Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation 26 July 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: Second quarter 2023 – strong momentum
Second quarter 2023 – strong momentum • Good operational performance in Subsea and Conventional • Strong results in Renewables • New order momentum continued in Q2 – Order intake of $2.2 billion – Backlog increased to $10.4 billion – Book-to-bill 1.4 times • Tendering activity remains high, with con
Slide 4: Second quarter 2023 – projects offshore
Second quarter 2023 – projects offshore • Seagreen completed in July – Seaway Aimery completed cable installation • Sangomar 84% complete (SIA) – Seven Seas installed umbilicals and jumpers – Seven Sisters installed trees and subsea hardware • Bacalhau 66% complete (SIA) – Seven Vega installed gas a
Slide 5: Order intake – continued growth
Order intake – continued growth Order intake 7.1 • New orders of $2.2bn in Q2 included: 6.1 3.0 – Sakarya Phase 2A, Türkiye (SIA) 4.4 2.0 0.2 4.1 – Raven Infills Project, Egypt (SIA) 0.7 1.0 $bn 1.4 2.2 – Salamanca, US GOM 2.0 2.1 Q4 1.9 Q3 – East Anglia THREE, UK 1.5 1.9 Q2 1.2 0.8 Q1 • Book-to-bil
Slide 6: Backlog increased to $10.4 billion
Backlog increased to $10.4 billion Subsea and Conventional Renewables by year of execution by year of execution 8.7 2.2 7.0 2.4 0.6 1.7 5.3 2.2 1.5 4.8 0.1 0.7 0.9 1.5 3.6 $bn 1.2 0.7 0.8 $bn 2.8 2.2 1.7 0.2 0.6 Beyond 0.1 Beyond 2.6 Next year 0.7 Next year 1.7 2.0 2.0 0.4 0.5 Current year 0.3 Curre
Slide 7: Second quarter 2023 – Group
Second quarter 2023 – Group Revenue Adjusted EBITDA 559 521 5.0 5.1 169 143 1.4 1.3 3.5 337 2.8 171 268 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 1H 2023 FY 2020 FY 2021 FY 2022 H1 2023 • Q2 revenue
Slide 8: Second quarter 2023 – Subsea and Conventional
Second quarter 2023 – Subsea and Conventional Revenue $1.0bn $1.1bn $1.2bn • Revenue +23% YoY to $1.2 billion • Adjusted EBITDA margin 10.3% – High contribution from work won in Q2 2022 Q1 2023 Q2 2023 the challenging environment during 2020 and 2021 200 Adjusted 180 $171m 0.25 • Net operating loss
Slide 9: Second quarter 2023 – Renewables
Second quarter 2023 – Renewables $309m Revenue $260m $160m • Revenue +19% YoY to $309 million • Adjusted EBITDA margin 11.1% Q2 2022 Q1 2023 Q2 2023 – Strong operational performance across the portfolio 40 0.15 Adjusted 30 20 3.8% 0.1 0.05 • Net operating income of $9 million 11.1% EBITDA 10 0 0 -0.
Slide 10: Second quarter 2023 cash flow
Second quarter 2023 cash flow $m • Free cash flow $(228) million 398 • Net debt $805 million Including lease liabilities of $442 million • Liquidity of approximately $1 billion Cash Adjusted Working Tax Investing Financing Other Cash • Advanced negotiations for a 31 Mar EBITDA capital 30 Jun $450 mi
Slide 11: Group financial guidance
Group financial guidance 2022 2023 Revenue $5.1 billion Higher than 2022 Administrative expense $245 million $255 – 275 million Adjusted EBITDA $559 million Higher than 2022 D&A $468 million $530 – 550 million Net operating income $149 million In line with 20221 Net finance cost $14 million $45 - 55
Slide 12: Dogger Bank A&B – ahead of schedule
Dogger Bank A&B – ahead of schedule • Dogger Bank A monopile installation making good progress – 71 of 95 monopiles installed to date1 – On track to complete monopiles in Q3 2023 – On track to complete transition pieces in Q4 2023 • Operations at Dogger Bank B expected to commence in 2023 – Expect t
Slide 13: Seaway Alfa Lift - plans confirmed
Seaway Alfa Lift - plans confirmed • Seaway Alfa Lift departed the yard in China in June – Successful crane and marine system commissioning – Transit to yard in Europe by late August • Seaway Alfa Lift to be deployed as heavy lift vessel installing transition pieces on Dogger Bank in 2023- 25 – Revi
Slide 14: Seaway Ventus - on track
Seaway Ventus - on track • Seaway Ventus new build remains on track – Jack-up test to 70 metres completed in June – Crane and marine systems commissioning ongoing – Due for delivery at the end of 2023 • Designed as a multi-purpose vessel – Turbine and monopile installation capabilities • Utilisation
Slide 15: Spotlight – Azeri Central East (ACE)
Spotlight – Azeri Central East (ACE) • Multi-year frame agreement contract with BP in the Caspian – Long-term relationship commenced with inspection, repair and maintenance (IRM) activities in 2018 – Strong local presence in Baku servicing the land- locked Caspian – Early engagement on both subsea a
Slide 16: Spotlight – Northern Lights Carbon Capture
Spotlight – Northern Lights Carbon Capture • Part of Longship, the world’s first full-scale open- source CCS project – Shipping of CO2 to Øygarden – Pipeline from Øygarden to a storage complex in the North Sea – Initial capacity 1.5 million tonnes of CO2 per year • First scope of Northern Lights pip
Slide 17: Outlook - subsea prospects
Outlook - subsea prospects Europe Equinor Rosebank Total Quad 9 North and Central America NEP CCS (i) Shell Sparta Aker BP Tie-back projects Beacon Zephyrus Chevron Aphrodite (i) Azerbaijan BP Tie-back projects Chevron Tie-back projects BP Caspian IRM Woodside Trion Saudi Arabia Aramco LTA projects
Slide 18: 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 TotalEnergies Outer Dowsing USA West of Orkney Asia Ireland Various prospects Shell Atlantic Shores Various prospects Avangrid New England Wind Rest of Europe Equinor
Slide 19: Summary – momentum continues
Summary – momentum continues • Strong order intake of $2.2 billion in the quarter • Continued backlog growth to $10.4 billion Subsea tender pipeline • Renewables back on track – Strong operational performance $20.7bn 23 21 June 2023 – Double-digit Adjusted EBITDA margin sustainable 19 for the remain
Slide 20: Our world
Our world 20 © Subsea7 - 2023 subsea7.com
Slide 21: Q&A
Q&A 21 © Subsea7 - 2023 subsea7.com
Slide 22: Appendix
Appendix 22 © Subsea7 - 2023 subsea7.com
Slide 23: Major project progression
Major project progression • Continuing projects >$100m between 5% and 95% complete as at 30 June 2023 excluding PLSV and Life of Field day-rate contracts Sonamet (SLGC)(Angola) 2020 Europipe/Heimdal (Norway) 2019 TOPR (Trinidad and Tobago) 2022 Penguins Redevelopment (UK) 2018 Changfang & Xidao (Tai
Slide 24: Fleet – vessels in the active fleet at the end Q2 2023
Fleet – 38 vessels in the active fleet at the end Q2 2023 Renewables and transportation vessels are operated by Seaway7 AS Seaway Alfa Lift and Seaway Ventus are under construction and therefore excluded from the active fleet total. Maersk Connector and Seaway Swan are on long-term charter from thir
Slide 25: subsea7.com
25 © Subsea7 - 2023 subsea7.com