners.

Yes.

That's working for the project owners.

And while the competition is fierce it.

It is a specialty niche and I think demands a better margin than the more commoditized segments.

On the construction support which is where trenching is.

Again, this was a bit of an off year, but we're seeing strong demand increase and trenching in fact, I think Scotty mentioned.

Were actually contemplating adding.

<unk> capability going forward, so that that mix will grow because of the expertise required there.

I think where we've been successful in maintaining our margins and while the.

The number.

Vertically and.

Graded trenching, that's been added to cable layers has sort of diminish the number of clients. We work for the broader market is growing at a much faster pace than the market share that we're losing so therefore, our outlook is for strong growth in that segment.

And then beyond that.

In general.

We've seen recent headlines this year about EPC contractors, taking huge losses on these wind farm works.

I think with the pivot towards renewables all of the contractors sort of lemons going over the cliff chasing the same contracts in the.

The margins were were just squeezed to death.

I think where we're going to focus going forward is on the less capital intensive, but specialty niches, providing support both into construction support.

And then upstream in the site clearance area with.

The future towards developing O&M wet DLP capabilities, So that's where our strategy lies.

Great. Thank you and I'll turn it back.

Thank you.

As a reminder to register for a question. Please press the one followed by the phone.

On your telephones.

Our next question comes from the line of David Smith with Pickering Energy Partners. Please proceed with your question.

Hey, good morning, and thank you for taking my question.

So.

I wanted to say congratulations on getting to net neutrality.

I hope it's not.

One way to ask this but just given the improving outlook for your well intervention assets, especially into 'twenty three I wanted to ask how you think about the merits of share repurchases versus a regular dividend or maybe a special dividend.

Hi.

I'm I'm stuttering, because that's actually a board decision and I don't want to speak for the board.

But.

My personal.

Pinion newsletter, I don't think that you'll see us establish a regular dividend.

It's rather a dividend gets paid it would be a special dividend.

My personal preferences.

I'd like to see share repurchase, but I think most shareholders would prefer to see the dividends. So I think going forward you would see some kind of a hybrid Glenn.

Okay.

I appreciate that.

And.

Second just regarding the updated guidance kind of a wide range and the implied Q.

For well intervention revenue.

Think about that range. It it kind of feels like the low end with it would have some some schedule slippage versus your expectation.

It seems like it could get to the high end.

With near full utilization and Gulf of Mexico, and West Africa.

Does that sound right or does your high end revenue.

And in well intervention and assume some work in the North Sea.

No I think you're Directionally correct in how Youre looking at this week.

The Gulf of Mexico market in the fourth quarter is really solidified for us and so I think we we expect strong utilization there.

In the.

West Africa region, I think we definitely have a path towards strong utilization I think they're still.

Some exposure there. So I think that's why you see the wide range.

Yes.

I appreciate it and if I could just sneak one last one.

Thinking into 'twenty, three and the opportunity opportunity for.

What base.

DNA and decommissioning in the North Sea is it fair to think about the Siem helix vessels is relatively competitive there, but compared to the Q seven.

What's the difference in hull shape kind of reduce the operating window upset the siem helix vessels versus the Q seven.

There's a difference between the capabilities too.

To Russell.

Two vessels in the North Sea are riser, let's Brussels.

Sorry, I was thinking about the siem helix vessels right as potentially.

If you could give us one oh.

Oh potential in Canada too.

I think take capability wise theyre very similar.

So they.

Horizon, we can mix and match them and ship the fleet around in fact, we've got potential for.

Russell in the UK of Russell in West Africa, or multiple vessels in Brazil, a vessel in the Asia Pacific and Canada in the Maritimes opportunities. So we have we have a large geographic.

But to try and cover with three vessels.

They are fungible to a certain extent.

We are starting to take steps to qualify the vessels and all of the regions. The North Sea you have to have a special safety case in order to operate there.

Australia is the same.

So we are starting to get all of the certifications in place for all three vessels to be able to work in all regions.

Yeah.

Okay.

Technically the top sides on the vessels that are exactly the same it's the same towers. It's the same skidding systems. The same safety systems same walk to work system.

Exactly the same equipment that can be utilized.

No I appreciate that Scott and I was just wondering if the ship shape all of the Siem helix vessels versus the.

They may hold up the Q 7000 made a difference.

Hum.

How long in the year each of them each vessel.

Participating in the North Sea.

The primary differences in the trends of <unk>.

The submersible has perhaps better emotions when stable trends looks at a slower speed. Although the Q 7000 was designed with ship shaped Paul So they wanted to performance pontoons, it's able to achieve a higher.

Trying to speed the most semi submersibles.

The monohull Tam vessels are much faster than transit.

As far as applying them to the different regions of the world is probably more accurate to think of the Q 7000, covering a strong demand single region or.

Two regions and then the such vessels trends within quickly to cover the rest.

Okay.

Thank you all for your time.

Thank you.

Thank you and we do have a follow up question from the line of James <unk> from Cowen. Please proceed with your question.

Thanks for letting me back in.

So I was wondering if you could help me.

Let me think about what utilization is needed for let's say the siem helix one to be breakeven so its going to be dependent on day rate.

Yeah, maybe pick a day.

Hey don't tell me what it is but is there any way you can help me think about what the minimum level of utilization you need is to get that vessel to be breakeven for you.

Yeah.

It's going to depend on the type of work, we take on James <unk>, HIFU and voluntary pension markets and we should get to.

Breakeven, but right now to get through this winter we're targeting.

These less tight west it will be in construction support a wind farm support or even <unk> support.

And our first part of the year, we're definitely going to have I'd say strong utilization, but the Reits REIT supports a breakeven position and it will depend how quickly can get the vessel back into the well intervention.

Right and likely et cetera, but chasing work so that in the north Sea and Angola.

It's really dependent on the magnitude of what we take on.

Okay.

And then just I guess lastly for me.

What does the vessel maintenance and dry dock schedule look like that.

Mark next year relative to this year I think you just mentioned you pushed some capex into 2022, so any early thoughts on what Capex might look like next year would be much appreciated.

So I think in general Jim.

Talked about in the past high level that our Capex is 30 to 40.

NIM per year in that range I think this year, we're probably going to be at the lower end because as we mentioned some of our capex spending has been pushed I think that.

Next year will probably be a little bit.

Heavier drydock here, we have the the Q4 thousand has a scheduled one.

The Siem helix two the HP one.

And I think the well enhancer as well as the seawell. So it is going to be a heavier year. So I think it will probably be on the higher end of the range that we provided and maybe even exceeded a little bit just because of the capex is being pushed into 'twenty two.

Great. Thank you very much guys.

Changes if it's okay I'll just get back to your first question I just wanted to point out I sure.

Our cost base and the various different merge is markedly different well intervention that we have 140 people on the vessel when were in construction support wind farm support trenching, we're going to have less than 40 people on the vessel.

So it will be.

So that's the cost basis will be different as well.

Okay, great. Thanks Scotty.

Okay. Thank you.

Thanks.

Just a follow on on that I think it's worth noting that we that's why I call. It 22 of transition year, because I think what we will need to do that with the Siem helix one.

The vessel for 'twenty, two and then by 'twenty three I would expect the vessels to all be back into fold intervention mode.

Thank you and we do have another follow up question from the line of David Smith from Pickering Energy Partners. Please proceed with your question.

Hey, Thanks, So let me back on.

Just wanted to circle back to your comment about the strategy to increase free cash flow I think the third pillar you mentioned was to reduce the cost structure I'm wondering if you could help us with any color on maybe what items have been identified.

<unk> of what you're targeting.

It's a bit early to mentioned everything but one thing I mentioned is a continuation of our program in conjunction with our Schlumberger Alliance to cross train personnel. So.

So that we can reduce personnel on board.

That's the only possible because of the alliance and the team and the single.

Contracting nature of what we offer the clients, but that would that would have a.

The ability to lower our offshore operating costs.

Alright, I appreciate it and look forward to.

When you can tell us that more of the concept plan. Thank you.

Thank you.

And we do have another follow up question from the line of James <unk> from Cowen. Please proceed with your question.

If you guys don't close the call I'm, just going to keep going here.

I'm just kidding.

So I guess lastly, and I promise. This is my last one is there any is there any commentary on robotics.

As a as a whole I mean, you guys have talked about it.

Just directionally for next year I mean, it seems like a lot of renewables work is picking up is there any anything you can offer in terms of like your visibility going into 'twenty two versus what.

What it was last year or just anything to help to help us gauge. How this business looks next year would be great.

Hi, Jamie.

I would say, we have seen and proven yet for next year certainly.

And one of the vessels will be in APAC region and on a full contracted yet.

Yeah.

Stabilize as it is this year and we're supposed to go on that large decommissioning project in Florida that will carry on into Q1 and potentially forever.

For the U K Europe, West Africa, renewables area, but definitely seen an increase in trenching. We have awards that will most likely see us take on a second trenching vessel. So we should see an improved.

Area there.

There's a lot more tender activity on the bone of clearance side.

And site survey and prep. So we expect to pick up some of those works we haven't been doing a very good job and those are projects that we've undertaken and starting to build quite a good reputation. So see a increase in RFP activity as well.

Or are these that were destined for oil and gas split.

And lower utilization of narrow format everything so the wind farm markets as well so we should see an improvement not sure yet how much of an improvement its not going to be a vast improvement that will be an improvement.

Okay. Thanks, so much I appreciate it.

Thank you.

Thank you and there are no further questions.

<unk> at this time.

Thanks for joining us today, we very much appreciate your interest and participation and look forward to having you on our fourth quarter 2021 call in February of 2002. Thank you.

Thank you that does conclude the conference call for today, we thank you for your participation and ask that you. Please disconnect.

Airlines.