Helix Energy Solutions Group, Inc. (NYSE:HLX) Q2 2019 Earnings Conference Call - Final Transcript
Jul 25, 2019 • 10:00 am ET
Greetings, and welcome to the Second Quarter 2019 Earnings Conference Call. [Operator Instructions] And as a reminder, this conference is being recorded Thursday, July 25, 2019.
I'd now like to turn it over to Mr. Erik Staffeldt, Executive Vice President and CFO. Please go ahead, sir.
Good morning, everyone, and thanks for joining us today on our conference call for Q2 2019's earnings release. Participating on this call for Helix today is Owen Kratz, our CEO; Scotty Sparks, our COO, Ken Neikirk, our General Counsel 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 our Investors page on our website at www.HelixESG.com. The press release can be accessed under the Press Releases tab, and the slide presentation can be accessed by clicking on today's webcast icon. 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. All statements in this conference call or any 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 factors, including those set forth in slide 2, our most recently annual report on Form 10-K and our other filings with the SEC. Also during this call, certain non-GAAP financial disclosures [Technical Issues]. In accordance with SEC rules, the final slide of our presentation, provides reconciliations of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations, along with this presentation, the earnings press release, our annual report, and a replay of this broadcast are available under the Investors section of our website at www.HelixESG.com. Owen?
Good morning, everyone. Thanks, Ken. We're going to start on Slide 5, which is the high-level summary of Q2 results. The second quarter results reflect increased activity in the North Sea, marking the end of the winter weather, benefiting both our well intervention and our robotics segments. Revenue increased $35 million and our net income increased $16 million from the first quarter. Our results for the first quarter, reported at revenues of $201 million and net income of $17 million. We generated $53 million of EBITDA.
Moving to slide 6. For the quarter, we recorded a net income of $17 million, compared to net income of $1 million in Q1. We generated EBITDA of $50 million in Q2 compared to $30 million in Q1. Our operating cash flow was $67 million, and our free cash flow was $53 million. Our results for the quarter were negatively impacted by 20 days of unplanned downtime on our BP contract related to our 15K IRS system and a one-time, $1.1 million charge related to employee stock compensation.