Helix Energy Solutions Group, Inc. (NYSE:HLX) Q1 2023 Earnings Call Transcript

Samantha Hoh: Hey, guys. Just a real quick one for me. I was wondering if you could maybe address the cost side of the equation a bit more, maybe just even on the SG&A line. But also in terms of just what you’re seeing on like labor and material and that good stuff.

Scotty Sparks: Yes. So obviously, the labor market is very tight at the moment. We – at the start of this year, we implemented some good salary increases for all of our employees, both onshore and offshore. So our costs have increased, but that’s also in line with pushing our rates up as well. So supply chain is also tightening. Those rates have gone up. So we are definitely seeing an increase in cost, but we’re countering that level increase in rates.

Erik Staffeldt: And then I think on the SG&A side, obviously, I think there has been an impact, obviously, from the, you could say, inflation that’s been seen out there. In addition to that, from our standpoint, we’re going to see the full year impact of the acquisition of Alliance in our numbers. So overall, from a dollar standpoint, we do expect an increase I think overall, we do focus on SG&A that’s less than 10% of our revenues. I think this quarter was just under 8%, and I expect it to be in that 8% to 9% range going forward.

Samantha Hoh: Okay. That was it for me. Thanks.

Operator: At this time, there are no further phone questions. I’ll turn it back to you speakers to continue the presentation or give any closing remarks.

Erik Staffeldt: Okay. Thanks for joining us today. We very much appreciate your interest and participation and look forward to having you on our second quarter 2023 call in July. Thank you.

Operator: That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.