Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Q1 2021 Earnings Presentation
27 slides from Subsea 7's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation 29 April 2021 1 © Subsea 7 - 2021 subsea7.com
Slide 2: Forward looking statements
Forward looking statements • This document may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies re
Slide 3: First Quarter 2021
First Quarter 2021 John Evans, CEO Ricardo Rosa, CFO • Highlights • Financial performance • Outlook • Q&A 3 © Subsea 7 - 2021 subsea7.com
Slide 4: First quarter 2021 results
First quarter 2021 results FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS • Revenue $1.0 billion • Active fleet vessel utilisation: 66% • Adjusted EBITDA $102 million • Zinia complete; Barossa restarted • Adjusted EBITDA margin 10% • Re-commenced offshore activities ‒ After incurring net Covid-19 costs
Slide 5: First quarter operational highlights
First quarter operational highlights West Barracouta (Australia) Sangomar (Senegal) Pierce (UK) Gulf of Mexico PLSVs (Brazil) 28 Jackets (Saudi Arabia) Seagreen (UK) Seven Vega (GoM) 5 © Subsea 7 - 2021 subsea7.com
Slide 6: First quarter 2021 backlog
First quarter 2021 backlog Backlog of $6.0 billion, as at 31 March 2021 • Order intake • $0.6 billion new orders • $0.2 billion escalations • 0.8 book-to-bill ratio • Awards announced in Q1: • Sanha Lean Gas $150-300m • Northern Lights ~$50m • Subsea order $50-150m Order backlog includes: - $0.4 bil
Slide 7: Q1 2021 – income statement summary
Q1 2021 – income statement summary Three months ended 31 March 2021 31 March 2020 In $ millions, unless otherwise indicated Unaudited Unaudited Revenue 996 751 Net operating loss (9) (49) Income/(loss) before taxes 3 (33) Taxation (2) (4) Net income/(loss) 1 (38) Adjusted EBITDA(1) 102 68 Adjusted E
Slide 8: Q1 2021 – supplementary details
Q1 2021 – supplementary details Three months ended 31 March 2021 31 March 2020 In $ millions Unaudited Unaudited Administrative expenses (56) (63) Depreciation, amortisation, mobilisation and impairment (111) (117) Net operating loss (9) (49) Net finance cost (5) (4) Other gains and losses 16 20 Inc
Slide 9: Q1 2021 – business unit performance
Q1 2021 – business unit performance Revenue Net Operating Income/(Loss) $996m $751m $(9)m $(49)m $20m $241m $18m Subsea and Conventional $62m $20m $(7)m $(28)m Renewables $(20)m $735m $669m $(12)m Corporate(1) $(8)m Q1 2021 Q1 2020 Q1 2021 Q1 2020 (1) Corporate business unit includes the results of
Slide 10: Q1 2021 - cash flow
Q1 2021 - cash flow $m 102 (24) (25) (24) (24) (6) 15 527 512 Cash at EBITDA Tax paid Change in net Capex Lease payments Repayment of Other Cash at 1 Jan 2021 operating borrowings 31 Mar 2021 liabilities • Net debt (including lease liabilities) of $74 million at 31 March 2021 10 © Subsea 7 - 2021 su
Slide 11: Capital allocation framework
Capital allocation framework • Balanced capital allocation strategy to protect and drive growth in shareholder value • Re-investment in a disciplined manner − Investment in technology and digitalisation Cash flow from remains a priority operations − Sufficient cash to fund working capital requiremen
Slide 12: Financial guidance - unchanged
Financial guidance - unchanged 2021 Guidance Revenue Higher than 2020 Adjusted EBITDA Higher than 2020 Net operating income Positive Administrative expense $220 million - $240 million Net finance cost $15 million - $20 million Depreciation and amortisation $430 million - $450 million Tax charge $30
Slide 13: The Subsea Strategy
The Subsea 7 Strategy Subsea Field of the Future: Energy Transition: Systems and Delivery Proactive Participation • Early engagement and partnerships • Renewables – offshore wind • Systems innovation and enabling • Oil and gas – lower carbon products developments • Integrated SPS and SURF • Emerging
Slide 14: Energy Transition – emerging energy
Energy Transition – emerging energy Carbon Capture: Northern Lights • CO2 generated by cement and waste-to- energy operations piped to a storage location in the North Sea, for permanent storage • Initial capacity up to 1.5 million tonnes of CO2 per year • Scheduled to be in operation in 2024 • Subse
Slide 15: Energy Transition – renewables
Energy Transition – renewables Floating wind: Salamander • Pre-commercial size, “stepping-stone” project up to 200MW • Offshore north-east coast Scotland • 35km from shore, 75-110m water • Preliminary technology selection based on maximising Scottish supply chain content • Aiming to participate in t
Slide 16: Outlook: global prospects
Outlook: global prospects Canada and USA Europe • Ørsted Ocean Wind, Skipjack (w) • Iberdrola East Anglia Hub (w) • Shell & EDPR Mayflower (w) • Red Rock Inch Cape (w) • Equinor Empire (w) • EDPR Moray West (w) • Dominion Energy Coastal Virginia (w) • Shell Jackdaw, Ormen Lange Phase III (i) • Subse
Slide 17: Summary: delivering on a diversified energy services strategy
Summary: delivering on a diversified energy services strategy • Strong balance sheet with net cash of $74 million and liquidity in excess of $1 billion • Robust, diversified backlog of $6.0 billion − 30% of backlog in offshore wind − Good visibility on 2021 with a backlog for execution this year of
Slide 18: © Subsea 7 - 2021 subsea7.com
18 © Subsea 7 - 2021 subsea7.com
Slide 19: Appendix
Appendix Major project progression Track record Fleet Financial summaries 19 © Subsea 7 - 2021 subsea7.com
Slide 20: Major project progression
Major project progression • Continuing projects >$100m between 5% and 95% complete as at 31 March 2021 excluding PLSV and Life of Field day-rate contracts Arran (United Kingdom) Nova (Norway) Announced 3 PDMs (Saudi Arabia) Manuel (USA) size of project Jubilee Turret Remediation (Africa) Ichalkil, P
Slide 21: Track record – over 1,000 projects delivered worldwide
Track record – over 1,000 projects delivered worldwide • Beatrice wind farm • Borkum II, Trianel • Seagreen, SWEL • Shearwater, Shell • Aasta Hansteen, Statoil • Buzzard ph. 2, • Maria, Wintershall CNOOC • IRM Services, Equinor • Culzean, Maersk • IRM Services, BP • Alligin, BP • Penguins, Shell • A
Slide 22: Fleet – active vessels at the end of Q1 2021
Fleet – 29 active vessels at the end of Q1 2021 Long-term charter from a vessel- owning joint venture Stacked Chartered from a third party Seven Antares and Seven Inagha are owned by Subsea 7’s Nigerian joint venture. 22 © Subsea 7 - 2021 subsea7.com
Slide 23: Segmental analysis
Segmental analysis For the three months ended 31 March 2021 In $ millions (Unaudited) Subsea & Conventional Renewables Corporate TOTAL Revenue 735 241 20 996 Net operating (loss)/income (7) (20) 18 (9) Finance income 1 Other gains and losses 16 Finance costs (6) Income before taxes 3 For the three m
Slide 24: Summary Balance sheet
Summary Balance sheet 31 Mar 2021 31 Dec 2020 31 Mar 2021 31 Dec 2020 Unaudited Audited Unaudited Audited In $ millions In $ millions Assets Equity & Liabilities Total equity 4,269 4,255 Non-current assets Non-current liabilities Goodwill 86 85 Non-current portion of borrowings 158 184 Property, pla
Slide 25: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA Net operating loss to Adjusted EBITDA Three Months Ended 31 March 2021 Three Months Ended 31 March 2020 For the period (in $millions) Unaudited Unaudited Net operating loss (9) (49) Depreciation, amortisation, mobilisation and impairment 111 117 Adjusted EBITDA 102
Slide 26: Summary of first quarter 2021 cash flows
Summary of first quarter 2021 cash flows $ millions Cash and cash equivalents at 1 January 2021 512 Net cash generated from operating activities 71 Includes net decrease in operating liabilities of $24 million Net cash used in investing activities (21) Includes capital expenditure of $24m Includes $
Slide 27: © Subsea 7 - 2021 subsea7.com
27 © Subsea 7 - 2021 subsea7.com