Subsea 7 S.a. · OSL:SUBC
Subsea 7 — FY2012 Earnings Presentation
32 slides from Subsea 7's earnings presentation, Mar 14, 2013
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2012
Earnings Presentation Fourth Quarter and Full Year 2012 March 14, 2013 12:00 noon UK time
Slide 2: Forward-looking statements
Forward-looking statements Certain statements made in this announcement may include “forward-looking statements”. These statements may be identified by the use of words like “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “forecast”, “project”, “will”, “should”, “seek” and si
Slide 3: 2012: a year of significant achievement
2012: a year of significant achievement • Delivered strong results in-line with expectations – 20% growth in revenue, 16% growth in Adjusted EBITDA* • Built record backlog while maintaining discipline when tendering • Successfully completed integration plan post-Combination • Broadened and deepened
Slide 4: Delivered solid Q4 2012 results
Delivered solid Q4 2012 results • Solid results reflect: - High activity levels in North and Norwegian Seas; albeit mitigated by - execution of lower margin contracts awarded in previous years - lower NSC vessel utilisation (88% in Q4 2012 vs 91% in Q4 2011) - Strong project execution and several pr
Slide 5: Focused on building quality backlog
Focused on building quality backlog Backlog progression ($million) Backlog by Award Date Backlog by Execution Date Backlog by Service Capability Backlog by Segment 2011 2015+ SURF 33% 21% NSC 70% 2010 41% AFGoM 20% 2013 31% 51% 2014 LoF <2009 2012 28% 15% 12% 34% Brazil APME 20% i-Tech 8% 6% Convent
Slide 6: Momentum in orders has continued into Q1 2013
Momentum in orders has continued into Q1 2O13 - Western Isles contract for Dana Petroleum - $300 million - Mexico contract for Pemex - $140 million - Ehra North contract for Exxon – value not disclosed - Oseberg Delta contract for Statoil - $160 million - Montrose contract for Talisman - $285 millio
Slide 7: Income statement – key highlights
Income statement – key highlights Twelve Thirteen Three months Ended months months ended ended 31.Dec.12 31.Dec.11 31.Dec.12 31.Dec.11 In $ millions, unless indicated Unaudited Unaudited Audited Audited Revenue 1,611 1,417 6,297 5,477 Net operating income 180 137 808 641 Gain on disposal of NKT Flex
Slide 8: Territory performance – Q4 2012
Territory performance – Q4 2012 $699m $88m Revenue NOI $611m $55m $18m $97m Revenue NOI $241m $(29)m Revenue NOI Revenue NOI Note: excludes contribution from Corporate segment 14-Mar- Page 8 13
Slide 9: Territory performance – FY 2012
Territory performance – FY 2012 $2,838m $364m Revenue NOI $2,182m $278m $46m $428m $987m Revenue NOI $(25)m Revenue NOI Revenue NOI Note: excludes contribution from Corporate segment 14-Mar- Page 9 13
Slide 10: Income statement – supplementary details
Income statement – supplementary details Twelve Thirteen months months ended ended 31.Dec.12 31.Dec.11 In $ millions Audited Audited Administrative expenses (373) (410) Share of results of associates and joint ventures 86 104 Net operating income 808 641 Finance costs net of finance income (29) (20)
Slide 11: Overview of Full Year 2012 cash flow
Overview of Full Year 2012 cash flow • Net cash generated from operating activities: $515m - increase in net operating assets: $356m • Net cashflow used in investing activities: $354m - capital expenditure of $713m: Seven Borealis, Seven Inagha, Seven Waves - net proceeds on disposal of NKT Flexible
Slide 12: 2013 financial guidance
2013 financial guidance • We expect both revenue and EBITDA to show some progress • Other net income related guidance - administrative expenses: $350-370 million - share of net income in associates and JVs: $85-95 million - financing costs (net): $45-50 million - depreciation and amortisation expens
Slide 13: Outlook for the sector in 2013
Outlook for the sector in 2013 • We expect levels of tendering to remain strong with improved pricing, and we are positive about medium-term and long-term market prospects • As previously highlighted, we expect the outlook in 2013 to be tempered by: - delays in project awards in 2012 which have defe
Slide 14: 2013 outlook by Territory
2013 outlook by Territory • NSC: we expect levels of tendering to remain high with improved pricing, however - for backlog built late in 2012 we expect offshore activity largely after 2013 - we expect certain supply chain bottlenecks to lead to the deferral into 2014 of the operational phase of some
Slide 15: 2013 outlook by Territory (continued)
2013 outlook by Territory (continued) • AFGOM: we expect levels of tendering to remain high with improved pricing, however - we expect West Africa to experience a period of lower offshore activity as operations on contracts awarded in 2012 and early 2013 start in 2014 and beyond • APME: we expect a
Slide 16: Buoy Supported Riser schematic; Guara Lula buoy in transit
Buoy Supported Riser schematic; Guara Lula buoy in transit FPSO Moorings SCRs 14-Mar- Page 16 13
Slide 17: Fleet upgrade programme since Jan 2011
Fleet upgrade programme since Jan 2011 • Seven Borealis active on CLOV, Seven Viking on long term Statoil contract • Seven Waves joining fleet in 2014, new DSV joining fleet in 2015 SURF Conventional Life-of-Field Divest / Release Hook up Renewables * Owned by SHL JV 14-Mar- Page 17 13
Slide 18: Summary
Summary • 2012 was a year of significant achievement for Subsea 7 • We remain positive about medium-term and long-term market prospects • We expect to deliver progress in Revenue and Adjusted EBITDA in 2013 but, as previously highlighted, this rate of progress will be tempered by various factors • M
Slide 19: Appendix
- Major project progression - Segmental analysis - Reconciliations Appendix - Global footprint - Operational facilities - Fleet overview 11-May-11 2-Nov-11 Page 19
Slide 20: Major project progression
Major project progression Continuing projects >$100m between 5% and 95% complete as at 31 Dec 2012 excl. long-term ship charters and Life-of-Field day-rate contracts. * joint venture activity 14-Mar- Page 20 13
Slide 21: Segmental analysis
Segmental analysis For the three months ended 31 December 2012 (in $ millions) AFGoM APME BRAZIL NSC CORP Total Revenue 610.7 54.8 240.8 699.1 5.3 1,610.7 Net operating income/(loss) from operations 96.5 17.6 (29.4) 88.1 7.6 180.4 Investment income from bank deposits 6.1 Other gains and losses 2.7 F
Slide 22: Adjusted EBITDA
Adjusted EBITDA • The Group calculates adjusted earnings before interest, taxation, depreciation and amortisation (‘Adjusted EBITDA’) as net income plus finance costs, other gains and losses, taxation, depreciation and amortisation and adjusted to exclude investment income and impairment charges. Ad
Slide 23: Reconciliation of net operating income to Adjusted EBITDA
Reconciliation of net operating income to Adjusted EBITDA Three Months Three Months Twelve Months Thirteen Months Ended Ended Ended Ended 2012 2011 2012 2011 31 Dec 31 Dec 31 Dec 31 Dec For the period (in $ millions) Unaudited Unaudited Audited Audited Net operating income 180.4 136.7 808.2 640.5 De
Slide 24: Where we operate
Where we operate 14-Mar- Page 24 13
Slide 25: Operational facilities
Operational facilities Spoolbases Fabrication Yards 14-Mar- Page 25 13
Slide 26: Rigid pipelay/Heavy lift assets
Rigid pipelay/Heavy lift assets 14-Mar- Page 26 13
Slide 27: Construction/Vertical flexlay assets
Construction/Vertical flexlay assets 14-Mar- Page 27 13
Slide 28: Construction/Horizontal flexlay assets
Construction/Horizontal flexlay assets 14-Mar- Page 28 13
Slide 29: Light construction/Life of field assets
Light construction/Life of field assets Note: Seven Sisters renamed Simar Esperanca 14-Mar- Page 29 13
Slide 30: Diving assets
Diving assets Note: Acergy Osprey renamed Seven Osprey, Seven Havila renamed Seven Falcon 14-Mar- Page 30 13
Slide 31: Other assets
Other assets Conventional Over 150 ROVs Trenching 14-Mar- Page 31 13
Slide 32: seabed-to-surface
seabed-to-surface www.subsea7.com 14-Mar- 10.01.11 Page 32 13