Luxembourg - 31 July 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 second quarter and first half of 2025 which ended 30 June 2025.
Highlights
* Second quarter Adjusted EBITDA of $360 million, up 23% on the prior year
period, equating to a margin of 21%
* Strong operational and financial performance from both Subsea and
Conventional and Renewables, with Adjusted EBITDA margins of 21% and 17%
respectively
* Guidance for full year 2025 re-affirmed
* A high-quality backlog of $11.8 billion gives over 90% visibility on 2025
revenue guidance
* Balance sheet remains strong with net debt including lease liabilities of
$695 million, equating to 0.6 times the Adjusted EBITDA generated in the
last four quarters
* On 23 July 2025 a definitive agreement with Saipem was signed for a merger
of equals that will create a global leader in energy services
Second Quarter Half Year
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For the period (in $ millions,
except Adjusted EBITDA margin Q2 2025 Q2 2024 1H 2025 1H 2024
and per share data) Unaudited Unaudited Unaudited Unaudited
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Revenue 1,756 1,739 3,285 3,134
Adjusted EBITDA((a)) 360 292 596 454
Adjusted EBITDA margin((a)) 21% 17% 18% 15%
Net operating income 186 137 263 157
Net income 131 63 148 92
Earnings per share - in $ per
share
Basic 0.45 0.20 0.52 0.29
Diluted((b)) 0.45 0.20 0.51 0.29
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30 June 2025 31 Mar 2025
At (in $ millions) Unaudited Unaudited
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Backlog((a)) 11,823 10,819
Book-to-bill ratio((a)) 1.4x 0.6x
Cash and cash equivalents 413 459
Borrowings (661) (691)
Net debt excluding lease
liabilities((a)) (247) (232)
Net debt including lease
liabilities((a)) (695) (632)
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(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 delivered strong growth in profitability in the second quarter of 2025
driven by the solid execution of our portfolio of projects in both Subsea and
Conventional, and Renewables. The Group's Adjusted EBITDA margin increased 370
bps year-on-year to 20.5% in the quarter, putting us on track to achieve our
full year guidance and deliver over 20% growth in EBITDA in 2025 compared with
2024.
During the quarter we replenished the backlog with high-quality orders of $2.5
billion, equivalent to 1.4 times book-to-bill, demonstrating the resilience of
our strategy that is focused on long-cycle subsea markets with advantaged
economics, alongside a selective approach to offshore wind. In subsea, tendering
activity remains high, with a balance of greenfield and tie-back prospects for a
diverse range of clients and geographies. In the renewables industry, near-term
momentum is dependent on progress of the UK CFD allocation round, but offshore
wind remains a long-term structural growth market and we are confident that our
selective approach to bidding leaves us well-placed to deliver profitable
growth.
Second quarter project review
In Subsea and Conventional, Seven Arctic and Seven Borealis installed flexibles,
umbilicals and manifolds at Agogo in Angola. Seven Pacific underwent a class
survey after which it transited to Angola where it is expected to work on Agogo
until year end. Seven Vega was active at the CLOV development, also in Angola.
Seven Oceans and Seven Seas continued to work on a range of US projects
including Sunspear, Salamanca and Shenandoah, while in Brazil, Seven Cruzeiro
completed its work at Bacalhau and began its new three-year charter for
Petrobras.
In Norway, Seven Navica continued reel lay activities for Yggdrasil as well as
IRPA while Seven Oceanic began its transit north, following completion of its
campaign at the Scarborough field in Australia.
In Renewables, Seaway Strashnov and Seaway Alfa Lift started work at Dogger Bank
C in the UK where they will install 87 monopiles. Seaway Ventus began work at
the East Anglia THREE project in the UK, where it will install 95 monopiles and
Seaway Aimery and Seaway Moxie installed cables at He Dreiht in Germany.
Second quarter financial review
Revenue was $1.8 billion, marginally better when compared with the prior year
period. Adjusted EBITDA of $360 million equated to a margin of 20.5%, up from
16.8% in Q2 2024.
After depreciation and amortisation of $175 million, other gains and losses of
$32 million driven by non-cash foreign exchange gains, net finance costs of $16
million and taxation of $71 million, net income was $131 million.
Net cash generated from operating activities in the second quarter was $339
million, including a $59 million favourable movement in net working capital. Net
cash used in investing activities was $81 million mainly related to purchases of
property, plant and equipment. Net cash used in financing activities was $306
million including dividend payments of $184 million and lease payments of $77
million. During the quarter, cash and cash equivalents decreased by $46 million
to $413 million and, at 30 June 2025, net debt was $695 million, including lease
liabilities of $448 million.
Second quarter order intake was $2.5 billion comprising new awards of $2.0
billion and escalations of $0.5 billion resulting in a book-to-bill ratio of
1.4 times. Backlog at the end of June was $11.8 billion, of which $3.6 billion
is expected to be executed in the remainder of 2025, $4.5 billion in 2026 and
$3.7 billion in 2027 and beyond.
Guidance
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: 31 July 2025
Time: 11:00 UK Time, 12:00 CET
Access the webcast https://edge.media-server.com/mmc/p/yja3wdd3/
Register for the conference call https://register-conf.media-
server.com/register/BI59310f2a739a44ab86529d2cda595e97
For further information, please contact:
Katherine Tonks
Investor Relations
ir@subsea7.com (mailto:ir@subsea7.com)
+44-20-8210-5568
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 31
July 2025 08:00 CET.