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.