Slide 1: Earnings Presentation Fourth Quarter & Full Year 2011
Earnings Presentation Fourth Quarter & Full Year 2011 March 16, 2012 12:00 2 00 noon UK time i
Slide 2: Forward-looking statements
Forward-looking d l k 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,” “forecast”, project, “will
Slide 3: 2011: a year of many successes
20 2011: a year off many successes • Delivered strong results in line with expectations • Prepared for the future – well positioned for profitable growth • Combination successfully completed: - Integration ahead of plan - On track to achieve at least the targeted synergies • Broadened and deepened e
Slide 4: Fleet enhancement programme: Significant progress
Fleet l enhancement h programme: S Significant f progress SURF Conventional Life-of-Field Divest / Release JVs *Oleg Strashnov delivered to the SHL JV 16-Mar-12 Page 4
Slide 5: Brazil: Guara Lula NE Project
Brazil: l GGuara Lula l NE Project • Q4 2011 recognised loss of c.$50 million; which represents total loss over the lifetime of project, including additional contingencies • Acceptance of design and engineering testing progressing to plan with full client approval • Project results affected by: - Fi
Slide 6: Income statement highlights
Income statement highlights h hl h Three Thirteen Months Months Ended Ended In $ millions, except Adjusted EBITDA margin, share and per share data Dec.31.11 Dec.31.11 Unaudited Audited Revenue from continuing operations 1,417 5,477 Net operating income from continuing operations 137 641 Income befor
Slide 7: Operational performance – Q4 2011
O Operational l performance f – Q4 Q 20 2011 $586m $308m $308 m $97m ($8m) Revenue ($8m) NOI Revenue NOI Revenue NOI $605m $38m ($7m) $308 m $186m Revenue NOI $112m ($11m) ($8m) Revenue NOI Revenue NOI Revenue NOI 16-Mar-12 Page 7
Slide 8: Income statement highlights cont’d
Income statement highlights h hl h cont’d ’d Three Thirteen Months Months Ended Ended In $ millions Dec.31.11 Dec.31.11 Unaudited Audited Administrative expenses (103) (404) Share of net income of associates and joint ventures 1 104 Net operating income from continuing operations 137 641 Finance inc
Slide 9: Cash flow and balance sheet overview – FY 2011
C h flow Cash fl and dbbalance l sheet h overview – FY 2011 20 • Cash generation from operating activities of $579 million • Net cashflows used in investing activities of $125 million reflects: • Capex of $672 million in line with expectations: Seven Borealis; Antares, Seven Havila and dry-docks • $
Slide 10: Financial assumptions - 2012
Financiall assumptions - 2012 20 2 • Expect to deliver revenue and Adjusted EBITDA for twelve months of 2012 ahead of thirteen month period ended December 31, 2011 • Joint Venture contribution – 2012 lower than 2011 • Administrative expenses: c.$85 million per quarter • Final integration costs: c.$3
Slide 11: Market overview
Market k overview • Continue to see growth opportunities in all major markets, albeit at differing paces: – North Sea: high levels of tendering driving strong order flow; higher activity with improved pricing for projects expected to be offshore in 2012+ – West Africa: a transition year, with large
Slide 12: Summary
Summary • 2011: a year of many successes • Delivered strong results in line with expectations and good order flow resulting in backlog of $8.5 billion • Robust oil price and strong tendering activity underpins good order book momentum • Continue to see opportunities in all markets; albeit at differi
Slide 13: Appendix
Appendix 11-May-11 2-Nov-11 Page 13
Slide 14: Major project progression
Major project progression Continuing projects >$100m between 5% and 95% complete as at December 31, 2011 excl. long-term ship charters and Life-of-Field day-rate contracts. Block 18 GEL (Angola) Oso Re (Nigeria) EGP3B (Nigeria) Block 31 (Angola) CLOV (Angola) Gumusut (Malaysia) P55 Export (Brazil) G
Slide 15: Backlog
Backlog kl In $ millions as at: Dec.31.11 Sep.30.11 p Dec.31.10 Nov.30.10 (1) Subsea 7 S.A. 8,538 7,903 - - Acergy S.A. - - - 3,552 Subsea 7 Inc. - - 2,800 , - (1) Backlog refers to expected future revenue under signed contracts, which are determined as likely to be performed, but excludes amounts r
Slide 16: Segmental analysis
S Segmental l analysis: l Three months Th th ended d d T t l– Total Dec.31.11 NSMC AFGoM APME Brazil CORP Continuing Unaudited operations In $ millions Revenue 586.1 605.1 38.0 186.2 2.0 1,417.4 Net operating 97.4 112.0 (7.0) (11.3) (54.4) 136.7 income/(loss) Investment income 6.0 Other losses (8.7)
Slide 17: Segmental analysis
S Segmental l analysis: l Thirteen Thi teen months ended Total – Dec.31.11 NSMC AFGoM APME Brazil CORP Continuing Unaudited operations In $ millions Revenue 2,054.4 2,542.9 180.7 686.3 12.2 5,476.5 Net operating 179.0 490.3 18.2 22.5 (69.5) ( ) 640.5 income/(loss) Investment income 20.0 Other gains
Slide 18: Adjusted EBITDA
Adjusted d d 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, depreciation and amortisation and
Slide 19: Reconciliation of net operating income to Adjusted EBITDA
Reconciliation l off net operating income to Adjusted d d EBITDA Three Months Ended Three Months Ended Dec.31.11 Nov.30.10 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net operating income 136.7 - 136.7 152.9 38.9 191.8 Deprecia
Slide 20: Reconciliation of net income to Adjusted EBITDA
Reconciliation l off net income to Adjusted d d EBITDA Three Months Ended Three Months Ended Dec.31.11 Nov.30.10 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net income 106.7 - 106.7 94.1 29.6 123.7 Depreciation and amortisation
Slide 21: seabed-to-surface
seabed-to-surface b 7 www.subsea7.com 10.01.11 Page 21