Q4 2024 Helix Energy Solutions Group Inc Earnings Call

Speaker Change: [music].

Okay.

Operator: Thank you for standing by.

Thank you for standing by my name is.

Luella: My name is Luella, and I will be your conference operator today.

And that will be your conference operator today.

Luella: At this time, I would like to welcome everyone to the Helix Energy Solutions' 4th Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

Speaker Change: This time I would like to welcome everyone to the Helix energy solutions fourth quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.

Luella: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.

Speaker Change: Sure. The speaker's remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star. One again. Thank you. Please be advised that today's conference is being.

Luella: Please be advised that today's conference is being recorded.

Speaker Change: Recorded I would now like to turn the conference over to Brent Arriaga, Vice President Finance and accounting. Please go ahead Sir.

Brent Arriaga: I would now like to turn the conference over to Brent Arriaga, Vice President, Finance and Accounting. Please go ahead. Good morning, everyone, and thanks for joining us today on our conference call, where we will be reviewing our fourth quarter and full year 2024 earnings release.

Brent Arriaga: Good morning, everyone and thanks for joining us today on our conference call, where we will be reviewing our fourth quarter and full year 2024 earnings release.

Brent Arriaga: Participating on this call for Helix today are Owen Kratz, our CEO, Scotty Sparks, our COO, Erik Staffeldt, our CFO. Ken Neikirk, our General Counsel, Daniel Stewart, our Vice President, Commercial, 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 Investor Relations page on our website at www.helixesg.com. The press release and slides can be accessed under the News and Events tab.

Owen Kratz: Participating on this call for helix today are Owen Kratz, our CEO Scotty Sparks our C O O.

Eric: Eric <unk> our CFO.

Ken Neikirk: Ken Neikirk, our general Counsel, Daniel Stewart, our Vice President commercial and myself.

Ken Neikirk: Hopefully you've had an opportunity to review our press release and the related slide presentation released last night.

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

Ken Neikirk: The press release and slides can be accessed under the news and events tab.

Kenneth Neikirk: 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 and assumptions as of today. Such forward-looking statements may include projections and estimates of future events, business or industry trends, or business or financial results. 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 1995. Our actual future results may differ materially from our projections and forward-looking statements due to a number and variety of risks, uncertainties, assumptions, and factors, including those set forth in Slide 2 of our presentation, in our most recently filed annual report on Form 10-K, our quarterly reports on Form 10-Q, and in our other filings with the SEC.

Speaker Change: Before we begin our prepared remarks, Ken Neikirk will make a statement regarding forward looking information Ken.

Speaker Change: During this conference call, we anticipate making certain projections and forward looking statements based on our current expectations and assumptions as of today such forward looking statements may include projections and estimates of future events business or industry trends or business or financial results. All statements in this conference call or in the associated presentation other than statements of historical fact.

Speaker Change: Our forward looking statements and are made under the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.

Speaker Change: Our actual future results may differ materially from our projections and forward looking statements due to a number and variety of risks uncertainties assumptions and factors, including those set forth in slide two of our presentation and our most recently filed annual report on Form 10-K, our quarterly reports on Form 10-Q and in our other filings with the SEC you.

Kenneth Neikirk: You should not place undue reliance on forward-looking statements, and we do not undertake any duty to update any forward-looking statement.

Speaker Change: You should not place undue reliance on forward looking statements and we do not undertake any duty to update any forward looking statements. We disclaim any written or oral statements made by any third party regarding the subject matter of this conference call.

Kenneth Neikirk: We disclaim any written or oral statements made by any third party regarding the subject matter of this conference call.

Brent Arriaga: Also during this call, certain non-GAAP financial disclosures may be made. In accordance with SEC rules, the final slides of our presentation provide reconciliations of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations, along with this presentation, the earnings press release, our annual report on Form 10-K, and a replay of this broadcast will be available under the For the Investor section of our website at www.helixesg.com.

Speaker Change: Also during this call certain non-GAAP financial disclosures may be made.

Speaker Change: In accordance with SEC rules the final slides of our presentation provide reconciliations of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations along with this presentation. The earnings press release, our annual report on Form 10-K, and a replay of this broadcast will be available under the for the investors section of our website at Www Dot helix ESG.

Speaker Change: Dot com.

Brent Arriaga: Please remember that information on this conference call speaks only as of today, February 25th, 2025, and therefore you are advised that any time-sensitive information may no longer be accurate as of any replay of this call.

Speaker Change: Please remember that information on this conference call speaks only as of today February 25, 2025, and therefore, you're advised that any time sensitive information may no longer be accurate as of any replay of this call Scotty.

Scotty Sparks: Scotty? Thanks, Ken, and good morning, everyone. Thank you for joining our call today, and we hope everybody's doing well. This morning, we will review our fourth quarter and full year 2024 results, financial performance and operations. We will provide our view of the current market and provide guidance for 2025.

Speaker Change: Thanks, Ken and good morning, everyone. Thank you for joining our call today, and we hope everybody is doing well.

Speaker Change: This morning, we will review, our fourth quarter and full year 2020 full results financial performance in operations, we will provide our view of the current market and provide guidance for 2025.

Scotty Sparks: Before starting our review, I would like to thank the Helix team for their efforts during 2024. The team's offshore and onshore outperformed again, producing another very well-executed quarter, closing the year out very well. With our efforts in 2024, we established a solid foundation to deliver improved results in 2025 and beyond. Moving on to the presentation, slides 5, 6, and 7 provide a high-level summary of our results and key highlights for the fourth quarter and full year. Revenues for the quarter were $355 million, with a gross profit of $59 million, with resulting net income of $20 million.

Speaker Change: Before starting our review I would like to thank the helix team for their efforts during 2020 for the team's offshore and onshore outperformed again, producing another very well executed quarter closing the year out very well with our efforts in 2024, we established a solid foundation to deliver improved results in 2025 and beyond.

Speaker Change: Moving on to the presentation slides five six and seven provide a high level summary of our results and key highlights for the fourth quarter and full year.

Speaker Change: Revenues for the quarter were 355 million with a gross profit of $59 million with the resulting net income of $20 million.

Scotty Sparks: Adjusted EBITDA was $72 million for the quarter, and we had positive all-protein cash flows of $78 million, resulting in strong free cash flow of $65 million. Our cash and liquidity remains strong with cash and cash equivalents of $368 million and liquidity of $430 million. Highlights for the quarter include commencement of operations on the Q4000 in Nigeria, 6-month contract plus options, continued strong results in robotics with high trenching utilization, completed operations with the Q7000 in North West Australia and commenced paid transit and mobilisation to Brazil for a 400 day contract plus options with Shell. The same Helix One transitioned to the Trident Contracts extension at higher rates, and the Helix Producer One contract was renewed to June of 2026.

Speaker Change: Adjusted EBITDA was 72 million for the quarter and we had positive operating cash flows of $78 million, resulting in strong free cash flow of 65 million.

Speaker Change: Our cash and liquidity remained strong with cash and cash equivalents of $368 million and liquidity of $430 million.

Speaker Change: Highlights for the quarter include commencement of operations on the keys 4000 in Nigeria six month contract Consumptions continued strong results in robotics trenching utilization.

Speaker Change: Completed operations with the Q 7000, no forced Australia and commence pay transit and mobilization to Brazil for a 400 day contract plus options with the.

Speaker Change: The same helix, one transitions to the charter contract extension at higher rates.

Speaker Change: Helix producer one contract.

Speaker Change: Was renewed since June of 2026.

Scotty Sparks: Slide 7 provides detail of our full year 2024 results and highlights. Our full year revenues were $1.36 billion. We have a gross profit of $220 million. We have resulted in an income of $56 million. Adjusted EBITDA for the year was $303 million, a greater than 10% improvement over last year. We had positive operating cash flows of $186 million, resulting in positive free cash flow of $163 million. Excluding the Alliance earner paid and included in our operating cash flows during the year, our free cash flow would have exceeded $220 million. These key financial metrics are all improved over our 2023 results.

Speaker Change: Slide seven provides detail of our full year 2020 full results and highlights.

Speaker Change: Full year revenues were $1 36 billion with a gross profit of $220 million, resulting net income of $56 million.

Speaker Change: Adjusted EBITDA for the year was $303 million at greater than 10% improvement over last year, and we had positive operating cash flows of $196 million, resulting in positive free cash flow of $163 million, excluding the alliance and paid and included in our operating cash flows during the year, our free cash flow would have exceeded.

Speaker Change: $220 million.

Speaker Change: These key financial metrics, all improved over our 2020 free results.

Scotty Sparks: Recapping some of the key highlights for 2024, strong results and significant improvement in well intervention year over year, as we safely completed the transits and commenced operations on the Q4000 in Nigeria, concluded successful operations with the Q7000 in Australia, including the successful initial deployment of the ROAM. had a strong near full year utilisation on the Q5000 in the US Gulf. Strong robotics results with increased trenching activity and significant improvements year-over-year. On the sales front, we entered into a one-year contract extension for the SH1 with Trident that commenced in Q4 of 2024. We executed two new three-year contracts with Petrobras, one that commenced last month for the SH2 and the other to commence in the second half of 2025 for the SH1.

Speaker Change: Recapping some of the key highlights for 2024.

Speaker Change: Strong results in significant improvement in well intervention year over year as we can as.

Speaker Change: As we safely completed the transits and commenced operations on the Q4 thousand in Nigeria concluded successful operations when the Q 7000 in Australia, including the successful initial deployment of the room.

Speaker Change: Had a strong near full utilization on the <unk> 5000 in the U S Gulf.

Speaker Change: Strong robotics results from increased trenching activity and significant improvements year over year.

Speaker Change: On the sales front, we completed we entered into a one year contract extension for the Sichuan with Trident that commenced in Q4 of 2024, we.

Speaker Change: We executed two new three year contracts with Petrobras one that commenced last month for the SHT and the average should commence in the second half of 2025 <unk>.

Scotty Sparks: We also executed a contract for two years plus options in the U.S. Gulf for the Q5000 with minimum commitment of 175 days each year. Slide 9 provides a more detailed review of our segment results and segment utilisation. In the fourth quarter we continue to operate globally with minimal operational disruption with operations in Europe, Asia-Pacific, Brazil, Africa, the U.S. Gulf and the U.S. East Coast. Our strong fourth quarter results were driven by our core well intervention markets globally and strong results from our robotics group. Moving to slide 10. Slide 10 provides further detail about well intervention segments.

Speaker Change: We also executed a contract for two years plus options in the U S. Gulf for the Q 5000 with minimum commitment of 175 days each year.

Speaker Change: Slide nine provides a more detailed review of our segment results and segment utilization.

Speaker Change: In the fourth quarter, we continued to operate globally with minimal operational disruption with operations in Europe Asia Pacific, Brazil Africa, The U S Gulf and the East Coast.

Speaker Change: Our strong fourth quarter results were driven by our core well intervention market globally and strong results from our robotics group.

Speaker Change: Moving to slide 10, Slide 10 provides further detail of our well intervention segment in Q4, we achieved strong utilization in Africa, the U S Gulf, Brazil, and Australia, performing very well with solid uptime efficiency.

Scotty Sparks: In Q4, we achieved strong utilization in Africa, the US Gulf, Brazil, and Australia, performing very well with solid uptime efficiency. As expected, our North Sea vessels, the Well Enhancer and Sea Well, were impacted by the winter season slowdown, resulting in lower utilisation and both vessels being warm stacked mid-quarter. The Q7000 performed extremely well, with 99% utilization working in Australia. The vessel then commenced paid transit to Brazil for the Shell 400 Day Plus Options decommissioning campaign. We had solid utilisation for both US-based Q units with the Q4000 completing the paid transit to Nigeria and commencing operations for the SO Minimum six-month oil campaign.

Speaker Change: As expected, our north sea vessels, the well enhancer and seawell were impacted by the winter season slowdown, resulting in lower utilization and both vessels being warm stacked mid quarter.

Speaker Change: The Keystone performed extremely well with 99% utilization working in Australia. The vessel and then commenced transit to Brazil for the shelf 400 day plus options decommissioning campaign.

Speaker Change: We had solid utilization for both U S based <unk> units with the Q4 thousand completing the patrons to Nigeria and commencing operations for DSO minimum six month oil campaign.

Scotty Sparks: And the Q5000 worked the entire quarter for Shell in the US Gulf. Again, we are very pleased with the recently announced long-term contracts for both the CM Helix vessels for Petrobras, the Q7000 for shale in Brazil, and the Q5000 for shale in the U.S. Gulf Coast, as these provide us with strong contract coverage for multiple years.

Speaker Change: And the key 5000 work the entire quarter for shell in the U S Gulf.

Speaker Change: Again, we are very pleased with the recently announced long term contracts for both the Siem helix vessels for Petrobras the Keystone Fathom for shell in Brazil, and the Q 5000 for shell in the U S. Gulf Coast as these provide us with strong contract coverage for multiple years.

Speaker Change: Slide 11 provides further detail for our robotics business, but <unk> had a very strong quarter. The business performed high standards operating six vessels during the quarter working between Trenching RV supported slight survey work on renewables and oil and gas related projects globally.

Scotty Sparks: Slide 11 provides further detail for our Robotics business. Robotics had a very strong quarter. The business performed at high standards, operating six vessels during the quarter, working between trenching, RV support and site survey work, and renewables and oil and gas-related projects globally. Five of the vessels worked on renewables-related projects within the quarter. All vessels had strong utilisation, with three vessels working on trenching projects. The GC3 and the North Sea Enabler trenching in Europe, and the Sea and Topaz trenching in Taiwan prior to being demobilised in Singapore in December. The Shili Labordalong worked on various renewable-related projects on the US East Coast, and the GC2 had strong utilisation working in oil and gas R&D support in Malaysia.

Speaker Change: Five of the vessels worked on renewables related projects within the quarter or vessels had strong utilization with free vessels working on trenching projects. The GC free in the North Sea enabler trenching in Europe, and the <unk> Tianjin in Taiwan prior to being Demobilised in Singapore in December the sharing of the board along with some various renewable related projects on the <unk>.

Speaker Change: East Coast and the GCT had strong utilization working in oil and gas RV support in Malaysia.

Scotty Sparks: Our Renewables and Trenching Outlook remains very robust with numerous contracted works in 2025, 26 and 27. The long-term outlook for the global renewables market is very strong.

Speaker Change: Our renewables entrenching outlet remains very robust with numerous contracted works in 2025, 26 and 27 billion.

Speaker Change: The long term outlook for the global renewables market is very strong we recently announced one of our largest renewables trenching contracts to date for over 300 days trenching commencing in late 2026 on the Hornsea free wind farm in the U K.

Scotty Sparks: We recently announced one of our largest renewables trenching contracts to date for over 300 days trenching commencing in late 2026 on the Hornsea Free Wind Farm in the UK. Robotics is performing very well, had a very strong 2024 and we expect them to have a very strong year in 2025.

Speaker Change: Robotics is performing very well had a very strong 2024, and we expect them to have a very strong year in 2025.

Speaker Change: Slide 12 provides detail of our shallow water amendment business.

Scotty Sparks: Slide 12 provides detail of our shallow water abatement business. Q4 activity levels reflect the expected seasonal slowdown in utilization, and the overall activity levels were reflective of a weak 2024 U.S. Gulf Coast shelf market.

Q4 activity levels reflect the expected seasonal slowdown in utilization and the overall market. The overall activity levels were reflective of a weak 2020 for U S Gulf coast shelf market.

Scotty Sparks: In summary, we had another very strong quarter and a very well-executed 2024, with one of our best years regarding safety statistics, NPT, year-over-year improved financial metrics and numerous long-term improved contracts secured for a good portion of our assets. We're excited as we enter into 2025, as we're expecting further contract awards, high utilisation for most of our assets, and once again, further improved financial performance.

Speaker Change: In summary, we had another very strong quarter and a very well executed in 2024 with one of our best years regarding safety statistics NPT year over year improved financial metrics and numerous long term improved contract secured for a good portion of our assets.

We're excited as we enter into 2025 as we are expecting further contract awards high utilization for most of our assets and once again further improved financial performance.

Scotty Sparks: I would like to thank our employees for their efforts, securing a strong backlog and delivering us a high level of execution.

Speaker Change: I would like to thank our employees for their efforts to secure and a strong backlog and delivering at a high level of execution.

Brent Arriaga: And now I'll turn the call over to Brent. Thanks, Scotty. Moving to slide 14. It outlines our debt instruments and key balance sheet metrics as of December 31. At year end, we had cash of $368 million and availability under the ABL of $67 million with resulting liquidity of $430 million. Our funded debt was $324 million and we had negative net debt of $53 million at year end. Our balance sheet is strong and is expected to strengthen further as we anticipate generating significant free cash and have minimal debt obligations between now and 2029.

Brent Arriaga: I'll now turn the call over to Brent.

Brent Arriaga: Thanks, Scotty moving to slide 14, it outlines our debt instruments and key balance sheet metrics as of December 31.

Brent Arriaga: At year end, we had cash of $368 million and availability under the ABL of $67 million with the resulting in liquidity of $430 million.

Brent Arriaga: Our funded debt was $324 million and we had negative net debt of $53 million at year end.

Brent Arriaga: Our balance sheet is strong.

Brent Arriaga: That is expected to strengthen further as we anticipate generating significant free cash and have minimal debt obligations between now and 2029.

Erik Staffeldt: I will now turn the call over to Erik for a discussion on our outlook for 2025. Thanks, Brent. We enter 2025 with several macro headline challenges.

Brent Arriaga: I will now turn the call over to Erik for a discussion on our outlook for 2025.

Erik: Thanks Brent.

Erik: We entered 2025 with several macro headlines challenges active geopolitical environment, the softer rig market in 25 with white space and uncertainty in the U S wind farm market with announce moratorium.

Erik Staffeldt: Active Geopolitical Environment. Softer rig market in 25 with white space and uncertainty in the U.S. wind farm market with announced moratorium. We are aware of these challenges and the uncertainties they create.

Erik: We are aware of these challenges and the uncertainty they create despite these challenges our outlook remains very positive the offshore market remains constructive and active.

Erik Staffeldt: Despite these challenges, our outlook remains very positive. The offshore market remains constructive and active. Oil and gas spending remains healthy despite being at lower levels. The global renewables market is robust with increasing activity in Europe and Asia Pacific.

Erik: Oil and gas spending remains healthy despite being at lower levels.

Erik: Global renewables market is robust with increasing activity in Europe and Asia Pacific.

Erik Staffeldt: The long-term outlook for both markets remains very positive. Our positive outlook is supported by the term contract signed in 2024 for several of our key well intervention assets. The optional market has improved significantly over the past three years and although lagging the market, we're now seeing the benefits as our legacy contracts have rolled off.

Erik: The long term outlook for both markets remains very positive.

Erik: Our positive outlook is supported by the term contract signed in 2024 for several of our key well intervention assets.

Erik: The offshore market has improved significantly over the past three years and although lagging the market. We're now seeing the benefits as our legacy contracts have rolled off with.

Erik Staffeldt: With an improved outlook for 2025 based on the strength of our contracted work and the pipeline of bids and projects, we're providing guidance of certain key financial metrics for our 2025 forecast. Revenue, $1.36 to $1.5 billion. Revenue increasing slightly over 2024 with expected improved margins. EBITDA in $320 million to $380 million, increases driven by the term contracts at market rates. Pre-cash flow, $175 to $225 million. Strong cash flow. Strong free cash flow generation with variability driven by ultimate working capital movement. Capital spent of $70 to $90 million. This includes $30 million approved for 2024 that shifted to the right into 2025.

Erik: With an improved outlook for 25 based on the strength of our contracted work and the pipeline of bids and projects, we are providing guidance of certain key financial metrics for our 2025 forecast.

Erik: Revenue of 136 to $1 5 billion revenue, increasing slightly over 12 24 with expected improved margins.

Erik: EBITDA and $320 million to $380 million increases driven by the term contracts at market rates.

Erik: Free cash flow of 175 to 225 million strong.

Strong free cash flow generation with variability driven by ultimate working capital movements.

Erik: Capital spend of 70 to 90 million. This includes $30 million approved for 2024 that shifted to the right into 2025 or.

Erik Staffeldt: Our 2025 spending plans are primarily a mix of regulatory maintenance on our vessels, intervention system, and fleet renewal for our robotics ROV.

Erik: Our 2025 spending plans are primarily a mix of regulatory maintenance on our vessels intervention system and fleet renewal by robotics Rovs.

Erik Staffeldt: These ranges include some key assumptions and estimates. Any significant variation from these key assumptions and estimates could cause our results to fall outside the ranges provided.

Erik: These ranges include some key assumptions and estimates any significant variation from these key assumptions and estimates could cause our results to fall outside of the ranges provided.

Erik Staffeldt: Our quarterly results will continue to be impacted by seasonal weather in the North Sea and the U.S. Gulf Shelf, primarily in the first quarter, but to some extent the fourth quarter as well. In addition, the timing of our vessel maintenance periods and project mobilizations will cause variances between quarters.

Erik: Our quarterly results will continue to be impacted by seasonal weather in the north sea in the U S. Gulf shelf, primarily in the first quarter, but to some extent the fourth quarter as well.

Erik: In addition, the timing of our vessel maintenance periods and project mobilizations will cause variances between quarters our.

Erik Staffeldt: Our quarterly financial performance in 2025 is expected to follow the same cadence as our results in 2023 and 2024, with the second and third quarter being our most active quarters, and the first and fourth quarters impacted by winter weather. With seasonal quarterly impacts and capital spending expected to be front-loaded, the timing of our free cash flow generation is likely skewed to the latter part of the year.

Erik: Our quarterly financial performance in 'twenty five is expected to follow the same cadence as our results in 'twenty three 'twenty four with the second and third quarter being our most active quarters and the first and fourth quarters impacted by winter weather.

Erik: With seasonal quarterly impacts in capital spending expected to be frontloaded, the timing of our free cash flow generation is likely skewed to the latter part of the year.

Erik Staffeldt: Providing our key assumptions by segments and region, starting on slide 17. First, our well intervention segment. The U.S. Gulf Coast continues to be a good market. The Q5000 has contractors working every quarter with limited white space to fill in the schedule. Q4000 is contracted to work into Q2 in West Africa, and then is expected to return to the US Gulf in the second half of 2025. We expect both vessels to have good utilization this year.

Erik: Providing our key assumptions by segment and region starting on Slide 17, first our well intervention segment. The U S. Gulf Coast continues to be a good market in Q 5000 has contracted work at every quarter with limited white space to fill in the schedule.

Erik: <unk> thousand is contracted to work into Q2 in West Africa, and that is expected to return to the U S. Gulf in the second half of 2025, we expect both vessels to have good utilization this year.

Erik Staffeldt: The UK North Sea well intervention market is expected to be weaker in 2025 than last year. News releases last quarter, both from regulators and customers, highlight various challenges in the UK sector. The increased taxes announced late in the year and subsequent announcements by producers has delayed planning for 2025 and created uncertainty in the market. We are therefore forecasting utilization in the North Sea this year to decrease compared to 2024. The well at Handertz Seawall should have good utilization in the second and third quarter, but an overall slow start to 2025. CWELL completed its regulatory docking during Q1.

Erik: The U K North Seawell intervention market is expected to be weaker in 2025 and last year.

Speaker Change: News releases last quarter, both from regulators and customers highlight various challenges in the UK sector. The increased taxes announced late in the year and subsequent announcements by producers has delayed planning for 25 and created uncertainty in the market.

Speaker Change: We are therefore forecasting utilization in the North sea this year to decrease compared to 2024.

Speaker Change: Well at hand, our seawell should have good utilization in the second and third quarter, but at an overall slow start to 2025.

Speaker Change: The seawell completed its regulatory docking during Q1.

Erik Staffeldt: As in 2024, we anticipate a seasonal utilization in the fourth quarter winter months in the North Sea. Q7000 is currently in Brazil completing its regulatory docking and project mobilization for Shell. The vessel is expected to commence the firm's 400-day project in late March. The CM2 commenced its new contract with Petrobras in early January. This is a three-year contract at market rate. The CM Helix One is contracted performing well abandonment for Trident with work extending into the second half of 2025, followed by a three-year contract with Petrobras. The vessel is expected to have an approximate 30-day off-hire period between contracts.

Speaker Change: As in 2024, we anticipate a seasonal utilization.

In the fourth quarter winter months in the North Sea.

Speaker Change: The Q 7000 is currently in Brazil, completing its regulatory docking and project mobilization for shell. The vessel is expected to commence the firm 400 day project in late March.

Speaker Change: <unk> commenced its new contract with Petrobras in early January this is a three year contract at market rates. The Siem helix, one is contracted performing well abandonment for trident with work extending into the second half of 'twenty five followed by a three year contract with Petrobras.

Speaker Change: The vessel is expected to have an approximate 30 day off hire periods between contracts.

Erik Staffeldt: Moving to our robotic segment, the market continues to be very positive. We recently announced a significant trenching contract in the North Sea. Vending activity has been and continues to be extremely active. We are benefiting from the high levels of activity in both oil and gas market and the renewables market. In the APAC region, the Grand Canyon II completed its dry dock in Q1 and has multiple contracts and high utilization expected for the balance of 25. With the completion of its project in the fourth quarter, the CM TOFAS was demobilized and returned. The T-1401 trencher is expected to work on client-provided vessel and remain in Taiwan through 2025.

Speaker Change: Moving to our robotics segment. The market continues to be very positive, we recently announced a significant trenching contract in the North Sea bidding activity has been and continues to be extremely active.

Speaker Change: We are benefiting from the high levels of activity in both oil and gas market in the renewables market and the APAC region. The Grand Canyon II completed its drydock in Q1 and has multiple contracts and higher utilization expected for the balance of 'twenty five.

With the completion of its project in the fourth quarter. The cm Topaz was demobilized and returned to $2 40, 801, <unk> is expected to work on client provided vessel and remain in Taiwan through 'twenty five.

Erik Staffeldt: In the North Sea, the Grand Canyon III is expected to have an active trenching season with overall strong utilization. The Horizon Enabler has contracted trenching projects in Q3 and Q4. Glomar Wave is forecasted to have good utilization performing site clearance operations. The Trim Site Clearance Vessel is expected to begin operations in March and have good utilization through Q3. And the T-1402 Trencher is forecasted for its first work in the Mediterranean. In the US, the Shalia is completing a dry docking Q1, after which she is expected to have good utilization with a combination of work in the US Gulf Coast and US East Coast.

Speaker Change: The North Sea the Grand Canyon III is expected to have an active trenching season with overall strong utilization the horizon enabler has contracted trenching projects in Q3 and Q4.

The glow more wave is forecasted to have.

Speaker Change: Good utilization performing site clearance operations.

Speaker Change: Trimmed slight fight clearance vessel is expected to begin operations in March and have good utilization through Q3, and the <unk> hundred to <unk> forecasted for our first work in the Mediterranean.

Speaker Change: In the U S. Australia is completing now dry dock in Q1, after which is expected to have good utilization with a combination of work in the U S Gulf Coast and U S East coast.

Erik Staffeldt: Moving to production facilities, the HP1 is on contract for the balance of $25,000 recently extended to June 2026 with no currently expected change. We have expected variability with production as Droschke Field continues to deplete and Thunderhawk Field is still shut in. Continuing to shallow water abandonment. Our shallow water abandoned segment will have seasonal variability with greater impacts during Q1 and Q4. We are reducing our cost structure commensurate with the current market, but are retaining the ability to scale up if the market improves. We expect the market to be marginally better absent any regulatory developments. We expect the marine offshore business to maintain good utilization on five to seven lift boats with some variable seasonality on the OSVs and crew boats.

Speaker Change: Moving to production facilities. The HP one is on contracts for the balance of 25 recently extended to June 2026 with no.

Speaker Change: Currently expected change we have expected variability with production as Droshky field continues to deplete and Thunder Hawk field is still shut in.

Speaker Change: <unk> to shallow water abandonment.

Speaker Change: Our shallow water <unk> segment will have seasonal variability with greater impacts during Q1 and Q4, we are reducing our cost structure commensurate with the current market, but are retaining the ability to scale up if the market improves we expect the market to be marginally better absent any regulatory developments, we expect the marine offshore.

Speaker Change: To maintain good utilization of five to seven lift boats with some variable seasonality on the OSP fees and crew boats. The energy service should have good utilization for six to nine PNA spreads in 1% to two coiled tubing units. There is seasonality in the diving in heavy lift where the epic key joined is currently idle with limited winter.

Erik Staffeldt: The energy service should have good utilization for 6 to 9 PNA spreads and 1 to 2 cold tubing units. There is seasonality in the diving and heavy lift, where the epichedron is currently idle, with limited winter opportunities. We do expect an active season during Q2 and Q3.

Speaker Change: <unk>, we do expect an active season during Q2 and Q3.

Erik Staffeldt: Moving to slide 18, our CAPEX forecast for 2025 is heavily impacted by dry docks and maintenance periods on our vessels and systems. The seawall completed its dry dock in Q1. The Q7 is currently undergoing a 30 to 45 day docking period followed by the project immobilization. The Q5,000 has a 30 plus day docking scheduled in the second.

Speaker Change: Moving to slide 18, our Capex forecast for 25 is heavily impacted by dry dock and maintenance periods on our vessels and systems. The seawell completed its dry dock in Q1, the Q seven is currently.

Speaker Change: Under growing at 30% to 45 day, Dr. <unk>, followed by the project and mobilization. The Q 5000 has a 30 plus days docking scheduled in the second quarter. Our Capex range currently $70 million to $90 million, which includes amounts of approximately $30 million. Originally forecasted in 2024 that were moved into 2025.

Erik Staffeldt: Our CapEx range currently is $70 to $90 million, which includes amounts of approximately $30 million originally forecasted in 2024 that were moved into 2025. Once again, the majority of our topics continues to be maintenance and project related, which probably falls into our operating cash flow.

Speaker Change: Once again, the majority of our Capex continues to be maintenance and project related related which primarily falls into our operating cash flow.

Erik Staffeldt: Reviewing our balance sheet, our funded debt of $324 million is expected to decrease by $9 million in 2025 with scheduled principal payments on our Mara debt. We expect to continue our share repurchase program with a target repurchases of at least 25% of free cash flow.

Speaker Change: Viewing our balance sheet, our funded debt of $324 million is expected to decrease by $9 million in 2025 with scheduled principal payments on our merit that we expect to continue our share repurchase program with a target repurchases of at least 25% of free cash flow.

Owen Kratz: At this time, I'll turn the call back to Owen for discussion on our capital allocation framework, our outlook for 2025 and beyond, and for closing comments. Owen? Thanks, Erik. Good morning. 2024 was a strong year for Helix delivering the results that were expected. We feel very good about where we are and confident as we look forward. There's a lot of wind at our back. We're also aware of our market headline challenges, and we believe we can address them to mitigate the impact and potentially generate upside. The broader industry is starting to recognize the coming value of the late life market niches for oil and gas and Helix's prominent position.

Speaker Change: At this time I will turn the call back to Ellen for a discussion on our capital allocation framework, our outlook for 2025 and beyond and for closing comments.

Speaker Change: Thanks, Eric.

Ellen: Good morning.

Ellen: 2024 was a strong year for helix to delivering the results that were expected.

Ellen: We feel very good about where we are and confidence as we look forward. There's a lot of winded. Our back. We're also aware of our market headline challenges and we believe we can address them.

Ellen: <unk> mitigates, the impact and potentially generate upside.

Ellen: Broader industry is starting to recognize becoming value of the late life market niches for oil and gas and helix is prominent position.

Owen Kratz: Starting with subsea intervention, which entails maximizing remaining reserves and abandonment, intervention will be key to extending the life of fields, and there will be more and more abandonment as the fields mature. Intervention is also the lowest-cost way to produce incremental barrels. We do expect a slower year for the UK section of the North Sea, but we also recognize the extent of opportunity both in extending the life of the fields and we expect abandonment to increase. There are approximately 2,250 wells in the North Sea, and the industry average for P&A of wells is plus or minus 50 per year.

Ellen: Starting with subsea intervention, which entitles maximizing remaining reserves and abandonment intervention will be key to extending the life of field.

Ellen: There will be more and more abandoned the fields mature intervention is also the lowest cost way to produce incremental barrels.

Ellen: We do expect a slower year for the U K section of the North Sea, but we also recognize the extent of opportunity both and extending the life of the field and we expect to benefit to increase.

Ellen: There are approximately 2200 50 wells in the North Sea EMEA industry average for P&A of wells is plus or minus 50 per year. We expect this work to increase for 2026 and beyond.

Owen Kratz: We expect this work to increase for 2026 and beyond. In the rest of the world, we don't have the capacity to meet all the demand we're seeing, and there are up-and-coming regions of the world we've not yet grown into. We currently do not have plans to add capacity in well intervention, and instead plan to take advantage of a tight market to achieve higher margins. We're well positioned for any potential softening of the market as a majority of our major assets are on multi-year contracts and have strong current demand and global flexibility to penetrate new regions for our services.

Ellen: Rest of the World. We do we don't have the capacity to meet all the demand, we're seeing and there are up and coming regions of the world. We've now grown into we currently do not have plans to add capacity and well intervention.

Speaker Change: The plan to take advantage of a tight market to achieve higher margins.

Speaker Change: We're all we are well positioned for any potential softening of the market as a majority of our major assets are on multiyear contracts and have strong current demand and global flexibility to penetrate new regions for our services.

Owen Kratz: turning to robotics. We see demand continuing to grow. Visibility for growing trenching demand has us tendering for work as far out as 2029. We expect that we will need an additional trencher and are currently assessing our options for the most effective way to add capacity. We've been very successful at establishing our credibility and site clearance work for the wind farms, both in boulder clearance and USO work. We have plans to add an additional site clearance spread for 2025 and are looking to add other adjacent services going forward. Part of our maintenance capex spending is on refurbishment of our work class ROV fleet of vehicles.

Speaker Change: Turning to robotics.

Speaker Change: See demand continuing to grow visibility for growth growing trenching demand has a tendering for work as far out as 2029, we expect that we will need an additional trencher and are currently assessing our options for the most effective way to add capacity.

Speaker Change: <unk> been very successful at establishing our credibility and site clearance work for the wind farms both in Boulder clearance in Europe. So were we have plans to add an additional site cleared spread for 2025 and are looking to add other adjacent services going forward.

Speaker Change: Part of our maintenance Capex spending is on refurbishment of our work class Rovs fleet of vehicles, we have two more years to complete the upgrade of the entire fleet, which should extend the life of the fleet for years to come.

Owen Kratz: We have two more years to complete the upgrade of the entire fleet, which should extend the life of the fleet for years to come. Our robotics segment overall is forecasted to be relatively flat in 2025, with meaningful growth expected thereafter. Shallow water abandonment in the Gulf is expected to experience a soft market again in 2025 as the recipients of boomerang properties from bankruptcies continue to analyze and plan for their abandonment work. We erroneously maintained the cost basis for a larger market that did not materialize in 2024. With our cost structure now right-sized for the current market, we expect to see meaningful improvement in profitability for 2025, while maintaining operational leverage for further growth beyond.

Speaker Change: Our robotics segment overall is forecasted to be relatively flat in 2025 with meaningful growth expected thereafter.

Speaker Change: Shallow water abandonment in the Gulf region is expected to experience a soft market again in 2025 as the recipients of Boomerang properties from bankruptcies continue to analyze our plan for their abandonment work.

Speaker Change: We are obviously maintain the cost basis for a larger and larger market that did not materialize in 2024 with our cost structure now right sized for the current market, we expect to see meaningful improvement in profitability for 2025, while maintaining operational leverage for <unk>.

Speaker Change: Further growth beyond.

Owen Kratz: Our production facility segment is pretty much status quo. The HV-1 contract continues, the Drowsky field continues to produce beyond its expected life. The Thunderhawk field remains shut in until we can schedule an intervention. With our current contract commitments, we don't have the availability until later this year at the earliest. We've not included anything for production out of Thunderhawk for 2025, but it remains as upside for 2026.

Speaker Change: Our production facility segment is pretty much status quo. The HD one contract continues to drive SKU field continues to produce beyond as expected life.

Speaker Change: The Thunder horse field remains shut in until we can schedule an intervention with our current contract commitments. We don't have the availability until later this year at the earliest.

Speaker Change: We have not included anything for production out of Thunder Hawk for 2025, but it remains as upside for 2026.

Owen Kratz: Turning to our capital allocation framework, the markets have been robust the past few years with capital discipline shown by the industry players. This has resulted in asset valuations that are currently high. While we expect to generate strong free cash flow and increase our war chest of cash, we have kept our powder dry. We will be watching the markets for attractive opportunities to deploy capital. Until we see that opportunity, we plan to restrict capital allocations for assets to our current niches where we can see full cycle accretion and bolstering of our market position. In line with this strategy, we intend to become more active with our approved share repurchase plan.

Speaker Change: Turning to our capital allocation framework the markets have been robust in the past few years with capital discipline shown by the industry. Players. This has resulted in asset valuations that are currently high while we expect to generate strong free cash flow and increase our war chest of cash we have kept our powder dry.

Speaker Change: We will be watching the markets for attractive opportunities to deploy capital until we see that opportunity we plan to restrict capital allocations for assets to our current niches, where we can see full cycle accretion and bolstering of our market positions.

Speaker Change: In line with this strategy, we intend to become more active with our approved share repurchase plan, we still have more than $150 million of drip crew approval under the plan starting this year, it's our intention to allocate a minimum of 25% of free cash flow to repurchase.

Owen Kratz: We still have more than $150 million of approval under the plan. Starting this year, it's our intention to allocate a minimum of 25% of free cash flow to repurchase of our shares. We're confident in the future and at the current share price, we see a great opportunity to return value to our shareholders. If M&A materializes, then expect 25% of the free cash flow, and if not, then more than 25%. We're confident in the future for Helix with inherent growth and operating leverage as well as opportunity and the capacity to service them going forward.

Speaker Change: Of our shares.

Speaker Change: We're confident in the future and that the current share price, we see a great opportunity to return value to our shareholders.

Speaker Change: The M&A Materializes, then expect 25% of free cash flow.

Speaker Change: If not more than 25%.

Speaker Change: We're confident in the future for helix with inherent growth in operating leverages as well as opportunity and the capacity to service them going forward.

Speaker Change: Eric.

Owen Kratz: Thanks, Owen.

Eric: Thanks, Owen operator at this time, we'll take any questions.

Operator: Operator, at this time, we'll take any questions. At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A process.

Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we will pause for just a moment to compile the Q&A roster.

Jim Rollyson: Your first question comes from the line of Jim Rollyson with Raymond James. Please go ahead. Hey, good morning, everyone. Owen, you kind of covered this a little bit, but kind of back to the free cash flow, you know, simple math is if you spend the 50 million at the midpoint of on repurchases, you're still going to probably end the year with kind of half a billion or so of cash. When you think about M&A, you mentioned inflated asset prices, at least in the oil field side. Maybe just a little color around, you know, what are you thinking?

Speaker Change: Your first question comes from the line of Jim Rollyson with Raymond James. Please go ahead.

Jim Rollyson: Hey, good morning, everyone.

Speaker Change: Oh, and you kind of covered this a little bit but on a back to the free cash flow simple math is if you spend the $50 million at the midpoint of on repurchases you are still going to probably end the year with kind of half a billion or so of cash.

Speaker Change: When you think about M&A, you mentioned inflated asset prices at least in the oilfield side, maybe just a little color around.

Speaker Change: What are you thinking what what.

Owen Kratz: type of assets would be in your target, and is it just today, just a valuation issue, relative valuation issue that keeps you from being active, I guess?

Speaker Change: Type of assets would be in your your target and is it just today just a valuation issue relative valuation issue that keeps you from being active I guess.

Owen Kratz: Well, Jim, I think there's a high probability that you will see us be active in M&A this year. The areas of opportunity that I see are geographically oriented and also the wind market has seen some major pullback of valuations. And I think longer term, it's a substantial long-term growth market, so that would be another area.

Well, Jim I think Theres, a high probability that you will see us be active in M&A this year.

Speaker Change: Areas of opportunity that I see are geographically oriented.

Speaker Change: And also the wind market has seen some major pullback of valuations.

Speaker Change: I think longer term.

Speaker Change: Substantial long term growth market, so that would be another area.

Owen Kratz: Further out in the future, I mean, right now, vessel prices are way too high. I don't think that we need more floating tonnage or large capital assets like that, but we do charter quite a few vessels. And in the wind market and robotics, we always work a core number of vessels. Right now, the vessel prices, as I've said, are way too high. But there are, in just recent months, there's a lot of new orders going in for new builds, which means that the existing tonnage will probably rationalize in value. I don't see that as an immediate allocation of capital, but I think it's something to watch for the future.

Speaker Change: Further out in the future right now vessel prices are way too high I don't think that we need more floating tonnage or large capital assets like that but we do charter quite a few vessels.

Speaker Change: And then the wind market in robotics, we always work.

Speaker Change: For number of vessels.

Speaker Change: Right now the vessel prices as I've said are way too high.

Speaker Change: There are.

Speaker Change: And just recent months Theres, a log in front of new orders going out for new builds which means that the existing tonnage will probably rationalized and volume I don't see that as an immediate.

Speaker Change: Allocation of capital, but I think it's something to watch for the future.

Jim Rollyson: Got it. Appreciate that.

Speaker Change: Got it I appreciate that and then you talked a bit about it.

Jim Rollyson: And then you talked a bit about, it seems like every, several earnings calls this earnings season, well intervention has come up, and you mentioned a market being kind of structurally short assets there, which is obviously beneficial from the pricing perspective. At the moment, you guys are pretty well booked up from your contracting last year at higher rates. How do you think about where, you know, how is pricing trending more recently to the extent you've even been contract trying to book any work on the spot side of things?

Speaker Change: It seems like every several earnings calls this earnings season.

Speaker Change: Well intervention has come up and you mentioned a market being kind of structurally short.

Speaker Change: <unk>, there, which is which is obviously beneficial from the pricing perspective at the moment you guys are pretty well booked up from from your contracting last year at higher rates, how do you think about where.

Speaker Change: How is pricing trending more recently to the extent you've even mid contract trying to book any work on the spot side of things and how do you take advantage of that over the next three or four years given your fleet is somewhat locked up in the short run.

Scotty Sparks: And how do you take advantage of that over the next, you know, three or four years, given your fleet is somewhat locked up in the short run? I'll take that, Jim. So firstly, a good portion of the assets are on long-term contracts, but they're taken off the legacy contracts and put onto good market rates. So we're going to see an improvement there. On the spot side, we are still increasing rates, not as rapidly as we have done in the last two years, but there's still a slight increase in rates. And as the market continues to tighten, we'll assess that and adjust as we go forward.

Speaker Change: I'll take that Jim Firstly, a good portion of the assets are on long term contracts there.

Speaker Change: After legacy contracts and put onto a good market rates, we're going to see an improvement there on the spot side, we are still increasing rates not as rapidly as we have done in the last two years, but theres still a slight increase in rates and as the market continues to tighten we'll assess that and adjust that as we go forward.

Scotty Sparks: So we're still bidding slightly higher than we did last year, but it's not as advanced and as rapid as it was, you know, for the last two years where we almost doubled rates in certain geographical regions.

Speaker Change: Still bidding at slightly higher than we did last year, but it is not as advanced in as rapid as it was treated last two years, we almost doubled rates in certain geographical regions.

Jim Rollyson: On the robotics side, ROV vessels and trenching rates are certainly increasing and we're seeing activity out to 29, 30 and certainly pumping up the rates on the trenching side and the ROV side. Helpful color. Appreciate it. I'll turn it back. Thank you.

On the robotics side, RMB vessels, entrenching rates assess and increasing and we're seeing activity up to 29, 30, and certainly pumping up the rates on the trenching side in the RV side.

Speaker Change: Helpful color I appreciate it I'll turn it back thank.

Speaker Change: Thank you.

Greg Lewis: Your next question comes from the line of Greg Lewis with BDIG. Please go ahead. Hey, thank you, and thanks, and good morning, and thanks for taking my questions. Hope everybody's doing well. I was hoping to get a little bit more color around the guidance around, you know, the revenue, i.e., you know, you mentioned throughout the call on the well intervention side about the strong backlog. You know, I guess first on that, the well intervention side, that $40 million delta between the low and the high end, is that largely associated just with open days on the Q5, or does it also include maybe some startup time, you know, of some of the assets?

Speaker Change: Your next question comes from the line of Greg Lewis with <unk>. Please go ahead.

Greg Lewis: Hey, Thank you and thanks, and good morning, and thanks for taking my questions Hope everybody is doing well.

Greg Lewis: I was hoping to get a little bit more color around that.

Greg Lewis: The guidance around the revenue I E.

Greg Lewis: You mentioned throughout the call on the on the well intervention side about the strong backlog.

Greg Lewis: I guess first on that the well intervention side that that 40 million delta between the low and the high end is that largely associated just with open days on the Q five.

Greg Lewis: Or is that also include maybe some startup time.

Greg Lewis: Some up some of the assets and then on on the robotics and SWA.

Greg Lewis: And then on the robotics and the SWA, you know, I don't think the SWA, well, I'll let you say, like, how should we be thinking about, of the robotics and SWA, how much of that is already, like, contracted on a, maybe on a percent?

Greg Lewis: Yes, I don't think the SW.

Greg Lewis: I'll, let you say like how should we be thinking about of the robotics and the SWA how much of that is already like contracted on a maybe on a percentage basis.

Erik Staffeldt: OK, Greg, I'll start off with the well intervention and then pass it off to Scotty to wrap up the robotics and shallow water. But on the well intervention side, once again, I think it's a good balance in our guidance range between risk and reward opportunities. I think when you look at the opportunities that we have there, it's really on sort of project execution. We have good, solid contracts there. And to the extent that we're able to execute at a high level, I think that'll be more of a margin driver than a top line driver. I think that you talked about our contract transitions.

Speaker Change: Okay, Greg I'll start off with the well intervention and then pass it off to Scott <unk> to wrap up the robotics in shallow water, but on the well intervention side. Once again I think it's a good balance in our guidance range.

Speaker Change: Tween risk and reward opportunities I think when you look at the opportunities that we have there it's really an <unk>.

Speaker Change: Project execution, we have good good solid contracts, there and to the extent that we're able to execute at a high level I think that'll be more of a margin driver than a topline driver.

Speaker Change: I think that you talked about our contract transitions, we have three major transitions. This year one of them is completed already with the stage two in early January transitioning to a new contract we have the.

Erik Staffeldt: We have three major transitions this year. One of them is completed already with the SH2 in early January, transitioning to its new contract. We have the Q7000, which right now it's estimated to start its contract towards the end of March in Brazil. And then the SH1, which in the second half of the year will transition between Trident to Petrobras contract. And right now we're assuming about a 30 day. And so I think that once again, there's a combination there of risk and opportunity in those assessments.

Speaker Change: The Q 7000, which were.

Speaker Change: Right now it's estimated to start its contract towards the end of March in Brazil, and then the FH, one which in the second half of the year we.

Speaker Change: We will transition between tried to Petrobras contract and right now we're assuming about a 30 day and so I think once again. There is there is a combination there of risk and opportunity in those assessments and then <unk>.

Erik Staffeldt: And then the one area of well intervention that is a little bit softer is that North Sea market. I think we're seeing right now we're expecting lower utilization in that market. Once again, I think as some of the information is digested from what happened there in the fourth quarter over there, there's a potential for more activity. So it would be really driven by utilization there in that North Sea region.

Speaker Change: One area of well intervention that that is a little bit softer is that north sea market I think we're seeing right now we're expecting.

Speaker Change: Lower utilization in that market.

Speaker Change: Once again I think as as some of the information is digested from what happened there in the fourth quarter over there there is a potential for more activity. So it would be really driven by utilization there.

Speaker Change: In that North Sea region.

Scotty Sparks: And I'll pass on to Scotty for the robotics and shallow water. So a good portion of the robotics vessels is already booked as backlog, we've got good contract activity in the Asia-Pacific, over here for the Sheila board along and then for the trenching markets in the North Sea. We also have the T-1401 going on a client-provided vessel and T-1402 going on a client-provided vessel from June in the Mediterranean. And the iPlow is contracted to go on a job in the Baltic Sea. So it's pretty much a flat year for robotics, but that's primarily because the sea in Taipez came off contract, so there's quite a reduction there, so that's replaced by the other trenches going to work.

Speaker Change: And then I'll pass on to Scotty for the robotics in shallow water.

Speaker Change: A good portion of the robotics vessels has already booked.

Speaker Change: Backlog with a good contract activity in the Asia Pacific either have initiated all along and then for the trenching markets in the North Sea. We also have the <unk> hundred 14003rd one going on the client provided vessel and 200 1400 silicon on the client provided vessel from <unk>.

Speaker Change: June in the Mediterranean and the <unk> contracted to to go on the job and the boats exceed.

Speaker Change: It's pretty much a flat year for robotics.

Speaker Change: Primarily because the same type S came off contract. So it is quite a reduction there some of that has replaced the trenches going to book the Aster Amendment at.

Scotty Sparks: But you have to remember that 2024 is the second highest leap of the year for robotics since 2000, so keeping a relatively flat with an upside bias for trenching and robotics as we go forward is a good state of play for us already. And we are seeing high visibility in the trenching and ROV market.

Speaker Change: 2024 was the second highest EBIT year for robotics since 2000 a.

Speaker Change: Keeping a relatively flat with an upside bias for trenching and robotics as we go forward is a good state of play for US already and we are seeing high visibility in the trenching and RV markets.

Scotty Sparks: Shallow Water, we expect that to be quite a soft market this year. It should be an improvement over 2024. It is definitely a spot market. Clients call up. There's a lot of clients in flux at the moment with the boomerang properties being handed back. These clients that have taken back those properties don't have departments set up for Shallow Water P&A, so they're starting to get their heads around what they've got going on. So we should see an increase of work. I don't think it's going to go back to 2023, but it should be better than 2024, but definitely still a softer spot market.

Speaker Change: Hello, Walter we still expect that to be quite a soft market. This year it should be an improvement over two.

Speaker Change: <unk> 2024, it is definitely a spot market and our clients call up.

Speaker Change: There's a lot of clients in flux at the moment with the beam Ram project proxy has been handed back. These clients that have taken back those properties don't have department setup to shallow water pna's. It is starting to get our heads around what they've got going on so.

Speaker Change: So we should see an increase of work and I think it is going to go back to 2023 that it should be better than 2024, but definitely still a softer spot market.

Greg Lewis: Okay, that was super helpful. Thank you.

Speaker Change: Okay. That's super helpful. Thank you and then I just had a question I think in your prepared remarks, you mentioned around.

Greg Lewis: And then I just had a question, you know, and I think in your prepared remarks, you mentioned around, you know, the opportunity around trenching, hey, maybe we potentially add a new unit. You know, I guess, you know, for as we think about, you know, well intervention, it's kind of easy for us to kind of, not easy, but, you know, you can kind of work through margins and what pricing is going to be, you know, just, I mean, is it, you know, and Scotty, I guess you're talking about robotics strengthening, you know, clearly last year was pretty tight and it seems like that's going to continue.

Speaker Change: The opportunity around Trenching, Hey, maybe we potentially add a new unit.

Speaker Change: I guess from FERC as we think about.

Speaker Change: Well intervention and it's kind of easy for us to kind of not easy, but you can kind of walk through margins and what pricing is going to be just I mean is it.

Speaker Change: Scotty I guess youre talking about robotics, strengthening clearly last year was pretty tight and it seems like thats going to continue.

Scotty Sparks: Just as we think about the ability maybe to push, you know, maybe we'll think about it on a margin progression. You know, as we think about the ability to kind of push margins and add another unit, what's kind of like a fair way to think about, you know, margins trending? I don't know whether you want to talk about the next one or two years or any kind of way we should be thinking about that.

Speaker Change: As we think about the ability maybe to push it.

Speaker Change: Maybe think about it on a margin progression.

Speaker Change: As we think about the ability to kind of push margins and add and add another unit, what's kind of like a like a fair way to think about.

Speaker Change: Margins trending I don't know.

Speaker Change: Whether you want to talk about the next one or two years or any kind of any kind of way, we should be thinking about that and then kind.

Scotty Sparks: And then I did kind of, and following up with wrapping, I guess, a bow on this, you know, what's it cost and how long does it take to add a trenching unit? Okay, so that's quite a loaded question, but good shot there. I'm sorry. That's okay. No, no. Rates are definitely improving in trenching. Back in 2023, our baseline rate was about $120,000 a day. We're now bidding sort of 20%, 30% higher than that and securing work and securing some sizable chunks of work. We're securing work for all of the trenches, which is very pleasing. We purchased the C1401, 1402 and the I-PLOW for approximately $13, $14 million, and we've already had the return back on that, and we're seeing good utilization for those assets as we go forward.

Speaker Change: Kind of following up with wrapping I guess a follow on this.

Speaker Change: What's it cost and how long does it take data trenching unit.

Speaker Change: Okay. So that's quite a related question.

Good.

Speaker Change: Sorry.

Speaker Change: Rates are definitely improving in entrenching.

Speaker Change: Back in 2020 free our baseline rate was about 120000, a day, we're now bidding 2030% higher than that and securing work and securing some sizeable chunks of work we're securing work for all of the trenches, which is very pleasing.

Speaker Change: We purchased the <unk>.

Speaker Change: <unk> <unk> hundred 1800, <unk> for approximately 13 $14 million and we've already added the return back on that and we're seeing good utilization for those assets as we go forward.

Scotty Sparks: I will say we're bidding work in the renewables market out to $29 and $30, and every year there's a step increase for those works. And like I say, we've already secured work into 2027, and I expect to secure more work shortly as well. To obtain a new trench it is two routes. There's one or two trenches on the market like what we did with the 1400 and one and 1400 and two, that we're gonna start negotiations and see if we can pick up one or two assets. If not, we'd have to go down the route of building another asset, which would be approximately 25 million of CapEx outlay and 18 months to secure building a trench.

Speaker Change: I will say, we're bidding work in the renewables market out to 2009 and 30 in every year, there's a step increase for those books and like I said, we've already secured work into 2027 and expect to secure more work shortly as well.

To obtain a new trencher is to rates, there's one or two trenches on the market like what we did with the <unk> hundred one in 1400 seats that we're going to start negotiations and see if we can pick up one or two assets.

Speaker Change: If not we'd have to go down the route of building another asset, which would be approximately $25 million of capex outlay, and 18 months to secure build and attention.

Scotty Sparks: We're seeing an increased market. I'll give you an idea for our bidding activity from 2025 to 2030. At our high potential awards, you know, clients that come to us that we have good relationships with, we can already see $650 million of revenue based on trenching work alone and site clearance work alone out to 2030. Very healthy position.

Speaker Change: We're seeing an increased market I'll give you an idea for a bidding activity from 2025 to 2030.

Speaker Change: At a high potential awards in our clients that come to us that we have good relationships with we can already see $650 million of revenue based on trenching work alone and <unk> alone out to 2013.

Speaker Change: A very healthy position for us.

Greg Lewis: Wow, super helpful. Thanks for the time, guys. You're welcome.

Speaker Change: Super helpful. Thanks for the time guys.

Speaker Change: Youre welcome. Thank you.

Operator: Again, if you would like to ask a question at this time, please press star followed by the number one on your telephone keypad.

Speaker Change: Again, if you would like to ask a question at this time. Please press star followed by the number one on your telephone keypad. Your next question comes from the line of Josh Josh Jayne with Danielle Energy Partners. Please go ahead.

Josh Jayne: Your next question comes from the line of Josh Jayne with Daniel Energy Partners. Please go ahead. Thanks. Good morning.

Josh Jayne: Thanks. Good morning, first one I wanted to just follow up on was when we think about the outlook for the Q4 and the Q five.

Scotty Sparks: First one I wanted to just follow up on was when we think about the outlook for the Q4 and the Q5 into the end of 2025, they're both contracted through the end of this year, but could you speak to the opportunities to contract them further out? Are there significant term opportunities out there to contract those vessels sort of well into 26 and 27, or is it too early to think about that? So the Q5000 is signed up with Shell for two years with an option of a third year. Minimum contract days is 175 days each year.

Speaker Change: Into the end of 2025.

Speaker Change: They're both contracted through the end of this year, but could you speak to the opportunities to contract them further out.

Speaker Change: Are there significant term opportunities out there to contract those vessels sort of well into 26, and 27% or is it too early to think about that.

Speaker Change: So the key 5000, this signed up with shelf at two years with an option of a third year minimum contract days is 175 days each year and we're also in discussions with another major that would take up the rest of the days on the key five set of key five.

Scotty Sparks: And we're also in discussions with another major that will take up the rest of the days on the Q5000. So the Q5000 for the next two to three years is in a very tight position. Q4000 is currently planned to be in Nigeria till Q2 of this year and then come back to service the rest of the golf market. We have work already lined up for it with two or three large-sized operators. It's a bit in flux because we've got operators in Nigeria to ask and if we could hang around and complete some work. So there's discussions ongoing with two other majors outside of the options that Exxon have.

Speaker Change: For the next two to three eight is in a very tight position Q4 thousand is currently planned to be in Nigeria to Q2. This year and then come back to service the rest of the Gulf market, we have work already lined up for it with <unk>.

Speaker Change: Free.

Speaker Change: Large sized operators.

Speaker Change: As a bit in flux, because we've got operators in Nigeria to asking if we can hang around and completes in worksite as discussions on Gaiam with two other majors outside of the options of Exxon have so we're trying to work out a path of how much work that we take on in Nigeria compared to starting to lose some work over here.

Scotty Sparks: So we're trying to work out a path of how much work do we take on in Nigeria compared to starting to lose some work over here by not having availability. So the Q market, the Q based US market is very tight. The Q5000 is secured and then the other operators will have access to the Q4000. And we're in discussions with at least two other operators to have multi-year contracts as well. Okay, so it does sound like that when the Q4 eventually comes back to the Gulf, there are potential opportunities to turn the vessel out. Yes, for sure.

Speaker Change: By not having availability.

Speaker Change: So the key market the key based U S market is very tight the key five secured and in the upper operators will have access to the Q4 2000.

Speaker Change: And we're in discussions with at least two of our operators to have multiyear contracts as well.

Speaker Change: So it does sound like that when the Q4 eventually comes back to the Gulf there are potential opportunities to term the vessel out.

Speaker Change: Yes for sure yes, we already have wireless contracted that would take place in the latter half of the year and we are in discussions with majors for multiyear contracts.

Scotty Sparks: We already have wells contracted that would take place in the latter half of the year and we're in discussions with majors for multi-year contracts and some spot well workers. Okay, thanks.

Spot-weld work as well.

Speaker Change: Okay. Thanks, and then I did just want to follow up one more time.

Josh Jayne: And then I did just want to follow up one more time about the $50 million or the targeted 25% of free cash flow. It does seem to be a bit of a departure from how you guys have thought about capital allocation. I know you've had a repurchase program in the past, but it does seem a bit more concrete and aggressive. Is that more just a function of where you see the equity price today, or do you think that the opportunity for Helix going forward is to sort of do both things, both return capital to shareholders and execute on M&A?

Speaker Change: The $50 million.

Speaker Change: The targeted 25% of free cash flow.

Speaker Change: It does seem to be a bit of a departure from.

Speaker Change: How do you guys have thought about capital allocation I know you've had a repurchase program in the past, but it does seem a bit more.

Speaker Change: Concrete and aggressive is that more just a function of.

Speaker Change: Where do you see the equity price today or do you think that the opportunity for helix going forward is to.

Speaker Change: Sort of do both.

Speaker Change: Did those things both returned capital to shareholders and execute on M&A.

Owen Kratz: I'm just curious because it did seem like a little bit of a step change with respect to how you're thinking about capital allocation. Well, I'll start and let Erik add. The step change for us is just the strength of our balance sheet right now and the current equity price. So I think it is time we have the financial capacity and price that's working for us so that we plan to be more aggressive on the share repurchase. We've stated it as a minimum of 25% because, as I said earlier, I think there's a high probability that there are M&A opportunities for us to the extent that we need the cash for the M&A.

Speaker Change: M&A I'm, just curious because it did seem like a little bit of a stir.

Speaker Change: Step change with respect to how youre thinking about capital allocation.

Speaker Change: Well I'll start and let Eric add.

Eric: The step change for US is just the strength of our balance sheet right now and the current equity price.

Speaker Change: So I think it is time.

Eric: We have the financial capacity.

Eric: Price Thats working for us so that we plan to be more aggressive on the share repurchase.

Eric: We've stated that there is a minimum of 25%.

Eric: Because as I said earlier I think there's a high probability that there are M&A opportunities for us to the extent that.

Eric: We need the cash for the M&A.

Owen Kratz: That will be where we deploy it. Alternatively, if the M&A doesn't materialize or we don't require that amount of cash, then we'll increase the aggressiveness on share repurchase at these current equity prices. Thanks, I'll turn it back.

Eric: That will.

Eric: I mean, where we deploy it.

Eric: Alternatively, if the M&A doesn't materialize or we don't require that amount of cash then we will increase the.

Eric: Aggressiveness on share repurchase at these current equity prices.

Eric: Thanks, I'll turn it back.

Luella: Seeing as we do not have any more questions at this time, I will now turn the call back over to the management for closing remarks. Thanks for joining us today, we very much appreciate your interest and participation and look forward to having you on our first quarter 2025 call in April. Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Outro

Eric: Yes, we do not have any more questions. At this time I will now turn the call back over to the management for closing remarks.

Eric: Thanks for joining us today, we very much appreciate your interest and participation and look forward to having you on our first quarter 2025 call in April Thank you.

Eric: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Eric: Okay.

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Eric: Yes.

Eric: Okay.

Eric: [music].