Subsea 7 S.a. · OSL:SUBC

Subsea 7 — Q3 2023 Earnings Presentation

22 slides from Subsea 7's earnings presentation, Nov 16, 2023

Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation 16 November 2023 1 © Subsea7 - 2023 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 rega
Slide 3: Third quarter 2023 – delivering in the upcycle
Third quarter 2023 – delivering in the upcycle • Solid third quarter results with good progress on major projects in both subsea and renewables • Adjusted EBITDA $201 million, a margin of 13% • Strong free cash flow generation of $223 million • Robust order intake and continued backlog growth • Up 5
Slide 4: Third quarter 2023 – major projects on track
Third quarter 2023 – major projects on track • Bacalhau 71% complete (SIA) • Seven Vega and Seven Pacific active • Mero 3&4 20% complete • Fabrication of flowlines at the Ubu spoolbase • Installed torpedo piles • Marjan 2 53% complete • Seven Borealis completed first campaign of jacket installation
Slide 5: Third quarter 2023 – continued momentum in order intake
Third quarter 2023 – continued momentum in order intake Order intake Backlog 7.1 6.1 6.2 3.0 4.4 2.0 2.1 0.2 0.7 1.0 $bn 10.8 1.4 2.2 9.0 2.0 2.1 Q4 7.2 1.9 6.2 Q3 1.5 1.9 Q2 0.8 1.2 Q1 $bn FY 2020 FY 2021 FY 2022 9M 2023 YE 20 YE 21 YE 22 Sep-23 • Q3 new orders of $1.4 billion and • Backlog of $10.
Slide 6: Third quarter 2023 – backlog increased to $10.8 billion
Third quarter 2023 – backlog increased to $10.8 billion Subsea and Conventional Renewables by year of execution by year of execution 9.1 2.0 6.5 3.5 1.7 5.6 0.7 1.2 4.6 2.4 0.8 1.8 0.2 1.2 $bn $bn 4.2 1.1 0.8 0.6 2.6 3.0 2.5 Beyond 0.2 0.7 Beyond Next year 0.2 Next year 1.0 1.2 1.1 1.5 Current year
Slide 7: Third quarter 2023 - Group
Third quarter 2023 - Group Revenue Adjusted EBITDA 559 521 5.0 5.1 470 4.3 169 143 1.4 1.3 3.5 337 201 1.6 171 1.0 1.4 $bn 185 $m 1.5 165 0.9 Q4 162 Q4 1.2 1.5 90 134 1.2 Q3 113 Q3 0.8 Q2 Q2 0.8 1.0 1.2 1.2 (9) 68 102 86 107 Q1 Q1 FY 2020 FY 2021 FY 2022 9M 2023 FY 2020 FY 2021 FY 2022 9M 2023 • Q3
Slide 8: Third quarter 2023 – Subsea and Conventional
Third quarter 2023 – Subsea and Conventional $1.3bn Revenue $1.0bn $1.2bn • Revenue up 30% YoY to $1.3 billion • Good progress on Bacalhau, Marjan 2, Sangomar, SLGC, Q3 2022 Q2 2023 Q3 2023 CLOV 3 • Adjusted EBITDA margin 14.2% 200 Adjusted 180 $182m 0.25 • Mix-shift to higher-margin 160 EBITDA 140
Slide 9: Third quarter 2023 – Renewables
Third quarter 2023 – Renewables $374m Revenue $309m $269m • Revenue down 28% YoY to $0.3 billion • Driven by the phasing of major projects Q3 2022 Q2 2023 Q3 2023 • Adjusted EBITDA margin 11.7% • Improved execution and 40 selective bidding 0.16 Adjusted 35 $34m $31m 0.14 • Progress on Dogger Bank A&
Slide 10: Third quarter 2023 – cash flow
Third quarter 2023 – cash flow $m 530 • Free cash flow $223 million • Net debt $606 million Including lease liabilities of $410 million • Liquidity of $1.5 billion • New green facility of $450 million confirmed Cash Adjusted Working Tax Investing Financing Other Cash 30 Jun EBITDA capital 30 Sep Ope
Slide 11: Group financial guidance
Group financial guidance 2022 2023 2024 Revenue $5.1 billion Higher than 2022 $6.0 - 6.5 billion Administrative expense $245 million $255 – 275 million Adjusted EBITDA $559 million Higher than 2022 $950 million - $1.0 billion D&A $468 million $530 – 550 million Net operating income $149 million In l
Slide 12: Spotlight – collaboration and partnerships
Spotlight – collaboration and partnerships “The members of Subsea Integration Alliance have been key suppliers of bp for decades, and by combining our resources and knowledge, we can bring significant benefits to our customers and our stakeholders” bp, 25 September 2023 • Collaborations and partners
Slide 13: Spotlight – Mero 3 and 4
Spotlight – Mero 3 and 4 • Mero 4 is Subsea7’s fifth major greenfield EPCI award in Brazil • Combined with Mero 3 as one project • Mero 3 and 4 developments cover a total of 12 production and 12 WAG injection wells • EPCI 156km rigid risers and flowlines in lazy wave configurations, plus flexible se
Slide 14: Outlook – subsea prospects
Outlook – subsea prospects Tenders in-house: $21 billion Europe Total Quad 9 BP Clair 3 (i) NEP CCS (i) North and Central America Aker BP Tie-back projects Shell Sparta OKEA Brasse (i) Azerbaijan Beacon Zephyrus Chevron Aphrodite (i) BP Caspian IRM BP Tie-back projects Chevron Tie-back projects Türk
Slide 15: Outlook – offshore wind prospects
Outlook – offshore wind prospects UK and Ireland SSE Seagreen 1A Berwick Bank Red Rock Inchcape Ørsted Hornsea 3 BP/EnBW Mona Morgan Morven TotalEnergies Outer Dowsing USA West of Orkney OceanWinds Caledonia Asia Shell Atlantic Shores SPR1 East Anglia 2 Various prospects East Anglia 1N Ireland Vario
Slide 16: Summary – good years ahead
Summary – good years ahead • Subsea project mix becoming more favourable • Shift to higher-margin projects • High visibility on vessel utilisation • Client partnerships continue to strengthen • Renewables delivering improved performance • High visibility on vessel utilisation to 2026 • Selective ten
Slide 20: Major projects - percentage of completion
Major projects - percentage of completion • Continuing projects >$100m between 5% and 95% complete as at 30 September 2023 excluding PLSV and Life of Field day-rate contracts Sonamet (SLGC) (Angola) 2020 Yunlin (Taiwan) 2018 Penguins Redevelopment (UK) 2018 Sangomar (Senegal) 2020 Ballymore (USA) 20
Slide 21: Fleet – vessels in the active fleet at the end of Q3 2023
Fleet – 38 vessels in the active fleet at the end of Q3 2023 Renewables and transportation vessels are operated by Seaway7 AS Seaway Ventus is under construction and therefore excluded from the active fleet. Maersk Connector and Seaway Swan are on long-term charter from third parties. Chartered vess

Subsea 7 — Q3 2023 Earnings Presentation on 6ix

Subsea 7 — Q3 2023 Earnings Presentation

Slide 1: Third Quarter 2023 Earnings Presentation

Slide 2: Forward-looking statements

Slide 3: Third quarter 2023 – delivering in the upcycle

Slide 4: Third quarter 2023 – major projects on track

Slide 5: Third quarter 2023 – continued momentum in order intake

Slide 6: Third quarter 2023 – backlog increased to $10.8 billion

Slide 7: Third quarter 2023 - Group

Slide 8: Third quarter 2023 – Subsea and Conventional

Slide 9: Third quarter 2023 – Renewables

Slide 10: Third quarter 2023 – cash flow

Slide 11: Group financial guidance

Slide 12: Spotlight – collaboration and partnerships

Slide 13: Spotlight – Mero 3 and 4

Slide 14: Outlook – subsea prospects

Slide 15: Outlook – offshore wind prospects

Slide 16: Summary – good years ahead

Slide 17: Our world

Slide 18: Q&A

Slide 19: Appendix

Slide 20: Major projects - percentage of completion

Slide 21: Fleet – vessels in the active fleet at the end of Q3 2023

Slide 22: subsea7.com