Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Q2 2021 Earnings Presentation
25 slides from Subsea 7's earnings presentation, Jul 28, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
Second Quarter 2021 Earnings Presentation 28 July 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: Second quarter 2021 results
Second quarter 2021 results FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS • Revenue $1.2 billion • Active fleet vessel utilisation: 82% • Adjusted EBITDA $90 million • Challenges in Taiwan • Adjusted EBITDA margin 7.5% • Seagreen making good progress ‒ After incurring net Covid-19 costs of • Order int
Slide 4: Second quarter operational highlights
Second quarter operational highlights Lingshui (China) Hod (Norway) Manuel (Gulf of Mexico) Julimar (Australia) SLGC (Angola) PLSVs (Brazil) Seagreen (UK) Hornsea II (UK) 4 © Subsea 7 - 2021 subsea7.com
Slide 5: Second quarter 2021 backlog
Second quarter 2021 backlog Backlog of $6.8 billion, as at 30 June 2021 • Order intake of $1.9 billion • $1.5 billion new awards • $0.4 billion escalations • 1.6 book-to-bill ratio • Awards announced in Q2: • Bacalhau: over $750m • Mero 3: $500-750m Order backlog includes: - $0.3 billion relating to
Slide 6: Q2 2021 - income statement summary
Q2 2021 - income statement summary Three months ended 30 June 2021 30 June 2020 In $ millions, unless otherwise indicated Unaudited Unaudited Revenue 1,198 754 Net operating loss, excluding goodwill impairment charges (28) (352) Goodwill impairment charges - (578) Loss before taxes (28) (938) Taxati
Slide 7: Q2 2021 - supplementary details
Q2 2021 - supplementary details Three months ended 30 June 2021 30 June 2020 In $ millions Unaudited Unaudited Administrative expenses (58) (70) Depreciation, amortisation and mobilisation charges (114) (113) Impairment of property, plant and equipment (4) (213) Impairment of right-of-use assets - (
Slide 8: Q2 2021 - business unit performance
Q2 2021 - business unit performance Revenue Net Operating (Loss)/Income(2) $1,198m $20m $(28)m $(19)m $315m $14m $14m $754m $15m Subsea and $(10)m Conventional $66m $(26)m Renewables $863m $673m $(32)m Corporate(1) $(6)m Q2 2021 Q2 2020 Q2 2021 Q2 2020 (1) Corporate business unit includes the result
Slide 9: Q2 2021 - cash flow
Q2 2021 - cash flow $m 90 (21) (48) (34) 527 (23) (6) (33) (72) 10 390 Cash at EBITDA Tax paid Change in net Capex Lease Repayment of Loans to joint Dividends Other Cash at 1 Apr 2021 operating payments borrowings ventures 30 Jun 2021 liabilities • Net debt (including lease liabilities) of $39 milli
Slide 10: 2021 financial guidance
2021 financial guidance 2020 reported 2021 guidance Revenue $3.5 billion Higher than 2020 Administrative expense $241 million $220 – 240 million Adjusted EBITDA $423 million1 Higher than 2020 D&A $442 million $430 – 450 million Net operating income $(1.0) billion Positive Net finance cost $20 millio
Slide 11: 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 developments products • Emerging energy – new markets and
Slide 12: Subsea Integration Alliance - a market leader
Subsea Integration Alliance - a market leader • Integration of SPS and SURF • Optimises the complete subsea offering from engineering to delivery • Increases competitive differentiation • Subsea Integration Alliance awards in Q2 2021 • Bacalhau, Brazil ($750m+): first integrated award in Brazil • Ha
Slide 13: Renewables - unlocking value
Renewables - unlocking value • Seaway 7 ASA: will reinforce position as market leader in offshore fixed wind • Increasingly tangible step-up in activity levels • High levels of tendering for projects in the US and Europe • Currently bidding installation work for execution in 2025 • Accelerated the d
Slide 14: Outlook - subsea prospects
Outlook - subsea prospects Norway Canada UK Shell Ormen Lange III (i,f) Equinor Bay du Nord (i) Shell Jackdaw Aker BP Multiple projects Equinor Rosebank Equinor Multiple projects NEP Teeside Humber Saudi Arabia Nigeria Saudi Aramco Zuluf USA Shell Bonga SW Shell Whale Ghana Malaysia Total North Plat
Slide 15: Outlook - offshore wind prospects
Outlook - offshore wind prospects UK Germany Iberdrola East Anglia Hub EnBW He Dreiht Red Rock Inch Cape Ørsted Gode Vind 3 EDPR Moray West Borkum SSE Seagreen 1A Riffgrund 3 Dogger Bank C Vattenfall Norfolk Vanguard Boreas Taiwan RWE Chu Feng USA Ørsted Ocean Wind Poland Skipjack Equinor Empire Nor
Slide 16: Summary
Summary • Strong balance sheet with net debt of $39 million and liquidity in excess of $1 billion • Growing, diversified backlog of $6.8 billion • Improvement in the pricing environment for new tenders in Subsea and Conventional • Expected to result in higher offshore activity from late 2023 • Enhan
Slide 17: Appendix
Appendix Major project progression Track record Fleet Financial summaries 17 © Subsea 7 - 2021 subsea7.com
Slide 18: Major project progression
Major project progression • Continuing projects >$100m between 5% and 95% complete as at 30 June 2021 excluding PLSV and Life of Field day-rate contracts Manuel (USA) 3PDMs (Saudi Arabia) Julimar Phase 2 Development (Australia) Penguins Redevelopment (UK) Announced Buzzard Phase 2 (UK) size of proje
Slide 19: 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 20: Fleet – 29 active vessels at the end of Q2 2021
Fleet – 29 active vessels at the end of Q2 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. 20 © Subsea 7 - 2021 subsea7.com
Slide 21: Segmental analysis
Segmental analysis For the three months ended 30 June 2021 In $ millions (Unaudited) Subsea & Conventional Renewables Corporate TOTAL Revenue 863 315 20 1,198 Net operating (loss)/income (10) (32) 14 (28) Finance income 1 Other gains and losses 1 Finance costs (2) Loss before taxes (28) For the thre
Slide 22: Summary balance sheet
Summary balance sheet 30 June 2021 31 Dec 2020 30 June 2021 31 Dec 2020 Unaudited Audited Unaudited Audited In $ millions In $ millions Assets Equity & Liabilities Total equity 4,194 4,255 Non-current assets Non-current liabilities Goodwill 86 85 Non-current portion of borrowings 153 184 Property, p
Slide 23: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Net operating loss to Adjusted EBITDA Three Months Ended 30 June 2021 Three Months Ended 30 June 2020 For the period (in $millions) Unaudited Unaudited Net operating loss (28) (930) Depreciation, amortisation and mobilisation 114 113 Impairment of goodwill - 578 Imp
Slide 24: Summary of second quarter 2021 cash flows
Summary of second quarter 2021 cash flows $ millions Cash and cash equivalents at 1 April 2021 527 Net cash generated from operating activities 15 Includes net decrease in operating liabilities of $48 million Net cash used in investing activities (61) Includes capital expenditure of $34m and loan to
Slide 25: © Subsea 7 - 2021 subsea7.com
25 © Subsea 7 - 2021 subsea7.com