Odyssey Marine Exploration, Inc. press release
Helix Reports Fourth Quarter and Full Year 2024 Results
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Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX) reported net income of $20.1 million, or $0.13 per diluted share, for the fourth quarter 2024 compared to net income of $29.5 million, or $0.19 per diluted share, for the third quarter 2024 and a net loss of $28.3 million, or $(0.19) per diluted share, for the fourth quarter 2023. Net loss in the fourth quarter 2023 includes a net pre-tax loss of approximately $37.3 million related to the repurchase of $159.8 million principal amount of our former Convertible Senior Notes due 2026 (“2026 Notes”). Helix reported adjusted EBITDA 1 of $71.6 million for the fourth quarter 2024 compared to $87.6 million for the third quarter 2024 and $70.6 million for the fourth quarter 2023.
For the full year 2024, Helix reported net income of $55.6 million, or $0.36 per diluted share, compared to a net loss of $10.8 million, or $(0.07) per diluted share, for the full year 2023. Net income in 2024 included a pre-tax loss of $20.9 million related to the retirement of the 2026 Notes, and the net loss in 2023 included pre-tax losses of $37.3 million related to the repurchase of $159.8 million principal amount of the 2026 Notes and $42.2 million related to the increase in the fair value of the contingent consideration related to the Alliance acquisition. Adjusted EBITDA for the full year 2024 was $303.1 million compared to $273.4 million for the full year 2023. The table below summarizes our results of operations:
| Summary of Results
($ in thousands, except per share amounts, unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Year Ended | | | | | | | | | | | | | | | | | | | 12/31/2024 | | 12/31/2023 | | 9/30/2024 | | 12/31/2024 | | 12/31/2023 | | | | | | | | | | | | Revenues | $ | 355,133 | | | $ | 335,157 | | | $ | 342,419 | | | $ | 1,358,560 | | | $ | 1,289,728 | | | Gross Profit | $ | 58,859 | | | $ | 49,278 | | | $ | 65,665 | | | $ | 219,564 | | | $ | 200,356 | | | | | 17% | | | | 15% | | | | 19% | | | | 16% | | | | 16% | | | Net Income (Loss) | $ | 20,121 | | | $ | (28,333 | ) | | $ | 29,514 | | | $ | 55,637 | | | $ | (10,838 | ) | | Basic Earnings (Loss) Per Share | $ | 0.13 | | | $ | (0.19 | ) | | $ | 0.19 | | | $ | 0.37 | | | $ | (0.07 | ) | | Diluted Earnings (Loss) Per Share | $ | 0.13 | | | $ | (0.19 | ) | | $ | 0.19 | | | $ | 0.36 | | | $ | (0.07 | ) | | Adjusted EBITDA 1 | $ | 71,641 | | | $ | 70,632 | | | $ | 87,621 | | | $ | 303,147 | | | $ | 273,403 | | | Cash and Cash Equivalents | $ | 368,030 | | | $ | 332,191 | | | $ | 324,120 | | | $ | 368,030 | | | $ | 332,191 | | | Net Debt 1 | $ | (52,873 | ) | | $ | 29,531 | | | $ | (9,447 | ) | | $ | (52,873 | ) | | $ | 29,531 | | | Cash Flows from Operating Activities | $ | 77,977 | | | $ | 94,737 | | | $ | 55,731 | | | $ | 186,028 | | | $ | 152,457 | | | Free Cash Flow 1 | $ | 65,454 | | | $ | 91,878 | | | $ | 52,645 | | | $ | 163,188 | | | $ | 133,798 | | | | | | | | | | | | | | | | | | | | | | | | 1 Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP measures; see non-GAAP reconciliations below | | | | | | | | | | | | | | | | | | | |
Owen Kratz, President and Chief Executive Officer of Helix, stated, “Our full-year results for 2024 reflect our third consecutive year of revenue and EBITDA growth, with our highest EBITDA since 2014, despite a pull-back in our Shallow Water Abandonment segment. Our Free Cash Flow is the highest in two decades and would have been even higher absent the $58 million earnout payment included in our operating cash flows. Our Well Intervention and Robotics businesses continue to generate strong results, with high levels of utilization and improving rates. We completed the restructuring of our balance sheet with the retirement of our remaining convertible notes during the year, and we ended the year in a strong financial position, with significant cash levels and negative net debt. Based on the strength of this market and the value we bring to our customers, we signed new awards that provide over half of our well intervention fleet with contracted work for multiple years as we enter 2025 with strong contract coverage with expected significant improvements over 2024. We continue to execute on our capital allocation framework, and we’ve now repurchased over $40 million in our shares and expect to increase repurchases in 2025.”
| Segment Information, Operational and Financial Highlights
($ in thousands, unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Year Ended | | | | | | | | | | | | | | | | | | | 12/31/2024 | | 12/31/2023 | | 9/30/2024 | | 12/31/2024 | | 12/31/2023 | | | | | | | | | | | | Revenues: | | | | | | | | | | | | | | | | | | | | | Well Intervention | $ | 226,188 | | | $ | 203,866 | | | $ | 174,613 | | | $ | 829,862 | | | $ | 707,718 | | | Robotics | | 81,594 | | | | 62,957 | | | | 84,526 | | | | 297,678 | | | | 257,875 | | | Shallow Water Abandonment | | 37,690 | | | | 61,995 | | | | 71,595 | | | | 186,979 | | | | 274,954 | | | Production Facilities | | 18,462 | | | | 19,383 | | | | 20,695 | | | | 88,709 | | | | 87,885 | | | Intercompany Eliminations | | (8,801 | ) | | | (13,044 | ) | | | (9,010 | ) | | | (44,668 | ) | | | (38,704 | ) | | Total | $ | 355,133 | | | $ | 335,157 | | | $ | 342,419 | | | $ | 1,358,560 | | | $ | 1,289,728 | | | | | | | | | | | | | | | | | | | | | | | | Income (Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | Well Intervention | $ | 29,118 | | | $ | 21,041 | | | $ | 16,109 | | | $ | 93,205 | | | $ | 32,398 | | | Robotics | | 19,335 | | | | 9,224 | | | | 24,158 | | | | 77,343 | | | | 52,450 | | | Shallow Water Abandonment | | (5,422 | ) | | | 12,032 | | | | 8,808 | | | | (9,323 | ) | | | 66,240 | | | Production Facilities | | 5,498 | | | | (985 | ) | | | 8,288 | | | | 21,340 | | | | 20,832 | | | Change in Fair Value of Contingent Consideration | | - | | | | (10,927 | ) | | | - | | | | - | | | | (42,246 | ) | | Corporate / Other / Eliminations | | (17,651 | ) | | | (15,005 | ) | | | (12,723 | ) | | | (55,130 | ) | | | (66,164 | ) | | Total | $ | 30,878 | | | $ | 15,380 | | | $ | 44,640 | | | $ | 127,435 | | | $ | 63,510 | | | | | | | | | | | | | | | | | | | | | | |
Fourth Quarter Results
Segment Results
Well Intervention
Well Intervention revenues increased $51.6 million, or 30%, during the fourth quarter 2024 compared to the prior quarter primarily due to a fewer number of transit and mobilization days and higher day rates compared to the prior quarter. During the fourth quarter 2024, the _Q4000 _incurred 58 fewer days of mobilization and transit compared to the prior quarter, a period during which mobilization revenues and costs were deferred and not recognized. The _Q4000 _completed its mobilization for its Nigeria campaign and commenced operations at higher rates in early October 2024, and the _Q7000 _generated higher rates during the fourth quarter 2024 compared to the prior quarter prior to commencing its transit to Brazil early November 2024. Revenues also increased quarter over quarter due to a contract cancellation for work scheduled in 2025 of approximately $14 million in our North Sea operations, as well as higher rates and utilization on the Siem Helix 1 , which commenced its contract extension with Trident in Brazil at higher rates during the fourth quarter 2024. Revenue increases were offset in part by low seasonal utilization on our North Sea vessels, which were nearly fully utilized during the prior quarter, and lower utilization on the Siem Helix 2 , which commenced its vessel acceptance period at the end of December on its new contract with Petrobras. Overall Well Intervention vessel utilization was 79% during the fourth quarter 2024 compared to 97% during the prior quarter. Well Intervention operating income increased $13.0 million during the fourth quarter 2024 compared to the prior quarter. The increase was due primarily to the contract cancellation fee in addition to improvements in operating income on the _Q4000 _and the _Siem Helix 1 _being mostly offset by idle vessel-related costs in the North Sea.
Well Intervention revenues increased $22.3 million, or 11%, during the fourth quarter 2024 compared to the fourth quarter 2023. The increase was due to the contract cancellation fee in addition to higher rates on the Q4000 , _Q7000 _and Siem Helix 1 , offset in part primarily by lower revenues on the _Q5000 _during the fourth quarter 2024. The _Q4000 _and the _Q7000 _generated higher rates during the fourth quarter 2024 compared to the same quarter in 2023. Additionally during the fourth quarter 2024, the _Siem Helix 1 _commenced its contract extension with Trident in Brazil at higher rates. Fourth quarter 2024 utilization was lower on our North Sea vessels, which were fully utilized during the fourth quarter 2023, and with the _Siem Helix 2 _commencing its vessel acceptance period at the end of December. Revenues on the _Q5000 _were also lower due to the vessel working at lower legacy rates during the fourth quarter 2024. There were a similar number of mobilization and transit days during both the fourth quarters 2024 and 2023. Overall Well Intervention vessel utilization decreased to 79% during the fourth quarter 2024 compared to 95% during the fourth quarter 2023. Well Intervention operating income increased $8.1 million during the fourth quarter 2024 compared to the fourth quarter 2023, primarily due to the contract cancellation fee and higher margins on the _Q7000 _Australia operations, offset in part by idle vessel costs in the North Sea and lower margins on the Q5000 .
Robotics
Robotics revenues decreased $2.9 million, or 3%, during the fourth quarter 2024 compared to the prior quarter. The decrease in revenues was due to lower overall vessel, trenching and ROV utilization, offset in part by an increase in integrated vessel trenching days compared to the prior quarter. Chartered vessel activity decreased to 508 days, or 98%, during the fourth quarter 2024 compared to 532 days, or 96%, during the prior quarter. ROV and trencher utilization decreased to 64% during the fourth quarter 2024 compared to 77% during the prior quarter. Integrated vessel trenching increased to 269 days during the fourth quarter 2024 compared to 249 days during the prior quarter. The i-Plough had 26 days of utilization on a third-party vessel and the IROV boulder grab had 65 days of utilization during the fourth quarter 2024, whereas the i-Plough and the IROV boulder grab each had 92 days of utilization during the prior quarter. Robotics operating income decreased $4.8 million during the fourth quarter 2024 compared to the prior quarter primarily due to lower revenue and project demobilization costs incurred related to two vessels during the fourth quarter.
Robotics revenues increased $18.6 million, or 30%, during the fourth quarter 2024 compared to the fourth quarter 2023. The increase in revenues was primarily due to higher rates on our vessels and ROVs and higher vessel activities, offset by lower ROV utilization during the fourth quarter 2024. Chartered vessel activity increased to 508 days, or 98%, during the fourth quarter 2024 compared to 463 days, or 97%, during the fourth quarter 2023. Integrated vessel trenching remained relatively flat with 269 days during the fourth quarter 2024 compared to 271 days during the fourth quarter 2023, and the fourth quarter 2024 included 26 days of utilization on the i-Plough trencher on a third-party vessel and 65 days of utilization on the IROV boulder grab, whereas the i-Plough and IROV were idle during the fourth quarter 2023. Overall ROV and trencher utilization decreased to 64% during the fourth quarter 2024 compared to 68% during the fourth quarter 2023. Robotics operating income increased $10.1 million during the fourth quarter 2024 primarily due to higher revenues compared to the fourth quarter 2023.
Shallow Water Abandonment
Shallow Water Abandonment revenues decreased $33.9 million, or 47%, during the fourth quarter 2024 compared to the prior quarter. The decrease in revenues was due to the seasonal decrease in vessel and system utilization during the fourth quarter 2024. Vessel utilization (excluding heavy lift) decreased to 65% during the fourth quarter 2024 compared to 76% during the prior quarter. Plug and Abandonment (“P&A”) and Coiled Tubing (“CT”) systems activity declined to 416 days, or 17% utilization, during the fourth quarter 2024 compared to 607 days, or 25% utilization, during the prior quarter. The _Epic Hedron _heavy lift barge had 41% utilization during the fourth quarter 2024 compared to 88% during the prior quarter. Shallow Water Abandonment operating income decreased $14.2 million during the fourth quarter 2024 compared to the prior quarter primarily due to lower revenues during the fourth quarter 2024.
Shallow Water Abandonment revenues decreased $24.3 million, or 39%, during the fourth quarter 2024 compared to the fourth quarter 2023 due to lower vessel and system utilization during the fourth quarter 2024. Vessel utilization (excluding heavy lift) was 65% during the fourth quarter 2024 compared to 71% during the fourth quarter 2023. P&A and CT systems utilization declined to 416 days, or 17%, during the fourth quarter 2024 compared to 1,386 days of utilization, or 58%, during the fourth quarter 2023. The _Epic Hedron _heavy lift barge had 41% utilization during the fourth quarter 2024 compared to 76% utilization during the fourth quarter 2023. Shallow Water Abandonment operating income decreased $17.5 million during the fourth quarter 2024 compared to the fourth quarter 2023 primarily due to lower revenues.
Production Facilities
Production Facilities revenues decreased $2.2 million, or 11%, during the fourth quarter 2024 compared to the prior quarter primarily due to lower oil and gas production and prices during the fourth quarter. Oil and gas production declined quarter over quarter due to no production from the Thunder Hawk wells, which had one month of production in the prior quarter before being shut in, and an unplanned shut-in of the Droshky wells during October 2024, which had a full quarter of production during the prior quarter. Production Facilities operating income decreased $2.8 million during the fourth quarter 2024 compared to the prior quarter primarily due to lower revenues during the fourth quarter 2024.
Production Facilities revenues decreased $0.9 million, or 5%, during the fourth quarter 2024 compared to the fourth quarter 2023 primarily due to lower oil and gas production and prices during the fourth quarter 2024. Oil and gas production declined during the fourth quarter 2024 due to an unplanned shut-in of the Droshky wells during October 2024. The Thunder Hawk wells were shut-in during both the fourth quarters 2024 and 2023. Production Facilities operating income increased $6.5 million during the fourth quarter 2024 compared to the fourth quarter 2023 primarily due to the incurrence of well workover costs related to the Thunder Hawk wells at the end of the fourth quarter 2023.
Selling, General and Administrative and Other
Selling, General and Administrative
Selling, general and administrative expenses were $27.6 million, or 7.8% of revenue, during the fourth quarter 2024 compared to $21.1 million, or 6.2% of revenue, during the prior quarter and $23.0 million, or 6.9% of revenue, during the fourth quarter 2023. The increase in expenses during the fourth quarter 2024 was primarily due to higher compensation costs compared to the prior quarter and prior year.
Other Income and Expenses
Other expense, net was $1.3 million during the fourth quarter 2024 compared to $0.0 million during the prior quarter and other income, net of $7.0 million during the fourth quarter 2023. Other expense, net in the fourth quarter 2024 primarily included foreign currency losses related to the approximate 6% depreciation of the British pound. Other income, net during the fourth quarter 2023 primarily includes foreign currency gains related to the approximate 4% appreciation in the British pound, offset in part by losses on conversions of our Nigerian naira into dollars.
Change in Fair Value of Contingent Consideration
Change in fair value of contingent consideration of $10.9 million during the fourth quarter 2023 was related to our acquisition of Alliance and reflected an increase in the fair value during the fourth quarter 2023 of the estimated earnout, which was paid in April 2024.
Cash Flows
Operating cash flows were $78.0 million during the fourth quarter 2024 compared to $55.7 million during the prior quarter and $94.7 million during the fourth quarter 2023. Fourth quarter 2024 operating cash flows increased compared to the prior quarter primarily due to working capital inflows during the fourth quarter 2024 compared to outflows during the prior quarter and lower regulatory certification costs on our vessels and systems, offset in part by lower earnings during the fourth quarter 2024. Fourth quarter 2024 operating cash flows decreased compared to the fourth quarter 2023 primarily due to higher regulatory certification costs on our vessels and systems, and lower working capital inflows during the fourth quarter 2024. Regulatory certifications for our vessels and systems, which are included in operating cash flows, were $6.1 million during the fourth quarter 2024 compared to $8.9 million during the prior quarter and $3.3 million during the fourth quarter 2023.
Capital expenditures, which are included in investing cash flows, totaled $12.5 million during the fourth quarter 2024 compared to $3.2 million during the prior quarter and $3.4 million during the fourth quarter 2023. Free Cash Flow was $65.5 million during the fourth quarter 2024 compared to $52.6 million during the prior quarter and $91.9 million during the fourth quarter 2023. The increase in Free Cash Flow in the fourth quarter 2024 compared to the prior quarter was due primarily to higher operating cash flows, offset in part by higher capital expenditures, during the fourth quarter 2024. The decrease in Free Cash Flow in the fourth quarter 2024 compared to the fourth quarter 2023 was due to lower operating cash flow and higher capital expenditures during the fourth quarter 2024. (Free Cash Flow is a non-GAAP measure. See reconciliation below.)
Full Year Results
Segment Results
Well Intervention
Well Intervention revenues increased $122.1 million, or 17%, in 2024 compared to 2023 due primarily to overall higher rates and utilization in 2024. U.S. Gulf Coast utilization improved in 2024 following a higher number of regulatory docking days during 2023 on the _Q4000 _and _Q5000 _vessels. Revenues on the _Q7000 _also increased during 2024 as the vessel incurred fewer transit and mobilization days in 2024 compared to 2023, and the vessel generated higher integrated project revenues on its Australia campaign during 2024 compared to the rates generated in New Zealand in 2023. During transit and mobilization periods, mobilization revenues and costs are deferred and not recognized. Revenues in Brazil improved primarily due to the transition of the _Siem Helix 1 _to its improved contracted rates with Trident during the fourth quarter 2024. North Sea revenues increased with year-over-year improvements in rates on both vessels and the recognition of a contract cancellation fee, offset in part by the return to lower winter seasonal utilization and the regulatory docking of the _Well Enhancer _during 2024, whereas both vessels had high utilization in 2023. Overall Well Intervention vessel utilization increased to 90% during 2024 compared to 88% in 2023. Well Intervention operating income increased $60.8 million during 2024 compared 2023 primarily due to higher revenues in 2024.
Robotics
Robotics revenues increased $39.8 million, or 15%, in 2024 compared to 2023. The increase was due to higher vessel, trenching and ROV utilization and higher rates in 2024. Chartered vessel days increased to 1,901 days, which included 371 spot vessel days, in 2024 compared to 1,699 days, which included 310 spot vessel days, in 2023. Vessel trenching days increased to 835 days in 2024 compared to 807 days in 2023. Overall ROV and trencher utilization increased to 69% in 2024 compared to 62% in 2023. Robotics operating income increased $24.9 million in 2024 compared to 2023. The increase in operating income was primarily due to higher revenues during 2023.