Helix Energy Solutions (HLX)

Risks

• Our business is adversely affected by low oil and gas prices, which occur in a cyclical oil and gas market that continues to experience volatility.
• The ongoing COVID-19 pandemic could continue to disrupt our operations and adversely impact our business and financial results.
• We are subject to the effects of changing prices.
• Our backlog may not be ultimately realized for various reasons, and our contracts may be terminated early.
• A large portion of our current backlog is concentrated in a small number of long-term contracts that we may fail to renew or replace.
• Our operations involve numerous risks, which could result in our inability or failure to perform operationally under our contracts and result in reduced revenues, contractual penalties and/or contract termination.
• Our customers and other counterparties may be unable to perform their obligations.
• We may own assets with ongoing costs that cannot be recouped if the assets are not under contract, and time chartering vessels requires us to make ongoing payments regardless of utilization of and revenue generation from those vessels.
• Asset upgrade, modification, refurbishment, repair, dry dock and construction projects, and customer contractual acceptance of vessels, systems and other equipment, are subject to risks, including delays, cost overruns, loss of revenue and failure to commence or maintain contracts.
• We may not be able to compete successfully against current and future competitors.
• The actual or perceived lack of sustainability of the oil and gas sector, or our failure to adequately implement and communicate ESG initiatives that demonstrate our own sustainability, may adversely affect our business.
• Failure to protect our intellectual property or other technology may adversely affect our business.
• Our North Sea business typically declines in the winter, and weather can adversely affect our operations.
• The operation of marine vessels is risky, and we do not have insurance coverage for all risks.
• Our oil and gas operations involve a high degree of operational, contractual and financial risk, particularly risk of personal injury, damage, loss of equipment and environmental incidents.
• Our customers may be unable or unwilling to indemnify us.
• Our operations outside of the U.S. subject us to additional risks.
• Our indebtedness and the terms of our indebtedness could impair our financial condition and our ability to fulfill our debt obligations or otherwise limit our business and financial activities.
• Because we have certain debt and other obligations, a prolonged period of low demand and rates for our services could lead to a material adverse effect on our liquidity.
• Lack of access to the financial markets could negatively impact our ability to operate our business.
• A further decline in the offshore energy services market could result in additional impairment charges.
• Government regulations may affect our business operations, including impeding our operations and making our operations more difficult and/or costly.
• Enhanced regulations for deepwater offshore drilling may reduce the need for our services.
• Failure to comply with anti-bribery laws could have a material adverse impact on our business.
• The loss of the services of one or more of our key employees, or our failure to attract and retain other highly qualified personnel in the future, could disrupt our operations and adversely affect our financial results.
• Cybersecurity breaches or business system disruptions may adversely affect our business.
• Certain provisions of our corporate documents, financial arrangements and Minnesota law may discourage a third party from making a takeover proposal.