Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Q2 2013 Earnings Presentation
39 slides from Subsea 7's earnings presentation, Aug 14, 2013
Slide 1: Earnings Presentation Second Quarter
Earnings Presentation Second Quarter August 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: Strong Q2 2013 results excluding Brazil
Strong Q2 2013 results excluding Brazil HIGHLIGHTS FINANCIAL OPERATIONAL ORDER IN-TAKE • High activity level • Good net • Global vessel • Record $10.4bn and strong project operating income utilisation of 86% backlog execution drove margin in NSC • Orders placed for • Awards good performance (19.3%),
Slide 4: Focused on building quality backlog
Focused on building quality backlog Backlog progression ($ millions) 10,222 10,421 9,086 8,538 8,686 8,285 8,088 7,883 7,903 6,668 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Backlog by Award Date Backlog by Execution Date Backlog by Segment 2011 2013 2012 NSC AFGOM 23% 30% 22% 2015+
Slide 5: Market overview
Market overview • Tendering activity remains high • Some industry projects around the world postponed for various reasons • We remain positive about medium and long-term market prospects • Growth opportunities in all major markets, albeit at differing paces NSC AFGOM BRAZIL APME • Strong levels of •
Slide 6: Income statement – key highlights
Income statement – key highlights In $ millions, unless otherwise indicated Three months ended Six months ended 30 June 13 30 June 12 30 June 13 30 June 12 Revenue 1,681 1,484 3,148 2,942 Net operating income 41 246 195 400 Gain on sale of NKT Flexibles - 220 - 220 Income before taxes 20 504 178 651
Slide 7: Territory performance – Q2 2013
Territory performance – Q2 2013 NSC $705m $136m APME Revenue NOI Brazil $142m $33m AFGOM Revenue NOI $669m $159m Revenue NOL $(294)m $133m Revenue NOI Note: excludes contribution from Corporate segment Page 7
Slide 8: Income statement – supplementary details
Income statement – supplementary details In $ millions, unless otherwise indicated Three months ended Six months ended 30 June 13 30 June 12 30 June 13 30 June 12 Administrative expenses (66) (77) (141) (169) Share of net income of associates 62 33 78 31 and joint ventures Net operating income 41 24
Slide 9: Overview of 1H 2013 cash flow
Overview of 1H 2013 cash flow $ millions Cash and cash equivalents at 31 Dec 2012 1,288 Net cash generated from operating Decrease in net operating assets 465 activities of $313m Capital expenditure of $335m: Seven Net cashflow used in investing activities (312) Waves, Simar Esperança, HCV $158m rep
Slide 10: 2013 financial guidance
2013 financial guidance • Excluding the $300m Guará-Lula loss provision, we expect to deliver progress in Adjusted EBITDA compared to 2012 • Other net income related guidance – administrative expenses: $330-350 million – share of net income of associates and JVs: $85-95 million – net financing costs
Slide 11: 2013 outlook by Territory
2013 outlook by Territory NSC AFGOM AFGOM • Normal seasonal vessel utilisation expected • Good progress expected on recently in Q4 awarded backlog (Ehra North, Lianzi) – offshore phase in 2014 & 2015 • For backlog built in late 2012/early 2013 respectively associated offshore activity will be largel
Slide 12: 2013 outlook by Territory
2013 outlook by Territory Brazil APME AFGOM • Guará-Lula project is in the offshore • SapuraAcergy JV active in the offshore installation phase. Progress will be impacted phase of Gumusut in Malaysia by weather until Q4. Project remains • Both Gorgon projects in Australia in offshore challenging pha
Slide 13: New build vessels
New build vessels Pipelay Support Vessels - Dive Support Vessel - Seven Heavy Construction Vessel Seven Waves, PLSV 2, 3 and 4 Kestrel • Delivery 2014-16 • Delivery 2015 • Delivery 2016 • 550t top tension • 18-man twin bell • 600t heave VLS saturation diving compensated crane system • 4000t underdec
Slide 14: Technology focus
Technology focus Technology Category Specific Technology Types Steel Deep water and harsh Hybrid Riser Submerged Composite Catenary environment solutions Towers buoys Materials Risers Rigid Pipe Flexible Pipe Subsea Vessels Technology Technology Heavy Lift Electrically Composite Flowlines Bundles He
Slide 15: Technology focus - towed bundles
Technology focus - towed bundles Brief Application Partners Description Towed integrated Mainly North Numerous assembly of Sea subsea technology flowlines and production companies service systems tie partnering us lines/control backs. Towed with this cables etc. from our solution. contained within f
Slide 16: Summary
Summary • Results in NSC, AFGOM and APME driven by good project execution • Guará-Lula project in offshore installation phase • Excluding the $300m Guará-Lula loss provision, we expect to deliver progress in Adjusted EBITDA compared to 2012 • Record backlog above $10bn • Growth opportunities visible
Slide 17: Appendix
subses 7 Appendix www.subsea7.com seabed-to-surface
Slide 18: Major project progression
Major project progression Continuing projects >$100m between 5% and 95% complete as at 30 June 2013 excl. long-term ship charters and Life-of-Field day-rate contracts. Block 31 PSVM (Angola) Jasmine (North Sea) Gumusut* (Malaysia) Laggan Tormore (North Sea) Siri Caisson (North Sea) Brazil West Frank
Slide 19: Segmental analysis
Segmental analysis For the three months ended 30 June 2013 In $ millions, Unaudited AFGOM APME BRAZIL NSC CORP TOTAL Revenue 669.2 141.9 159.0 704.7 5.7 1,680.5 Net operating income/(loss) from ops 133.4 32.9 (293.6) 135.7 32.2 40.6 Finance income 6.9 Other gains and losses (10.8) Finance costs (16.
Slide 20: Adjusted EBITDA
Adjusted EBITDA • Adjusted earnings before interest, taxation, depreciation and amortisation (‘Adjusted EBITDA’) is a non-IFRS measure that represents net income before additional specific items that are considered to impact the comparison of the Group’s performance either year-on-year or with other
Slide 21: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Net operating income to Adjusted EBITDA Three Months Ended Three Months Ended For the period (in $millions) 30 June 2013 Unaudited 30 June 2012 Unaudited Net operating income 40.6 246.4 Depreciation, amortisation and mobilisation 87.5 85.0 Impairment/(impairment rev
Slide 22: Where we operate
subses Where we operate Corporate/support office o Territory office e Spoolbase/fabrication/ operational support yard | Asia Pacific North Sea | & Middle East (APME) & Canada (NSC)
Slide 23: A full range of subsea services
A full range of subsea services Page 23
Slide 24: Aasta Hansteen Gas Field - Norway
Aasta Hansteen Gas Field - Norway • Technology-rich SURF project • 1200m water depth, deepest in North Sea • 300 km off northern Norway, harsh environment • 1st SCRs (x4) in the Norwegian Sea, manufactured at Vigra spool base • 1st installation of BUTTING Bubi® mechanically lined pipe by reeling in
Slide 25: Gorgon Heavy lift and Umbilicals - Australia
Gorgon Heavy lift and Umbilicals - Australia • Located 130km off the northwest coast of Western Australia • The Gorgon project is one of the world's largest natural gas projects • Heaviest and deepest subsea lifts in Subsea 7’s history – 20 subsea structures and foundations (up to circa 1000Te), 15
Slide 26: CLOV Block 17 - Angola
CLOV Block 17 - Angola • Technology-rich SURF project • High local content with Sonamet fabrication facility • Successful deployment of Seven Borealis to install – 40km of pipe-in-pipe production, 60km of water injection, 32km of gas export, and 37 spools and 15 jumpers • Two Hybrid Riser Towers and
Slide 27: Technology focus - Hybrid riser tower (HRT)
Technology focus - Hybrid riser tower (HRT) Total CLOV Prospect (1200msw) (2000msw) Brief Application Partners 1440Te Description Tower The HRT is Numerous key assembly of applicable to technology multiple most future companies risers; deepwater support us manufactured developments. with this 650m o
Slide 28: Technology focus - Buoy supported riser (BSR)
Technology focus - Buoy supported riser (BSR) Brief Application Partners Description A submerged The BSR is Numerous buoy anchored being installed technology to the seabed. on Guará-Lula companies NE project in partnering us Brazil with this Steel Catenary solution Risers laid between seabed and buo
Slide 29: Technology focus - High-performance pipe-in-pipe
Technology focus - High-performance pipe-in-pipe Brief Application Partners Description A pipe-in-pipe Subsea ITP - exclusive system pipelines agreement providing high which require thermal high thermal insulation for insulation subsea oil and such as long gas distance transportation. tie–backs Util
Slide 30: Technology focus - Reel-lay of mechanically lined pipe (BuBi)
Technology focus - Reel-lay of mechanically lined pipe (BuBi) BuBi Pipe Brief Application Partners Description Use of BuBi® World’s first BUTTING - Mechanically award on a exclusive Lined Pipe Petrobras Pre- agreement offers Salt project significant (Guará-Lula), savings ongoing Simulated compared w
Slide 31: Technology focus - Autonomous inspection vehicle (AIV)
Technology focus - Autonomous inspection vehicle (AIV) Brief Application Partners Description A game changing Can be Seebyte inspection deployed from technology system FPSO comprising an (avoiding the autonomous need for a vehicle without a separate tether (which support enhances vessel), or manoeuv
Slide 32: Operational facilities
Operational facilities Spoolbases Fabrication Yards Page 32
Slide 33: Rigid pipelay/Heavy lift assets
Rigid pipelay/Heavy lift assets *** * Operated by Seaway Heavy Lifting under JV ** Operated by SapuraAcergy under JV *** Under construction Page 33
Slide 34: Construction/Vertical flexlay assets
Construction/Vertical flexlay assets *** *** *** *** *** Under construction Page 34
Slide 35: Construction/Horizontal flexlay assets
Construction/Horizontal flexlay assets Page 35
Slide 36: Light construction/Life of field assets
Light construction/Life of field assets Note: Seven Sisters renamed Simar Esperança Page 36
Slide 37: Diving assets
Diving assets *** *** Under construction Note: Acergy Osprey renamed Seven Osprey, Seven Havila renamed Seven Falcon Page 37
Slide 38: Other assets
Other assets Conventional Over 175 ROVs Trenching Page 38
Slide 39: Page 39
seabed-to-surface www.subsea7.com