Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Q3 2024 Earnings Presentation
21 slides from Subsea 7's earnings presentation, Nov 21, 2024
Slide 1: Third Quarter 2024
Third Quarter 2024 21 November 2024 1 © Subsea7 - 2024 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 2024 – on track to deliver strong growth
Third quarter 2024 – on track to deliver strong growth • Third quarter Adjusted EBITDA of $321 million, a margin of 18% up from 13% in the prior year period • On track to deliver Adjusted EBITDA in 2024 of between $1,025 million and $1,075 million • Guidance for 2025 supported by a firm backlog of q
Slide 4: Order intake
Order intake Order intake 7.4 • Q3 order intake $0.6bn 7.1 6.1 1.2 • New awards $0.3bn 2.0 3.0 2.1 0.6 • Escalations $0.3bn 4.4 0.2 0.7 1.0 • Book-to-bill 0.3 times 1.4 $bn 4.0 2.2 2.0 Q4 1.9 2.1 Q3 • 9M order intake $5.9bn 1.9 Q2 1.5 0.8 1.2 1.3 Q1 • Book-to-bill 1.2 times 2020 2021 2022 2023 2024
Slide 5: Backlog – $5.3 billion for execution in 2025
Backlog – $5.3 billion for execution in 2025 Subsea and Conventional Renewables Backlog by year of execution Backlog by year of execution 9.8 9.1 3.9 1.7 6.5 3.5 1.5 5.6 1.2 2.4 0.8 0.3 1.8 $bn 0.2 $bn 4.2 4.4 0.6 0.8 0.9 2.6 3.0 Beyond 0.7 Beyond 0.2 Next year 0.2 Next year 1.2 1.1 1.5 1.4 Current
Slide 6: Group results – improved volume and pricing mix
Group results – improved volume and pricing mix Revenue Adjusted EBITDA 6.0 714 5.0 5.1 1.6 559 321 1.3 521 245 3.5 1.4 1.8 169 1.6 143 1.0 1.4 $bn 337 $m 1.5 201 185 171 292 0.9 1.7 Q4 165 Q4 1.2 1.5 1.2 Q3 162 Q3 0.8 134 Q2 113 90 Q2 0.8 1.0 1.2 1.2 1.4 Q1 (9) 162 68 102 86 107 Q1 2020 2021 2022 2
Slide 7: Subsea and Conventional
Subsea and Conventional $1.4bn Revenue $1.3bn $1.0bn • Revenue $1.4 billion, up 12% year- on-year Q3 2022 Q3 2023 Q3 2024 • Adjusted EBITDA margin 17.5% • Growth of 38% year-on-year $252m 0.25 • ~330bps margin expansion Adjusted 200 $182m EBITDA 17.5% 0.2 • Includes $10 million from $142m 150 0.15 O
Slide 8: Renewables
Renewables $374m $376m Revenue $269m • Revenue $376 million, up 40% year- on-year Q3 2022 Q3 2023 Q3 2024 • Twofold increase in Adjusted EBITDA year-on-year 70 $62m 0.3 • Margin 16.4% Adjusted 60 0.25 EBITDA 50 0.2 • Very high vessel utilisation 40 $31m 0.15 30 $21m 16.4% • Net operating income $32
Slide 9: Cash balance reconciliation
Cash balance reconciliation $m 440 • Cash conversion ratio 0.9x • Free cash flow $138 million • Net debt $857 million Including lease liabilities of $495 million Cash Adjusted Working Tax Investing Financing Restricted Other Cash 30 June EBITDA capital cash 30 Sept • Gross liquidity $1.1 billion • R
Slide 10: Group financial guidance
Group financial guidance 2023 2024 2025 Revenue $6.0 billion $6.5 - 6.8 billion $6.8 - 7.2 billion Administrative $266 million $280 – 300 million expense Adjusted EBITDA $714 million $1,025 – 1,075 million 18 – 20% D&A $538 million $600 – 620 million Net operating income $105 million $400 – 430 mill
Slide 11: Seaway7 - positive momentum
Seaway7 - positive momentum • Good progress in execution and financial performance of existing projects • Over 90% foundations installed at Dogger Bank A+B • Moray West, Chang Fang Xidao, Gode Wind 3 completed • Two substantial1 contracts signed in fourth quarter with execution beyond 2025: • UK: Ho
Slide 12: Offshore wind – improved industry dynamics
Offshore wind – improved industry dynamics • Bidding activity remains high • Latest developer awards confirm positive momentum in largest markets of the UK, Germany and the Netherlands supported by: • Cost stability • Supportive political and regulatory context • Improved discipline from developers
Slide 13: Subsea prospects
Subsea prospects Europe North and Central America Aker BP Tie-back projects Beacon Monument BP Clair Ridge Expansion (i) BP Tie-back projects Chevron Aphrodite (i) Chevron Tie-back projects Equinor Fram Sør Equinor Bay du Nord (i, f) Wisting (i, f) Middle East Shell Tie-back projects Northern Lights
Slide 14: Offshore wind prospects
Offshore wind prospects UK and Ireland BP/EnBW Mona Morgan Equinor SEP/DEP Red Rock Inchcape RWE Awel y Môr SPR1 East Anglia 1N SSE Seagreen 1A Berwick Bank USA TotalEnergies West of Orkney Ireland Various prospects Shell Atlantic Shores 1&2 Asia Avangrid New England Wind 1&2 Rest of Europe Various
Slide 15: Outlook for strong cash flow growth
Outlook for strong cash flow growth • On track to deliver strong growth in Adjusted EBITDA in 2024 and 2025 • Supported by an $11.3 billion backlog of firm work • Subsea market remains buoyant with an active bidding pipeline of $20 billion • Positive momentum in fixed offshore wind delivery and outl
Slide 16: Our world
Our world 16 © Subsea7 - 2024 subsea7.com
Slide 17: © Subsea7 - 2024 subsea7.com
17 © Subsea7 - 2024 subsea7.com
Slide 18: Appendix
Appendix 18 © Subsea7 - 2024 subsea7.com
Slide 19: Major projects - percentage of completion
Major projects - percentage of completion Projects over $100 million, between 5% and 95% complete, excluding day-rate contracts, at 30 September 2024 Penguins Redevelopment (UK) 2018 Yunlin (Taiwan) 2018 Trell & Trine (Norway) 2022 Marjan 2 (Saudi Arabia) 2019 Bacalhau (Brazil) 2020 BJP Salema (Braz
Slide 20: Fleet – 41 vessels in the active fleet at the end of Q3 2024
Fleet – 41 vessels in the active fleet at the end of Q3 2024 * * * * * * * * * * * * * Chartered vessels 20 © Subsea7 - 2024 subsea7.com
Slide 21: subsea7.com
21 © Subsea7 - 2024 subsea7.com