Helix Provides Operational and Financial Update
March 30 2020 - 4:18PM
Business Wire
Helix Energy Solutions Group, Inc. (“Helix”) (NYSE: HLX)
announced today that, in light of the current, significant
macroeconomic uncertainty resulting from the recent decline in oil
prices and the ongoing COVID-19 crisis, it is withdrawing its
previously issued financial and operational performance guidance
for 2020.
Owen Kratz, President and Chief Executive Officer of Helix,
stated, “We are withdrawing our previously issued guidance for
2020. While our guidance for 2020 reflected the best information
then available to us, at this time we simply are not in a position
to provide 2020 guidance given the recent decline in oil prices,
COVID-19, and their combined impact on our industry and our
company.”
Kratz continued, “As a company whose priority is and always has
been safety, we continue to prioritize the health and safety of our
employees, partners, clients and the communities we serve around
the world. We have implemented preventative protocols and
established contingency plans designed to safeguard our personnel,
assets and their operability during this crisis. Thus far we have
succeeded in minimizing operational disruptions. We have continued
to operate seven well intervention vessels and six robotics and
support vessels, in six different countries on four continents. Our
supply chains and logistics, like those of many others, have been
forced into challenging environments never before experienced. But
we are proud that, thus far, we have risen to the occasion.”
“We do not know what the full impact this current environment
will bring, nor how our industry as a whole will react. Our
currently contracted work has continued, but we expect the spot
market for the remainder of the year to be significantly weaker
than previously forecast. We anticipate implementing cost reduction
plans consistent with levels of work activity and expect to reduce
our 2020 capital expenditures by approximately twenty percent.”
Kratz concluded, “Nevertheless, we believe Helix will remain Free
Cash Flow positive in 2020. These are trying times, but we believe
we have the cash and liquidity to manage these current
challenges.”
Helix anticipates providing additional commentary at the time of
its earnings release for the first quarter of 2020, currently
scheduled at or near the end of April.
About Helix
Helix Energy Solutions Group, Inc., headquartered in Houston,
Texas, is an international offshore energy services company that
provides specialty services to the offshore energy industry, with a
focus on well intervention and robotics operations. For more
information about Helix, please visit our website at
www.HelixESG.com.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties and assumptions that could cause our
results to differ materially from those expressed or implied by
such forward-looking statements. All statements, other than
statements of historical fact, are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995, including, without limitation, any statements regarding
COVID-19 and the recent oil price decline and their respective
effects and results, our protocols and plans, our current work
continuing, the spot market, our cost reduction plans, our ability
to remain free cash flow positive and our ability to manage current
changes; our strategy; any statements regarding visibility and
future utilization; any projections of financial items; any
statements regarding future operations expenditures; any statements
regarding the plans, strategies and objectives of management for
future operations; any statements regarding our ability to enter
into and/or perform commercial contracts; any statements concerning
developments; any statements regarding future economic conditions
or performance; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing.
Forward-looking statements are subject to a number of known and
unknown risks, uncertainties and other factors that could cause
results to differ materially from those in the forward-looking
statements, including but not limited to the results and effects of
COVID-19 and the recent oil price decline and actions by customers,
suppliers and partners with respect thereto; market conditions;
results from acquired properties; demand for our services; the
performance of contracts by suppliers, customers and partners;
actions by governmental and regulatory authorities; operating
hazards and delays, which include delays in delivery, chartering or
customer acceptance of assets or terms of their acceptance; our
ultimate ability to realize current backlog; employee management
issues; complexities of global political and economic developments;
geologic risks; volatility of oil and gas prices and other risks
described from time to time in our reports filed with the
Securities and Exchange Commission (“SEC”), including our most
recently filed Annual Report on Form 10-K and in our other filings
with the SEC, which are available free of charge on the SEC’s
website at www.sec.gov. We assume no obligation and do not intend
to update these forward-looking statements, which speak only as of
their respective dates, except as required by the securities laws.
Withdrawn guidance should not be relied upon.
Social Media
From time to time we provide information about Helix on Twitter
(@Helix_ESG), LinkedIn
(www.linkedin.com/company/helix-energy-solutions-group), Facebook
(www.facebook.com/HelixEnergySolutionsGroup) and
Instagram (www.instagram.com/helixenergysolutions).
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version on businesswire.com: https://www.businesswire.com/news/home/20200330005709/en/
Erik Staffeldt Executive Vice President & CFO
estaffeldt@helixesg.com 281-618-0465
Helix Energy Solutions (NYSE:HLX)
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