Subsea 7 S.a. · OSL:SUBC

Subsea 7 — Q1 2024 Earnings Presentation

20 slides from Subsea 7's earnings presentation, Apr 25, 2024

  1. Slide 1: First Quarter 2024 Earnings Presentation

    First Quarter 2024 Earnings Presentation 25 April 2024 1 © Subsea7 - 2024 subsea7.com

  2. 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

  3. Slide 3: First quarter 2024 – on track

    First quarter 2024 – on track • First quarter in line with management expectations • On track to meet full year guidance • Backlog $10.4 billion • Addition of high-quality projects that support continued margin expansion • Recent awards support a return to EBITDA margins of 18-20% in 2025 • Tenderin

  4. Slide 4: Backlog – visibility remains high

    Backlog – visibility remains high Subsea and Conventional Renewables Backlog by year of execution Backlog by year of execution 2.0 8.4 8.4 1.8 6.2 1.2 0.7 0.8 3.2 1.0 4.2 2.9 2.4 $bn 0.2 $bn 0.5 1.2 Beyond 1.0 0.9 Beyond 3.5 3.9 0.7 2.4 2.5 Next year 0.5 Next year Current year Current year Mar '21 M

  5. Slide 5: Group results – revenue growth and expanding margins

    Group results – revenue growth and expanding margins Revenue Adjusted EBITDA 6.0 714 Thousands 5.0 5.1 559 245 1.6 521 1.4 1.3 3.5 169 143 1.6 337 1.0 1.4 $bn 201 1.5 185 171 $m 0.9 Q4 165 1.2 1.5 1.2 Q3 162 Q4 0.8 134 Q2 113 90 Q3 0.8 1.0 1.2 1.2 1.4 Q1 162 Q2 (9) 68 102 86 107 Q1 2020 2021 2022 20

  6. Slide 6: Subsea and Conventional

    Subsea and Conventional Revenue $1.1bn $1.2bn $0.9bn • Revenue up 12% year-on-year to $1.2 billion • Adjusted EBITDA margin 13.4% Q1 2022 Q1 2023 Q1 2024 • Continued mix-shift to higher-margin projects 200 Adjusted 180 $160m 0.25 • Includes $9 million from OneSubsea 160 EBITDA 140 0.2 120 • Net oper

  7. Slide 7: Renewables

    Renewables $0.3bn Revenue $0.2bn $0.2bn • Revenue $179 million, up 12% year-on- year Q1 2022 Q1 2023 Q1 2024 • Adjusted EBITDA margin 0.7% • Partly due to North Sea seasonality 7 0.05 • Expect to return to >10% margins for $6m Adjusted 6 the remainder of the year $5m 0.04 EBITDA 5 4 3.8% 0.03 • Net

  8. Slide 8: Cash flow

    Cash flow $m 604 • Net debt • $782 million including lease liabilities • $211 million excluding lease liabilities Cash Adjusted Working Tax Investing Financing Other Cash 31 Dec EBITDA capital 31 Mar 2023 2024 • Liquidity of $1.5 billion Operating $(13)m Investing $(17)m Financing $(118)m Working ca

  9. Slide 9: Group financial guidance

    Group financial guidance 2023 2024 Revenue $6.0 billion $6.0 - 6.5 billion Administrative expense $266 million $280 - 300 million Adjusted EBITDA $714 million $950 million - $1.0 billion D&A $538 million $600 – 620 million Net operating income $105 million $350 – 380 million Net finance cost $46 mil

  10. Slide 10: Optimising the fleet to maximise returns

    Optimising the fleet to maximise returns • High-grading vessel activity to enhance capacity • Focusing the owned global enablers on the most demanding pipelay scopes • Outsourcing commoditised work to the chartered fleet • Increasing utilisation by reducing vessel transits • Selective acquisition of

  11. Slide 11: Optimising the fleet in practice

    Optimising the fleet in practice Charter Charter Charter Ross Candies (from Q1 2024) Edda Sphynx (from Q1 2024) BOKA Sub C Jones Act vessel for use in the US Light construction vessel for use in Norway One-year extension of existing charter Charter Owned Skandi Acergy (from 2025) Seaway Ventus (from

  12. Slide 12: Subsea prospects

    Subsea prospects Europe Total Quad 9 BP Clair Ridge Expansion (i) North and Central America Equinor Fram Sør Aker BP Tie-back projects Saudi Arabia Beacon Zephyrus Monument Serica Belinda Aramco New LTAs BP Tie-back projects Chevron Aphrodite Chevron Tie-back projects Azerbaijan Türkiye BP Caspian I

  13. Slide 13: Offshore wind prospects

    Offshore wind prospects UK and Ireland SSE Seagreen 1A Berwick Bank Red Rock Inchcape Ørsted Hornsea 3 BP/EnBW Mona Morgan Morven TotalEnergies Outer Dowsing West of Orkney OceanWinds Caledonia USA SPR1 East Anglia 2 Asia East Anglia 1N Shell Atlantic Shores Ireland Various prospects Various prospec

  14. Slide 14: Delivering strong growth

    Delivering strong growth • Driving 30% growth in Adjusted EBITDA in 2024 • Reiterate guidance of $950 million to $1 billion • Portfolio mix shifts to contracts with more favourable risk-reward • Tendering remains very active, supporting continued growth in 2025+ • Free cash flow expected to increase

  15. Slide 15: Our world

    Our world 15 © Subsea7 - 2024 subsea7.com

  16. Slide 16: Q&A

    Q&A 16 © Subsea7 - 2024 subsea7.com

  17. Slide 17: Appendix

    Appendix 17 © Subsea7 - 2024 subsea7.com

  18. Slide 18: Major projects - percentage of completion

    Major projects - percentage of completion • Continuing projects >$100m between 5% and 95% complete as at 31 March 2024 excluding PLSV and Life of Field day-rate contracts Sangomar (Senegal) 2020 Ballymore (USA) 2022 Gallaf Batch 3 (Qatar) 2021 Sanha Lean Gas (Angola) 2020 Penguins Redevelopment (UK)

  19. Slide 19: Q1 2024 – 39 vessels in active fleet, 1 vessel under construction

    Q1 2024 – 39 vessels in active fleet, 1 vessel under construction * * * * * * * * * * * * * Seven Viking is on long-term charter from a joint venture. BOKA Sub C, Edda Sphynx, Grant Candies, Island Performer, Maersk Connector, Normand Subsea, Ross Candies, Seaway Swan, Seven Champion, Siem Stingray,

  20. Slide 20: subsea7.com

    20 © Subsea7 - 2024 subsea7.com

Subsea 7 — Q1 2024 Earnings Presentation on 6ix