AUSTIN, Texas--(BUSINESS WIRE)--SeekOps Inc., a global leader in providing best-in-class sensors and actionable analytics to support both traditional and renewable energy sectors in their decarbonization efforts, today announced the addition of Paal Kibsgaard to their advisory board.
“It is my pleasure to welcome Paal to our advisory board,” said Iain Cooper, President and CEO of SeekOps. “Paal brings with him a wealth of experience in both deploying and managing operations on a global scale, in addition to a broad and influential network across all levels of the Energy business. Paal was instrumental in catalyzing Schlumberger’s efforts in the energy transition during his time as CEO, and this is reflected in this focus with SeekOps as we embark on our growth strategy.”
Paal Kibsgaard is currently a Partner with Veritec Ventures, an Early Stage Venture Capital company addressing the energy transition. He was previously Chairman and CEO of Schlumberger Ltd in addition to holding other senior management and operational positions. Mr. Kibsgaard was also Chairman of Borr Drilling, and holds a Master’s degree in petroleum engineering from the Norwegian Institute of Technology.
“I am excited to join the SeekOps Advisory Board as the company enters a new phase, focused on scaling up the operations and bringing their unique technology and answer products to a fast growing, global customer base.”
Paal joins Advisory Board Members David Cox, Founding Partner of the Coalition for Renewable Natural Gas and Dr Simon Bittleston, Chairman of the International Scientific Advisory Board for GAPSTI at Cambridge University.
About SeekOps
SeekOps deploys its industry-leading SeekIR™ sensors with enterprise-grade drones to provide field-proven measurement systems for methane Leak Detection and Quantification (LDAQ™), through repeatable, consistent and cost-effective automated workflows. For more information, please visit www.seekops.com.
Paul Khuri
VP - Business Development
713 962 6146
This email address is being protected from spambots. You need JavaScript enabled to view it.
NEWCASTLE & HOUSTON--(BUSINESS WIRE)--TechnipFMC (NYSE: FTI) has been awarded a significant(1) contract to supply flexible pipe and associated hardware for the first subsea life extension project by TotalEnergies EP Angola and its Block 17 Partners in West Africa.
The contract covers the engineering, procurement, and supply of flowlines and connectors for the Girassol Life Extension project (GIRLIFEX), offshore Angola. The flexible pipes will extend the life of the Girassol field by bypassing the rigid pipe bundles installed before production began in 2001.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “Awards like GIRLIFEX are a result of the trust we have built up with our long-term clients and partners by continually delivering for them. We are delighted that TotalEnergies EP Angola is showing continued confidence in our technologies and integration capabilities.”
(1) For TechnipFMC, a “significant” contract is between $75 million and $250 million. This award was included in inbound orders in the fourth quarter of 2022.
Important Information for Investors and Securityholders
Forward-Looking Statement
This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “expect,” “believe,” “estimated,” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.
About TechnipFMC
TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services.
With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.
Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.
Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.
TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.
Investor relations
Matt Seinsheimer
Vice President, Investor Relations
Tel: +1 281 260 3665
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
James Davis
Senior Manager, Investor Relations
Tel: +1 281 260 3665
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Media relations
Nicola Cameron
Vice President, Corporate Communications
Tel: +44 1383 742297
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Catie Tuley
Director, Public Relations
Tel: +1 713 876 7296
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Newly Established Platform Focuses on Clean Hydrogen Transportation and Storage
HOUSTON--(BUSINESS WIRE)--Pickering Energy Partners advised the NeuVentus management team on the launch of NeuVentus, LLC, a newly formed platform backed by Lotus Infrastructure Partners, formerly known as Starwood Energy Capital. NeuVentus is focused on developing and delivering clean hydrogen pipeline transportation and salt cavern hydrogen storage projects. In addition to advising the NeuVentus management team on its formation capital raise, the PEP team supported management’s project development and its go-to market strategy.
Clean hydrogen has emerged as a key component in global efforts to decarbonize. NeuVentus will develop, own and operate key midstream infrastructure and play a crucial role in facilitating the energy transition and decarbonizing the hardest-to-abate industries. In addition to clean hydrogen and its derivatives like ammonia and methanol, NeuVentus will provide transportation and storage services to adjacent industries like industrial gases.
“We are proud to have advised the NeuVentus team on this transaction and to have supported their initial project development efforts. This deal is a perfect example of how PEP seamlessly brings together its strategy consulting and investment banking expertise to add value to our clients,” said Ismail Hammami, a Partner in PEP’s Advisory business who led the work with NeuVentus. “Our team at PEP is excited to continue to work with entrepreneurs and early-stage companies as they seek to commercialize innovation and access capital.”
“The energy landscape is constantly evolving, and at PEP, we are dedicated to helping our clients navigate this transition and identify new opportunities,” adds Dan Pickering, Chief Investment Officer of Pickering Energy Partners. “We are honored to be a part of the formation of NeuVentus and look forward to working with more companies that are driving innovation and growth in the industry.”
About Pickering Energy Partners
PEP is an energy-focused financial services platform. Our expertise spans decades across the entire energy landscape. We’ve deployed over $16 billion across all energy sub-sectors. We are, at our core, trusted energy advisors, investors, and partners alongside our clients. The PEP platform includes Investments, Research, Capital Markets, Investment Banking and Consulting. Headquartered in Houston, Texas, PEP delivers an experienced, opportunistic team that aims to provide guidance and long-term value for clients while having a positive impact on the companies and communities that PEP invests in.
For more information, please visit www.PickeringEnergyPartners.com.
Pickering Energy Partners LP (“PEP”) is an SEC Registered Investment Adviser. Affiliated PEP Advisory LLC (“PEP BD”) is a registered broker-dealer, member FINRA/SIPC.
Ismail Hammami
This email address is being protected from spambots. You need JavaScript enabled to view it.
+1.832.514.3897
For media inquiries:
Jennifer Petree / Tina Tallant
This email address is being protected from spambots. You need JavaScript enabled to view it.
713.269.3776
DALLAS--(BUSINESS WIRE)--$CE--Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, announced today the completion of an ultra-low capital project to repurpose existing manufacturing and infrastructure assets to unlock additional ethylene vinyl acetate (EVA) capacity at its Edmonton, Alberta facility. The expansion supports significant growth in the Acetyl Chain’s downstream vinyls portfolio.
“The rapidly increasing demand for sustainable energy sources throughout the world, such as solar and wind power, continues to play an important role in global demand growth for EVA,” said Richard Jacobs, senior director, EVA polymers. “Demand for EVA in solar applications is anticipated to grow at a double-digit compounded annual rate through 2028, making the EVA industry one of the fastest growing products in our Acetyl Chain portfolio.”
The expansion provides approximately 35 percent incremental EVA capacity starting in the first quarter of 2023. The project is expected to deliver approximately $10 million per year in additional operating EBITDA across the integrated acetyl value chain with the earnings contributions ramping across the second quarter.
The Acetyl Chain’s reactor capabilities and unique footprint allow for a more customized approach to product manufacturing with the flexibility to produce a full range of EVA products to serve demand in growing solar applications, wire and cables, food packaging, medical devices and drug delivery solutions. Celanese EVA products are sold under the product names including Ateva® EVA and Ateva G Medical Grade®.
“We continue to strengthen Celanese as an industry leader in the acetyls and derivatives space,” said Mark Murray, senior vice president, Acetyl Chain. “This EVA expansion enhances our downstream optionality to capture growth in high-value applications and to deliver on our commitment to be a preferred partner of our customers.”
About Celanese
Celanese is the preeminent global leader in chemistry, producing specialty material solutions used across most major industries and consumer applications. Our businesses use our chemistry, technology and commercial expertise to create value for customers, employees, shareholders and the corporation. We are committed to sustainability by responsibly managing the materials we create for their entire lifecycle. We make a positive impact in our communities through the Celanese Foundation and prioritize diversity, equity and inclusion across our teams. Celanese is a Fortune 500 company that employs approximately 13,000 employees worldwide with 2021 net sales of $8.5 billion. For more information, visit www.celanese.com.
Investor Relations
Brandon Ayache
+1 972 443 8509
This email address is being protected from spambots. You need JavaScript enabled to view it.
Media Relations – Global
Brian Bianco
+1 972 443 4400
This email address is being protected from spambots. You need JavaScript enabled to view it.
Media Relations Europe (Germany)
Petra Czugler
+49 69 45009 1206
This email address is being protected from spambots. You need JavaScript enabled to view it.
HOUSTON--(BUSINESS WIRE)--Moda Midstream, LLC (Moda) and the Galveston Bay Foundation (GBF) today announced a partnership to create and preserve coastal wetlands. As an initial step, Moda has committed financial support to create the Moda Marsh & Wetlands Preserve at GBF’s to-be-built Gessner Center that will house GBF’s education center and headquarters in Kemah, Texas.
The Moda Marsh & Wetlands Preserve will include a living shoreline and bulkhead that will create new coastal wetlands along more than 1,000 feet of Galveston Bay shoreline. In addition to stabilizing coastal waterfront, living shorelines provide many benefits, including flood control and water quality improvements. Coastal wetlands also create resiliency to extreme weather events, prevent erosion and provide natural filtration for polluted runoff. The Galveston Bay Foundation also reports that Texas coastal wetlands provide nursery habitat for over 90% of the recreational and commercial fish species found in the Gulf of Mexico. Construction on the bulkhead portion of the Moda Marsh and Wetlands Preserve is scheduled to begin in late February.
In addition to the benefits listed above, coastal wetlands also have strong carbon sequestration benefits because coastal wetlands act as a natural carbon sink. According to the National Oceanic and Atmospheric Administration’s (NOAA) National Ocean Service (NOS), wetlands annually sequester carbon at a rate that is up to ten times greater than the rate at which mature tropical forests sequester carbon. Additionally, according to NOS, coastal wetlands have a much higher carbon storage capacity and contain large stores of carbon accumulated over hundreds to thousands of years.
“We are proud to support the Galveston Bay Foundation’s efforts to preserve and protect the beauty and viability of Galveston Bay, the Houston area’s largest and most important natural resource and home to both our headquarters and our Vopak Moda Houston Terminal,” said Moda Midstream CEO and Founder Jonathan Z. Ackerman. “The location of the Moda preserve at Galveston Bay Foundation’s education center will promote awareness and appreciation for Galveston Bay, while educating visitors about the benefits of preserving wetlands and creating living shorelines. It will also increase public interest and understanding of how nature-based carbon solutions – such as coastal wetland preservation and restoration – help mitigate man-made emissions.”
“Erosion is a constant threat for shorelines across Galveston Bay,” said Galveston Bay Foundation President Bob Stokes. “We are excited to partner with Moda to protect this important shoreline and help preserve the Galveston Bay watershed as a thriving ecological anchor for generations to come. We are very fortunate to be partnering with a company that highly values environmental stewardship.”
Moda is also increasing incentives for team members who support the Galveston Bay Foundation. Today, Moda matches employee giving on a one-for-one basis. Going forward, Moda will double the matching rate for donations to the Galveston Bay Foundation. Moda will also engage in volunteer opportunities with the Galveston Bay Foundation. Moda’s next service day will be spent supporting the Galveston Bay Foundation, which provides numerous volunteer opportunities in and around Galveston Bay. Last year, 2,493 people volunteered 9,500 hours to benefit the GBF mission.
About the Moda Marsh & Wetlands Preserve
The Moda Marsh & Wetlands Preserve will include a living shoreline and bulkhead to provide two layers of defense from coastal erosion for the property. The living shoreline will create new coastal wetlands along more than 1,000 feet of Galveston Bay shoreline in Kemah, Texas. Galveston Bay Foundation’s planned Gessner Center, including the foundation’s education center and headquarters, will be located on the 30+ acre property. Coastal wetlands also create resiliency to extreme weather events, provide natural filtration for polluted runoff and serve as natural carbon sinks. Additional information about the Moda Marsh & Wetlands Preserve is available at modamidstream.com/hsse/sustainability.
About Moda Midstream, LLC
Moda Midstream, LLC develops advantaged and sophisticated infrastructure for storing and handling liquids products that are essential to our economy and our way of life. Moda helps customers increase the efficiency and protect the integrity of their supply chains. Moda’s mission is to be the logistics and terminaling provider of choice by delivering safe, reliable and sustainable solutions. Moda is backed by EnCap Flatrock Midstream. Please visit www.modamidstream.com.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of over $9 billion from a broad group of prestigious institutional investors. For more information, please visit efmidstream.com.
About the Galveston Bay Foundation
Established in 1987, the Galveston Bay Foundation is a 501(c)(3) non-profit organization. Its mission is to preserve and enhance Galveston Bay as a healthy and productive place for generations to come. It implements diverse programs in land preservation, habitat restoration, water quality and quantity, youth education, and advocacy. Galveston Bay Foundation has conserved almost 15,000 acres of coastal habitat through property acquisitions and conservation easements. GBF continues to actively expand its land conservation efforts within the Galveston Bay Watershed, focusing on protecting a wide range of habitats and land uses including freshwater and estuarine wetlands, tallgrass prairies, coastal forests, and various agricultural lands. GBF is a member of the Land Trust Alliance (LTA) and was accredited by the Land Trust Alliance Accreditation Commission in 2013 and re-accredited in 2019. GBF is also a participating member of the Texas Land Trust Council (TLTC). For further information, contact GBF at (281)332-3381, visit www.galvbay.org, like us on Facebook, or follow us on twitter @GBayFoundation.
Bevo Beaven
Redbird Communications Group
720-666-5064
This email address is being protected from spambots. You need JavaScript enabled to view it.
Fourth-Quarter 2022 Highlights
Full-Year 2022 Highlights
MILWAUKEE--(BUSINESS WIRE)--The Manitowoc Company, Inc. (NYSE: MTW) (the “Company” or “Manitowoc”) today reported a fourth-quarter net loss of $144.1 million, or $(4.10) per diluted share, which included non-cash asset impairment charges of $171.9 million. Fourth-quarter adjusted net income(1) was $26.0 million or $0.74 per diluted share, an increase of $16.6 million or $0.48 per diluted share from the prior year.
Net sales in the fourth quarter increased 24.9% year-over-year to $621.6 million and were unfavorably impacted by $31.3 million from changes in foreign currency exchange rates. Fourth-quarter adjusted EBITDA(1) was $51.5 million, an increase of $17.3 million or 50.6% from the prior year. Fourth-quarter net cash provided by operating activities were $80.2 million and fourth-quarter free cash flows(1) were $50.2 million, an increase of $72.0 million and $60.1 million from the prior year, respectively.
Fourth-quarter orders were $708.0 million, a 15.1% increase from the prior year. Orders were unfavorably impacted by $30.6 million from changes in foreign currency exchange rates. Backlog ended the fourth quarter at $1,056.0 million and was unfavorably impacted by $24.5 million from changes in foreign currency exchange rates.
Full-year 2022 net sales increased 18.2% year-over-year to $2,032.5 million and were unfavorably impacted by $106.5 million from changes in foreign currency exchange rates. Full-year 2022 adjusted net income(1) was $37.8 million, or $1.06 per diluted share, an increase of $7.2 million or $0.20 per diluted share from the prior year.
“The fourth quarter was a great end to a challenging year. The Manitowoc team delivered fourth-quarter revenue of over $600 million, contributing to full-year adjusted EBITDA margin of 7.0%. I am proud of the team for these exceptional results and thank them for their hard work,” commented Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.
“We have made significant progress in our CRANES+50 strategy, delivering non-new machine sales growth of over 20% year-over-year. We remain focused on our four breakthrough initiatives to unlock long-term shareholder value," concluded Ravenscroft.
Our full-year 2023 guidance is as follows:
Investor Conference Call
The Manitowoc Company will host a conference call for security analysts and institutional investors to discuss its fourth-quarter and full-year 2022 earnings results on Tuesday, February 21, 2023, at 10:00 a.m. ET (9:00 a.m. CT). A live audio webcast of the call, along with the related presentation, published in conjunction with this press release, can be accessed in the Investor Relations section of Manitowoc’s website at www.manitowoc.com. A replay of the conference call will also be available at the same location on the website.
About The Manitowoc Company, Inc.
The Manitowoc Company was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Headquartered in Milwaukee, Wisconsin, United States, Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, distributes and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift brand names.
Footnote
(1)Adjusted net income, Adjusted diluted net income per share (“Adjusted DEPS”), EBITDA, adjusted EBITDA, adjusted operating income, and free cash flows are financial measures that are not in accordance with U.S. GAAP. For definitions and a reconciliation to the most comparable U.S. GAAP numbers, please see the schedule of “Non-GAAP Financial Measures” at the end of this press release.
Forward-looking Statements
This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the Company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:
Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal years ended December 31, 2022 and 2021.
THE MANITOWOC COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share and share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net sales |
|
$ |
621.6 |
|
|
$ |
497.8 |
|
|
$ |
2,032.5 |
|
|
$ |
1,720.2 |
|
Cost of sales |
|
|
505.1 |
|
|
|
418.4 |
|
|
|
1,668.0 |
|
|
|
1,413.0 |
|
Gross profit |
|
|
116.5 |
|
|
|
79.4 |
|
|
|
364.5 |
|
|
|
307.2 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Engineering, selling and administrative expenses |
|
|
79.4 |
|
|
|
77.5 |
|
|
|
281.0 |
|
|
|
258.5 |
|
Asset impairment expense |
|
|
171.9 |
|
|
|
— |
|
|
|
171.9 |
|
|
|
1.9 |
|
Amortization of intangible assets |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
3.1 |
|
|
|
1.4 |
|
Restructuring (income) expense |
|
|
1.0 |
|
|
|
(0.6 |
) |
|
|
1.5 |
|
|
|
(1.1 |
) |
Total operating costs and expenses |
|
|
253.0 |
|
|
|
77.6 |
|
|
|
457.5 |
|
|
|
260.7 |
|
Operating income (loss) |
|
|
(136.5 |
) |
|
|
1.8 |
|
|
|
(93.0 |
) |
|
|
46.5 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(8.3 |
) |
|
|
(7.4 |
) |
|
|
(31.6 |
) |
|
|
(28.9 |
) |
Amortization of deferred financing fees |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(1.4 |
) |
|
|
(1.5 |
) |
Other income - net |
|
|
5.4 |
|
|
|
1.2 |
|
|
|
5.8 |
|
|
|
1.0 |
|
Total other expense |
|
|
(3.3 |
) |
|
|
(6.6 |
) |
|
|
(27.2 |
) |
|
|
(29.4 |
) |
Income (loss) before income taxes |
|
|
(139.8 |
) |
|
|
(4.8 |
) |
|
|
(120.2 |
) |
|
|
17.1 |
|
Provision (benefit) for income taxes |
|
|
4.3 |
|
|
|
(1.2 |
) |
|
|
3.4 |
|
|
|
6.1 |
|
Net income (loss) |
|
$ |
(144.1 |
) |
|
$ |
(3.6 |
) |
|
$ |
(123.6 |
) |
|
$ |
11.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic income (loss) per common share |
|
$ |
(4.10 |
) |
|
$ |
(0.10 |
) |
|
$ |
(3.51 |
) |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted income (loss) per common share |
|
$ |
(4.10 |
) |
|
$ |
(0.10 |
) |
|
$ |
(3.51 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Basic |
|
|
35,140,166 |
|
|
|
35,049,388 |
|
|
|
35,184,336 |
|
|
|
34,903,189 |
|
Weighted average shares outstanding - Diluted |
|
|
35,140,166 |
|
|
|
35,049,388 |
|
|
|
35,184,336 |
|
|
|
35,452,555 |
|
THE MANITOWOC COMPANY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value and share amounts) |
||||||||
|
|
As of
|
|
|
As of
|
|
||
|
|
2022 |
|
|
2021 |
|
||
Assets |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
64.4 |
|
|
$ |
75.4 |
|
Accounts receivable, less allowances of $5.3 and $7.3, respectively |
|
|
266.3 |
|
|
|
236.1 |
|
Inventories — net |
|
|
611.9 |
|
|
|
576.8 |
|
Notes receivable — net |
|
|
10.6 |
|
|
|
16.7 |
|
Other current assets |
|
|
45.3 |
|
|
|
36.8 |
|
Total current assets |
|
|
998.5 |
|
|
|
941.8 |
|
Property, plant and equipment — net |
|
|
335.3 |
|
|
|
358.8 |
|
Operating lease right-of-use assets |
|
|
45.2 |
|
|
|
40.6 |
|
Goodwill |
|
|
80.1 |
|
|
|
249.7 |
|
Other intangible assets — net |
|
|
126.7 |
|
|
|
139.6 |
|
Other non-current assets |
|
|
29.7 |
|
|
|
44.7 |
|
Total assets |
|
$ |
1,615.5 |
|
|
$ |
1,775.2 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
446.4 |
|
|
$ |
413.4 |
|
Short-term borrowings and current portion of long-term debt |
|
|
6.1 |
|
|
|
7.3 |
|
Product warranties |
|
|
48.8 |
|
|
|
49.0 |
|
Customer advances |
|
|
21.9 |
|
|
|
28.7 |
|
Other liabilities |
|
|
24.6 |
|
|
|
22.6 |
|
Total current liabilities |
|
|
547.8 |
|
|
|
521.0 |
|
Non-Current Liabilities: |
|
|
|
|
|
|
||
Long-term debt |
|
|
379.5 |
|
|
|
399.9 |
|
Operating lease liabilities |
|
|
34.3 |
|
|
|
29.2 |
|
Deferred income taxes |
|
|
4.9 |
|
|
|
6.5 |
|
Pension obligations |
|
|
51.7 |
|
|
|
69.4 |
|
Postretirement health and other benefit obligations |
|
|
8.2 |
|
|
|
12.1 |
|
Long-term deferred revenue |
|
|
15.6 |
|
|
|
22.9 |
|
Other non-current liabilities |
|
|
35.7 |
|
|
|
51.8 |
|
Total non-current liabilities |
|
|
529.9 |
|
|
|
591.8 |
|
Total stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock (3,500,000 shares authorized of $.01 par value; none outstanding) |
|
|
— |
|
|
|
— |
|
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,085,008 and 35,056,252 shares outstanding, respectively) |
|
|
0.4 |
|
|
|
0.4 |
|
Additional paid-in capital |
|
|
606.7 |
|
|
|
602.4 |
|
Accumulated other comprehensive loss |
|
|
(107.9 |
) |
|
|
(102.4 |
) |
Retained earnings |
|
|
104.3 |
|
|
|
227.9 |
|
Treasury stock, at cost (5,708,975 and 5,737,731 shares, respectively) |
|
|
(65.7 |
) |
|
|
(65.9 |
) |
Total stockholders’ equity |
|
|
537.8 |
|
|
|
662.4 |
|
Total liabilities and stockholders' equity |
|
$ |
1,615.5 |
|
|
$ |
1,775.2 |
|
THE MANITOWOC COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
(144.1 |
) |
|
$ |
(3.6 |
) |
|
$ |
(123.6 |
) |
|
$ |
11.0 |
|
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asset impairment expense |
|
|
171.9 |
|
|
|
— |
|
|
|
171.9 |
|
|
|
1.9 |
|
Depreciation expense |
|
|
14.4 |
|
|
|
16.0 |
|
|
|
60.6 |
|
|
|
45.5 |
|
Amortization of intangible assets |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
3.1 |
|
|
|
1.4 |
|
Stock-based compensation expense |
|
|
2.9 |
|
|
|
0.7 |
|
|
|
8.5 |
|
|
|
7.1 |
|
Amortization of deferred financing fees |
|
|
0.4 |
|
|
|
0.4 |
|
|
|
1.4 |
|
|
|
1.5 |
|
Loss (gain) on sale of property, plant and equipment |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.9 |
) |
|
|
0.2 |
|
Net unrealized foreign currency transaction losses (gains) |
|
|
(6.8 |
) |
|
|
(0.4 |
) |
|
|
(3.2 |
) |
|
|
0.7 |
|
Income tax benefit from change in reserve of uncertain tax positions |
|
|
0.7 |
|
|
|
— |
|
|
|
(11.0 |
) |
|
|
— |
|
Deferred income tax - net |
|
|
3.5 |
|
|
|
(0.3 |
) |
|
|
4.4 |
|
|
|
0.6 |
|
Other |
|
|
— |
|
|
|
(0.4 |
) |
|
|
0.9 |
|
|
|
3.2 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(47.1 |
) |
|
|
(18.2 |
) |
|
|
(36.4 |
) |
|
|
(5.2 |
) |
Inventories |
|
|
94.1 |
|
|
|
26.1 |
|
|
|
(42.0 |
) |
|
|
(68.3 |
) |
Notes receivable |
|
|
1.2 |
|
|
|
2.0 |
|
|
|
8.3 |
|
|
|
1.0 |
|
Other assets |
|
|
6.4 |
|
|
|
2.8 |
|
|
|
5.8 |
|
|
|
(7.6 |
) |
Accounts payable |
|
|
0.6 |
|
|
|
(14.2 |
) |
|
|
40.4 |
|
|
|
62.9 |
|
Accrued expenses and other liabilities |
|
|
(18.6 |
) |
|
|
(3.7 |
) |
|
|
(11.3 |
) |
|
|
20.3 |
|
Net cash provided by operating activities |
|
|
80.2 |
|
|
|
8.2 |
|
|
|
76.9 |
|
|
|
76.2 |
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(30.0 |
) |
|
|
(18.1 |
) |
|
|
(61.8 |
) |
|
|
(40.4 |
) |
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
0.2 |
|
|
|
1.5 |
|
|
|
0.3 |
|
Acquisition of business |
|
|
— |
|
|
|
(135.3 |
) |
|
|
2.3 |
|
|
|
(186.2 |
) |
Net cash used for investing activities |
|
|
(30.0 |
) |
|
|
(153.2 |
) |
|
|
(58.0 |
) |
|
|
(226.3 |
) |
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from (payments) on revolving credit facility - net |
|
|
(24.0 |
) |
|
|
— |
|
|
|
(20.0 |
) |
|
|
100.0 |
|
Other debt - net |
|
|
(1.1 |
) |
|
|
(1.5 |
) |
|
|
(5.1 |
) |
|
|
(4.9 |
) |
Debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
(1.9 |
) |
|
|
— |
|
Exercises of stock options |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
5.8 |
|
Common stock repurchases |
|
|
(1.1 |
) |
|
|
— |
|
|
|
(3.0 |
) |
|
|
— |
|
Net cash provided by (used for) financing activities |
|
|
(26.2 |
) |
|
|
(1.5 |
) |
|
|
(29.9 |
) |
|
|
100.9 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(2.2 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(4.1 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
21.8 |
|
|
|
(146.9 |
) |
|
|
(11.0 |
) |
|
|
(53.3 |
) |
Cash and cash equivalents at beginning of period |
|
|
42.6 |
|
|
|
222.3 |
|
|
|
75.4 |
|
|
|
128.7 |
|
Cash and cash equivalents at end of period |
|
$ |
64.4 |
|
|
$ |
75.4 |
|
|
$ |
64.4 |
|
|
$ |
75.4 |
|
Non-GAAP Financial Measures
Adjusted net income, Adjusted DEPS, EBITDA, adjusted EBITDA, adjusted operating income, and free cash flows are financial measures that are not in accordance with U.S. GAAP. Manitowoc believes these non-GAAP financial measures provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations. Manitowoc believes excluding specified items provides a more meaningful comparison to the corresponding reporting periods and internal budgets and forecasts, assists investors in performing analysis that is consistent with financial models developed by investors and research analysts, provides management with a more relevant measure of operating performance, and is more useful in assessing management performance.
Adjusted Net Income and Adjusted DEPS
The Company defines adjusted net income as net income (loss) plus the addback or subtraction of restructuring and certain other charges. Adjusted DEPS is defined as adjusted net income divided by diluted weighted average shares outstanding. Diluted weighted average common shares outstanding are adjusted for the effect of dilutive stock awards when there is net income on an adjusted basis, as applicable. The reconciliation of net income (loss) and diluted net income (loss) per share to adjusted net income and Adjusted DEPS for the three months ended and year ended December 31, 2022 and 2021 are summarized as follows. All dollar amounts are in millions, except per share data and share amounts.
|
|
Three Months Ended
|
|
|||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||||||||||
|
|
As Reported |
|
|
Adjustments |
|
|
Adjusted |
|
|
As Reported |
|
|
Adjustments |
|
|
Adjusted |
|
||||||
Gross profit (1) |
|
$ |
116.5 |
|
|
$ |
— |
|
|
$ |
116.5 |
|
|
$ |
79.4 |
|
|
$ |
2.3 |
|
|
$ |
81.7 |
|
Engineering, selling and administrative expenses (2) |
|
|
(79.4 |
) |
|
|
— |
|
|
|
(79.4 |
) |
|
|
(77.5 |
) |
|
|
14.0 |
|
|
|
(63.5 |
) |
Asset impairment expense (3) |
|
|
(171.9 |
) |
|
|
171.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amortization of intangible assets |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
Restructuring income (expense) (4) |
|
|
(1.0 |
) |
|
|
1.0 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
(0.6 |
) |
|
|
— |
|
Operating income (loss) |
|
|
(136.5 |
) |
|
|
172.9 |
|
|
|
36.4 |
|
|
|
1.8 |
|
|
|
15.7 |
|
|
|
17.5 |
|
Interest expense |
|
|
(8.3 |
) |
|
|
— |
|
|
|
(8.3 |
) |
|
|
(7.4 |
) |
|
|
— |
|
|
|
(7.4 |
) |
Amortization of deferred financing fees |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
Other income - net |
|
|
5.4 |
|
|
|
— |
|
|
|
5.4 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
1.2 |
|
Income (loss) before income taxes |
|
|
(139.8 |
) |
|
|
172.9 |
|
|
|
33.1 |
|
|
|
(4.8 |
) |
|
|
15.7 |
|
|
|
10.9 |
|
Benefit (provision) for income taxes (5) |
|
|
(4.3 |
) |
|
|
(2.8 |
) |
|
|
(7.1 |
) |
|
|
1.2 |
|
|
|
(2.7 |
) |
|
|
(1.5 |
) |
Net income (loss) |
|
$ |
(144.1 |
) |
|
$ |
170.1 |
|
|
$ |
26.0 |
|
|
$ |
(3.6 |
) |
|
$ |
13.0 |
|
|
$ |
9.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted average common shares outstanding |
|
|
35,140,166 |
|
|
|
|
|
|
35,361,029 |
|
|
|
35,049,388 |
|
|
|
|
|
|
35,605,618 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted income (loss) per common share |
|
$ |
(4.10 |
) |
|
|
|
|
$ |
0.74 |
|
|
$ |
(0.10 |
) |
|
|
|
|
$ |
0.26 |
|
||
| (1) | The adjustment in 2021 represents the add back of certain purchase accounting impacts from the acquisitions. |
|
| (2) | The adjustment in 2021 represents one-time acquisition related costs and costs associated with a legal matter with the U.S. Environmental Protection Agency ("U.S. EPA"). |
|
| (3) | The adjustment in 2022 represents non-cash asset impairment charges. |
|
| (4) | Represents adjustments for restructuring income (expense). |
|
| (5) | The adjustment in 2022 represents the net income tax impacts of items (3) and (4) and the removal of an income tax benefit from the partial release of a valuation allowance. The adjustment in 2021 represents the net income tax impacts of (1), (2), and (4), and the removal of a benefit from income tax related to the partial release of a valuation allowance. |
|
|
Year Ended
|
|
|||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||||||||||
|
|
As Reported |
|
|
Adjustments |
|
|
Adjusted |
|
|
As Reported |
|
|
Adjustments |
|
|
Adjusted |
|
||||||
Gross profit (1) |
|
$ |
364.5 |
|
|
$ |
3.3 |
|
|
$ |
367.8 |
|
|
$ |
307.2 |
|
|
$ |
2.3 |
|
|
$ |
309.5 |
|
Engineering, selling and administrative expenses (2) |
|
|
(281.0 |
) |
|
|
(4.3 |
) |
|
|
(285.3 |
) |
|
|
(258.5 |
) |
|
|
19.5 |
|
|
|
(239.0 |
) |
Asset impairment expense (3) |
|
|
(171.9 |
) |
|
|
171.9 |
|
|
|
— |
|
|
|
(1.9 |
) |
|
|
1.9 |
|
|
|
— |
|
Amortization of intangible assets |
|
|
(3.1 |
) |
|
|
— |
|
|
|
(3.1 |
) |
|
|
(1.4 |
) |
|
|
— |
|
|
|
(1.4 |
) |
Restructuring income (expense) (4) |
|
|
(1.5 |
) |
|
|
1.5 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
(1.1 |
) |
|
|
— |
|
Operating income (loss) |
|
|
(93.0 |
) |
|
|
172.4 |
|
|
|
79.4 |
|
|
|
46.5 |
|
|
|
22.6 |
|
|
|
69.1 |
|
Interest expense |
|
|
(31.6 |
) |
|
|
— |
|
|
|
(31.6 |
) |
|
|
(28.9 |
) |
|
|
— |
|
|
|
(28.9 |
) |
Amortization of deferred financing fees |
|
|
(1.4 |
) |
|
|
— |
|
|
|
(1.4 |
) |
|
|
(1.5 |
) |
|
|
— |
|
|
|
(1.5 |
) |
Other income - net (5) |
|
|
5.8 |
|
|
|
0.5 |
|
|
|
6.3 |
|
|
|
1.0 |
|
|
|
0.6 |
|
|
|
1.6 |
|
Income (loss) before income taxes |
|
|
(120.2 |
) |
|
|
172.9 |
|
|
|
52.7 |
|
|
|
17.1 |
|
|
|
23.2 |
|
|
|
40.3 |
|
Provision for income taxes (6) |
|
|
(3.4 |
) |
|
|
(11.5 |
) |
|
|
(14.9 |
) |
|
|
(6.1 |
) |
|
|
(3.6 |
) |
|
|
(9.7 |
) |
Net income (loss) |
|
$ |
(123.6 |
) |
|
$ |
161.4 |
|
|
$ |
37.8 |
|
|
$ |
11.0 |
|
|
$ |
19.6 |
|
|
$ |
30.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted average common shares outstanding |
|
|
35,184,336 |
|
|
|
|
|
|
35,496,471 |
|
|
|
35,452,555 |
|
|
|
|
|
|
35,452,555 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted income (loss) per common share |
|
$ |
(3.51 |
) |
|
|
|
|
$ |
1.06 |
|
|
$ |
0.31 |
|
|
|
|
|
$ |
0.86 |
|
||
| (1) | The adjustment in 2022 represents the fair value step up of rental fleet assets sold during the period that were expensed within cost of sales and other one-time costs associated with the acquired businesses. The adjustment in 2021 represents the add back of certain purchase accounting impacts from the acquisitions. |
|
| (2) | The adjustment in 2022 represents one-time costs associated with the acquired businesses, the partial recovery of the previously written off long-term note receivable from the 2014 divestiture of the Company's Chinese joint venture, and other one-time charges. The adjustment in 2021 represents the addback of a loss from the write-off of a long-term note receivable from the 2014 divestiture of the Company's Chinese joint venture, one-time acquisition related costs, and costs associated with a legal matter with the U.S. EPA. |
|
| (3) | The adjustment in 2022 represents non-cash asset impairment charges. The adjustment in 2021 represents a write-down of one of the Company’s Brazilian entities to its expected sale price. |
|
| (4) | Represents adjustments for restructuring income (expense). |
|
| (5) | The adjustment in 2022 represents the write-off of other debt related costs. The adjustment in 2021 represents costs associated with a legal matter. |
|
| (6) | The adjustment in 2022 represents the net income tax impacts of items (1), (2), (3), (4), and (5), the removal of income tax benefits from the release of a U.S. Federal uncertain tax position and partial release of a valuation allowance, and establishment of a valuation allowance due to the Company's curtailment of operations in Russia. The adjustment in 2021 represents the net income tax impacts of items (1), (2), (3), (4), and (5), and the removal of a benefit from income tax related to the partial release of a valuation allowance. |
Free Cash Flows
The Company defines free cash flows as net cash provided by operating activities less cash flow from investment in capital expenditures. The reconciliation of net cash provided by operating activities to free cash flows for the three months ended and year ended December 31, 2022 and 2021 are summarized as follows. All dollar amounts are in millions.
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net cash provided by operating activities |
|
$ |
80.2 |
|
|
$ |
8.2 |
|
|
$ |
76.9 |
|
|
$ |
76.2 |
|
Capital expenditures |
|
|
(30.0 |
) |
|
|
(18.1 |
) |
|
|
(61.8 |
) |
|
|
(40.4 |
) |
Free cash flows |
|
$ |
50.2 |
|
|
$ |
(9.9 |
) |
|
$ |
15.1 |
|
|
$ |
35.8 |
|
EBITDA, Adjusted EBITDA, and Adjusted Operating Income
The Company defines EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. The Company defines adjusted EBITDA as EBITDA plus the addback or subtraction of restructuring, other income, and certain other charges. The Company defines adjusted operating income as operating income (loss) plus the addback or subtraction of restructuring and certain other charges. The reconciliation of net income (loss) to EBITDA, and further to adjusted EBITDA and to adjusted operating income and operating income (loss) for the three months ended and year ended December 31, 2022 and 2021, are summarized as follows.
Ion Warner
SVP, Marketing and Investor Relations
+1 414-760-4805
Projects at Braidwood, Byron nuclear plants will result in additional carbon-free electricity with capacity to power the equivalent of 100,000 homes 24/7/365
BALTIMORE--(BUSINESS WIRE)--Constellation (Nasdaq: CEG), the largest producer of carbon-free energy in the U.S., said today it will invest $800 million in new equipment to increase the output of its Braidwood and Byron Generating Stations in Illinois by approximately 135 megawatts, enough to power the equivalent of 100,000 average homes around the clock every year. The additional always-on, carbon-free power generated will result in the equivalent of removing 171,000 gas-powered vehicles from the road per year, or the equivalent of adding 216 intermittent wind turbines to the grid, using Environmental Protection Agency data.
The project is expected to create work for thousands of skilled union workers during construction while expanding economic activity for surrounding businesses in the plant communities. The additional jobs come on top of the 1,200 permanent workers at the two plants.
“These investments in our world class nuclear fleet will allow us to generate more zero-carbon energy with the same amount of fuel and land, and that’s a win for the economy, the environment and Illinois families and businesses who rely on our clean energy,” said Joe Dominguez, president and CEO of Constellation. “These projects will help create family-sustaining jobs and are a direct result of state and federal policies that recognize the incredible value of nuclear energy in addressing the climate crisis while keeping our grid secure and reliable.”
Braidwood and Byron were among the Illinois nuclear plants saved from premature retirement by passage of the state Climate and Equitable Jobs Act in 2021. Since then, Congress passed the Inflation Reduction Act (IRA) last year, which provides a base level of support for nuclear energy nationwide. Both pieces of legislation have enabled renewed investment in nuclear energy.
Support for nuclear in the IRA has made extending the lives of U.S. nuclear assets to 80 years more likely assuming continued support. It has caused Constellation to examine nuclear uprate opportunities that were cancelled a decade ago due to market forces. The 45Y tax credit for the production of new carbon-free electricity helps make these investments economic.
The Braidwood and Byron projects involve replacing the main turbines at the two facilities with state-of-the-art, high efficiency units that are expected to add approximately 135 carbon-free megawatts of output at the nuclear plants. Constellation expects to see increased output at the stations as early as 2026, with the full uprated output available by 2029. Work on the uprates will occur in stages during scheduled refueling outages.
The Illinois uprates come on the heels of Constellation’s announcement of significant progress at its clean hydrogen project at Nine Mile Point Generating Station in upstate New York, and the start of work on operating license renewals at the Clinton and Dresden nuclear plants in Illinois.
“It is gratifying to see new long-term projects at our nuclear facilities getting the green light. This is an exciting time for our industry as we continue our investment in the future of our plants,” said Dave Rhoades, chief nuclear officer, Constellation. “Our workers stand at the ready to welcome new employees for these projects as we continue building upon creative new efforts that provide additional clean energy to the communities we serve across the nation.”
About Constellation
Headquartered in Baltimore, Constellation Energy Corporation (Nasdaq: CEG) is the nation’s largest producer of clean, carbon-free energy and a leading supplier of energy products and services to businesses, homes, community aggregations and public sector customers across the continental United States, including three fourths of Fortune 100 companies. With annual output that is nearly 90 percent carbon-free, our hydro, wind and solar facilities paired with the nation’s largest nuclear fleet have the generating capacity to power the equivalent of 15 million homes, providing 10 percent of the nation’s clean energy. We are further accelerating the nation’s transition to a carbon-free future by helping our customers reach their sustainability goals, setting our own ambitious goal of achieving 100 percent carbon-free generation by 2040, and by investing in promising emerging technologies to eliminate carbon emissions across all sectors of the economy. Follow Constellation on LinkedIn and Twitter.
Paul Dempsey
Constellation Communications
815-409-1260
This email address is being protected from spambots. You need JavaScript enabled to view it.
HOUSTON--(BUSINESS WIRE)--Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX) announced today that its Board of Directors has authorized a repurchase program for up to $200 million of Helix’s issued and outstanding shares.
Owen Kratz, President and Chief Executive Officer of Helix, stated, “We view this program as a prudent use of our capital and an excellent opportunity to deploy cash to shareholders. We expect to generally align execution of the program with our cash flow generation. With a strong balance sheet, ample liquidity, a robust offshore services market recovery, and our current expectation that we will generate strong cash flows, the share repurchase program should allow us to increase shareholder value while maintaining adequate cash and liquidity to fund our operations and investment opportunities.”
Repurchases under the new program may be made in open market purchases in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), privately negotiated transactions, or plans, instructions or contracts established under Rule 10b5-1 of the Exchange Act. The manner, timing and amount of any purchase will be determined by management based on an evaluation of market conditions, stock prices, liquidity and other factors. The program does not obligate Helix to acquire any particular amount of common stock and may be modified or superseded at any time.
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, robotics and full-field decommissioning operations. Our services are centered on a three-legged business model well positioned to facilitate global energy transition by maximizing production of remaining oil and gas reserves, supporting renewable energy developments and decommissioning end-of-life oil and gas fields. 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: our share repurchase authorization or program; the COVID-19 pandemic and oil price volatility and their respective effects and results; our protocols and plans; our current work continuing; the spot market; our ability to identify, effect and integrate acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition; our spending and cost reduction plans and our ability to manage changes; our strategy; visibility and future utilization; energy transition or energy security; any projections of financial items including projections as to guidance and other outlook information; future operations expenditures; our plans, strategies and objectives for future operations; our ability to enter into, renew and/or perform commercial contracts; developments; our environmental, social and governance (“ESG”) initiatives; 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 the COVID-19 pandemic and actions by governments, 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 ability to secure and realize backlog; the effectiveness of our ESG initiatives and disclosures; human capital 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 law.
Erik Staffeldt, Executive Vice President and CFO
Ph: 281-618-0465
email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Company works with multiple non-profit organizations and governments to respond to ongoing crisis using FedEx global network and logistics expertise including six charter flights
MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) continues to support those affected by the catastrophic earthquakes that have devastated Southern Turkey and Northern Syria, committing more than $1,000,000 (USD) worth of in-kind shipping so far. Overnight, the company chartered a FedEx MD-11 of dedicated relief from Dubai, UAE, to Istanbul, Turkey. This was the fifth consecutive flight taking place from February 17 to 21 delivering approximately 230 metric tonnes of relief supplies including tents, blankets, baby items, household supplies, and hygiene kits from the International Federation of Red Cross and Red Crescent Societies (IFRC).
“FedEx is committed to helping the many communities impacted by the earthquakes during this incredibly difficult time,” FedEx President and CEO Raj Subramaniam said. “We are inspired by the heroic work of first responders and humanitarian organizations and grateful to use our global network to donate flights, logistics support, and aid to advance recovery, rebuilding, and relief in the region.”
To date, FedEx has also been able to help other non-profit organizations and governments respond during this crisis by utilizing its global network and logistics expertise.
FedEx continues to provide relief to regions impacted by natural disasters. FedEx relief moved for IFRC, GlobalMedic, and World Central Kitchen was a part of the company’s FedEx Cares “Delivering for Good” initiative, in which FedEx lends its global network and unparalleled logistics expertise to organizations with mission-critical needs and helps communities before, during and after crises. Learn more at FedExCares.com.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $94 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 550,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.
Chelsea Satkowiak
901-434-8100
Full Year 2022 Highlights and 2023 Guidance
HOUSTON--(BUSINESS WIRE)--Forum Energy Technologies, Inc. (NYSE: FET) today announced fourth quarter 2022 revenue of $191 million, a $9 million increase from the third quarter 2022. Orders received were $215 million, with a book-to-bill ratio of 113%. The fourth quarter net loss was $13 million, or $2.22 per diluted share, compared to net income of $17 million, or $1.82 per diluted share, for the third quarter 2022. Excluding $10 million, or $1.77 per share, for special items, adjusted net loss was $0.45 per diluted share, compared to an adjusted net loss of $0.25 per diluted share in the third quarter.
Special items in the quarter, on a pre-tax basis, included $14 million of foreign exchange losses, $3 million of restructuring, transaction and other costs and $7 million of gain on our previously announced sale-leaseback transaction. See Tables 1-6 for a reconciliation of GAAP to non-GAAP financial information.
Neal Lux, President and Chief Executive Officer, remarked, “Activity increased across all seven product lines and 5% sequential fourth quarter revenue growth exceeded the increase in rig count. In addition, FET secured strong bookings of $215 million and backlog is at its highest level since the fourth quarter of 2018. Incremental profitability was negatively impacted by elevated project costs in the Subsea Technologies and Coiled Tubing product lines, and additional freight expense. Despite these challenges, adjusted EBITDA of $17 million was within our formal guidance range. Strong fourth quarter free cash flow of $45 million benefited from the November 2022 sale-leaseback transaction and continued working capital efficiency.
“On a full year basis, adjusted EBITDA of $59 million was at the upper end of the guidance we provided in February 2022. Our impressive 194% adjusted EBITDA growth rate was among the best of FET's peer group. In addition, our asset-lite business generated $34 million of cash flow from operations in the second half of the year. Finally, in December 2022, FET satisfied the mandatory conversion requirements under our 9.00% Convertible Senior Secured Notes. As a result, in January, our long-term debt was reduced by 47.8%, and our year-end leverage ratio decreased from 3.5x to 1.4x, proforma for the conversion. These strong results reflect our team’s elite performance, hard work, and dedication to the strategy we adopted at the beginning of the year.
“Looking ahead, on-going global supply and demand imbalances for commodities are creating long-term opportunities for energy investment that will benefit FET. Given the industry’s focus on profitability and shareholder returns, we anticipate modest U.S. rig count growth during 2023. However, equipment utilization and service intensity are expected to remain at extremely high levels. In addition, offshore and international market activity growth, particularly in the Middle East and Latin America, should accelerate in 2023 and serve as the engine that sustains a multi-year investment cycle. With these assumptions, our EBITDA guidance range for 2023 is $80 to $100 million.”
Segment Results (unless otherwise noted, comparisons are fourth quarter 2022 versus third quarter 2022)
Drilling & Downhole segment revenue was $81 million, a 7% increase driven by higher demand for our drilling capital equipment. Orders were $87 million, a 19% increase, which included significant orders in our Drilling Technologies product line for new drilling rigs and upgrade projects. Segment adjusted EBITDA was $11 million, a $2 million decrease primarily related to increased project costs on a Subsea project and increased freight costs. Drilling & Downhole operations focus primarily on capital equipment and consumable products for global well construction, artificial lift and subsea markets.
Completions segment revenue was $74 million, a 3% increase, primarily due to higher demand for pressure control equipment, power ends, and radiators to support increased hydraulic fracturing activity. Orders were $81 million, a 3% increase. Segment adjusted EBITDA was $9 million, down $1 million, as higher revenues were offset by line pipe project costs in Coiled Tubing, sales mix, and higher freight costs. The Completions segment designs and manufactures products for the coiled tubing, wireline and stimulation markets.
Production segment revenue was $36 million, a 5% increase, primarily due to higher shipments of production equipment. Orders were $47 million and comparable to the third quarter. Segment adjusted EBITDA was $2 million, up $1 million, due to favorable sales mix and increased volume in the Production Equipment product line. The Production segment manufactures land well site production equipment, desalination process equipment, and a wide range of valves for upstream, midstream and process industry customers.
Forum Energy Technologies, Inc. ("FET") is a global company, serving the crude oil, natural gas, and renewable energy industries. FET provides value added solutions that increase the safety and efficiency of energy exploration and production. We are an environmentally and socially responsible company headquartered in Houston, TX with manufacturing, distribution, and service facilities strategically located throughout the world. For more information, please visit www.f-e-t.com.
Non-GAAP Financial Measures
The Company presents its financial results in accordance with GAAP. However, management believes that non-GAAP measures are useful tools for evaluating the Company's overall financial performance. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for those prepared in accordance with GAAP and should, therefore, be considered only as a supplement. Please see the attached schedules for reconciliations between GAAP and the non-GAAP financial measures used in this press release.
Forward Looking Statements and Other Legal Disclosure
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the company, including any statement about the company's future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, new product development activities, costs and other guidance included in this press release.
These statements are based on certain assumptions made by the company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Among other things, these include the severity and duration of the COVID-19 pandemic and related repercussions resulting from the negative impact on demand for oil and natural gas, the volatility of oil and natural gas prices, oilfield development activity levels, the availability of raw materials and specialized equipment, the company's ability to deliver backlog in a timely fashion, the availability of skilled and qualified labor, competition in the oil and natural gas industry, governmental regulation and taxation of the oil and natural gas industry, the company's ability to implement new technologies and services, the availability and terms of capital, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the company's business, and other important factors that could cause actual results to differ materially from those projected as described in the company's filings with the U.S. Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made, and the company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Forum Energy Technologies, Inc. |
||||||||||||
Condensed consolidated statements of net income (loss) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three months ended |
||||||||||
|
|
December 31, |
|
September 30, |
||||||||
(in millions of dollars, except per share information) |
|
2022 |
|
2021 |
|
2022 |
||||||
Revenues |
|
$ |
190.7 |
|
|
$ |
148.1 |
|
|
$ |
181.8 |
|
Cost of sales |
|
|
140.7 |
|
|
|
118.0 |
|
|
|
130.4 |
|
Gross profit |
|
|
50.0 |
|
|
|
30.1 |
|
|
|
51.4 |
|
Operating expenses |
|
|
|
|
|
|
||||||
Selling, general and administrative expenses |
|
|
48.0 |
|
|
|
42.9 |
|
|
|
43.7 |
|
Gain on sale-leaseback transactions |
|
|
(7.0 |
) |
|
|
— |
|
|
|
— |
|
Loss (gain) on disposal of assets and other |
|
|
(0.3 |
) |
|
|
0.3 |
|
|
|
— |
|
Total operating expenses |
|
|
40.7 |
|
|
|
43.2 |
|
|
|
43.7 |
|
Operating income (loss) |
|
|
9.3 |
|
|
|
(13.1 |
) |
|
|
7.7 |
|
Other expense (income) |
|
|
|
|
|
|
||||||
Interest expense |
|
|
7.9 |
|
|
|
7.9 |
|
|
|
8.1 |
|
Foreign exchange losses (gains) and other, net |
|
|
12.5 |
|
|
|
1.7 |
|
|
|
(18.2 |
) |
Total other (income) expense, net |
|
|
20.4 |
|
|
|
9.6 |
|
|
|
(10.1 |
) |
Income (loss) before income taxes |
|
|
(11.1 |
) |
|
|
(22.7 |
) |
|
|
17.8 |
|
Income tax expense (benefit) |
|
|
1.7 |
|
|
|
(3.1 |
) |
|
|
1.3 |
|
Net income (loss) (1) |
|
$ |
(12.8 |
) |
|
$ |
(19.6 |
) |
|
$ |
16.5 |
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding |
|
|
|
|
|
|
||||||
Basic |
|
|
5.8 |
|
|
|
5.7 |
|
|
|
5.8 |
|
Diluted |
|
|
5.8 |
|
|
|
5.7 |
|
|
|
10.6 |
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per share |
|
|
|
|
|
|
||||||
Basic |
|
$ |
(2.22 |
) |
|
$ |
(3.46 |
) |
|
$ |
2.85 |
|
Diluted |
|
$ |
(2.22 |
) |
|
$ |
(3.46 |
) |
|
$ |
1.82 |
|
|
|
|
|
|
|
|
||||||
(1) Refer to Table 1 for schedule of adjusting items. |
||||||||||||
Forum Energy Technologies, Inc. |
||||||||
Condensed consolidated statements of net income (loss) |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
|
|
Year ended |
||||||
|
|
December 31, |
||||||
(in millions of dollars, except per share information) |
|
2022 |
|
2021 |
||||
Revenues |
|
$ |
699.9 |
|
|
$ |
541.1 |
|
Cost of sales |
|
|
511.4 |
|
|
|
417.8 |
|
Gross profit |
|
|
188.5 |
|
|
|
123.3 |
|
Operating expenses |
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
179.5 |
|
|
|
168.9 |
|
Gain on sale-leaseback transactions |
|
|
(7.0 |
) |
|
|
— |
|
Gain on disposal of assets and other |
|
|
(1.3 |
) |
|
|
(1.1 |
) |
Total operating expenses |
|
|
171.2 |
|
|
|
167.8 |
|
Operating income (loss) |
|
|
17.3 |
|
|
|
(44.5 |
) |
Other expense (income) |
|
|
|
|
||||
Interest expense |
|
|
31.5 |
|
|
|
32.0 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
5.3 |
|
Foreign exchange losses (gains) and other, net |
|
|
(24.5 |
) |
|
|
0.2 |
|
Total other expense |
|
|
7.0 |
|
|
|
37.5 |
|
Income (loss) before income taxes |
|
|
10.3 |
|
|
|
(82.0 |
) |
Income tax expense |
|
|
6.6 |
|
|
|
0.7 |
|
Net income (loss) (1) |
|
$ |
3.7 |
|
|
$ |
(82.7 |
) |
|
|
|
|
|
||||
Weighted average shares outstanding |
|
|
|
|
||||
Basic |
|
|
5.7 |
|
|
|
5.6 |
|
Diluted |
|
|
6.0 |
|
|
|
5.6 |
|
|
|
|
|
|
||||
Earnings (loss) per share |
|
|
|
|
||||
Basic |
|
$ |
0.65 |
|
|
$ |
(14.65 |
) |
Diluted |
|
$ |
0.62 |
|
|
$ |
(14.65 |
) |
|
|
|
|
|
||||
(1) Refer to Table 2 for schedule of adjusting items. |
||||||||
Forum Energy Technologies, Inc. |
||||||
Condensed consolidated balance sheets |
||||||
(Unaudited) |
||||||
|
|
|
|
|
||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
||
Assets |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
51.0 |
|
$ |
46.9 |
Accounts receivable—trade, net |
|
|
154.2 |
|
|
123.9 |
Inventories, net |
|
|
269.8 |
|
|
241.7 |
Other current assets |
|
|
37.9 |
|
|
34.2 |
Total current assets |
|
|
512.9 |
|
|
446.7 |
Property and equipment, net of accumulated depreciation |
|
|
63.0 |
|
|
94.0 |
Operating lease assets |
|
|
53.8 |
|
|
25.4 |
Intangibles, net |
|
|
191.5 |
|
|
217.4 |
Other long-term assets |
|
|
10.1 |
|
|
7.8 |
Total assets |
|
$ |
831.3 |
|
$ |
791.3 |
Liabilities and equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Current portion of long-term debt |
|
$ |
0.8 |
|
$ |
0.9 |
Other current liabilities |
|
|
209.7 |
|
|
174.8 |
Total current liabilities |
|
|
210.5 |
|
|
175.7 |
Long-term debt, net of current portion |
|
|
239.1 |
|
|
232.4 |
Other long-term liabilities |
|
|
74.6 |
|
|
54.1 |
Total liabilities |
|
|
524.2 |
|
|
462.2 |
Total equity |
|
|
307.1 |
|
|
329.1 |
Total liabilities and equity |
|
$ |
831.3 |
|
$ |
791.3 |
Forum Energy Technologies, Inc. |
||||||||
Condensed consolidated cash flow information |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Year ended |
||||||
|
|
December 31, |
||||||
(in millions of dollars) |
|
2022 |
|
2021 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
3.7 |
|
|
$ |
(82.7 |
) |
Depreciation and amortization |
|
|
37.1 |
|
|
|
42.2 |
|
Inventory write downs |
|
|
2.7 |
|
|
|
8.1 |
|
Gain on sale-leaseback transactions |
|
|
(7.0 |
) |
|
|
— |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
5.3 |
|
Other noncash items and changes in working capital |
|
|
(53.6 |
) |
|
|
11.3 |
|
Net cash used in operating activities |
|
|
(17.1 |
) |
|
|
(15.8 |
) |
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures for property and equipment |
|
|
(7.5 |
) |
|
|
(2.4 |
) |
Proceeds from sale of business |
|
|
— |
|
|
|
(1.3 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(0.5 |
) |
|
|
(3.4 |
) |
Proceeds from settlement of note receivable |
|
|
— |
|
|
|
10.8 |
|
Proceeds from sale-leaseback transactions |
|
|
32.1 |
|
|
|
— |
|
Proceeds from the sale of property and equipment |
|
|
3.0 |
|
|
|
7.0 |
|
Net cash provided by investing activities |
|
|
27.1 |
|
|
|
10.7 |
|
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Borrowings of debt |
|
|
556.6 |
|
|
|
— |
|
Repayments of debt |
|
|
(557.8 |
) |
|
|
(14.6 |
) |
Cash paid to repurchase 2025 Notes |
|
|
— |
|
|
|
(58.6 |
) |
Repurchases of stock |
|
|
(3.8 |
) |
|
|
(1.4 |
) |
Deferred financing costs |
|
|
— |
|
|
|
(1.6 |
) |
Net cash used in investing activities |
|
|
(5.0 |
) |
|
|
(76.2 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(0.8 |
) |
|
|
(0.5 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
$ |
4.2 |
|
|
$ |
(81.8 |
) |
Forum Energy Technologies, Inc. |
||||||||||||||||||||||||
Supplemental schedule - Segment information |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
As Reported |
|
As Adjusted (3) |
||||||||||||||||||||
|
|
Three months ended |
|
Three months ended |
||||||||||||||||||||
(in millions of dollars) |
|
December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
September 30, |
||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling & Downhole |
|
$ |
81.1 |
|
|
$ |
66.5 |
|
|
$ |
75.7 |
|
|
$ |
81.1 |
|
|
$ |
66.5 |
|
|
$ |
75.7 |
|
Completions |
|
|
74.1 |
|
|
|
51.0 |
|
|
|
72.2 |
|
|
|
74.1 |
|
|
|
51.0 |
|
|
|
72.2 |
|
Production |
|
|
35.9 |
|
|
|
30.9 |
|
|
|
34.2 |
|
|
|
35.9 |
|
|
|
30.9 |
|
|
|
34.2 |
|
Eliminations |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
Total revenues |
|
$ |
190.7 |
|
|
$ |
148.1 |
|
|
$ |
181.8 |
|
|
$ |
190.7 |
|
|
$ |
148.1 |
|
|
$ |
181.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling & Downhole |
|
$ |
8.2 |
|
|
$ |
2.5 |
|
|
$ |
9.5 |
|
|
$ |
8.1 |
|
|
$ |
2.7 |
|
|
$ |
9.8 |
|
Operating margin % |
|
|
10.1 |
% |
|
|
3.8 |
% |
|
|
12.5 |
% |
|
|
10.0 |
% |
|
|
4.1 |
% |
|
|
12.9 |
% |
Completions |
|
|
2.8 |
|
|
|
(4.5 |
) |
|
|
5.9 |
|
|
|
3.8 |
|
|
|
(0.7 |
) |
|
|
4.8 |
|
Operating margin % |
|
|
3.8 |
% |
|
|
(8.8 |
)% |
|
|
8.2 |
% |
|
|
5.1 |
% |
|
|
(1.4 |
)% |
|
|
6.6 |
% |
Production |
|
|
0.8 |
|
|
|
(3.1 |
) |
|
|
0.7 |
|
|
|
0.9 |
|
|
|
(3.0 |
) |
|
|
0.6 |
|
Operating margin % |
|
|
2.2 |
% |
|
|
(10.0 |
)% |
|
|
2.0 |
% |
|
|
2.5 |
% |
|
|
(9.7 |
)% |
|
|
1.8 |
% |
Corporate |
|
|
(9.8 |
) |
|
|
(7.7 |
) |
|
|
(8.4 |
) |
|
|
(7.1 |
) |
|
|
(6.9 |
) |
|
|
(7.3 |
) |
Total segment operating income (loss) |
|
|
2.0 |
|
|
|
(12.8 |
) |
|
|
7.7 |
|
|
|
5.7 |
|
|
|
(7.9 |
) |
|
|
7.9 |
|
Other items not in segment operating income (loss) (1) |
|
|
7.3 |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
— |
|
Total operating income (loss) |
|
$ |
9.3 |
|
|
$ |
(13.1 |
) |
|
$ |
7.7 |
|
|
$ |
6.0 |
|
|
$ |
(8.0 |
) |
|
$ |
7.9 |
|
Operating margin % |
|
|
4.9 |
% |
|
|
(8.8 |
)% |
|
|
4.2 |
% |
|
|
3.1 |
% |
|
|
(5.4 |
)% |
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling & Downhole |
|
$ |
5.8 |
|
|
$ |
4.1 |
|
|
$ |
27.8 |
|
|
$ |
11.2 |
|
|
$ |
6.2 |
|
|
$ |
12.8 |
|
EBITDA margin % |
|
|
7.2 |
% |
|
|
6.2 |
% |
|
|
36.7 |
% |
|
|
13.8 |
% |
|
|
9.3 |
% |
|
|
16.9 |
% |
Completions |
|
|
8.1 |
|
|
|
1.0 |
|
|
|
12.1 |
|
|
|
9.4 |
|
|
|
4.9 |
|
|
|
10.3 |
|
EBITDA margin % |
|
|
10.9 |
% |
|
|
2.0 |
% |
|
|
16.8 |
% |
|
|
12.7 |
% |
|
|
9.6 |
% |
|
|
14.3 |
% |
Production |
|
|
1.5 |
|
|
|
(2.0 |
) |
|
|
1.5 |
|
|
|
1.7 |
|
|
|
(1.7 |
) |
|
|
1.2 |
|
EBITDA margin % |
|
|
4.2 |
% |
|
|
(6.5 |
)% |
|
|
4.4 |
% |
|
|
4.7 |
% |
|
|
(5.5 |
)% |
|
|
3.5 |
% |
Corporate |
|
|
(9.8 |
) |
|
|
(7.7 |
) |
|
|
(6.4 |
) |
|
|
(5.8 |
) |
|
|
(5.2 |
) |
|
|
(6.5 |
) |
Total EBITDA |
|
$ |
5.6 |
|
|
$ |
(4.6 |
) |
|
$ |
35.0 |
|
|
$ |
16.5 |
|
|
$ |
4.2 |
|
|
$ |
17.8 |
|
EBITDA margin % |
|
|
2.9 |
% |
|
|
(3.1 |
)% |
|
|
19.3 |
% |
|
|
8.7 |
% |
|
|
2.8 |
% |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Includes gain on sale-leaseback transaction and gain on disposal of assets and other. |
||||||||||||||||||||||||
(2) The Company believes that the presentation of EBITDA is useful to the Company's investors because EBITDA is an appropriate measure of evaluating the Company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, EBITDA is a widely used benchmark in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information. |
||||||||||||||||||||||||
(3) Refer to Table 1 for schedule of adjusting items. |
||||||||||||||||||||||||
Forum Energy Technologies, Inc. |
||||||||||||||||
Supplemental schedule - Segment information |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
As Reported |
|
As Adjusted (3) |
||||||||||||
|
|
Year ended |
|
Year ended |
||||||||||||
(in millions of dollars) |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Drilling & Downhole |
|
$ |
304.6 |
|
|
$ |
239.9 |
|
|
$ |
304.6 |
|
|
$ |
239.9 |
|
Completions |
|
|
265.0 |
|
|
|
185.0 |
|
|
|
265.0 |
|
|
|
185.0 |
|
Production |
|
|
131.5 |
|
|
|
116.7 |
|
|
|
131.5 |
|
|
|
116.7 |
|
Eliminations |
|
|
(1.2 |
) |
|
|
(0.5 |
) |
|
|
(1.2 |
) |
|
|
(0.5 |
) |
Total revenues |
|
$ |
699.9 |
|
|
$ |
541.1 |
|
|
$ |
699.9 |
|
|
$ |
541.1 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
||||||||
Drilling & Downhole |
|
$ |
32.2 |
|
|
$ |
4.7 |
|
|
$ |
32.5 |
|
|
$ |
9.9 |
|
Operating margin % |
|
|
10.6 |
% |
|
|
2.0 |
% |
|
|
10.7 |
% |
|
|
4.1 |
% |
Completions |
|
|
11.6 |
|
|
|
(4.5 |
) |
|
|
11.0 |
|
|
|
(2.1 |
) |
Operating margin % |
|
|
4.4 |
% |
|
|
(2.4 |
)% |
|
|
4.2 |
% |
|
|
(1.1 |
)% |
Production |
|
|
(0.4 |
) |
|
|
(14.4 |
) |
|
|
(0.3 |
) |
|
|
(12.2 |
) |
Operating margin % |
|
|
(0.3 |
)% |
|
|
(12.3 |
)% |
|
|
(0.2 |
)% |
|
|
(10.5 |
)% |
Corporate |
|
|
(34.3 |
) |
|
|
(31.3 |
) |
|
|
(26.5 |
) |
|
|
(25.6 |
) |
Total segment operating income (loss) |
|
|
9.1 |
|
|
|
(45.5 |
) |
|
|
16.7 |
|
|
|
(30.0 |
) |
Other items not in segment operating income (loss) (1) |
|
|
8.2 |
|
|
|
1.0 |
|
|
|
0.6 |
|
|
|
— |
|
Total operating income (loss) |
|
$ |
17.3 |
|
|
$ |
(44.5 |
) |
|
$ |
17.3 |
|
|
$ |
(30.0 |
) |
Operating margin % |
|
|
2.5 |
% |
|
|
(8.2 |
)% |
|
|
2.5 |
% |
|
|
(5.5 |
)% |
|
|
|
|
|
|
|
|
|
||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
||||||||
Drilling & Downhole |
|
$ |
72.8 |
|
|
$ |
18.4 |
|
|
$ |
45.2 |
|
|
$ |
25.3 |
|
EBITDA margin % |
|
|
23.9 |
% |
|
|
7.7 |
% |
|
|
14.8 |
% |
|
|
10.5 |
% |
Completions |
|
|
34.2 |
|
|
|
19.5 |
|
|
|
33.3 |
|
|
|
21.0 |
|
EBITDA margin % |
|
|
12.9 |
% |
|
|
10.5 |
% |
|
|
12.6 |
% |
|
|
11.4 |
% |
Production |
|
|
3.4 |
|
|
|
(9.3 |
) |
|
|
2.9 |
|
|
|
(7.0 |
) |
EBITDA margin % |
|
|
2.6 |
% |
|
|
(8.0 |
)% |
|
|
2.2 |
% |
|
|
(6.0 |
)% |
Corporate |
|
|
(31.5 |
) |
|
|
(36.4 |
) |
|
|
(22.7 |
) |
|
|
(19.3 |
) |
Total EBITDA |
|
$ |
78.9 |
|
|
$ |
(7.8 |
) |
|
$ |
58.7 |
|
|
$ |
20.0 |
|
EBITDA margin % |
|
|
11.3 |
% |
|
|
(1.4 |
)% |
|
|
8.4 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes gain on sale-leaseback transaction and gain on disposal of assets and other. |
||||||||||||||||
(2) The Company believes that the presentation of EBITDA is useful to the Company's investors because EBITDA is an appropriate measure of evaluating the Company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, EBITDA is a widely used benchmark in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information. |
||||||||||||||||
(3) Refer to Table 2 for schedule of adjusting items. |
||||||||||||||||
Forum Energy Technologies, Inc. |
||||||||||||
Supplemental schedule - Orders information |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three months ended |
||||||||||
(in millions of dollars) |
|
December 31, |
|
December 31, |
|
September 30, |
||||||
Orders |
|
|
|
|
|
|
||||||
Drilling & Downhole |
|
$ |
87.2 |
|
|
$ |
60.8 |
|
|
$ |
73.3 |
|
Completions |
|
|
81.4 |
|
|
|
52.8 |
|
|
|
78.7 |
|
Production |
|
|
46.5 |
|
|
|
46.1 |
|
|
|
45.7 |
|
Total orders |
|
$ |
215.1 |
|
|
$ |
159.7 |
|
|
$ |
197.7 |
|
|
|
|
|
|
|
|
||||||
Revenues |
|
|
|
|
|
|
||||||
Drilling & Downhole |
|
$ |
81.1 |
|
|
$ |
66.5 |
|
|
$ |
75.7 |
|
Completions |
|
|
74.1 |
|
|
|
51.0 |
|
|
|
72.2 |
|
Production |
|
|
35.9 |
|
|
|
30.9 |
|
|
|
34.2 |
|
Eliminations |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
Total revenues |
|
$ |
190.7 |
|
|
$ |
148.1 |
|
|
$ |
181.8 |
|
|
|
|
|
|
|
|
||||||
Book to bill ratio (1) |
|
|
|
|
|
|
||||||
Drilling & Downhole |
|
|
1.08 |
|
|
|
0.91 |
|
|
|
0.97 |
|
Completions |
|
|
1.10 |
|
|
|
1.04 |
|
|
|
1.09 |
|
Production |
|
|
1.30 |
|
|
|
1.49 |
|
|
|
1.34 |
|
Total book to bill ratio |
|
|
1.13 |
|
|
|
1.08 |
|
|
|
1.09 |
|
|
|
|
|
|
|
|
||||||
(1) The book-to-bill ratio is calculated by dividing the dollar value of orders received in a given period by the revenue earned in that same period. The Company believes that this ratio is useful to investors because it provides an indication of whether the demand for our products, in the markets in which the Company operates, is strengthening or declining. A ratio of greater than one is indicative of improving market demand, while a ratio of less than one would suggest weakening demand. In addition, the Company believes the book-to-bill ratio provides more meaningful insight into future revenues for our business than other measures, such as order backlog, because the majority of the Company's products are activity based consumable items or shorter cycle capital equipment, neither of which are typically ordered by customers far in advance. |
||||||||||||
Forum Energy Technologies, Inc. |
|||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to non-GAAP financial information |
|||||||||||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||||||||||
Table 1 - Adjusting items |
|||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||
|
Three months ended |
||||||||||||||||||||||||||||||||||
|
December 31, 2022 |
|
December 31, 2021 |
|
September 30, 2022 |
||||||||||||||||||||||||||||||
(in millions of dollars, except per share information) |
Operating
|
|
EBITDA (1) |
|
Net
|
|
Operating
|
|
EBITDA (1) |
|
Net
|
|
Operating
|
|
EBITDA (1) |
|
Net
|
||||||||||||||||||
As reported |
$ |
9.3 |
|
|
$ |
5.6 |
|
|
$ |
(12.8 |
) |
|
$ |
(13.1 |
) |
|
$ |
(4.6 |
) |
|
$ |
(19.6 |
) |
|
$ |
7.7 |
|
|
$ |
35.0 |
|
|
$ |
16.5 |
|
% of revenue |
|
4.9 |
% |
|
|
2.9 |
% |
|
|
|
|
(8.8 |
)% |
|
|
(3.1 |
)% |
|
|
|
|
4.2 |
% |
|
|
19.3 |
% |
|
|
||||||
Restructuring, transaction and other costs |
|
2.7 |
|
|
|
2.7 |
|
|
|
2.7 |
|
|
|
1.8 |
|
|
|
1.8 |
|
|
|
1.8 |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
1.0 |
|
Inventory and other working capital adjustments |
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
3.3 |
|
|
|
3.3 |
|
|
|
3.3 |
|
|
|
(0.8 |
) |
|
|
(0.8 |
) |
|
|
(0.8 |
) |
Stock-based compensation expense |
|
0.8 |
|
|
|
1.5 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
Loss (gain) on foreign exchange, net (2) |
|
— |
|
|
|
13.5 |
|
|
|
13.5 |
|
|
|
— |
|
|
|
1.8 |
|
|
|
1.8 |
|
|
|
— |
|
|
|
(18.2 |
) |
|
|
(18.2 |
) |
Gain on sale-leaseback transactions |
|
(7.0 |
) |
|
|
(7.0 |
) |
|
|
(7.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
As adjusted(1) |
$ |
6.0 |
|
|
$ |
16.5 |
|
|
$ |
(2.6 |
) |
|
$ |
(8.0 |
) |
|
$ |
4.2 |
|
|
$ |
(12.7 |
) |
|
$ |
7.9 |
|
|
$ |
17.8 |
|
|
$ |
(1.5 |
) |
% of revenue |
|
3.1 |
% |
|
|
8.7 |
% |
|
|
|
|
(5.4 |
)% |
|
|
2.8 |
% |
|
|
|
|
4.3 |
% |
|
|
9.8 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
5.8 |
|
|
|
|
|
|
|
5.7 |
|
|
|
|
|
|
|
10.6 |
|
||||||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
5.8 |
|
|
|
|
|
|
|
5.7 |
|
|
|
|
|
|
|
6.0 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(2.22 |
) |
|
|
|
|
|
$ |
(3.46 |
) |
|
|
|
|
|
$ |
1.82 |
|
||||||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.45 |
) |
|
|
|
|
|
$ |
(2.23 |
) |
|
|
|
|
|
$ |
(0.25 |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted diluted EPS are useful to the Company's investors because (i) each of these financial metrics are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the Company's normal operating results and (ii) EBITDA is an appropriate measure of evaluating the Company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, these benchmarks are widely used in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information. |
|||||||||||||||||||||||||||||||||||
(2) Foreign exchange, net primarily relates to cash and receivables denominated in U.S. dollars by some of our non-U.S. subsidiaries that report in a local currency, and therefore the loss has no economic impact in dollar terms. |
|||||||||||||||||||||||||||||||||||
Rob Kukla
Director of Investor Relations
281.994.3763
This email address is being protected from spambots. You need JavaScript enabled to view it.
Solar Revenue Put production insurance supports Arava Power, Paz Oil and Menora’s US solar debut in a $200m senior secured credit facility lead by Nomura
SAN FRANCISCO--(BUSINESS WIRE)--#solardata--kWh Analytics, the market leader in Climate Insurance, today announced a partnership with Arava Power, Paz Oil and Menora Mivtachim to provide production insurance to optimize debt terms on a 270MWdc utility-scale solar project in Uvalde County, TX.
Arava Power, Paz Oil and Menora Mivtachim utilized the Solar Revenue Put from kWh Analytics to de-risk their solar investment in the United States and enhance the project’s financial success. The Solar Revenue Put is an insurance policy covering solar production to provide protection against downside risk. The policy allows asset owners to achieve more favorable financing terms via additional debt or optimized loan terms, providing sponsors with greater financial flexibility and stability.
“At kWh Analytics, our goal is to provide sponsors and lenders with the tools and resources they need to confidently invest in the renewable energy sector,” said Jason Kaminsky, CEO of kWh Analytics. “The Solar Revenue Put is a game-changer, offering an uplift in return on investment and reducing the risks associated with solar performance. We are thrilled to partner with Arava Power, Paz Oil and Menora Mivtachim on this venture, and are proud to be at the forefront of renewable energy investing in the US.”
Nomura led the debt financing as sole Coordinating Lead Arranger and Sole bookrunner, arranging an approximately $200 million senior secured credit facility on behalf of Arava Power, Paz Oil Ltd and Menora Mivtachim. This financing is a landmark transaction for the consortium with the project. Nomura assembled a syndicate of international lenders which includes Siemens Financial and BHI. Snapper Creek Advisors, a boutique energy advisory firm, is providing commercialization and financial consulting to the sponsors.
“We are proud to have achieved financial closing on the exceptional Project Sunray, together with our remarkable partners, Paz Oil and Menora Mivtachim,” said Arava Power CEO, Ilan Zidkony. “This Project represents the first step in our broader US expansion strategy, and we are honored by the trust and partnership of our financing partners – Nomura, BHI, Bank Hapoalim, and Siemens Financial who have helped us reach this important milestone. We were delighted to be able to work with kWh Analytics on this project, their support and professionalism were first-class, and we look forward to working together on future projects.”
“We are proud and satisfied to reach full financial close and start construction for this substantial and unique solar PV project,” said Hagai Miller of Paz Oil. “By mid-next year, we expect this project to be in full operation, producing enough electricity to power tens of thousands of households in the area. We would like to thank our excellent partners, Arava Power Company and Menora Mivtachim group and to our remarkable financing partners who put their trust in us and into this project – Nomura, Bank Hapoalim, and Siemens Financial.”
Vinod Mukani, Global Head of Nomura’s Infrastructure and Power Business (“IPB”) commented, “We are very pleased to leverage our global financial and intellectual expertise to provide a bespoke funding and financing solution to support Arava Power, Paz Oil and Menora Mivtachim as they enter the United States market. Providing superior execution in growing sectors, like renewable energy, for excellent Sponsors like these, aligns perfectly within Nomura’s business strategy and goals.”
“Nomura is excited to provide a unique financing package supporting the funding of this important project in the US for Arava Power, Paz Oil and Menora, who have talented teams and a compelling business strategy contributing toward the transition of low carbon economy,” said Alain Halimi, Executive Director of Nomura’s IPB. “We appreciate the support and creative approach from the kWh team assisting in enhancing the project’s structure and mitigating lenders’ downside risk.”
The United States has become an increasingly attractive location for international renewable energy sponsors, with growing demand for clean energy and a supportive regulatory environment. However, making long-dated investments in such a rapidly evolving industry can expose investors to risks. The Solar Revenue Put credit enhancement provides a solution for these risks by insuring the revenue generated, increasing investor confidence in renewable energy projects and their returns. This, in turn, helps to drive the growth of renewable energy and supports the transition to a clean grid.
ABOUT Arava Power
Arava Power Company (APC) is a solar Developer / IPP that pioneered utility scale photovoltaics in Israel; developing, owning and operating hundreds of megawatts over the past 15 years.
APC’s profound expertise and years of experience have allowed it to build one of the most profitable portfolios in the industry, maintaining and improving performance through excellence in development, technological innovation and advanced asset management operations.
Today, APC holds a multi-GW development portfolio in Israel and the U.S., across utility scale PV and BESS, Agri-Voltaics and Distributed Energy Systems.
Since the earliest days of the solar industry, APC has been at the forefront of the energy transition, delivering on the promise of clean, sustainable energy to power our planet’s future.
About Paz Oil Group (TLV: PZOL)
Founded in 1922 and based in Israel, Paz (TASE: PZOL; ilA+) is one of the largest energy companies in Israel, focusing mainly on fuel retail, LPG, real estate, food & convenient retail, renewables, EV charging.
Paz is a public company whose shares are traded in the Tel Aviv Stock Exchange, and it is listed on the TASE's flagships indexes, which tracks the shares of the companies with the highest market capitalization in the stock exchange.
Paz is the largest gas retailer in Israel with about 270 gas stations and convenience retail locations and more than 60 supermarkets in the center of the cities, which is one of the leaders in Israel. Further, Paz has annual revenue of 5.3$bn, total assets of 4.5$bn and a market capitalization of over 1.3$bn. Paz is currently increasing its dedication to the energy transition infrastructure sector by beginning to install EV charging stations to its existing convenience and gas stations, receiving licenses to supply electricity to a large share of households in Israel using its hundreds of thousands existing LPG clients alongside with using the company's knowledge for recruiting new clients, and through its acquisition of supermarkets, expanding its retail of food and energy business.
In the renewable sector, Paz Group is establishing a global RES activity focusing on utility scale solar, onshore wind and storage solutions in Europe/US and expand into neighboring countries. In Israel, Paz is focusing to become a customer-centric player in the IL electricity market by providing a variety of solutions to its customers, incl. energy and electricity, mainly to the Industrial, commercial and residential sectors.
The Group's financial resilience, combined with advanced work methods, a highly developed service orientation and the ability to zero in on marketing opportunities, have positioned Paz as one of Israel's top companies, with a reputation for professionalism and leadership.
More about Paz at https://www.paz.co.il/en-US/home
ABOUT Menora Mivtachim
Menora Mivtachim Holdings Ltd. is one of Israel's five largest insurance & finance groups. The group specializes in asset management, manages the largest pension fund in Israel – ‘Menora Mivtachim pension and gemel', and is the largest General Insurer in Israel and the market leader in Motor Insurance sector.
The group operates through its subsidiaries, in all sectors of Life Insurance, Long/Mid/Short-Term Savings, General Insurance and Health Insurance. In addition, the group is active in the capital markets and finance sectors, including Mutual Funds Management, Financial Portfolio Management, Underwriting and worldwide real estate investments.
About Nomura
Nomura is a global financial services group with an integrated network spanning over 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Investment Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.
ABOUT kWh Analytics
kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. The Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms, and Property Insurance offers comprehensive coverage against physical loss. These offerings, which have insured over $4 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on Twitter.
Nikky Venkataraman
Marketing Manager
E | This email address is being protected from spambots. You need JavaScript enabled to view it.
T | (720)-588-9361
HOUSTON--(BUSINESS WIRE)--Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX) reported net income1 of $2.7 million, or $0.02 per diluted share, for the fourth quarter 2022 compared to net losses of $18.8 million, or $(0.12) per diluted share, for the third quarter 2022 and $25.9 million, or $(0.17) per diluted share, for the fourth quarter 2021. Helix reported adjusted EBITDA2 of $49.2 million for the fourth quarter 2022 compared to $52.6 million for the third quarter 2022 and $8.8 million for the fourth quarter 2021.
For the full year 2022, Helix reported a net loss of $87.8 million, or $(0.58) per diluted share, compared to a net loss of $61.5 million, or $(0.41) per diluted share, for the full year 2021. Adjusted EBITDA for the full year 2022 was $121.0 million compared to $96.3 million for the full year 2021. The table below summarizes our results of operations:
Summary of Results ($ in thousands, except per share amounts, unaudited) |
|||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| 12/31/2022 | 12/31/2021 | 9/30/2022 | 12/31/2022 | 12/31/2021 | |||||||||||||||
| Revenues | $ |
287,816 |
|
$ |
168,656 |
|
$ |
272,547 |
|
$ |
873,100 |
|
$ |
674,728 |
|
||||
| Gross Profit (Loss) | $ |
31,364 |
|
$ |
(5,361 |
) |
$ |
39,215 |
|
$ |
50,616 |
|
$ |
15,393 |
|
||||
|
11 |
% |
|
(3 |
)% |
|
14 |
% |
|
6 |
% |
|
2 |
% |
|||||
| Net Income (Loss)1 | $ |
2,709 |
|
$ |
(25,908 |
) |
$ |
(18,763 |
) |
$ |
(87,784 |
) |
$ |
(61,538 |
) |
||||
| Diluted Earnings (Loss) Per Share | $ |
0.02 |
|
$ |
(0.17 |
) |
$ |
(0.12 |
) |
$ |
(0.58 |
) |
$ |
(0.41 |
) |
||||
| Adjusted EBITDA2 | $ |
49,169 |
|
$ |
8,764 |
|
$ |
52,568 |
|
$ |
121,022 |
|
$ |
96,276 |
|
||||
| Cash and Cash Equivalents3 | $ |
186,604 |
|
$ |
253,515 |
|
$ |
162,268 |
|
$ |
186,604 |
|
$ |
253,515 |
|
||||
| Net Debt2 | $ |
74,964 |
|
$ |
(22,117 |
) |
$ |
98,807 |
|
$ |
74,964 |
|
$ |
(22,117 |
) |
||||
| Cash Flows from Operating Activities | $ |
49,712 |
|
$ |
18,865 |
|
$ |
24,650 |
|
$ |
51,108 |
|
$ |
140,117 |
|
||||
| Free Cash Flow2 | $ |
21,198 |
|
$ |
17,929 |
|
$ |
21,847 |
|
$ |
17,604 |
|
$ |
131,846 |
|
||||
1 Net income (loss) attributable to common shareholders |
2 Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP measures; see reconciliations below |
3 Excludes restricted cash of $2.5 million as of 12/31/22 and 9/30/22 and $73.6 million as of 12/31/21 |
Owen Kratz, President and Chief Executive Officer of Helix, stated, “Our fourth quarter 2022 results maintained strong performance sequentially in what is normally a seasonally slower period for Helix. Our fourth quarter results were aided by a healthy oil and gas market, seasonally adjusted but strong Robotics operations, and ongoing contribution from our Alliance acquisition. We acquired Alliance mid-year, which has added to our capabilities and enhanced our position as a full-field decommissioning provider. Our Siem Helix vessels have both transitioned to long-term campaigns in Brazil. The Q7000 has completed a successful campaign in Nigeria and is transitioning to Asia Pacific for contracted decommissioning work after which it is contracted for decommissioning work in Brazil in 2024. We have acquired targeted niche equipment during the year including a boulder grab, three subsea trenchers and our interest in two deepwater intervention riser systems. These acquisitions further enhance our capabilities as an energy transition global service provider. Our strategy and focus have positioned us well for this improved energy market, and we have already begun to see the rewards of our efforts. We grew revenue and EBITDA in 2022, and our results for 2022 mark our fifth consecutive year of positive free cash flow. We are expecting 2023 to continue the improvements seen in the second half of 2022. With our strong performance and with the improved current market environment, we were excited to announce earlier today that our board has authorized a $200 million share repurchase program which we believe is an excellent opportunity to increase shareholder value.”
Segment Information, Operational and Financial Highlights ($ in thousands, unaudited) |
|||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| 12/31/2022 | 12/31/2021 | 9/30/2022 | 12/31/2022 | 12/31/2021 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Well Intervention | $ |
167,658 |
|
$ |
119,177 |
|
$ |
143,925 |
|
$ |
524,241 |
|
$ |
516,564 |
|
||||
| Robotics |
|
48,538 |
|
|
40,865 |
|
|
56,182 |
|
|
191,921 |
|
|
137,295 |
|
||||
| Shallow Water Abandonment1 |
|
57,409 |
|
|
- |
|
|
67,401 |
|
|
124,810 |
|
|
- |
|
||||
| Production Facilities |
|
27,895 |
|
|
20,131 |
|
|
18,448 |
|
|
82,315 |
|
|
69,348 |
|
||||
| Intercompany Eliminations |
|
(13,684 |
) |
|
(11,517 |
) |
|
(13,409 |
) |
|
(50,187 |
) |
|
(48,479 |
) |
||||
| Total | $ |
287,816 |
|
$ |
168,656 |
|
$ |
272,547 |
|
$ |
873,100 |
|
$ |
674,728 |
|
||||
| Income (Loss) from Operations: | |||||||||||||||||||
| Well Intervention | $ |
2,554 |
|
$ |
(21,063 |
) |
$ |
(1,304 |
) |
$ |
(53,056 |
) |
$ |
(35,882 |
) |
||||
| Robotics |
|
7,127 |
|
|
3,505 |
|
|
11,708 |
|
|
29,981 |
|
|
5,762 |
|
||||
| Shallow Water Abandonment1 |
|
5,864 |
|
|
- |
|
|
16,320 |
|
|
22,184 |
|
|
- |
|
||||
| Production Facilities |
|
9,237 |
|
|
6,621 |
|
|
6,068 |
|
|
27,201 |
|
|
22,906 |
|
||||
| Change in Fair Value of Contingent Consideration |
|
(13,390 |
) |
|
- |
|
|
(2,664 |
) |
|
(16,054 |
) |
|
- |
|
||||
| Corporate / Other / Eliminations |
|
(16,520 |
) |
|
(15,923 |
) |
|
(17,902 |
) |
|
(55,111 |
) |
|
(41,473 |
) |
||||
| Total | $ |
(5,128 |
) |
$ |
(26,860 |
) |
$ |
12,226 |
|
$ |
(44,855 |
) |
$ |
(48,687 |
) |
||||
| 1 Shallow Water Abandonment includes the results of Helix Alliance beginning July 1, 2022, the date of acquisition | |||||||||||||||||||
Fourth Quarter Results
Segment Results
Well Intervention
Well Intervention revenues increased $23.7 million, or 16%, during the fourth quarter 2022 compared to the prior quarter. Our fourth quarter 2022 revenues increased due primarily to higher vessel utilization in West Africa, the Gulf of Mexico and the North Sea and higher rates in Brazil, offset in part by revenue deferrals on the Q7000 and lower seasonal rates in the North Sea compared to the prior quarter. Gulf of Mexico vessel utilization improved during the fourth quarter with fewer idle days. North Sea revenues improved during the fourth quarter due to higher utilization with strong winter seasonal activity, offset in part by lower winter seasonal rates. Utilization in West Africa increased during the fourth quarter due to the Q7000 undergoing scheduled maintenance during the prior quarter, although revenues were deferred beginning mid-December 2022 during the vessel’s paid transit and mobilization to its contracted work in Asia Pacific in 2023. Overall Well Intervention vessel utilization increased to 97% during the fourth quarter 2022 compared to 87% during the prior quarter. Well Intervention generated operating income of $2.6 million during the fourth quarter 2022 compared to a net loss from operations of $1.3 million during the prior quarter due to higher revenues.
Well Intervention revenues increased $48.5 million, or 41%, during the fourth quarter 2022 compared to the fourth quarter 2021. The increase was due primarily to higher utilization and rates in the North Sea and the Gulf of Mexico and higher utilization in Brazil, offset in part by lower rates in Brazil on the Siem Helix 2 and revenue deferrals on the Q7000. Revenues in the North Sea improved significantly year over year with strong winter seasonal activity and stronger rates during the fourth quarter 2022 compared to 8% utilization during the fourth quarter 2021. North Sea revenue improvements during the fourth quarter 2022 were offset in part by a weaker British pound compared to the fourth quarter 2021. Gulf of Mexico revenues also benefitted from an improved day rate environment and higher utilization year over year. Revenues in Brazil increased during the fourth quarter 2022 primarily due to utilization on the Siem Helix 1, which had nominal utilization during the fourth quarter 2021, offset in part by lower rates on the Siem Helix 2 year over year. Utilization on the Q7000 was strong in both the fourth quarters 2022 and 2021, although revenues were lower during the fourth quarter 2022 as transit and mobilization fees were deferred beginning mid-December with the vessel’s paid transit to its contracted work in Asia Pacific. Overall Well Intervention vessel utilization increased to 97% during the fourth quarter 2022 from 56% during the fourth quarter 2021. Well Intervention generated operating income of $2.6 million during the fourth quarter 2022 compared to a net loss from operations of $21.1 million during the fourth quarter 2021 due to higher revenues.
Robotics
Robotics revenues decreased $7.6 million, or 14%, during the fourth quarter 2022 compared to the prior quarter. The decrease in revenues was due to seasonally lower vessel, ROV and trenching activities. Chartered vessel days decreased to 332 days compared to 376 days with fewer spot vessel days, and vessel utilization decreased to 96% compared to 98%, during the fourth quarter 2022 compared the prior quarter. Vessel days included 68 spot vessel days during the fourth quarter 2022 compared to 100 spot vessel days during the prior quarter. ROV and trencher utilization decreased to 58% during the fourth quarter 2022 compared to 66% during the prior quarter. Trenching days decreased to 160 days during the fourth quarter 2022, compared to 176 days during the prior quarter, on the Grand Canyon III and the Horizon Enabler. Both quarters included utilization on the IROV boulder grab, which was acquired and deployed during the third quarter 2022, for seabed clearance operations on the U.S. east coast. Robotics operating income decreased $4.6 million during the fourth quarter 2022 compared to the prior quarter due to lower revenues.
Robotics revenues increased $7.7 million, or 19%, during the fourth quarter 2022 compared to the fourth quarter 2021. The increase in revenues was due to higher ROV and trenching activities, offset in part by fewer vessel days year over year. ROV and trencher utilization increased to 58% during the fourth quarter 2022 from 38% during the fourth quarter 2021, and trenching days increased to 160 days during the fourth quarter 2022 compared to 90 days during the fourth quarter 2021. Chartered vessel days decreased to 332 days compared to 419 days, and vessel utilization declined to 96% compared to 99%, during the fourth quarter 2022 compared to the fourth quarter 2021. Vessel days decreased year over year primarily due to fewer spot vessel days during the fourth quarter 2022 performing site clearance work in the North Sea, which commenced during 2021 and completed during the third quarter 2022. Robotics operating income increased $3.6 million during the fourth quarter 2022 compared to the fourth quarter 2021 due to higher revenues.
Shallow Water Abandonment
Shallow Water Abandonment revenues decreased $10.0 million, or 15%, during the fourth quarter 2022 compared to the previous quarter. The decrease in revenues reflected the seasonal slowdown in the Gulf of Mexico shelf with a reduction in liftboat, OSV, DSV and heavy lift barge utilization, offset in part by higher plug and abandonment (P&A) and coiled tubing system utilization operating on customer platforms. Liftboat, OSV and DSV utilization was 70% during the fourth quarter 2022 compared to 82% during the prior quarter. The Epic Hedron heavy lift barge was idle during the fourth quarter 2022 compared to having 41% utilization during the prior quarter. Marketable P&A and coiled tubing system days increased to 1,247, or 65% utilization based on 21 marketable systems, during the fourth quarter 2022 compared to 1,077, or 59% utilization based on 20 marketable systems, during the prior quarter. Shallow Water Abandonment operating income decreased $10.5 million during the fourth quarter 2022 compared to the third quarter 2022 primarily due to lower revenues.
Production Facilities
Production Facilities revenues increased $9.4 million, or 51%, during the fourth quarter 2022 primarily due to higher oil and gas production from our Droshky wells and a full quarter of production from our Thunder Hawk wells following their acquisition on August 25, 2022, offset in part by lower oil and gas prices compared to the prior quarter. Revenues also benefitted from retroactive rate adjustment on our production contract with the Helix Producer I. Production Facilities operating income increased $3.2 million during the fourth quarter 2022 due to higher revenues, offset in part by higher production costs on increased production activity compared to the prior quarter.
Production Facilities revenues increased $7.8 million, or 39%, compared to the fourth quarter 2021 primarily due to higher oil and gas production with the contribution from our interest in the Thunder Hawk Field and improved rates on our Helix Producer I production contract. Production Facilities operating income increased $2.6 million during the fourth quarter 2022 due to higher revenues, offset in part by higher production costs on increased production activity compared to the prior year.
Selling, General and Administrative and Other
Selling, General and Administrative
Selling, general and administrative expenses were $22.8 million, or 7.9% of revenue, during the fourth quarter 2022 compared to $23.6 million, or 8.6% of revenue, during the prior quarter. The decrease during the fourth quarter was primarily due to lower incentive compensation costs and a reduction in general and administrative costs in our Shallow Water Abandonment segment compared to the prior quarter.
Acquisition and Integration Costs
Acquisition and integration costs were $0.3 million during the fourth quarter 2022, a decrease of $0.4 million compared to the prior quarter and included primarily legal and professional fees and financial and operational integration costs related to our acquisition of Alliance, which closed on July 1, 2022.
Change in Fair Value of Contingent Consideration
Change in fair value of contingent consideration was $13.4 million during the fourth quarter 2022 and reflects an increase in the fair value of the estimated earn-out payable in 2024 to the seller of the Alliance group of companies.
Other Income and Expenses
Other income, net was $14.3 million during the fourth quarter 2022 compared to an expense of $20.3 million during the prior quarter and includes predominantly unrealized non-cash foreign currency gains related to the approximate 8% strengthening of the British pound during the fourth quarter 2022 on U.S. dollar denominated intercompany debt in our U.K. entities.
Cash Flows
Operating cash flows were $49.7 million during the fourth quarter 2022 compared to $24.7 million during the prior quarter and $18.9 million during the fourth quarter 2021. The improvement in operating cash flows quarter over quarter was primarily due to improvements in working capital and lower regulatory certification costs during the fourth quarter 2022 compared to the prior quarter. The improvement in operating cash flows year over year was primarily due to improved operating results and improvements in working capital, offset in part by higher regulatory recertification costs for our vessels and systems during the fourth quarter 2022 compared to the fourth quarter 2021. Regulatory recertification costs for our vessels and systems, which are included in operating cash flows, were $4.8 million during the fourth quarter 2022 compared to $10.7 million during the prior quarter and $2.5 million during the fourth quarter 2021.
Capital expenditures, which are included in investing cash flows, totaled $28.5 million during the fourth quarter 2022 compared to $2.8 million during the prior quarter and $0.9 million during the fourth quarter 2021. Capital expenditures during the fourth quarter 2022 included our acquisition of three trenchers and our interest in two subsea intervention systems.
Free Cash Flow was $21.2 million during the fourth quarter 2022 compared to $21.8 million during the prior quarter and $17.9 million during the fourth quarter 2021. The nominal decrease in Free Cash Flow quarter over quarter was due primarily to higher capital expenditures, offset almost entirely by higher operating cash flows during the fourth quarter 2022. The increase in Free Cash Flow year over year was due primarily to higher operating cash flows, offset in part by higher capital expenditures during the fourth quarter 2022. (Free Cash Flow is a non-GAAP measure. See reconciliation below.)
Full Year Results
Segment Results
Well Intervention
Well Intervention revenues increased $7.7 million, or 1%, in 2022 compared to 2021. The increase was primarily driven by higher vessel utilization and rates in the Gulf of Mexico and the North Sea. The increase was offset in part by lower utilization on the Q7000 resulting from scheduled maintenance during 2022, lower rates on the Siem Helix 1 and Siem Helix 2 as they transitioned from their legacy contracts with Petrobras, and a weaker British pound during 2022 compared to 2021. Overall Well Intervention vessel utilization increased to 80% during 2022 compared to 67% in 2021. Well Intervention net loss from operations increased to $53.1 million during 2022 compared to $35.9 million in 2021. The increase in the net loss was due to our mix of contracting year over year, with our lower rates in Brazil generating higher losses, offset by increased Gulf of Mexico and North Sea revenues generating lower incremental margins driven by an increase in integrated projects and reimbursable revenues during 2022.
Robotics
Robotics revenues increased $54.6 million, or 40%, in 2022 compared to 2021. The increase was due to higher vessel, trenching and ROV activities in 2022. Chartered vessel days increased to 1,401, which included 420 spot vessel days, in 2022 compared to 1,178, which included 477 spot vessel days, in 2021. Trenching days increased to 483 days in 2022 compared to 336 days in 2021. Overall ROV and trencher utilization increased to 53% in 2022 compared to 36% in 2021. Robotics operating income increased $24.2 million to $30.0 million in 2022 compared to $5.8 million in 2021. The increase in operating income was due to higher revenues during 2022.
Shallow Water Abandonment
Shallow Water Abandonment generated revenues of $124.8 million and income from operations of $22.2 million, which reflected the operating results of Helix Alliance since its acquisition on July 1, 2022. Liftboat, OSV and DSV utilization was 76%, Epic Hedron heavy lift barge utilization was 21% and utilization across marketable plug and abandonment (P&A) and coiled tubing systems was 2,324 days, or 62%, during the period from July 1, 2022 (date of acquisition) through December 31, 2022.
Production Facilities
Production Facilities revenues increased $13.0 million, or 19%, during 2022 compared to 2021. The increase was due to higher oil and gas prices and improved rates related to the Helix Fast Response System, offset in part by lower oil and gas production volumes in 2022. Production Facilities operating income increased $4.3 million during 2022 due primarily to increases in revenues, offset in part by higher costs compared to 2021.
Selling, General and Administrative and Other
Selling, General and Administrative
Selling, general and administrative expenses were $76.8 million, or 8.8% of revenue, in 2022 compared to $63.4 million, or 9.4% of revenue, in 2021. The increase was primarily related to an increase in employee incentive and share-based compensation costs as well as increased general and administrative expenses related to Helix Alliance.
Net Interest Expense
Net interest expense decreased to $19.0 million in 2022 compared to $23.2 million in 2021. The decrease was primarily associated with lower funded debt, which decreased by $42.9 million during 2022, and lower fees associated with our credit facility compared to 2021.
Change in Fair Value of Contingent Consideration
The change in fair value of contingent consideration relates to the change in the fair value of the estimated earn-out payable in 2024 to the seller of the Alliance group of companies.
Other Income and Expenses
Other expense, net was $23.3 million in 2022 compared to $1.5 million in 2021. The change was primarily due higher foreign currency losses due to a weakening of the British pound in 2022 compared to 2021.
Cash Flows
Helix generated operating cash flows of $51.1 million in 2022 compared to $140.1 million in 2021. The decrease in operating cash flows in 2022 was due to working capital outflows and higher regulatory certification costs in 2022 compared to improvements in working capital 2021, which included tax refunds of $18.9 million related to the CARES Act. The decrease in operating cash flows was offset in part by higher operating income in 2022. Regulatory certification costs, which are considered part of Helix’s capital spending program but are classified in operating cash flows, were $35.1 million in 2022 compared to $9.6 million in 2021.
Capital expenditures increased to $33.5 million in 2022 compared to $8.3 million in 2021 due primarily to the acquisition of three subsea trenchers and our interest in two subsea intervention systems during 2022.
Free Cash Flow was $17.6 million in 2022 compared to $131.8 million in 2021. The decrease was due to lower operating cash flows and higher capital expenditures in 2022. (Free Cash Flow is a non-GAAP measure. See reconciliation below.)
Financial Condition and Liquidity
Cash and cash equivalents were $186.6 million at December 31, 2022, excluding $2.5 million of restricted cash. Available capacity under our ABL facility at December 31, 2022 was $98.1 million, resulting in total liquidity of $284.7 million. At December 31, 2022 we had $264.1 million of long-term debt and Net Debt of $75.0 million. (Net Debt is a non-GAAP measure. See reconciliation below.)
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly teleconference to review its fourth quarter and full year 2022 results (see the "For the Investor" page of Helix's website, www.helixesg.com). The teleconference, scheduled for Tuesday, February 21, 2023, at 9:00 a.m. Central Time, will be audio webcast live from the "For the Investor" page of Helix’s website. Investors and other interested parties wishing to participate in the teleconference may join by dialing 1-877-207-9876 for participants in the United States and 1-212-231-2907 for international participants. The passcode is "Staffeldt." A replay of the webcast will be available on the "For the Investor" page of Helix's website by selecting the "Audio Archives" link beginning approximately two hours after the completion of the event.
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, robotics and full-field decommissioning operations. Our services are centered on a three-legged business model well positioned to facilitate global energy transition by maximizing production of remaining oil and gas reserves, supporting renewable energy developments and decommissioning end-of-life oil and gas fields. For more information about Helix, please visit our website at www.helixesg.com.
Non-GAAP Financial Measures
Management evaluates performance and financial condition using certain non-GAAP measures, primarily EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt. We define EBITDA as earnings before income taxes, net interest expense, gains or losses on extinguishment of long-term debt, gains and losses on equity investments, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets are also added back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude the gain or loss on disposition of assets, acquisition and integration costs, the change in fair value of the contingent consideration and the general provision (release) for current expected credit losses, if any. We define Free Cash Flow as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets.
Erik Staffeldt, Executive Vice President and CFO
email: This email address is being protected from spambots. You need JavaScript enabled to view it.
ph: 281-618-0465
SAN FRANCISCO--(BUSINESS WIRE)--Patch, a climate action technology platform, and EcoEngineers, a clean energy consulting, auditing, and advisory firm, have formed a partnership to ensure the integrity of new carbon removal techniques introduced into the carbon marketplace.
“EcoEngineers’ due diligence and science-based project evaluations and Patch’s digital marketplace, combined, offer a powerful accelerator of innovation in the carbon market,” said Shashi Menon, CEO, EcoEngineers. “Our scientists and engineers provide companies introducing new technologies the solid validation needed to sell on Patch’s trusted and transparent platform.”
EcoEngineers currently is reviewing the science as well as developing measurement, reporting and verification (MRV) approaches to quantify the greenhouse gas (GHG) emission reduction for companies introducing new and emerging technologies. Early examples include Seaweed Generation, which has developed technology to sink carbon-removing seaweed deep into the ocean; Andes, which is leveraging beneficial microorganisms to remove CO2 from the atmosphere and convert it into minerals for thousands of years; Drax, which is developing Bioenergy with Carbon Capture and Storage (BECCS) that will generate millions of tonnes of high integrity, permanent carbon removals; and Brilliant Planet, which uses algae as an affordable method of permanently and quantifiably sequestering carbon at the gigaton scale; among many others.
“Because these carbon removal technologies are so new and out of the box, we often need to create new methodologies to ensure the highest level of scientific standard,” said David LaGreca, senior carbon consultant and voluntary market leader for EcoEngineers. “Our team has the creativity, knowledge and insights to provide a thorough review and develop rigorous removals protocols.”
EcoEngineers begins every new project with a scientific review of the project’s ability to remove carbon from the atmosphere and then develops proper MRV processes that meet strict carbon accounting standards. This allows the project to state its contribution to carbon reductions and the controls in place in a standard format for acceptance on platforms such as Patch or on leading registries.
New carbon removal technologies and innovative ideas often are challenged to establish a validated pathway within the marketplace for carbon credit generation and trading. They may need new MRV methodologies that fit specific technology parameters when existing methodologies are not aligned with their practices. They may also need assistance qualifying and registering their removals on carbon registries and trading platforms and validating and verifying an initial pilot project.
The combined effort of EcoEngineers and Patch offers these projects a one-stop-shop for access to carbon markets. EcoEngineers provides the fundamentals required to establish a high integrity credit offering, and Patch makes this information accessible to carbon credit buyers, ensuring confidence and simplicity for their network of customers supporting these new projects.
“Connecting capital with decarbonization efforts is a priority at Patch, and we support this scale by connecting a growing cohort of carbon credit buyers with access to innovative projects that have been carefully vetted by third-party partners. EcoEngineers offers the rigorous scientific protocol and the transparency that our customers expect within the Patch marketplace,” said Robert Ralph, Carbon Removal Partnerships Lead at Patch.
About Patch
Patch is the platform scaling unified climate action, empowering companies of any size to help rebalance the planet while advancing their business initiatives. Only Patch provides democratized access to the broadest selection of carbon credits available, through product integrations, direct purchases, and multi-year offtake agreements—all of which enable climate project developers to scale their solutions at the critical pace the planet requires. We do so by combining the most robust technology with impartial project scrutiny. In turn, brands as wide ranging as Bain & Company, Credit Suisse, and Afterpay are demonstrating their climate action and driving deeper customer engagements. That’s because they have the information they need to feel confident in their climate impact—and the transparency they want into each and every transaction.
About EcoEngineers
EcoEngineers helps organizations create sustainable solutions for a better tomorrow. Our team of engineers, scientists, auditors, consultants, researchers, and analysts live and work at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace. Our people are trusted guides who help navigate the ever-changing energy landscape, providing the right tools, guidance, and knowledge to reduce your carbon footprint and to assess the potential risk to your business from the uncertainties caused by a changing climate and low-carbon policies. Through our systematic approach, we deliver value and proven expertise through the entire clean energy continuum, including education, regulatory engagement, life-cycle analysis, asset development, compliance management, audit, and verification.
Michelle Taylor
For EcoEngineers
312-919-2124
This email address is being protected from spambots. You need JavaScript enabled to view it.
LOS ANGELES--(BUSINESS WIRE)--Faraday Future Intelligent Electric, Inc. (NASDAQ: FFIE) ("Faraday Future", “FF” or "Company"), a California-based global shared intelligent electric mobility ecosystem company, today announced it is targeting a start of production (SOP) date for its flagship FF 91 Futurist of March 30, 2023, assuming timely receipt of funds from the Company’s investors, at the Company’s Hanford, California, manufacturing facility, “FF ieFactory California.”
The Company expects the first vehicles built at its FF ieFactory California to be coming off the assembly line in early April, with deliveries to its first users before the end of April, assuming timely receipt of funds from the Company’s investors.
“This SOP will undoubtedly be our most important historic moment since FF was established. We would like to express our sincerest appreciation and respect to all of those who have stood beside us for their unwavering support,” said Chen Xuefeng (XF), Global CEO of FF. “The Company now has all of the funding commitments, assuming timely receipt, and all of the equipment needed to build the FF 91 Futurist in place, while working with numerous world-class equipment suppliers to keep FF on track to deliver the vehicle in April of this year.”
At the same time, Faraday Future plans to hold the "2023 Faraday Future Global Supplier Summit" the last week of April, inviting our global partners to witness the historical milestone of the FF 91 Futurist production and delivery readiness along with sharing in the common goal and successes of the Company. We will announce new shared business initiatives including the "FF Industrial Chain Strategic Alliance" and the “FF Supplier Par” at the Supplier Summit, sharing the achievements and benefits of FF’s intelligent electric mobility through industrial chain capital cooperation.
With the introduction and implementation of the “FF Supplier Par” program, FF will unite more closely with global supplier partners to co-create the performance + luxury leadership in the era of intelligent electric mobility, plus create capital value and the potential to share in the Company’s joint success.
The full letter addressed to FF suppliers can be seen by following this link:
www.ff.com/us/letter-to-suppliers
The Company has also set the date for a special stockholders meeting which is scheduled to take place on February 28, 2023 at 9:00am PST. The Company recommends that all FF stockholders as of January 31, 2023 submit proxies in favor of the proposal to increase the authorized shares of Faraday Future Class A common stock.
FF is completing its testing and validation of the FF 91 Futurist through the Product and Technology Generation 2.0 program (PT Gen 2.0). The generational upgrade from PT Gen 1.0 to PT Gen 2.0 consists of significant upgrades of systems and core components in both the vehicle and the I.A.I area – the advanced core, which stands for Internet, Autonomous Driving, and Intelligence. PT Gen 2.0 was achieved through upgrades of 26 major system and components, with 13 key upgrades throughout powertrain, battery, charging, chassis, interior from EV areas, and 13 key upgrades in computing, sensing, communication, user interaction, and performance of the FF 91 Futurist.
Competing with Ferrari, Maybach, Rolls Royce, and Bentley as the only next-gen Ultimate Intelligent TechLuxury EV product, the FF 91 Futurist offers a unique and intelligent EV experience with extreme technology and an ultimate user experience. The FF 91 Futurist features an industry-leading 1,050 horsepower, an EPA-certified range of 381 miles, 0-60 mph in 2.27 seconds, a unique rear intelligent Internet system, and a revolutionary user experience designed to create a mobile, connected, intelligent, and luxurious third Internet living space.
Users can preorder an FF 91 Futurist via the FF Intelligent App or through our website (English): https://www.ff.com/us/preorder/ or (Chinese): https://www.ff.com/cn/preorder/
Download the new FF Intelligent App (English): https://apps.apple.com/us/app/id1454187098 or https://play.google.com/store/apps/details?id=com.faradayfuture.online, (Chinese): http://appdownload.ff.com
ABOUT FARADAY FUTURE
Faraday Future is a class-defining luxury electric vehicle company. The Company has pioneered numerous innovations relating to its products, technology, business model, and user ecosystem since inception in 2014. Faraday Future aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet, and new usership models. Faraday Future’s first flagship product is the FF 91 Futurist.
FOLLOW FARADAY FUTURE:
https://twitter.com/FaradayFuture
https://www.facebook.com/faradayfuture/
https://www.instagram.com/faradayfuture/
www.linkedin.com/company/faradayfuture
NO OFFER OR SOLICITATION
This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include, among other things, statements regarding the anticipated start of production (SOP) and delivery timing for our FF 91 Futurist vehicle, additional funding and timing for receipt thereof and FF stockholder approval of an authorized share increase and the timing thereof, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include whether the Amended Shareholder Agreement between the Company and FF Top, dated as of January 13, 2023, complies with the listing requirements of The Nasdaq Stock Market LLC, the market performance of the shares of the Company’s common stock; the Company’s ability to regain compliance with, and thereafter continue to comply with, the Nasdaq listing requirements; the Company’s ability to satisfy the conditions precedent and close on the various financings previously disclosed by the Company and any future financings, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s ability to amend its certificate of incorporation to permit sufficient authorized shares to be issued in connection with the Company’s existing and contemplated financings; whether the Company and the City of Huanggang could agree on definitive documents to effectuate the non-binding Cooperation Framework Agreement; the Company’s ability to remain in compliance with its public filing requirements under the Securities Exchange Act of 1934, as amended; the outcome of the SEC investigation relating to the matters that were the subject of the Special Committee investigation and other litigation involving the Company; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the success of other competing manufacturers; the performance and security of the Company’s vehicles; potential litigation involving the Company; the result of future financing efforts and general economic and market conditions impacting demand for the Company’s products; recent cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; and the ability of the Company to attract and retain directors and employees. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s registration statement on Form S-1 filed on February 13, 2023, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
ADDITIONAL INFORMATION
In connection with the special stockholders meeting, the Company has filed with the SEC a definitive proxy statement on Schedule 14A with respect to the proposals therein to increase the number of the Company’s authorized Class A common shares to 1.69 billion and approve the issuance of shares under the Company’s previously announced equity line of credit with an affiliate of Yorkville Advisors for purposes of NASDAQ Listing Rule 5635 (as amended and supplemented, the “Proxy Statement”). Faraday Future commenced mailing of the Proxy Statement to its stockholders on February 3, 2023. This press release is not a substitute for the Proxy Statement or any other document which the Company may file with the SEC. INVESTORS AND FARADAY FUTURE’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY AND ANY OTHER DOCUMENTS FILED BY THE COMPANY WITH THE SEC IN CONNECTION WITH THE PROXY STATEMENT OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSALS IN THE PROXY STATEMENT. Investors and stockholders may obtain free copies of the Proxy Statement and other documents containing important information about Faraday Future that are filed or will be filed with the SEC by Faraday Future from the SEC’s website at www.sec.gov. Faraday Future makes available free of charge at www.ff.com (in the “Financials and Filings” section), copies of materials it files with, or furnish to, the SEC.
PARTICIPANTS IN SOLICITATION
Faraday Future and its respective directors and executive officers and certain Company investors and their representatives may be deemed participants in the solicitation of proxies of the Company’s stockholders in respect of the proposals in the Proxy Statement. Information about the directors and executive officers of Faraday Future, such investors and their representatives and their ownership is set forth in the Company’s filings with the SEC, including the Proxy Statement. These documents can be obtained free of charge from the sources specified above.
Investors (English): This email address is being protected from spambots. You need JavaScript enabled to view it.
Investors (Chinese): This email address is being protected from spambots. You need JavaScript enabled to view it.
Media: This email address is being protected from spambots. You need JavaScript enabled to view it.
Event offers scholarships and chance to build professional networks, careers in STEM
CHICAGO--(BUSINESS WIRE)--With Women’s History Month just around the corner, ComEd is excited to announce the return of its signature science, technology, engineering and math (STEM) program for future women’s history-makers, the ComEd EV Rally. Young women in Illinois can now apply to participate in the annual summer event, a competition that challenges teen girls to build and race high-tech, electric-powered go-carts. This year, ComEd is increasing the number of participants to 45, from 30 last year, who will work with women from ComEd to explore career pathways in STEM.
The application is open to any female Illinois resident between the ages of 13 and 18. Applications are available at ComEdEVRally.com; the application period will close on Thursday, June 1.
“ComEd is committed to improving the representation of women and people of color in the STEM fields, and we are excited to connect these driven young women with leaders throughout ComEd who are looking to inspire the next generation of the STEM workforce,” said Michelle Blaise, senior vice president of technical services at ComEd. “The future depends on these STEM leaders to develop and champion clean energy technology, fight the effects of climate change and support transportation electrification—and this program is sure to spark the interest of these young women.”
Selected participants will work and learn from ComEd mentors, connect with peers from other communities and apply their STEM knowledge while building an electric vehicle (EV). The program will culminate with a once-in-a-lifetime experience as participants race their vehicles at the Museum of Science and Industry in Chicago on Saturday, July 29. Every participant will receive a $2,000 scholarship upon completion of the program.
The increased adoption of EVs will play a large role in the clean energy future, enabling carbon-reductions and air pollution while creating economic opportunity. ComEd’s recently proposed multi-year plans include a variety of investments to enable transportation electrification, which align with the state’s goal of putting 1 million EVs on Illinois’ roads by 2030. This program will give participants first-hand experience with EVs and educate them on the value of zero-emissions vehicles that represent the future of cleaner transportation.
ComEd representatives will be onsite at the Chicago Auto Show during Family Day on Monday, Feb. 20, to speak with interested participants and begin collecting applications for this summer program.
Today, women make up 50 percent of the workforce, yet hold only 27 percent of jobs in STEM fields in Illinois, according to a study by the Illinois Science & Technology Coalition. To help diversify the future STEM workforce, ComEd supports a variety of programs throughout the year designed to increase minority representation in STEM, including ComEd STEM Labs and Create a Spark.
Learn more about this program at ComEdEVRally.com.
Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), the nation’s leading competitive energy provider, with approximately 10 million customers. ComEd provides service to approximately 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, Instagram and YouTube.
|
|
ComEd
Media Relations
312-394-3500
HAMILTON, Bermuda--(BUSINESS WIRE)--Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported fourth quarter 2022 results.
President and Chief Executive Officer Anton Dibowitz said, “I would like to thank the entire Valaris team for continuing to deliver excellent operational performance, achieving revenue efficiency of 98% during the fourth quarter. This strong operational performance has translated into continued contracting success, and we were awarded new contracts and extensions with associated contract backlog of more than $400 million during the fourth quarter.”
Dibowitz added, “Last year was an important year for Valaris as we laid the foundation for continued success during the unfolding industry upcycle. We reactivated four floaters, all of which returned to work largely on time and on budget. Reactivation of a fifth floater, VALARIS DS-17, is well underway and we are in advanced discussions for a multi-year opportunity for one of our stacked drillships that is expected to deliver meaningful returns. We remain intent on executing our strategy of being focused, value driven and responsible in our decision making and we believe that our strategy will drive increased earnings and significant free cash flow over time."
Financial and Operational Highlights
Fourth Quarter Review
Net income was $31 million compared to $78 million in the third quarter 2022. Adjusted EBITDA decreased to $54 million from $76 million in the third quarter. Adjusted EBITDAR decreased to $75 million from $94 million in the third quarter.
Revenues decreased to $434 million from $437 million in the third quarter 2022. Excluding reimbursable items, revenues decreased to $413 million from $416 million in the third quarter primarily due to lower utilization and lower average day rates for the harsh environment jackup fleet, partially offset by an increase in utilization for the floater fleet.
Contract drilling expense increased to $353 million from $337 million in the third quarter 2022. Excluding reimbursable items, contract drilling expense increased to $333 million from $316 million in the third quarter primarily due to an increase in operating days for the floater fleet and higher reactivation costs, which increased to $21 million from $18 million.
Depreciation expense increased marginally to $24 million from $23 million in the third quarter 2022. General and administrative expense increased to $24 million from $19 million in the third quarter 2022 primarily due to higher personnel costs and professional fees.
Other expense was less than $1 million compared to other income of $30 million in the third quarter 2022. Other expense included foreign currency exchange losses of $13 million as compared to gains of $10 million in the third quarter. Third quarter other income also included non-cash interest income of $15 million related to the write-off of the discount attributable to the $40 million of shareholder notes receivable repaid by ARO. These items were partially offset by a $3 million increase in interest income during the fourth quarter.
Tax expense was $10 million compared to $14 million in the third quarter 2022. The fourth quarter tax provision included $3 million of discrete tax benefit attributable to the resolution of prior period tax matters. The third quarter tax provision included $2 million of discrete tax expense primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years, partially offset by discrete tax benefits attributable to the resolution of other prior period tax matters. Adjusted for discrete items, tax expense increased to $13 million from $12 million in the third quarter.
Total liquidity, which includes cash and cash equivalents, restricted cash and short-term investments, increased to $748 million as of December 31, 2022, from $644 million as of September 30, 2022, primarily due to cash flow generated from operations, including changes in working capital, of which $55 million was a refund payment from the IRS related to the CARES Act that was received in the fourth quarter.
Capital expenditures of $54 million were in line with the third quarter 2022.
Fourth Quarter Segment Review
Floaters
Floater revenues increased to $211 million from $202 million in the third quarter 2022. Excluding reimbursable items, revenues increased to $203 million from $192 million in the third quarter. The increase was primarily due to higher revenue efficiency across the floater fleet and a full quarter of revenues for VALARIS DS-4 and DS-9, which commenced contracts early in the third quarter.
Contract drilling expense increased to $173 million from $161 million in the third quarter 2022. Excluding reimbursable items, contract drilling expense increased to $165 million from $151 million in the third quarter. The increase was primarily due to more operating days across the floater fleet and higher reactivation costs, mostly for VALARIS DS-17, which is expected to commence a contract later this year.
Jackups
Jackup revenues decreased to $182 million from $196 million in the third quarter 2022. Excluding reimbursable items, revenues decreased to $176 million from $190 million in the third quarter primarily due to VALARIS Stavanger completing its contract offshore Norway and idle time between contracts for VALARIS 123, 144 and 115. This was partially offset by more operating days for VALARIS 118 and 92 following a contract startup and a special periodic survey, respectively.
Contract drilling expense increased to $130 million from $128 million in the third quarter 2022. Excluding reimbursable items, contract drilling expense increased marginally to $124 million from $123 million in the third quarter.
ARO Drilling
Revenues increased to $120 million from $111 million in the third quarter 2022 primarily due to higher utilization as certain rigs returned to work following out of service periods for planned maintenance. Contract drilling expense decreased to $86 million from $90 million in the third quarter primarily due to higher planned maintenance costs in the third quarter.
Other
Revenues increased marginally to $41 million from $40 million in the third quarter 2022. Contract drilling expense of $18 million was in line with the third quarter.
|
Fourth Quarter |
|||||||||||||||||||||||||||||
|
Floaters |
|
Jackups |
|
ARO (1) |
|
Other |
|
Reconciling Items (1)(2) |
|
Consolidated Total |
|||||||||||||||||||
(in millions of $ except %) |
Q4 2022 |
Q3 2022 |
Chg |
|
Q4 2022 |
Q3 2022 |
Chg |
|
Q4 2022 |
Q3 2022 |
Chg |
|
Q4 2022 |
Q3 2022 |
Chg |
|
Q4 2022 |
Q3 2022 |
|
Q4 2022 |
Q3 2022 |
Chg |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
211.0 |
201.7 |
5 |
% |
|
181.8 |
195.9 |
(7 |
)% |
|
120.4 |
111.4 |
|
8 |
% |
|
40.8 |
39.6 |
3 |
% |
|
(120.4 |
) |
(111.4 |
) |
|
433.6 |
437.2 |
(1 |
)% |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Contract drilling |
172.6 |
160.5 |
(8 |
)% |
|
129.5 |
128.0 |
(1 |
)% |
|
85.5 |
90.0 |
|
5 |
% |
|
18.4 |
17.8 |
(3 |
)% |
|
(52.6 |
) |
(59.6 |
) |
|
353.4 |
336.7 |
(5 |
)% |
Depreciation |
12.9 |
12.6 |
(2 |
)% |
|
9.6 |
8.7 |
(10 |
)% |
|
16.1 |
15.4 |
|
(5 |
)% |
|
1.2 |
1.2 |
— |
% |
|
(16.0 |
) |
(15.3 |
) |
|
23.8 |
22.6 |
(5 |
)% |
General and admin. |
— |
— |
— |
% |
|
— |
— |
— |
% |
|
5.6 |
4.7 |
|
(19 |
)% |
|
— |
— |
— |
% |
|
18.3 |
|
14.5 |
|
|
23.9 |
19.2 |
(24 |
)% |
Equity in earnings of ARO |
— |
— |
— |
% |
|
— |
— |
— |
% |
|
— |
— |
|
— |
% |
|
— |
— |
— |
% |
|
8.6 |
|
2.9 |
|
|
8.6 |
2.9 |
197 |
% |
Operating income (loss) |
25.5 |
28.6 |
(11 |
)% |
|
42.7 |
59.2 |
(28 |
)% |
|
13.2 |
1.3 |
|
915 |
% |
|
21.2 |
20.6 |
3 |
% |
|
(61.5 |
) |
(48.1 |
) |
|
41.1 |
61.6 |
(33 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
26.6 |
28.6 |
(7 |
)% |
|
46.4 |
59.1 |
(21 |
)% |
|
10.7 |
(1.3 |
) |
nm |
|
21.2 |
20.7 |
2 |
% |
|
(73.8 |
) |
(29.4 |
) |
|
31.1 |
77.7 |
(60 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
37.5 |
40.7 |
(8 |
)% |
|
51.1 |
62.6 |
(18 |
)% |
|
29.3 |
16.7 |
|
75 |
% |
|
22.4 |
22.1 |
1 |
% |
|
(86.0 |
) |
(66.1 |
) |
|
54.3 |
76.0 |
(29 |
)% |
Adjusted EBITDAR |
58.1 |
58.5 |
(1 |
)% |
|
51.2 |
62.6 |
(18 |
)% |
|
29.3 |
16.7 |
|
75 |
% |
|
22.4 |
22.1 |
1 |
% |
|
(86.0 |
) |
(66.1 |
) |
|
75.0 |
93.8 |
(20 |
)% |
(1) |
The full operating results included above for ARO are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO. |
(2) |
Our onshore support costs included within contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, those costs are included in “reconciling items.” Further, general and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income (loss) and are included in "reconciling items" |
As previously announced, Valaris will hold its fourth quarter 2022 earnings conference call at 9:00 a.m. CST (10:00 a.m. ET) on Tuesday, February 21, 2023. An updated investor presentation will be available on the Valaris website after the call.
About Valaris Limited
Valaris Limited (NYSE: VAL) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a Bermuda exempted company. To learn more, visit the Valaris website at www.valaris.com.
Forward-Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; performance of our joint ventures, including our joint venture with Saudi Aramco; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, including inflation and recessions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); cybersecurity attacks and threats; the effect, impact, potential duration and other implications of COVID-19; future operations; increasing regulatory complexity; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract; downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply, including as a result of reactivations and newbuilds, and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels; increased scrutiny of our Environmental, Social and Governance practices, initiatives and reporting responsibilities; changes in customer strategy, including increased focus on renewable energy projects; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig reactivation, construction, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and changes in foreign currency exchange rates. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the SEC's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.
VALARIS LIMITED AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In millions, except per share amounts) |
|
Three Months Ended |
||||||||||||||||||
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
||||||||||
OPERATING REVENUES |
$ |
433.6 |
|
|
$ |
437.2 |
|
|
$ |
413.3 |
|
|
$ |
318.4 |
|
|
$ |
305.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
||||||||||
Contract drilling (exclusive of depreciation) |
|
353.4 |
|
|
|
336.7 |
|
|
|
361.8 |
|
|
|
331.3 |
|
|
|
280.9 |
|
Loss on impairment |
|
— |
|
|
|
— |
|
|
|
34.5 |
|
|
|
— |
|
|
|
— |
|
Depreciation |
|
23.8 |
|
|
|
22.6 |
|
|
|
22.3 |
|
|
|
22.5 |
|
|
|
25.1 |
|
General and administrative |
|
23.9 |
|
|
|
19.2 |
|
|
|
19.0 |
|
|
|
18.8 |
|
|
|
18.3 |
|
Total operating expenses |
|
401.1 |
|
|
|
378.5 |
|
|
|
437.6 |
|
|
|
372.6 |
|
|
|
324.3 |
|
EQUITY IN EARNINGS (LOSSES) OF ARO |
|
8.6 |
|
|
|
2.9 |
|
|
|
8.7 |
|
|
|
4.3 |
|
|
|
(1.3 |
) |
OPERATING INCOME (LOSS) |
|
41.1 |
|
|
|
61.6 |
|
|
|
(15.6 |
) |
|
|
(49.9 |
) |
|
|
(20.1 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
15.5 |
|
|
|
27.9 |
|
|
|
11.2 |
|
|
|
10.9 |
|
|
|
11.0 |
|
Interest expense, net |
|
(10.5 |
) |
|
|
(11.7 |
) |
|
|
(11.6 |
) |
|
|
(11.5 |
) |
|
|
(11.7 |
) |
Reorganization items, net |
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(0.7 |
) |
|
|
(1.0 |
) |
|
|
(4.9 |
) |
Other, net |
|
(4.9 |
) |
|
|
14.1 |
|
|
|
149.7 |
|
|
|
11.0 |
|
|
|
27.0 |
|
|
|
(0.2 |
) |
|
|
29.9 |
|
|
|
148.6 |
|
|
|
9.4 |
|
|
|
21.4 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
|
40.9 |
|
|
|
91.5 |
|
|
|
133.0 |
|
|
|
(40.5 |
) |
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES |
|
9.8 |
|
|
|
13.8 |
|
|
|
20.2 |
|
|
|
(0.7 |
) |
|
|
(32.0 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS) |
|
31.1 |
|
|
|
77.7 |
|
|
|
112.8 |
|
|
|
(39.8 |
) |
|
|
33.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
(1.9 |
) |
|
|
(3.4 |
) |
|
|
(1.2 |
) |
|
|
1.2 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS |
$ |
29.2 |
|
|
$ |
74.3 |
|
|
$ |
111.6 |
|
|
$ |
(38.6 |
) |
|
$ |
33.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EARNINGS (LOSS) PER SHARE |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.39 |
|
|
$ |
0.99 |
|
|
$ |
1.49 |
|
|
$ |
(0.51 |
) |
|
$ |
0.44 |
|
Diluted |
$ |
0.38 |
|
|
$ |
0.98 |
|
|
$ |
1.48 |
|
|
$ |
(0.51 |
) |
|
$ |
0.44 |
|
WEIGHTED-AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
75.2 |
|
|
|
75.1 |
|
|
|
75.0 |
|
|
|
75.0 |
|
|
|
75.0 |
|
Diluted |
|
76.0 |
|
|
|
75.6 |
|
|
|
75.6 |
|
|
|
75.0 |
|
|
|
75.0 |
|
VALARIS LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In millions) |
|
|
As of |
|||||||||
|
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 |
|||||
ASSETS |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
CURRENT ASSETS |
|
|
|
|
|
|||||
Cash and cash equivalents |
$ |
724.1 |
$ |
406.0 |
$ |
553.5 |
$ |
578.2 |
$ |
608.7 |
Restricted cash |
|
24.4 |
|
18.2 |
|
23.8 |
|
30.0 |
|
35.9 |
Short-term investments |
|
— |
|
220.0 |
|
— |
|
— |
|
— |
Accounts receivable, net |
|
449.1 |
|
535.5 |
|
544.6 |
|
439.3 |
|
444.2 |
Other current assets |
|
148.6 |
|
162.9 |
|
159.0 |
|
125.7 |
|
117.8 |
Total current assets |
$ |
1,346.2 |
$ |
1,342.6 |
$ |
1,280.9 |
$ |
1,173.2 |
$ |
1,206.6 |
|
|
|
|
|
|
|||||
PROPERTY AND EQUIPMENT, NET |
|
977.2 |
|
953.6 |
|
931.7 |
|
930.2 |
|
890.9 |
|
|
|
|
|
|
|||||
LONG-TERM NOTES RECEIVABLE FROM ARO |
|
254.0 |
|
246.9 |
|
264.5 |
|
256.8 |
|
249.1 |
|
|
|
|
|
|
|||||
INVESTMENT IN ARO |
|
111.1 |
|
102.6 |
|
99.6 |
|
90.9 |
|
86.6 |
|
|
|
|
|
|
|||||
OTHER ASSETS |
|
171.8 |
|
175.5 |
|
184.1 |
|
180.5 |
|
169.9 |
|
|
|
|
|
|
|||||
|
$ |
2,860.3 |
$ |
2,821.2 |
$ |
2,760.8 |
$ |
2,631.6 |
$ |
2,603.1 |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
CURRENT LIABILITIES |
|
|
|
|
|
|||||
Accounts payable - trade |
$ |
256.5 |
$ |
256.6 |
$ |
287.0 |
$ |
311.2 |
$ |
225.8 |
Accrued liabilities and other |
|
247.9 |
|
262.5 |
|
260.1 |
|
212.1 |
|
196.2 |
Total current liabilities |
$ |
504.4 |
$ |
519.1 |
$ |
547.1 |
$ |
523.3 |
$ |
422.0 |
|
|
|
|
|
|
|||||
LONG-TERM DEBT |
|
542.4 |
|
541.8 |
|
545.7 |
|
545.5 |
|
545.3 |
|
|
|
|
|
|
|||||
OTHER LIABILITIES |
|
515.6 |
|
523.2 |
|
511.0 |
|
522.1 |
|
558.4 |
|
|
|
|
|
|
|||||
TOTAL LIABILITIES |
|
1,562.4 |
|
1,584.1 |
|
1,603.8 |
|
1,590.9 |
|
1,525.7 |
|
|
|
|
|
|
|||||
TOTAL EQUITY |
|
1,297.9 |
|
1,237.1 |
|
1,157.0 |
|
1,040.7 |
|
1,077.4 |
|
|
|
|
|
|
|||||
|
$ |
2,860.3 |
$ |
2,821.2 |
$ |
2,760.8 |
$ |
2,631.6 |
$ |
2,603.1 |
VALARIS LIMITED AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In millions) |
|
Successor |
|
|
Predecessor |
|
Combined (Non-GAAP) (3) |
||||||||||
|
Year Ended December 31, 2022 |
|
Eight Months Ended December 31, 2021 (1) |
|
|
Four Months Ended April 30, 2021 (2) |
|
Year Ended December 31, 2021 |
||||||||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
181.8 |
|
|
$ |
(23.6 |
) |
|
|
$ |
(4,463.8 |
) |
|
$ |
(4,487.4 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
||||||||
Gain on asset disposals |
|
(141.2 |
) |
|
|
(21.2 |
) |
|
|
|
(6.0 |
) |
|
|
(27.2 |
) |
Depreciation expense |
|
91.2 |
|
|
|
66.1 |
|
|
|
|
159.6 |
|
|
|
225.7 |
|
Accretion of discount on notes receivable |
|
(44.9 |
) |
|
|
(20.8 |
) |
|
|
|
— |
|
|
|
(20.8 |
) |
Loss on impairment |
|
34.5 |
|
|
|
— |
|
|
|
|
756.5 |
|
|
|
756.5 |
|
Equity in earnings of ARO |
|
(24.5 |
) |
|
|
(6.1 |
) |
|
|
|
(3.1 |
) |
|
|
(9.2 |
) |
Share-based compensation expense |
|
17.4 |
|
|
|
4.3 |
|
|
|
|
4.8 |
|
|
|
9.1 |
|
Net periodic pension and retiree medical income |
|
(16.4 |
) |
|
|
(8.7 |
) |
|
|
|
(5.4 |
) |
|
|
(14.1 |
) |
Amortization, net |
|
(9.0 |
) |
|
|
2.3 |
|
|
|
|
(4.8 |
) |
|
|
(2.5 |
) |
Deferred income tax expense (benefit) |
|
7.9 |
|
|
|
(21.3 |
) |
|
|
|
(18.2 |
) |
|
|
(39.5 |
) |
Amortization of debt issuance cost |
|
1.0 |
|
|
|
0.5 |
|
|
|
|
— |
|
|
|
0.5 |
|
Non-cash reorganization items, net |
|
— |
|
|
|
— |
|
|
|
|
3,487.3 |
|
|
|
3,487.3 |
|
Other |
|
(1.6 |
) |
|
|
0.3 |
|
|
|
|
7.3 |
|
|
|
7.6 |
|
Changes in operating assets and liabilities |
|
35.4 |
|
|
|
4.7 |
|
|
|
|
68.5 |
|
|
|
73.2 |
|
Contributions to pension plans and other post retirement benefits |
|
(4.1 |
) |
|
|
(2.7 |
) |
|
|
|
(22.5 |
) |
|
|
(25.2 |
) |
Net cash provided by (used in) operating activities |
$ |
127.5 |
|
|
$ |
(26.2 |
) |
|
|
$ |
(39.8 |
) |
|
$ |
(66.0 |
) |
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Purchases of short-term investments |
$ |
(220.0 |
) |
|
$ |
— |
|
|
|
$ |
— |
|
|
$ |
— |
|
Maturities of short-term investments |
|
220.0 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Additions to property and equipment |
|
(207.0 |
) |
|
|
(50.2 |
) |
|
|
|
(8.7 |
) |
|
|
(58.9 |
) |
Net proceeds from disposition of assets |
|
150.3 |
|
|
|
25.1 |
|
|
|
|
30.1 |
|
|
|
55.2 |
|
Repayments of note receivable from ARO |
|
40.0 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
$ |
(16.7 |
) |
|
$ |
(25.1 |
) |
|
|
$ |
21.4 |
|
|
$ |
(3.7 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Consent solicitation fees |
$ |
(3.9 |
) |
|
$ |
— |
|
|
|
$ |
— |
|
|
$ |
— |
|
Payments related to tax withholdings for share-based awards |
|
(2.5 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Issuance of First lien notes |
|
— |
|
|
|
— |
|
|
|
|
520.0 |
|
|
|
520.0 |
|
Payments to Predecessor Creditors |
|
— |
|
|
|
— |
|
|
|
|
(129.9 |
) |
|
|
(129.9 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
|
(1.4 |
) |
|
|
(1.4 |
) |
Net cash provided by (used in) financing activities |
$ |
(6.4 |
) |
|
$ |
— |
|
|
|
$ |
388.7 |
|
|
$ |
388.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate changes on cash and cash equivalents |
$ |
(0.5 |
) |
|
$ |
(0.1 |
) |
|
|
$ |
(0.1 |
) |
|
$ |
(0.2 |
) |
|
|
|
|
|
|
|
|
|
||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
$ |
103.9 |
|
|
$ |
(51.4 |
) |
|
|
$ |
370.2 |
|
|
$ |
318.8 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
644.6 |
|
|
|
696.0 |
|
|
|
|
325.8 |
|
|
|
325.8 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
$ |
748.5 |
|
|
$ |
644.6 |
|
|
|
$ |
696.0 |
|
|
$ |
644.6 |
|
(1) |
Represents cash flows for the period from May 1, 2021, through December 31, 2021 (the "Successor" period). |
(2) |
Represents cash flows for the period from January 1, 2021, through April 30, 2021 (the "Predecessor" period). |
(3) |
As required by GAAP, results for the Successor and Predecessor periods must be presented separately. However, the Company has combined the cash flows of the Successor and Predecessor periods ("combined" results) as a non-GAAP measure to compare the year ended December 31, 2022, to the year ended December 31, 2021, since we believe it provides the most meaningful basis to analyze our results. These combined results do not comply with GAAP and have not been prepared as pro forma results under applicable SEC rules. |
VALARIS LIMITED AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In millions) |
|
Three Months Ended |
|||||||||||||||||
|
December 31, 2022 |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
||||||||||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
31.1 |
|
$ |
77.7 |
|
|
$ |
112.8 |
|
|
$ |
(39.8 |
) |
|
$ |
33.3 |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
||||||||||
Depreciation expense |
|
23.8 |
|
|
22.6 |
|
|
|
22.3 |
|
|
|
22.5 |
|
|
|
25.1 |
|
Equity in losses (earnings) of ARO |
|
(8.6 |
) |
|
(2.9 |
) |
|
|
(8.7 |
) |
|
|
(4.3 |
) |
|
|
1.3 |
|
Accretion of discount on notes receivable |
|
(7.1 |
) |
|
(22.4 |
) |
|
|
(7.7 |
) |
|
|
(7.7 |
) |
|
|
(7.9 |
) |
Share-based compensation expense |
|
5.9 |
|
|
4.6 |
|
|
|
3.5 |
|
|
|
3.4 |
|
|
|
2.7 |
|
Net periodic pension and retiree medical income |
|
(4.3 |
) |
|
(4.0 |
) |
|
|
(4.1 |
) |
|
|
(4.0 |
) |
|
|
(2.6 |
) |
Gain on asset disposals |
|
(3.5 |
) |
|
(0.1 |
) |
|
|
(135.1 |
) |
|
|
(2.5 |
) |
|
|
(21.0 |
) |
Amortization, net |
|
(2.0 |
) |
|
(5.4 |
) |
|
|
(3.2 |
) |
|
|
1.6 |
|
|
|
(0.5 |
) |
Deferred income tax expense (benefit) |
|
0.8 |
|
|
0.4 |
|
|
|
7.3 |
|
|
|
(0.6 |
) |
|
|
(22.5 |
) |
Amortization of debt issuance cost |
|
0.3 |
|
|
0.3 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
Loss on impairment |
|
— |
|
|
— |
|
|
|
34.5 |
|
|
|
— |
|
|
|
— |
|
Other |
|
(2.4 |
) |
|
0.5 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
Changes in operating assets and liabilities |
|
121.3 |
|
|
16.4 |
|
|
|
(134.8 |
) |
|
|
32.5 |
|
|
|
(14.6 |
) |
Contributions to pension plans and other post-retirement benefits |
|
(0.8 |
) |
|
(0.6 |
) |
|
|
(1.9 |
) |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
Net cash provided by (used in) operating activities |
$ |
154.5 |
|
$ |
87.1 |
|
|
$ |
(114.6 |
) |
|
$ |
0.5 |
|
|
$ |
(7.2 |
) |
|
|
|
|
|
|
|
|
|
||||||||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||||
Maturities of short-term investments |
|
220.0 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additions to property and equipment |
|
(53.9 |
) |
|
(53.5 |
) |
|
|
(61.1 |
) |
|
|
(38.5 |
) |
|
|
(26.5 |
) |
Net proceeds from disposition of assets |
|
3.5 |
|
|
0.3 |
|
|
|
145.2 |
|
|
|
1.3 |
|
|
|
23.6 |
|
Purchases of short-term investments |
|
— |
|
|
(220.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repayments of note receivable from ARO |
|
— |
|
|
40.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
$ |
169.6 |
|
$ |
(233.2 |
) |
|
$ |
84.1 |
|
|
$ |
(37.2 |
) |
|
$ |
(2.9 |
) |
|
|
|
|
|
|
|
|
|
||||||||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||||
Consent solicitation fees |
$ |
— |
|
$ |
(3.9 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Payments for tax withholdings for share-based awards |
|
— |
|
|
(2.3 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
Net cash used in financing activities |
$ |
— |
|
$ |
(6.2 |
) |
|
$ |
(0.2 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of exchange rate changes on cash and cash equivalents |
$ |
0.2 |
|
$ |
(0.8 |
) |
|
$ |
(0.2 |
) |
|
$ |
0.3 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
$ |
324.3 |
|
$ |
(153.1 |
) |
|
$ |
(30.9 |
) |
|
$ |
(36.4 |
) |
|
$ |
(10.1 |
) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
424.2 |
|
|
577.3 |
|
|
|
608.2 |
|
|
|
644.6 |
|
|
|
654.7 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
$ |
748.5 |
|
$ |
424.2 |
|
|
$ |
577.3 |
|
|
$ |
608.2 |
|
|
$ |
644.6 |
|
Investor & Media Contacts:
Darin Gibbins
Vice President - Investor Relations and Treasurer
+1-713-979-4623
Tim Richardson
Director - Investor Relations
+1-713-979-4619
DALLAS--(BUSINESS WIRE)--National Roofing Partners (NRP), the facilities performance company delivering unparalleled service nationwide, today announced the election of three new board members, Gary Roden, Joseph Jolicoeur, and Lincoln Register, effective February 17, 2023.
“Gary, Joseph and Lincoln all bring extensive commercial roofing, construction and business leadership experience to NRP,” commented Steve Little, National Roofing Partners’ CEO. “Additionally, we believe their considerable industry relationships and commercial roofing market knowledge will complement our existing Board and enable them to be immediate and effective contributors.”
Gary Roden is the VP of Design-Build Business Development for TDIndustries, a multi-state employee-owned company that provides design, mechanical contracting, and full life-cycle facility services. Early in his career, Mr. Roden was the Manager of Building Systems at Trane Air Conditioning. After his time with Trane, Mr. Roden was President of Aguirre Roden, a North Texas company offering architecture, engineering, general contracting, and program management services. Mr. Roden was involved with the Associated Builders and Contractors in numerous roles, including serving as National Chairman and has served on the Board of the National Center for Construction Education and Research. He earned a Bachelor of Science degree in Mechanical Engineering from Texas A&M University in 1983.
Joseph Jolicoeur grew up working for his family’s business Albert Jolicoeur & Sons Masonry out of Springfield, MA. In 2010 he took an inside sales position with ABC Supply in Springfield, Massachusetts. He found his first outside sales position selling roof equipment, safety equipment, and supplies for contractors at Atlantic Equipment in Revere, MA. After his time at Atlantic Equipment, he accepted a position as Preventative Service Manager and Director of Business Development at Greenwood Industries. He is currently Vice President of Greenwood Roof Services. He played collegiate football at Merrimack College, graduating in 2009 with a BS in Business Management.
Lincoln Register leads Register Roofing & Sheet Metal as its President since January of 2012. Register Roofing is an extremely successful full service commercial roofing company in Jacksonville, FL providing high-quality roofing services and metal fabrication to customers in the Southeast. He earned a Bachelor of Arts in Building Construction & Construction Management from the University of Florida in 2011.
About National Roofing Partners
National Roofing Partners (NRP) delivers single-source client solutions on a national basis. Utilizing its network of more than 250 service centers throughout the U.S., NRP maintains and extends the life of customers’ facility assets including incorporating AI assessment technology on roofs, building envelopes and pavement. NRP also provides related services to the solar industry which rely on facility performance to support their infrastructure. Learn more at NationalRoofingPartners.com.
Ernesto Palomino
This email address is being protected from spambots. You need JavaScript enabled to view it.
469-549-0956
PARIS--(BUSINESS WIRE)--Technip Energies (PARIS: TE) has been awarded a Front-End Engineering and Design (FEED) contract by Arcadia eFuels for the world’s first commercial eFuels facility for sustainable aviation fuels production in Vordingborg, Denmark. Pre-FEED and early works recently concluded, and parties aim to support plant startup in 2026.
Arcadia eFuels will use renewable electricity, water, and biogenic carbon dioxide to produce eFuels that can be used in traditional engines and supplied to the market in existing liquid fuel infrastructures.
The FEED covers the engineering of the first eFuels plant that will produce approximately 80,000 MTPA(1) of eJet Fuel (eKerosene) and eNaphtha, using novel yet proven technologies(2). It also covers the engineering of a 250 MW electrolyzer plant to produce green hydrogen. The plant will be designed with a flexible product slate to also allow for production of eDiesel. These fuels allow airlines to cut their carbon emissions proportionally therefore providing the ability for airlines and heavy transportation to meet both voluntary carbon reductions and proposed EU mandates for eFuels use.
Laure Mandrou, SVP Carbon Free Solutions of Technip Energies, commented: “We are pleased to have been selected by Arcadia eFuels for the FEED of this world’s first commercial power-to-liquid project for eKerosene production for the aviation industry. By leveraging our engineering expertise and our collaboration to integrate electrolysis and gas to liquid technologies, we are committed to bringing this unique project to the execution phase as we continue to support the world’s energy transition.”
Amy Hebert, CEO of Arcadia eFuels, commented: “Technip Energies is a leader in the engineering services for Energy Transition and has the appropriate experience and drive to ensure a successful first of a kind project for Arcadia eFuels.”
(1) MTPA: metric tons per annum
(2) The eJet fuel complies with the internationally accepted standard ASTM D7566, FT-SPK (Synthesized Paraffinic Kerosene) and can be blended up to 50% with conventional jet fuel for use as aviation fuel
About Technip Energies
Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in Liquefied Natural Gas (LNG), hydrogen and ethylene, as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The company benefits from its robust project delivery model supported by extensive technology, products and services offering.
Operating in 34 countries, our 15,000 people are fully committed to bringing our clients’ innovative projects to life, breaking boundaries to accelerate the energy transition for a better tomorrow.
Technip Energies is listed on Euronext Paris with American depositary receipts (“ADRs”). For further information: www.technipenergies.com.
About Arcadia eFuels
Arcadia eFuels is committed to build facilities to produce the world’s future fuels to protect our environment and power our world. These carbon neutral fuels will allow the transportation sector, namely aviation and shipping, to use drop in carbon neutral fuels using existing engines and infrastructure Please visit www.arcadiaefuels.com to learn more or contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..
Important Information for Investors and Securityholders
Forward-Looking Statement
This release contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of Technip Energies’ operations or operating results. Forward-looking statements are often identified by the words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “estimate,” “outlook,” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on Technip Energies’ current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on Technip Energies. While Technip Energies believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Technip Energies will be those that Technip Energies anticipates.
All of Technip Energies’ forward-looking statements involve risks and uncertainties (some of which are significant or beyond Technip Energies’ control) and assumptions that could cause actual results to differ materially from Technip Energies’ historical experience and Technip Energies’ present expectations or projections. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements.
For information regarding known material factors that could cause actual results to differ from projected results, please see Technip Energies’ risk factors set forth in Technip Energies’ filings with the U.S. Securities and Exchange Commission, which include amendment no. 4 to Technip Energies’ registration statement on Form F-1 filed on February 11, 2021.
Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Technip Energies undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.
Investor relations
Phil Lindsay
Vice-President Investor Relations
+44 207 585 5051
This email address is being protected from spambots. You need JavaScript enabled to view it.
Media relations
Stella Fumey
Director Press Relations & Digital Communications
+33 1 85 67 40 95
This email address is being protected from spambots. You need JavaScript enabled to view it.
Jason Hyonne
Press Relations & Social Media Lead
+33 1 47 78 22 89
This email address is being protected from spambots. You need JavaScript enabled to view it.
TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2022.
Strong fundamentals drive full-year 2022 financial results
Strong 4Q results across key financial metrics cap a record year
Growth projects, acquisitions and tech investments advance clean energy strategy
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
“Williams finished the year strong with 20% Adjusted EBITDA growth in the fourth quarter, driven by our core business, upstream JVs and commodity marketing segment. Our natural gas-focused strategy once again resulted in record performance in 2022 with contracted transmission capacity, gathering volumes and Adjusted EBITDA all surpassing previous highs. Despite macroeconomic impacts of inflation, higher interest rates and recession risks, Williams delivered outstanding results that exceeded our financial guidance, even after we raised it twice during the year.
“In addition to the outstanding financial results in 2022, we also reached agreements on three acquisitions that bolster our ability to deliver growth through a variety of macroeconomic conditions. We significantly expanded our footprint with the strategic acquisitions of NorTex Midstream and Trace Midstream’s Haynesville assets, a key link in our Gulf Coast wellhead-to-water strategy. And just last week, we closed on our acquisition of MountainWest, enhancing our asset footprint in the western U.S. and growing our fully contracted demand based services. These investments along with our slate of high-return growth opportunities along our existing infrastructure give us a clear path to significant growth for years to come.”
Armstrong added, “Looking ahead, Williams will continue to set the pace for sustainable midstream companies by driving best-in-class emissions performance across the entire value chain. Natural gas is one of the most important tools available to reduce emissions on a global scale, and the build out of electrification and renewables will require our infrastructure and deep expertise in reliable energy delivery, resulting in continued earnings growth for Williams and long-term value creation for our shareholders.”
Williams Summary Financial Information |
4Q |
|
Full Year |
||||
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders. |
2022 |
2021 |
|
2022 |
2021 |
||
|
|
|
|
|
|
||
GAAP Measures |
|
|
|
|
|
||
Net Income |
$668 |
$621 |
|
$2,046 |
$1,514 |
||
Net Income Per Share |
$0.55 |
$0.51 |
|
$1.67 |
$1.24 |
||
Cash Flow From Operations |
$1,219 |
$1,139 |
|
$4,889 |
$3,945 |
||
|
|
|
|
|
|
||
Non-GAAP Measures (1) |
|
|
|
|
|
||
Adjusted EBITDA |
$1,774 |
$1,483 |
|
$6,418 |
$5,635 |
||
Adjusted Net Income |
$653 |
$476 |
|
$2,228 |
$1,658 |
||
Adjusted Earnings Per Share |
$0.53 |
$0.39 |
|
$1.82 |
$1.36 |
||
Available Funds from Operations |
$1,357 |
$1,045 |
|
$4,918 |
$4,073 |
||
Dividend Coverage Ratio |
2.62x |
2.10x |
|
2.37x |
2.04x |
||
|
|
|
|
|
|
||
Other |
|
|
|
|
|
||
Debt-to-Adjusted EBITDA at Quarter End (2) |
3.55x |
3.90x |
|
|
|
||
Capital Investments (3) (4) (5) |
$876 |
$371 |
|
$2,147 |
$1,577 |
||
|
|
|
|
|
|
||
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release. |
|||||||
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters. |
|||||||
(3) Capital Investments includes increases to property, plant, and equipment (growth & maintenance capital), purchases of businesses, net of cash acquired, purchases of and contributions to equity-method investments and purchases of other long-term investments. |
|||||||
(4) Full-year 2022 excludes $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022. |
|||||||
(5) Full-year 2022 excludes $424 million for purchase of the NorTex Midstream assets, which closed August 31, 2022. |
|||||||
GAAP Measures
Fourth-quarter 2022 net income increased by $47 million compared to the prior year reflecting the benefit of higher service revenues driven by increased Haynesville gathering volumes including the Trace Acquisition, as well as higher commodity margins, which included unfavorable write-downs of inventory to lower period-end market prices, and increased results from our upstream operations. These improvements were partially offset by an unfavorable change of $128 million in net unrealized gains/losses on commodity derivatives, higher operating expenses, including higher employee-related costs, and increased intangible asset amortization. The tax provision increased primarily due to higher pretax income.
Full-year 2022 net income increased by $532 million compared to the prior year reflecting the benefit of higher service revenues as described above and also reflecting higher commodity-based rates and Transco’s Leidy South project being in service, higher results from our upstream operations, and higher commodity margins, which include unfavorable write-downs of inventory to lower period-end market prices. These improvements were partially offset by higher operating and administrative expenses driven by the increased scale of our upstream operations and higher employee-related costs, including costs from the Sequent acquisition for the full 2022 period, increased intangible asset amortization, an unfavorable change of $140 million in net unrealized gains and losses on commodity derivatives and the absence of a $77 million favorable impact in 2021 from Winter Storm Uri. The tax provision changed favorably as the impact of higher pretax income was more than offset by $134 million associated with the release of valuation allowances on deferred income tax assets and federal income tax settlements in the second quarter and the net benefit from a lower estimated state deferred income tax rate in the third quarter.
Cash flow from operations for the fourth quarter of 2022 increased as compared to 2021 primarily due to higher operating results exclusive of non-cash items partially offset by unfavorable net changes in working capital. Full-year 2022 cash flow from operations also increased compared to 2021 driven by higher operating results exclusive of non-cash items, favorable changes in margin deposits associated with commodity derivatives, and higher distributions from equity-method investments, partially offset by unfavorable net changes in working capital.
Non-GAAP Measures
Fourth-quarter 2022 Adjusted EBITDA increased by $291 million over the prior year, driven by the previously described benefits from service revenues, commodity margins, and upstream operations, partially offset by higher operating costs. Full-year 2022 Adjusted EBITDA increased by $783 million over the prior year due to similar drivers, but also reflecting higher administrative costs and the absence of the favorable impact in 2021 from Winter Storm Uri.
Fourth-quarter 2022 Adjusted Income improved by $177 million over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives and amortization of certain assets from the Sequent acquisition. Full-year 2022 Adjusted Income improved by $570 million over the prior year driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives, amortization of certain assets from the Sequent acquisition, and favorable income tax benefits.
Fourth-quarter 2022 Available Funds From Operations (AFFO) increased by $312 million compared to the prior year primarily due to higher operating results exclusive of non-cash items. Full-year 2022 AFFO increased by $845 million reflecting higher operating results exclusive of non-cash items and higher distributions from equity-method investments.
Business Segment Results & Form 10-K
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's 2022 Form 10-K.
|
Fourth Quarter |
|
Full Year |
||||||||||||
Amounts in millions |
Modified EBITDA |
|
Adjusted EBITDA |
|
Modified EBITDA |
|
Adjusted EBITDA |
||||||||
4Q 2022 |
4Q 2021 |
Change |
|
4Q 2022 |
4Q 2021 |
Change |
|
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
|
Transmission & Gulf of Mexico |
$687 |
$685 |
$2 |
|
$700 |
$685 |
$15 |
|
$2,674 |
$2,621 |
$53 |
|
$2,720 |
$2,623 |
$97 |
Northeast G&P |
464 |
459 |
5 |
|
464 |
459 |
5 |
|
1,796 |
1,712 |
84 |
|
1,796 |
1,712 |
84 |
West |
326 |
259 |
67 |
|
326 |
259 |
67 |
|
1,211 |
961 |
250 |
|
1,219 |
961 |
258 |
Gas & NGL Marketing Services |
209 |
183 |
26 |
|
149 |
11 |
138 |
|
(40) |
22 |
(62) |
|
258 |
146 |
112 |
Other |
150 |
87 |
63 |
|
135 |
69 |
66 |
|
434 |
178 |
256 |
|
425 |
193 |
232 |
Total |
$1,836 |
$1,673 |
$163 |
|
$1,774 |
$1,483 |
$291 |
|
$6,075 |
$5,494 |
$581 |
|
$6,418 |
$5,635 |
$783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release. |
|||||||||||||||
Transmission & Gulf of Mexico
Fourth-quarter 2022 Modified and Adjusted EBITDA improved compared to the prior year driven by higher service revenues from the NorTex acquisition, partially offset by higher operating and administrative costs. Year-to-date 2022 Modified and Adjusted EBITDA improved compared to the prior year driven by higher service revenues reflecting Transco’s Leidy South project going in service and the NorTex acquisition, as well as the absence of hurricane related impacts, partially offset by higher operating and administrative costs. Modified EBITDA for the 2022 periods was further impacted by certain regulatory, abandonment, and monitoring charges which are excluded from Adjusted EBITDA.
Northeast G&P
Fourth-quarter 2022 Modified and Adjusted EBITDA increased over the prior year driven by higher service revenues from Ohio Valley Midstream, partially offset by lower contributions from equity-investees reflecting lower cost-of-service rates, lower commodity-based rates, lower volumes and impact from winter weather.
Both Modified and Adjusted EBITDA also improved for the full-year 2022 period, driven by Ohio Valley Midstream and gathering rate increases, partially offset by lower Susquehanna volumes, higher operating and administrative costs, lower net equity-investee contributions reflecting lower cost-of-service rates partially offset by higher commodity-based rates, lower volumes and impact from winter weather.
West
Fourth-quarter and full-year 2022 Modified and Adjusted EBITDA increased compared to the prior year benefiting from higher Haynesville gathering volumes including contributions from Trace Midstream acquired in April as well as higher net realized commodity-based rates, partially offset by winter weather impact in the Wamsutter and Rocky Mountain Midstream joint venture as well as higher operating and administrative costs.
Gas & NGL Marketing Services
Fourth-quarter 2022 Modified EBITDA improved from the prior year primarily reflecting higher commodity margins which included higher write-downs of inventory to lower period-end market prices, partially offset by a $122 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
Full-year 2022 Modified EBITDA declined from the prior year primarily reflecting a $168 million net unfavorable change in unrealized loss on commodity derivatives, which is excluded from Adjusted EBITDA, as well as the absence of a $58 million favorable impact in 2021 from Winter Storm Uri and higher administrative costs associated with the Sequent business acquired in July 2021. These decreases were partially offset by higher commodity margins which included higher write-downs of inventory to lower period-end market prices.
Other
Fourth-quarter 2022 Modified and Adjusted EBITDA improved compared to the prior year primarily reflecting higher volumes from our upstream operations in the Haynesville Shale, partially offset by winter weather impact in the Wamsutter.
Full-year 2022 Modified EBITDA also improved compared to the prior year primarily reflecting higher prices and volumes from our upstream operations and a $25 million net favorable change in unrealized gain/loss on commodity derivatives related to our upstream operations, which is excluded from Adjusted EBITDA. Both measures were also impacted by higher operating expenses and the absence of a $22 million favorable impact in 2021 from Winter Storm Uri. The full-year results were partially offset by winter weather impact in the Wamsutter.
2023 Financial Guidance
The company expects 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion. The company also expects 2023 growth capex between $1.4 billion to $1.7 billion and maintenance capex between $750 million and $850 million, which includes capital of $250 million for emissions reduction and modernization initiatives. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend has been increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.
Williams 2023 Analyst Day Scheduled for Tomorrow, Materials to be Posted Shortly
Williams is hosting its 2023 Analyst Day event on Tuesday, Feb. 21, 2023 beginning at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). In addition to discussing 2022 results, Williams' management will give in-depth presentations covering the company's natural gas infrastructure strategy to meet growing clean energy demands. These presentations will highlight the company’s efficient operations, disciplined project execution, strong financial position and 2023 financial guidance. Presentation slides and earnings materials will be accessible on the Williams’ Investor Relations website shortly.
Participants who wish to view the live presentation can access the webcast here: https://app.webinar.net/wAoX6Qm6lRx.
A replay of the 2023 Analyst Day webcast will also be available on the website for at least 90 days following the event.
About Williams
As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 32,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately one third of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, NextGen Gas and other innovations at www.williams.com.
The Williams Companies, Inc. Consolidated Statement of Income |
||||||||||||
|
|
Year Ended December 31, |
||||||||||
|
|
2022 |
|
2021 |
|
2020 |
||||||
|
(Millions, except per-share amounts) |
|||||||||||
Revenues: |
|
|
|
|
|
|
||||||
Service revenues |
|
$ |
6,536 |
|
|
$ |
6,001 |
|
|
$ |
5,924 |
|
Service revenues – commodity consideration |
|
|
260 |
|
|
|
238 |
|
|
|
129 |
|
Product sales |
|
|
4,556 |
|
|
|
4,536 |
|
|
|
1,671 |
|
Net gain (loss) on commodity derivatives |
|
|
(387 |
) |
|
|
(148 |
) |
|
|
(5 |
) |
Total revenues |
|
|
10,965 |
|
|
|
10,627 |
|
|
|
7,719 |
|
Costs and expenses: |
|
|
|
|
|
|
||||||
Product costs |
|
|
3,369 |
|
|
|
3,931 |
|
|
|
1,545 |
|
Net processing commodity expenses |
|
|
88 |
|
|
|
101 |
|
|
|
68 |
|
Operating and maintenance expenses |
|
|
1,817 |
|
|
|
1,548 |
|
|
|
1,326 |
|
Depreciation and amortization expenses |
|
|
2,009 |
|
|
|
1,842 |
|
|
|
1,721 |
|
Selling, general, and administrative expenses |
|
|
636 |
|
|
|
558 |
|
|
|
466 |
|
Impairment of certain assets |
|
|
— |
|
|
|
2 |
|
|
|
182 |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
187 |
|
Other (income) expense – net |
|
|
28 |
|
|
|
14 |
|
|
|
22 |
|
Total costs and expenses |
|
|
7,947 |
|
|
|
7,996 |
|
|
|
5,517 |
|
Operating income (loss) |
|
|
3,018 |
|
|
|
2,631 |
|
|
|
2,202 |
|
Equity earnings (losses) |
|
|
637 |
|
|
|
608 |
|
|
|
328 |
|
Impairment of equity-method investments |
|
|
— |
|
|
|
— |
|
|
|
(1,046 |
) |
Other investing income (loss) – net |
|
|
16 |
|
|
|
7 |
|
|
|
8 |
|
Interest incurred |
|
|
(1,167 |
) |
|
|
(1,190 |
) |
|
|
(1,192 |
) |
Interest capitalized |
|
|
20 |
|
|
|
11 |
|
|
|
20 |
|
Other income (expense) – net |
|
|
18 |
|
|
|
6 |
|
|
|
(43 |
) |
Income (loss) before income taxes |
|
|
2,542 |
|
|
|
2,073 |
|
|
|
277 |
|
Less: Provision (benefit) for income taxes |
|
|
425 |
|
|
|
511 |
|
|
|
79 |
|
Net income (loss) |
|
|
2,117 |
|
|
|
1,562 |
|
|
|
198 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
68 |
|
|
|
45 |
|
|
|
(13 |
) |
Net income (loss) attributable to The Williams Companies, Inc. |
|
|
2,049 |
|
|
|
1,517 |
|
|
|
211 |
|
Less: Preferred stock dividends |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
Net income (loss) available to common stockholders |
|
$ |
2,046 |
|
|
$ |
1,514 |
|
|
$ |
208 |
|
Basic earnings (loss) per common share: |
|
|
|
|
|
|
||||||
Net income (loss) available to common stockholders |
|
$ |
1.68 |
|
|
$ |
1.25 |
|
|
$ |
.17 |
|
Weighted-average shares (thousands) |
|
|
1,218,362 |
|
|
|
1,215,221 |
|
|
|
1,213,631 |
|
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
||||||
Net income (loss) available to common stockholders |
|
$ |
1.67 |
|
|
$ |
1.24 |
|
|
$ |
.17 |
|
Weighted-average shares (thousands) |
|
|
1,222,672 |
|
|
|
1,218,215 |
|
|
|
1,215,165 |
|
The Williams Companies, Inc. Consolidated Balance Sheet |
||||||||
|
|
December 31, |
||||||
|
|
2022 |
|
2021 |
||||
|
|
(Millions, except per-share amounts) |
||||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
152 |
|
|
$ |
1,680 |
|
Trade accounts and other receivables |
|
|
2,729 |
|
|
|
1,986 |
|
Allowance for doubtful accounts |
|
|
(6 |
) |
|
|
(8 |
) |
Trade accounts and other receivables – net |
|
|
2,723 |
|
|
|
1,978 |
|
Inventories |
|
|
320 |
|
|
|
379 |
|
Derivative assets |
|
|
323 |
|
|
|
301 |
|
Other current assets and deferred charges |
|
|
279 |
|
|
|
211 |
|
Total current assets |
|
|
3,797 |
|
|
|
4,549 |
|
|
|
|
|
|
||||
Investments |
|
|
5,065 |
|
|
|
5,127 |
|
Property, plant, and equipment – net |
|
|
30,889 |
|
|
|
29,258 |
|
Intangible assets – net of accumulated amortization |
|
|
7,363 |
|
|
|
7,402 |
|
Regulatory assets, deferred charges, and other |
|
|
1,319 |
|
|
|
1,276 |
|
Total assets |
|
$ |
48,433 |
|
|
$ |
47,612 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
2,327 |
|
|
$ |
1,746 |
|
Derivative liabilities |
|
|
316 |
|
|
|
166 |
|
Accrued and other current liabilities |
|
|
1,270 |
|
|
|
1,035 |
|
Commercial paper |
|
|
350 |
|
|
|
— |
|
Long-term debt due within one year |
|
|
627 |
|
|
|
2,025 |
|
Total current liabilities |
|
|
4,890 |
|
|
|
4,972 |
|
|
|
|
|
|
||||
Long-term debt |
|
|
21,927 |
|
|
|
21,650 |
|
Deferred income tax liabilities |
|
|
2,887 |
|
|
|
2,453 |
|
Regulatory liabilities, deferred income, and other |
|
|
4,684 |
|
|
|
4,436 |
|
Contingent liabilities and commitments |
|
|
|
|
||||
|
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock ($1 par value; 30 million shares authorized at December 31, 2022 and December 31, 2021; 35,000 shares issued at December 31, 2022 and December 31, 2021) |
|
|
35 |
|
|
|
35 |
|
Common stock ($1 par value; 1,470 million shares authorized at December 31, 2022 and December 31, 2021; 1,253 million shares issued at December 31, 2022 and 1,250 million shares issued at December 31, 2021) |
|
|
1,253 |
|
|
|
1,250 |
|
Capital in excess of par value |
|
|
24,542 |
|
|
|
24,449 |
|
Retained deficit |
|
|
(13,271 |
) |
|
|
(13,237 |
) |
Accumulated other comprehensive income (loss) |
|
|
(24 |
) |
|
|
(33 |
) |
Treasury stock, at cost (35 million shares of common stock) |
|
|
(1,050 |
) |
|
|
(1,041 |
) |
Total stockholders’ equity |
|
|
11,485 |
|
|
|
11,423 |
|
Noncontrolling interests in consolidated subsidiaries |
|
|
2,560 |
|
|
|
2,678 |
|
Total equity |
|
|
14,045 |
|
|
|
14,101 |
|
Total liabilities and equity |
|
$ |
48,433 |
|
|
$ |
47,612 |
|
The Williams Companies, Inc. Consolidated Statement of Cash Flows |
||||||||||||
|
|
Year Ended December 31, |
||||||||||
|
|
2022 |
|
2021 |
|
2020 |
||||||
|
|
(Millions) |
||||||||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||||||
Net income (loss) |
|
$ |
2,117 |
|
|
$ |
1,562 |
|
|
$ |
198 |
|
Adjustments to reconcile to net cash provided (used) by operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
2,009 |
|
|
|
1,842 |
|
|
|
1,721 |
|
Provision (benefit) for deferred income taxes |
|
|
431 |
|
|
|
509 |
|
|
|
108 |
|
Equity (earnings) losses |
|
|
(637 |
) |
|
|
(608 |
) |
|
|
(328 |
) |
Distributions from equity-method investees |
|
|
865 |
|
|
|
757 |
|
|
|
653 |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
187 |
|
Impairment of equity-method investments |
|
|
— |
|
|
|
— |
|
|
|
1,046 |
|
Impairment of certain assets |
|
|
— |
|
|
|
2 |
|
|
|
182 |
|
Net unrealized (gain) loss from derivative instruments |
|
|
249 |
|
|
|
109 |
|
|
|
— |
|
Inventory write-downs |
|
|
161 |
|
|
|
15 |
|
|
|
17 |
|
Amortization of stock-based awards |
|
|
73 |
|
|
|
81 |
|
|
|
52 |
|
Cash provided (used) by changes in current assets and liabilities: |
|
|
|
|
|
|
||||||
Accounts receivable |
|
|
(733 |
) |
|
|
(545 |
) |
|
|
(2 |
) |
Inventories |
|
|
(110 |
) |
|
|
(139 |
) |
|
|
(28 |
) |
Other current assets and deferred charges |
|
|
(33 |
) |
|
|
(63 |
) |
|
|
11 |
|
Accounts payable |
|
|
410 |
|
|
|
643 |
|
|
|
(7 |
) |
Accrued and other current liabilities |
|
|
209 |
|
|
|
58 |
|
|
|
(309 |
) |
Changes in current and noncurrent derivative assets and liabilities |
|
|
94 |
|
|
|
(277 |
) |
|
|
(4 |
) |
Other, including changes in noncurrent assets and liabilities |
|
|
(216 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Net cash provided (used) by operating activities |
|
|
4,889 |
|
|
|
3,945 |
|
|
|
3,496 |
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||||||
Proceeds from (payments of) commercial paper – net |
|
|
345 |
|
|
|
— |
|
|
|
— |
|
Proceeds from long-term debt |
|
|
1,755 |
|
|
|
2,155 |
|
|
|
3,899 |
|
Payments of long-term debt |
|
|
(2,876 |
) |
|
|
(894 |
) |
|
|
(3,841 |
) |
Proceeds from issuance of common stock |
|
|
54 |
|
|
|
9 |
|
|
|
9 |
|
Common dividends paid |
|
|
(2,071 |
) |
|
|
(1,992 |
) |
|
|
(1,941 |
) |
Dividends and distributions paid to noncontrolling interests |
|
|
(204 |
) |
|
|
(187 |
) |
|
|
(185 |
) |
Contributions from noncontrolling interests |
|
|
18 |
|
|
|
9 |
|
|
|
7 |
|
Payments for debt issuance costs |
|
|
(17 |
) |
|
|
(26 |
) |
|
|
(20 |
) |
Other – net |
|
|
(46 |
) |
|
|
(16 |
) |
|
|
(13 |
) |
Net cash provided (used) by financing activities |
|
|
(3,042 |
) |
|
|
(942 |
) |
|
|
(2,085 |
) |
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||||||
Property, plant, and equipment: |
|
|
|
|
|
|
||||||
Capital expenditures (1) |
|
|
(2,253 |
) |
|
|
(1,239 |
) |
|
|
(1,239 |
) |
Dispositions – net |
|
|
(30 |
) |
|
|
(8 |
) |
|
|
(36 |
) |
Contributions in aid of construction |
|
|
12 |
|
|
|
52 |
|
|
|
37 |
|
Purchases of businesses, net of cash acquired |
|
|
(933 |
) |
|
|
(151 |
) |
|
|
— |
|
Purchases of and contributions to equity-method investments |
|
|
(166 |
) |
|
|
(115 |
) |
|
|
(325 |
) |
Other – net |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
5 |
|
Net cash provided (used) by investing activities |
|
|
(3,375 |
) |
|
|
(1,465 |
) |
|
|
(1,558 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
(1,528 |
) |
|
|
1,538 |
|
|
|
(147 |
) |
Cash and cash equivalents at beginning of year |
|
|
1,680 |
|
|
|
142 |
|
|
|
289 |
|
Cash and cash equivalents at end of year |
|
$ |
152 |
|
|
$ |
1,680 |
|
|
$ |
142 |
|
_________ |
|
|
|
|
|
|
||||||
(1) Increases to property, plant, and equipment |
|
$ |
(2,394 |
) |
|
$ |
(1,305 |
) |
|
$ |
(1,160 |
) |
Changes in related accounts payable and accrued liabilities |
|
|
141 |
|
|
|
66 |
|
|
|
(79 |
) |
Capital expenditures |
|
$ |
(2,253 |
) |
|
$ |
(1,239 |
) |
|
$ |
(1,239 |
) |
MEDIA CONTACT:
This email address is being protected from spambots. You need JavaScript enabled to view it.
(800) 945-8723
INVESTOR CONTACTS:
Danilo Juvane
(918) 573-5075
Grace Scott
(918) 573-1092
BOCA RATON, Fla.--(BUSINESS WIRE)--Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (the “Company" or “Bluegreen Vacations”) announced today that the Company’s Board of Directors has declared a quarterly cash dividend of $0.20 per share on its Class A and Class B Common Stock, payable on March 20, 2023 to all shareholders of record at the close of trading on March 06, 2023. The dividend is an increase from the prior quarterly dividend of $0.15 per share.
About Bluegreen Vacations Holding Corporation:
Bluegreen Vacations Holding Corporation (NYSE: BVH; OTCQX: BVHBB) is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with 70 Club and Club Associate Resorts and access to nearly 11,300 other hotels and resorts through partnerships and exchange networks. The Company also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services to, or on behalf of, third parties.
For further information, please visit us at:
Bluegreen Vacations Holding Corporation: www.BVHCorp.com
Certain matters within this press release include “forward–looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements, including but not limited to, the risk that quarterly dividend payments may not be declared at the current level in the future, on a regular basis as anticipated, or at all, and the risks associated with the Company’s future performance. For a description of risks relating to the payment of dividends as well as other risks and uncertainties, please review the Company's filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (including the “Risk Factors” section thereof), filed with the Securities and Exchange Commission, which are available on the SEC's website, https://www.sec.gov, and on Bluegreen Vacations’ website, www.BVHCorp.com. The Company cautions that the foregoing factors are not exclusive.
Bluegreen Vacations Holding Corporation Contact Info:
Investor Relations: Leo Hinkley, Managing Director, Investor Relations Officer
Telephone: 954-399-7193
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Offshore Source keeps you updated with relevant information concerning the Offshore Energy Sector.
Any views or opinions represented on this website belong solely to the author and do not represent those of the people, institutions or organizations that Offshore Source or collaborators may or may not have been associated with in a professional or personal capacity, unless explicitly stated.