Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Acergy — Q3 2009 Earnings Presentation
21 slides from Subsea 7's earnings presentation, Oct 15, 2009
Slide 1: Earnings Presentation Third Quarter Ended August 31, 2009
Exhibit 99.2 EARNINGS PRESENTATION THIRD QUARTER ENDED AUGUST 31, 2009 OCTOBER 14, 2009 3:00 PM UK TIME seabed-to-surface
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: Certain statements made in this announcement may include “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the US Securities Exchange Act of 1934. These statements may be identified by the us
Slide 3: Third Quarter Highlights
Third Quarter Highlights Result reflects excellent operational performance, strong client relationships and good execution of projects awarded in previous years when business conditions were more favourable Continuing operations: Revenue of $558 million Adjusted EBITDA of $110 million Adjusted EBITD
Slide 4: Current Market Conditions
Current Market Conditions Underlying market fundamentals remain unchanged - at present, challenging business conditions prevail in SURF market Short-term caution - medium-term fundamentals remain strong Macro economic concerns have resulted in clients delaying the award of large SURF projects SURF m
Slide 5: Company Expectations
Company Expectations Fiscal year 2009: Revenue from continuing operations for fiscal year 2009 expected to be in line with previous guidance Subject to the successful outcome of a number of commercial negotiations in the final quarter of fiscal year 2009, we expect to achieve an Adjusted EBITDA marg
Slide 6: Medium-term fundamentals remain strong
Medium-term fundamentals remain strong Continue to focus on delivering outstanding execution for our clients Remain vigilant – managing cost base and risk profile, without compromising long-term strategy and expertise Re-orientating resources towards key markets Despite present challenging condition
Slide 7: Financial Highlights
Financial Highlights Three-Months Ended Nine-Months Ended August 31, August 31, August 31, August 31, In $ millions, except share and per share data 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Continuing operations: Revenue 558.3 639.2 1,586.9 1,954.5 (a) Adjusted EBITDA 110.0 162.3
Slide 8: Cashflow Highlights
Cashflow Highlights In $ millions Three-Months Ended Nine-Months Ended August 31, 2009 August 31, 2009 Net income – total operations 66.7 184.6 Depreciation and amortisation 33.1 95.8 Other non cash items from operations (11.4) (9.5) Changes in working capital 86.2 114.0 Net cash from operating acti
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights In $ millions as at August 31 , November August 31, 2009 30, 2008 2008 Unaudited Audited (1) Unaudited Property, plant and equipment 845.4 907.6 918.2 Interest in associates and joint ventures 175.1 140.2 152.1 (2) Trade and other receivables 304.7 354.5 500.7 Assets held fo
Slide 10: Appendices
Appendices seabed-to-surface October 14, 2009 slide 10
Slide 11: Major Project Progression
Major Project Progression Continuing Projects >$100m, between 5% and 95% complete as at August 31, 2009 - excl. long-term ship charters Moho Bilondo (Congo) Block 15 (Angola) EPC4A (Nigeria) PazFlor (Angola) ALNG (Angola) Deep Panuke (Canada) Pluto (Australia) Mexilhao (Brazil) 0% 20% 40% 60% 80% 10
Slide 12: Backlog Analysis – continuing operations
Backlog Analysis – continuing operations In $ millions as at: Aug.31.09 May.31.09 Aug.31.08 Backlog (1) 2,628 2,415 3,038 (2) Pre-Backlog 42 99 176 (1) Backlog excludes amounts related to discontinued operations as of Aug.31.09: $72 million, May.31.09: $77 million, Aug.31.08: $243 million (2) Pre-ba
Slide 13: Segmental Analysis – continuing operations
Segmental Analysis – continuing operations For the three months Acergy Acergy Acergy Acergy Acergy Acergy Total – ended August.31.2009 NEC AME AFMED NAMEX SAM Corporate Continuing operations In $ millions Revenue 216.6 43.2 243.7 13.3 39.3 2.2 558.3 Net operating income / (loss) 34.1 (0.1) 27.2 4.1
Slide 14: Regional Performance – Acergy Northern Europe and Canada
Regional Performance – continuing operations Acergy Northern Europe and Canada Quarter Ended Nine Months Ended Aug 31 Aug 31 300 278.7 750 617.0 216.6 600 485.3 200 450 300 100 88.3 126.6 34.1 150 31.1 0 0 Net Operating Net Operating Net Operating Net Operating Revenue Income Revenue Income 2009 200
Slide 15: Regional Performance – Acergy Asia and Middle East
Regional Performance – continuing operations Acergy Asia and Middle East Quarter Ended Nine Months Ended Aug 31 Aug 31 144.0 60 150 135.8 48.5 43.2 40 100 20 50 27.4 6.8 12.3 (0.1) 0 0 Net Operating Net Operating Net Operating Net Operating Revenue (Loss) /Income Revenue Income 2009 2008 2009 2008 G
Slide 16: Regional Performance – Acergy Africa and Mediterranean
Regional Performance – continuing operations Acergy Africa and Mediterranean Quarter Ended Nine Months Ended Aug 31 Aug 31 300 1,000 968.2 243.7 233.4 200 750 679.6 500 100 250 160.9 27.2 20.7 105.9 0 0 Net Operating Net Operating Net Operating Net Operating Revenue Income Revenue Income 2009 2008 2
Slide 17: Regional Performance – Acergy North America and Mexico
Regional Performance – continuing operations Acergy North America and Mexico Quarter Ended Nine Months Ended Aug 31 Aug 31 20 50 46.8 13.3 10 25 16.8 4.1 6.6 1.1 2.6 0.3 0 0 Net Operating Net Operating Net Operating Net Operating Revenue Income Revenue Income 2009 2008 2009 2008 Good contribution fr
Slide 18: Regional Performance – Acergy South America
Regional Performance – continuing operations Acergy South America Quarter Ended Nine Months Ended Aug 31 Aug 31 110 300 77.3 225.3 229.2 80 200 50 39.3 100 20 6.5 24.3 (3.5) 15.2 0 -10 Net Operating Net Operating Net Operating Net Operating Revenue Income / (Loss) Revenue Income 2009 2008 2009 2008
Slide 19: Regional Performance – discontinued operations
Regional Performance – discontinued operations Discontinued Operations Quarter Ended Nine Months Ended Aug 31 Aug 31 140 200 177.1 114.1 100 150 100 85.3 60 36.3 18.2 50 20 4.5 10.9 (26.0) 0 -20 Net Operating Net Operating Net Operating Net Operating -50 Revenue Income Revenue Income / (Loss) 2009 2
Slide 20: Adjusted EBITDA
Adjusted EBITDA (a) Adjusted EBITDA: The Group calculates Adjusted EBITDA from continuing operations (adjusted earnings before interest, income taxation, depreciation and amortisation) as net income from continuing operations plus finance costs, other gains and losses, taxation, depreciation and amo
Slide 21: Reconciliation of Net Operating Income to Adjusted EBITDA
Reconciliation of Net Operating Income to Adjusted EBITDA Three-Months Ended Three-Months Ended August 31, 2009 August 31, 2008 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net operating income 76.9 4.5 81.4 134.5 18.2 152.7 Dep