Subsea 7 S.A. Announces First Quarter 2025 Results

30 Apr 2025 08:00 CEST

Luxembourg - 30 April 2025 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN:
LU0075646355, the Company) announced today results of Subsea7 Group (the Group,
Subsea7) for the first quarter which ended 31 March 2025.

Highlights

* First quarter Adjusted EBITDA of $236 million, up 46% on the prior year,
equating to a margin of 15%
* Strong operational and financial performance from both Subsea and
Conventional and Renewables, with Adjusted EBITDA margins of 18% and 10%
respectively
* Guidance for full year 2025 reaffirmed
* A high-quality backlog of $10.8 billion gives over 80% visibility on 2025
revenue guidance and supports the outlook for Adjusted EBITDA margin
expansion to 18 to 20%
* Balance sheet remains strong with net debt including lease liabilities of
$632 million, equating to 0.5 times the Adjusted EBITDA generated in the
last four quarters

    Three Months Ended
-------------------------
For the period (in $ millions, except Adjusted 31 Mar 2025 31 Mar 2024
EBITDA margin and per share data)     Unaudited Unaudited
-------------------------------------------------------------------------------
Revenue     1,529 1,395

Adjusted EBITDA((a))     236 162

Adjusted EBITDA margin((a))     15% 12%

Net operating income     77 20

Net income     17 29



Earnings per share - in $ per share

Basic     0.06 0.09

Diluted((b))     0.06 0.09
-------------------------------------------------------------------------------




31 Mar 2025  31 Dec 2024
At (in $ millions)     Unaudited Unaudited
-------------------------------------------------------------------------------
Backlog((a))     10,819 11,175

Book-to-bill ratio((a))     0.6x 1.2x

Cash and cash equivalents     459 575

Borrowings     (691) (722)

Net debt excluding lease liabilities((a))     (232) (147)

Net debt including lease liabilities((a))     (632) (602)
-------------------------------------------------------------------------------

(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA
margin, Backlog, Book-to-bill ratio and Net debt refer to the 'Alternative
Performance Measures' section of the Condensed Consolidated Financial
Statements.

(b) For the explanation and a reconciliation of diluted earnings per share refer
to Note 7 'Earnings per share' to the Condensed Consolidated Financial
Statements.

John Evans, Chief Executive Officer, said:

Subsea7 had a good start to 2025 with solid financial performance underpinned by
strong project execution, which offset a heavy vessel maintenance schedule. The
Group reported 10% revenue growth year-on-year and Adjusted EBITDA margin
expansion of 380bps, putting us on track to meet full year expectations. With
backlog of $10.8 billion including $4.8 billion for execution in the remainder
of the year, we have a high level of visibility for 2025.

Although uncertainty in the global economy has increased in recent months, the
outlook for long-term energy demand growth remains positive. Subsea7's strategy
to focus on long-duration developments in cost-advantaged sectors of the
deepwater adds resilience to our subsea business, and our exposure to strategic
gas developments, such as the Sakarya field in Türkiye, and new oil provinces
such as Namibia, gives us further confidence. In offshore wind, we are positive
about the opportunities presented by this year's CFD allocation round in the UK,
where it is expected that the volume of projects sanctioned will nearly double
year-on-year. We are well-positioned in this market, with a strong track record
and collaborative client relationships.

Overall, while volatility in commodity prices and global tariffs create
headwinds for investor sentiment in the sector, the fundamentals of our industry
remain robust and our focused strategy leaves the Group well-positioned to
deliver strong growth in profitability and cash generation in 2025.

First quarter project review
During the first quarter, we undertook significant planned vessel maintenance.
This maintenance ensures that our vessels are optimised ahead of a busy year.
Nevertheless we made good progress on our subsea, conventional and renewables
projects. In Africa, Seven Arctic was active installing flexibles and umbilicals
at Agogo in Angola, where it was joined by Seven Borealis, after it completed
Zuluf in Saudi Arabia. Seven Pacific was busy at the Raven field in Egypt before
mobilising for early flexlay work at Sakarya in Türkiye. In the Americas, Seven
Oceans undertook work on a range of projects including Sunspear, Salamanca and
Shenandoah in the US, while Seven Seas worked mainly on Cypre in Trinidad and
Tobago and Seven Vega continued rigid pipelay at Mero 3 in Brazil.

In Renewables, Seaway Strashnov and Seaway Alfa Lift underwent maintenance
before preparing to restart work at Dogger Bank in the UK. We also took
advantage of the winter off-season to install a monopile gripper on Seaway
Ventus before starting the East Anglia THREE project in the UK, where we will
install 95 monopiles. In Taiwan we were active on Hai Long.

First quarter financial review
Revenue was $1.5 billion an increase of 10% compared to the prior year period.
Adjusted EBITDA of $236 million equated to a margin of 15%, up from 12% in Q1
2024. A strong operational performance in Subsea and Conventional, and high
activity in Taiwan in Renewables helped offset seasonal weakness and vessel
maintenance.

Depreciation and amortisation charges were $160 million, resulting in net
operating income of $77 million compared to $20 million in the prior year
period. Net finance costs of $17 million and a net foreign exchange loss of $28
million, resulted in net income for the quarter of $17 million compared to $29
million in the prior year period.

Net cash generated from operating activities in the first quarter was $51
million, including a $163 million adverse movement in net working capital. Net
cash used in investing activities was $68 million mainly related to purchases of
property, plant and equipment. Net cash used in financing activities was $106
million including lease payments of $59 million. Overall, cash and cash
equivalents decreased by $116 million in the quarter to $459 million at 31 March
2025 and net debt was $632 million, including lease liabilities of $400 million.

First quarter order intake was $0.9 billion comprising new awards of $0.4
billion and escalations of $0.5 billion resulting in a book-to-bill ratio of
0.6 times. Backlog at the end of March was $10.8 billion, of which $4.8 billion
is expected to be executed in 2025, $3.5 billion in 2026 and $2.5 billion in
2027 and beyond.

Guidance

Our financial guidance for 2025 is unchanged. We continue to anticipate that
revenue in 2025 will be between $6.8 billion and $7.2 billion, while the
Adjusted EBITDA margin is expected to be within a range from 18% to 20%. Based
on our firm backlog of contracts and the prospects in our tendering pipeline, we
expect margins to exceed 20% in 2026.

Conference Call Information
Date: 30 April 2025
Time: 12:00 UK Time, 13:00 CET
Access the webcast at subsea7.com (https://edge.media-server.com/mmc/p/sdhad4b2)
or https://edge.media-server.com/mmc/p/3v6564ut/
Register for the conference call https://register-conf.media-
server.com/register/BI419d51592b6f40e8823c7efe91ab9dab

For further information, please contact:
Katherine Tonks
Head of Investor Relations
Tel: +44-20-8210-5568
Email: ir@subsea7.com

Special Note Regarding 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 regarding the future and are subject to
known and unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied in these statements.
Forward-looking statements may be identified by the use of words such as
'anticipate', 'believe', 'estimate', 'expect', 'future', 'goal', 'intend',
'likely', 'may', 'plan', 'project', 'seek', 'should', 'strategy', 'will', and
similar expressions. The principal risks which could affect future operations of
the Group are described in the 'Risk Management' section of the Group's Annual
Report. Factors that may cause actual and future results and trends to differ
materially from our forward-looking statements include (but are not limited to):
(i) our ability to deliver fixed-price projects in accordance with client
expectations and within the parameters of our bids, and to avoid cost overruns;
(ii) our ability to collect receivables, negotiate variation orders and collect
the related revenue; (iii) our ability to recover costs on significant projects;
(iv) capital expenditure by oil and gas companies, which is affected by
fluctuations in the price of, and demand for, crude oil and natural gas; (v)
unanticipated delays or cancellation of projects included in our backlog; (vi)
competition and price fluctuations in the markets and businesses in which we
operate; (vii) the loss of, or deterioration in our relationship with, any
significant clients; (viii) the outcome of legal proceedings or governmental
inquiries; (ix) uncertainties inherent in operating internationally, including
economic, political and social instability, boycotts or embargoes, labour
unrest, changes in foreign governmental regulations, corruption and currency
fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster;
(xi) liability to third parties for the failure of our joint venture partners to
fulfil their obligations; (xii) changes in, or our failure to comply with,
applicable laws and regulations (including regulatory measures addressing
climate change); (xiii) operating hazards, including spills, environmental
damage, personal or property damage and business interruptions caused by adverse
weather; (xiv) equipment or mechanical failures, which could increase costs,
impair revenue and result in penalties for failure to meet project completion
requirements; (xv) the timely delivery of vessels on order and the timely
completion of ship conversion programmes; (xvi) our ability to keep pace with
technological changes and the impact of potential information technology, cyber
security or data security breaches; (xvii) global availability at scale and
commercial viability of suitable alternative vessel fuels; and, (xviii) the
effectiveness of our disclosure controls and procedures and internal control
over financial reporting. Many of these factors are beyond our ability to
control or predict. Given these uncertainties, you should not place undue
reliance on the forward-looking statements. Each forward-looking statement
speaks only as of the date of this document. We undertake no obligation to
update publicly or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange
release was published by Katherine Tonks, Investor Relations, Subsea7, on 30
April 2025 08:00 CET.

More information:
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644862_SUBC 1Q25 Earnings Release.pdf
644862_SUBC 1Q25 Earnings Presentation.pdf