Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Q1 2023 Earnings Presentation
23 slides from Subsea 7's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Earnings Presentation
First Quarter 2023 Earnings Presentation 27 April 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: First quarter 2023 – on track
First quarter 2023 – on track • First quarter in line with management expectations – Normal seasonality in the Northern hemisphere – Activity mix weighted to contracts won at a cyclical low – Guidance for the full year reaffirmed • Order intake remains robust with a book-to-bill of 1.5x in the first
Slide 4: Major projects – on track
Major projects – on track • Sakarya 96% complete – First gas mid-April • Sangomar 77% complete – Seven Vega, Seven Seas, Seven Sisters continued pipelay Sakarya, Türkiye Bacalhau, Brazil • Sanha Lean Gas 57% complete – Jacket installation by Seven Borealis • Bacalhau 57% complete – Installation with
Slide 5: Backlog – continued growth
Backlog – continued growth Backlog at 31 March 2023 by year of execution 2025+ 2025+ $0.2 bn $2.1bn • Order intake $1.9 billion 2023 2023 $0.5bn – New awards $1.2 billion $3.5bn – Escalations $0.7 billion 2024 2024 $0.5bn • Book-to-bill 1.5x $2.9bn • Backlog $9.7 billion Subsea and Conventional Rene
Slide 6: First quarter 2023 – Group
First quarter 2023 – Group Order intake Backlog $9.7bn $1.9bn $9.0bn $1.2bn • Backlog +7% to $9.7 billion • Revenue +4% to $1.2 billion Q1 2022 Q1 2023 Q4 2022 Q1 2023 • Adjusted EBITDA margin +140bps to 8.6% Revenue Adjusted EBITDA 120 0.25 $1.2bn $1.2bn $107m • Net income loss of $29 million 100 0
Slide 7: First quarter 2023 – Subsea and Conventional
First quarter 2023 – Subsea and Conventional Order intake Backlog $1.3bn $8.5bn $8.1bn $1.0bn • Backlog +4% to $8.5 billion – New awards included: Agogo, Irpa and Verdande • Revenue +18% to $1.1 billion Q1 2022 Q1 2023 Q4 2022 Q1 2023 • Adjusted EBITDA margin +70bps Revenue Adjusted EBITDA $1.1bn 12
Slide 8: First quarter 2023 – Renewables
First quarter 2023 – Renewables Order intake Backlog $1.2bn $0.5bn $0.8bn • Backlog +45% to $1.2 billion – New awards included: $0.1bn Hai Long, Taiwan • Revenue -40% to $0.2 billion Q1 2022 Q1 2023 Q4 2022 Q1 2023 • Adjusted EBITDA margin +180bps Revenue Adjusted EBITDA 7 0.25 to 3.8% $6m 6 $5m 0.2
Slide 9: First quarter 2023 – as planned
First quarter 2023 – as planned $m 686 646 • Free cash flow $(219) million • Net debt $419 million Including lease liabilities of $456 million Incremental lease liabilities of $199 million in the quarter reflect additional chartered vessels Cash Adjusted Working Tax Capex Financing Other Cash 1 Jan
Slide 10: Group financial guidance for 2023
Group financial guidance for 2023 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 Excluding impairment reversals in 2022 Net operating income $149 million In line
Slide 11: Spotlight - Sakarya phase 1
Spotlight - Sakarya phase 1 • First gas achieved by TPAO on 20 April – 31 months from initial gas discovery • Successful project and risk management – Ambitious schedule – New client in a new country – New consortium including SLB Midstream • Subsea7’s scope – Project revenue ~$1.2 billion – Project
Slide 12: Spotlight - floating wind
Spotlight - floating wind • Subsea7 leverages floating wind expertise across the Group including: – Xodus – expertise in planning and consenting – Nautilus – floating wind technology – 4Subsea – concept analysis and data monitoring • Strategy continues to make good progress – Salamander awarded INTO
Slide 13: Spotlight - Seaway7 newbuilds
Spotlight - Seaway7 newbuilds • Seaway Alfa Lift – Due to leave China mid-2023 for Europe – Mission equipment remains a focus – Expected to start work on Dogger Bank in 2024 • Seaway Ventus – Progressing as planned – Expected to be delivered towards the end of 2023 – Commencing Ørsted’s Gode Wind 3
Slide 14: Seaway7 – update on the offer
Seaway7 – update on the offer • Subsea7 holds 99.5% of Seaway7 • Acquisition of remaining minorities launched – NOK 6.15 cash per Seaway7 share – Delisting anticipated in early May 2023 • Post transaction, Subsea7 shares in issue 304.3 million – Of which 4.1 million shares held in treasury • Value a
Slide 15: Outlook - subsea prospects
Outlook - subsea prospects Europe Apache Solar/Corona Equinor Rosebank North America Total Quad 9 NEP CCS Equinor Bay du Nord (i) Aker BP Tie-back projects Shell Sparta Chevron Aphrodite Türkiye BP Tie-back projects Chevron Tie-back projects TPAO Sakarya Phase 2 (i) Woodside Trion Saudi Arabia Aramc
Slide 16: Outlook – offshore wind prospects
Outlook – offshore wind prospects UK and Ireland Iberdrola East Anglia THREE (LOE) SSE Seagreen 1A (PS) Red Rock Inchcape Ørsted Hornsea 3 Ireland Various prospects USA Asia Rest of Europe Shell Mayflower Various prospects Equinor Baltyk II Atlantic Shores Baltyk III Avangrid New England Wind Ørsted
Slide 17: Approaching the inflection
Approaching the inflection • First quarter in line with expectations – On track to meet full year 2023 guidance • Continued backlog growth and strong bidding pipeline – Subsea clients remain active – Offshore wind order intake is improving • Adjusted EBITDA margins expected to steadily improve year-
Slide 18: Our world
Our world 18 ©© Subsea7 Subsea7 --2023 2023 subsea7.com
Slide 19: Q&A
Q&A 19 © Subsea7 - 2023 subsea7.com
Slide 20: Appendix
Appendix 20 © Subsea7 - 2023 subsea7.com
Slide 21: Major project progression
Major project progression • Continuing projects >$100m between 5% and 95% complete as at 31 March 2023 excluding PLSV and Life of Field day-rate contracts Sonamet (SLGC) (Angola) 2020 Penguins Redevelopment (UK) 2018 Sangomar (Senegal) 2020 TOPR (Trinidad and Tobago) 2022 Major Yunlin (Taiwan) 2018
Slide 22: Fleet – vessels in the active fleet at the end Q1 2023
Fleet – 38 vessels in the active fleet at the end Q1 2023 Renewables and transportation vessels are operated by Seaway7 ASA 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 thi
Slide 23: © Subsea7 - 2023 subsea7.com
23 © Subsea7 - 2023 subsea7.com