Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Q3 2021 Earnings Presentation
24 slides from Subsea 7's earnings presentation, Nov 17, 2021
Slide 1: Third Quarter 2021 Earnings Presentation
Third Quarter 2021 Earnings Presentation 17 November 2021 1 © Subsea 7 - 2021 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 re
Slide 3: Third quarter 2021 results
Third quarter 2021 results FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS • Revenue $1.45 billion • Active fleet vessel utilisation: 94% • Adjusted EBITDA $185 million • Significant activity in Norway, GoM • Adjusted EBITDA margin 12.8% • Good progress on new SIA projects ‒ After incurring net direct C
Slide 4: Third quarter operational highlights
Third quarter operational highlights Bacalhau (Brazil) Mad Dog 2 (GoM) Aerfugl 2 (Norway) Julimar 2 (Australia) Sakarya (Turkey) PLSVs (Brazil) Hollandse Kust Zuid (NL) Seagreen (UK) 4 © Subsea 7 - 2021 subsea7.com
Slide 5: Backlog by business unit
Backlog by business unit Backlog of $6.9 billion, at 1 October 2021 • Order intake of $1.4 billion • $1.3 billion new awards 2023+ 2021 $0.2bn • $0.1 billion escalations 2021 $1.2bn $0.3bn 2023+ $1.8bn • 1.0 book-to-bill ratio 2022 • Awards announced in Q3: 2022 $0.8bn • Sakarya: over $750m $2.6bn •
Slide 6: Q3 2021 - income statement summary
Q3 2021 - income statement summary Three months ended 30 September 2021 30 September 2020 In $ millions, unless otherwise indicated Unaudited Unaudited Revenue 1,451 947 Net operating income 78 7 Income/(loss) before taxes 106 (11) Taxation (61) (32) Net income/(loss) 45 (43) Adjusted EBITDA 185 114
Slide 7: Q3 2021 - supplementary details
Q3 2021 - supplementary details Three months ended 30 September 2021 30 September 2020 In $ millions Unaudited Unaudited Administrative expenses (62) (47) Depreciation, amortisation and mobilisation charges (107) (107) Net operating income 78 7 Net finance cost (5) (3) Other gains and losses 33 (15)
Slide 8: Q3 2021 - business unit performance
Q3 2021 - business unit performance Revenue Net operating income $1,451m $947m $78m $7m $19m $4m $5m Subsea and $377m Conventional $17m Renewables $269m $70m $0m Corporate1 $1,054m $662m $15m $(8)m Q3 2021 Q3 2020 Q3 2021 Q3 2020 1 Corporate includes the results of Xodus and 4Subsea, group-wide acti
Slide 9: Q3 2021 - cash flow
Q3 2021 - cash flow $m 300 Cash at EBITDA Tax Change in Capex Lease Repayment Other Cash at 1 July 2021 operating payments of borrowings 30 Sept 2021 assets/liabilities • Net debt (including lease liabilities) of $99 million at 30 September 2021 9 © Subsea 7 - 2021 subsea7.com
Slide 10: Financial guidance
Financial guidance 2021 Guidance Revenue Higher than 2020 Administrative expense $230 million - $240 million Adjusted EBITDA Higher than 2020 Depreciation and Amortisation $440 million - $450 million Net operating income Positive Net finance cost $15 million - $20 million Tax charge $45 million - $5
Slide 11: The Subsea Strategy
The Subsea 7 Strategy Subsea Field of the Future: Energy Transition: Systems and Delivery Proactive Participation • Early engagement and partnerships • Renewables – offshore wind • Systems innovation and enabling • Oil and gas – lower carbon developments products • Emerging energy – new markets and
Slide 12: Subsea field of the future – integrated SPS and SURF
Subsea field of the future – integrated SPS and SURF Subsea Integration Alliance – Sakarya, Turkey • Major gas development with an industry-leading timeline from discovery to first gas • Strong, collaborative early engagement process • Offshore activity in 2022 • Utilising four Subsea 7 vessels • Up
Slide 13: Subsea field of the future – systems innovation and enabling products
Subsea field of the future – systems innovation and enabling products Extending our long-term relationship with Petrobras • Three new three-year contracts awarded for Seven Rio, Seven Sun, Seven Waves • Total value $500-750 million recorded in backlog in October 2021 • Remainder of existing contract
Slide 14: Energy transition - renewables
Energy transition - renewables Seaway 7 ASA • Combination of Subsea 7’s offshore fixed wind and OHT ASA completed 1 October • Seaway 7 ASA will be self-financing with support from Subsea 7 • Borrowings in Seaway 7’s name • Working capital support from Subsea 7, near term • Seaway 7 ASA fully consoli
Slide 15: Energy transition – sustainable and efficient operations
Energy transition – sustainable and efficient operations Sustainability – Net Zero targets • Subsea 7 holds Sustainability as a core Value • Target to achieve Net Zero by 2050 • Target to reduce Scope 1 and 2 emissions by 50% by 2035, using 2018 as a baseline • Decarbonising our operations using sol
Slide 16: Outlook - subsea prospects
Outlook - subsea prospects Norway Canada UK Aker BP Multiple projects Equinor Bay du Nord (i) Equinor Rosebank Equinor Multiple projects NEP Teeside Humber Saudi Arabia Nigeria Saudi Aramco Zuluf USA Shell Bonga SW Bonga North Total North Platte Ghana Malaysia Beacon Shenandoah Multiple other tie-ba
Slide 17: Outlook - offshore wind prospects
Outlook - offshore wind prospects UK Germany Iberdrola East Anglia Hub EnBW He Dreiht Red Rock Inch Cape EDPR Moray West SSE Seagreen 1A Vattenfall Vanguard & Boreas Taiwan RWE Chu Feng USA Ørsted Revolution Poland Sunrise Ocean Wind Northland Baltic Power Equinor Empire Wind Equinor Baltyk II Beaco
Slide 18: Summary
Summary Subsea and Conventional recovery underway • Bid pipeline up ~70% since low point in May 2020 and up ~20% since December 2019 • Well-positioned in advantaged markets: Norway, Gulf of Mexico, Brazil • Temporary reduction in the active fleet in 2022 Creation of a market-leader in offshore fixed
Slide 19: Appendix
Appendix Major project progression Track record Fleet Financial summaries 19 © Subsea 7 - 2021 subsea7.com
Slide 20: Major project progression
Major project progression • Continuing projects >$100m between 5% and 95% complete as at 30 September 2021 excluding PLSV and Life of Field day-rate contracts Aerfugl phase 2 (Norway) 3PDMs (Saudi Arabia) Mad Dog Phase 2 (USA) Announced Penguins Redevelopment (UK) Blythe & Vulcan Satellite Hubs (UK)
Slide 21: Fleet – active vessels at the end of Q3 2021
Fleet – 28 active vessels at the end of Q3 2021 Long-term charter from a vessel- owning joint venture Stacked Chartered from a third party Seven Antares and Seven Inagha are owned by Subsea 7’s Nigerian joint venture. 21 © Subsea 7 - 2021 subsea7.com
Slide 22: Segmental analysis
Segmental analysis For the three months ended 30 September 2021 In $ millions (Unaudited) Subsea & Conventional Renewables Corporate TOTAL Revenue 1,054 377 19 1,451 Net operating income 70 5 4 78 Finance income 1 Other gains and losses 33 Finance costs (6) Income before taxes 106 For the three mont
Slide 23: Summary balance sheet
Summary balance sheet 30 September 31 December 30 September 31 December 2021 2020 2021 2020 In $ millions Unaudited Audited In $ millions Unaudited Audited Assets Equity & Liabilities Total equity 4,230 4,255 Non-current assets Non-current liabilities Goodwill 87 85 Non-current portion of borrowings
Slide 24: © Subsea 7 - 2021 subsea7.com
24 © Subsea 7 - 2021 subsea7.com