Subsea 7 S.a. · OSL:SUBC
Subsea 7 — FY2010 Earnings Presentation
33 slides from Subsea 7's earnings presentation, Feb 23, 2011
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2010
Earnings Presentation Fourth Quarter and Full Year 2010 February 23, 2011 3:00pm UK time
Slide 2: 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 use of words like “anticipat
Slide 3: Reflecting on 2010
Reflecting on 2010 • Both Companies have had an excellent year and delivered good results driven by strong operational performances • Results were positively impacted by a number of factors: – Execution of contracts signed prior to 2009 with good profit margins – Timing of operations on projects suc
Slide 4: 2010 – an excellent year
2010 – an excellent year • We have achieved more than delivering good results, we have prepared the future • We are very well positioned for short and long-term profitable growth: – Our safety results have continued to improve – We have announced the Combination of two strong companies – We have con
Slide 5: 2010 – an excellent year
2010 – an excellent year • Investment focused on core assets; vessels with high technical specifications • Acergy: – Good progress on Borealis construction – delivery expected H1 2012 – Good progress on joint venture new builds - Seven Havila, our newbuild diving support vessel, and Oleg Strashnov,
Slide 6: Consistent Strategy and Priorities
Consistent Strategy and Priorities • We remain focused on key markets with long-term, strong and sustainable growth characteristics; markets where we can differentiate ourselves, markets were we can achieve profitable growth • Our priorities for the new Company remain the same: – Safety – Maintain d
Slide 7: Subsea 7 S.A. financial statements
Subsea 7 S.A. (formerly Acergy Subsea 7 S.A. S.A.) financial statements financial highlights for the year and the statements quarter ended November 30, 2010 23-Feb-11 Page 7
Slide 8: Subsea 7 S.A. Income statement highlights
Subsea 7 S.A. (formerly Acergy S.A.) Income statement highlights Three Months Ended Twelve Months Ended In $ millions, except Adjusted EBITDA margin, share Nov.30.10 Nov.30.09 Nov.30.10 Nov.30.09 and per share data Unaudited Unaudited Audited Audited Revenue from continuing operations 717.2 621.9 2,
Slide 9: Subsea 7 S.A. Cash flow highlights
Subsea 7 S.A. (formerly Acergy S.A.) Cash flow highlights Year Ended Year Ended Nov.30.10 Nov.30.09 In $ millions Audited Audited Net income 313.0 265.7 Depreciation, amortisation & impairment 123.2 145.6 Non-cash items 26.5 126.3 Tax paid (137.4) (59.9) Changes in working capital (185.3) 68.4 Net c
Slide 10: Subsea 7 S.A. Balance sheet highlights
Subsea 7 S.A. (formerly Acergy S.A.) Balance sheet highlights In $ millions as at November November 30, 2010 30, 2009 Audited(1) Audited (1) Property, plant and equipment 1,278.8 821.8 Interest in associates and joint ventures 215.1 190.3 Trade and other receivables 382.0 297.9 Assets held for sale
Slide 11: Subsea 7 Inc. financial statements
Subsea 7 Inc. Subsea 7 Inc. unaudited financial statements highlights for the year financial and the quarter ended December statements 31, 2010 23-Feb-11 Page 11
Slide 12: Subsea 7 Inc. Income statement highlights
Subsea 7 Inc. Income statement highlights Three months ended Year ended 31/12/10 31/12/09 31/12/10 31/12/09 (Amounts in USD millions) Unaudited Unaudited Unaudited Audited Revenue 509.2 538.2 2,022.7 2,439.3 Adjusted EBITDA 81.2 130.9 427.5 526.8 Net operating profit 42.6 96.4 291.3 404.0 Profit bef
Slide 13: Subsea 7 Inc. Cash flow highlights
Subsea 7 Inc. Cash flow highlights Year ended 31/12/10 31/12/09 (Amounts in USD 1,000) Unaudited Audited Net profit 161,848 288,351 Non-cash income statement items 256,569 254,527 Changes in working capital (144,689) 97,099 Cash generated from operations 273,728 639,977 Purchase of property, plant a
Slide 14: Subsea 7 Inc. Balance sheet highlights
Subsea 7 Inc. Balance sheet highlights At 31/12/10 At 31/12/09 (Amounts in USD 1,000) Unaudited Audited Assets Non-current assets 1,368,312 1,306,219 Cash and cash equivalents 458,906 487,251 Other current assets 688,933 720,739 Current assets 1,147,839 1,207,990 Total assets 2,516,151 2,514,209 Equ
Slide 15: Market Update Combination
Market Update Combination 23-Feb-11 Page 15
Slide 16: Market Update
Market Update • Conventional activity in West Africa is expected to remain strong in the short and medium-term. We expect contracts to come to market award in 2011 although timing remains difficult to predict. SURF activity: • Order book momentum underpinned by a robust oil price and rising tenderin
Slide 17: Combination completed on January 7, 2011
Combination completed on January 7, 2011 • Combination of Acergy S.A. and Subsea 7 Inc. completed on January 7, 2011. At which point Acergy S.A. was renamed Subsea 7 S.A. • We are working with the OFT in the UK and are making progress on the remedies required • Positive feedback from clients and emp
Slide 18: Appendices
Appendices 23-Feb-11 Page 18
Slide 19: Financial highlights
Financial highlights Subsea 7 SA Subsea 7 Inc (formerly Acergy SA) Twelve Months Ended Twelve Months Ended Nov.30.10 Nov.30.09 Dec.31.10 Dec.31.09 In $ millions, except EBITDA margin Audited Audited Unaudited Audited Continuing operations: Revenue 2,369.0 2,208.8 2,022.7 2,439.3 Adjusted EBITDA 559.
Slide 20: Appendix: Subsea 7 S.A. Additional financial highlights
Additional Subsea 7 S.A. Appendix: (formerly Acergy S.A.) financial Subsea 7 S.A. highlights 23-Feb-11 Page 20
Slide 21: Major project progression
Subsea 7 S.A. (formerly Acergy S.A.) Major project progression Continuing projects >$100m between 5% and 95% complete as at November 30, 2010 excl. long-term ship charters Block 17 (Angola) ALNG (Angola) PazFlor (Angola) EGP3B (Nigeria) Oso Re (Nigeria) Encana Deep Panuke (Canada) Gumusut (Malaysia)
Slide 22: Backlog
Subsea 7 S.A. (formerly Acergy S.A.) Backlog In $ millions as at: Nov.30.10 Aug.31.10 Nov.30.09 Backlog (1) 3,552 3,496 2,848 Pre-backlog (2) 255 214 249 (1) Backlog excludes amounts related to discontinued operations as of Nov.30.10: $nil, Aug.31.10: $14 million, Nov.30.09: $43 million (2) Pre-back
Slide 23: Segmental analysis: 12 months ended November 30, 2010
Subsea 7 S.A. (formerly Acergy S.A.) Segmental analysis: 12 months ended November 30, 2010 For the twelve months Territory 1 Territory 2 ended November 30, 2010 Total – Acergy Acergy Acergy Acergy Acergy Acergy Audited continuing NEC AME AFMED NAMEX SAM Corporate In $ millions operations Revenue 568
Slide 24: Segmental analysis: 3 months ended November 30, 2010
Subsea 7 S.A. (formerly Acergy S.A.) Segmental analysis: 3 months ended November 30, 2010 For the three months Territory 1 Territory 2 ended November 30, 2010 Total – Acergy Acergy Acergy Acergy Acergy Acergy Unaudited continuing NEC AME AFMED NAMEX SAM Corporate In $ millions operations Revenue 190
Slide 25: Adjusted EBITDA
Subsea 7 S.A. (formerly Acergy S.A.) Adjusted EBITDA • The Group calculates adjusted earnings before interest, income taxation, depreciation and amortisation (‘Adjusted EBITDA’) from continuing operations as net income from continuing operations plus finance costs, other gains and losses, taxation,
Slide 26: Reconciliation of net income to adjusted EBITDA
Subsea 7 S.A. (formerly Acergy S.A.) Reconciliation of net income to adjusted EBITDA Three-Months Ended Three-Months Ended Nov 30, 2010 Nov 30, 2009 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net income 94.1 29.6 123.7 78.7 2.
Slide 27: Reconciliation of net operating income to adjusted EBITDA
Subsea 7 S.A. (formerly Acergy S.A.) Reconciliation of net operating income to adjusted EBITDA Three-Months Ended Three-Months Ended Nov 30, 2010 Nov 30, 2009 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net operating income 152
Slide 28: Appendix: Subsea 7 Inc. Additional financial highlights
Appendix: Additional Subsea 7 Inc. financial Subsea 7 Inc. highlights 23-Feb-11 Page 28
Slide 29: Subsea 7 Inc. Backlog (1/2)
Subsea 7 Inc. Backlog (1/2) By Region By Contract Type $2,800M $2,798M $2,800M $2,798M 31 Dec 2010 31 Dec 2009 Lump Sum Day Rate 23-Feb-11 Page 29
Slide 30: Subsea 7 Inc. Backlog (2/2)
Subsea 7 Inc. Backlog (2/2) Year of Execution $1,527M $2,800M $694M $329M $250M Lump Sum Day Rate 23-Feb-11 Page 30
Slide 31: Subsea 7 Inc. Segmental analysis
Subsea 7 Inc. Segmental analysis North Asia (Amounts in USD 1,000) North Sea Africa Brazil Global Total America Pacific Fourth quarter 2010 (Unaudited) Revenue 204,980 114,976 127,353 22,856 38,991 - 509,156 Profit/(loss) before tax 37,049 34,185 (13,007) (1,214) 1,474 (15,282) 43,205 Fourth quarter
Slide 32: Subsea 7 Inc. Reconciliation of net profit to adjusted EBITDA
Subsea 7 Inc. Reconciliation of net profit to adjusted EBITDA Three months Year ended ended 31/12/10 31/12/09 31/12/10 31/12/09 (Amounts in USD 1,000) Unaudited Unaudited Unaudited Audited Net profit attributable to equity shareholders 31,165 64,468 161,848 288,351 Adjustments: Taxation expense 12,0
Slide 33: seabed-to-surface
seabed-to-surface www.subsea7.com 10.01.11 Page 33