Earnings Presentation Fourth Quarter and Full Year 2014 4 March 2015 12:00 noon UK time
Kristian Siem, Chairman Page 3
Jean Cahuzac, CEO Page 4
2014 highlights - a year of good operational performance Revenue up 9% to 6.9bn, EBITDA up to a record 1.4bn High level of project activity across all Territories with good overall execution performance Steady activity in North Sea…
Solid financial results Fourth quarter financial highlights Full year financial highlights Fourth quarter revenue 1.4bn Record Revenue and Adjusted EBITDA Adjusted EBITDA margin 21.3% Adjusted diluted earnings per share of 2.32*,…
Good operational performance High project activity across all Major project progression(1) Territories in 2014 Knarr (Norway) Line 67 (Mexico) Significant SURF projects in the Eldfisk 2 (Norway) fourth quarter included: Guar Lula NE…
Q4 Backlog and order in-take Backlog of 8.2 billion as at 31 December 2014 0.6 billion of new awards and project escalations - 0.2bn order intake after adjusting for 0.4bn adverse foreign exchange impact Solid base of high quality…
Ricardo Rosa, CFO Page 9
Income statement key highlights Three months ended Twelve months ended 31 Dec 14 31 Dec 13(3) 31 Dec 14 31 Dec 13(3) In millions, unless otherwise indicated Unaudited Unaudited Audited Audited Revenue 1,395 1,586 6,870 6,297…
Territory performance Q4 2014 - excluding goodwill impairment AFGOM Brazil 511m 209m 64m 35m Revenue NOI Revenue NOI APME NSC 459m 217m 22m 85m Revenue NOI Revenue NOI NOI stated excluding charge for…
Territory performance Full year 2014 - excluding goodwill impairment AFGOM Brazil 2,464m 954m 297m 199m Revenue NOI Revenue NOI APME NSC 2,533m 911m 90m 423m Revenue NOI Revenue NOI NOI stated excluding charge…
2014 Operating expense overview People: 2.0 billion Expertise and experience are important differentiators Approximately a third of our workforce are on non-permanent contracts Maintaining core expertise through the cycle is a…
Summary balance sheet 31 Dec 31 Dec 31 Dec 31 Dec In millions 2014 2013(1) In millions 2014 2013(1) Assets Equity & Liabilities Non-current assets Total equity 5,562 6,571 Goodwill 1,322 2,585 Non-current liabilities Property, plant…
Overview of 2014 cash flow millions Cash and cash equivalents at 31 Dec 2013 692 Includes decrease in net operating Net cash generated from operating activities 1,450(1) assets of 268m Includes capital expenditure of Net cash flow…
Capital expenditure for on-going vessel new-build programme(1) vessels under construction at 6 5 4 0 year end millions Forecast 700 557 544 Actual spend to 170 date 0 Up to 31 Dec 2014 2015 E 2016 E 2013 (1)Comprises…
Financial guidance for full year 2015 Group Revenue expected to decrease significantly from record level in 2014 Adjusted EBITDA margin expected to decrease compared to 2014 Other net income related guidance: Administrative…
Jean Cahuzac, CEO Page 18
Subsea 7 a global industry leader Values Vision Safety Integrity Global leader and partner Collaboration Performance - Innovation Differentiators Delivering on People Technology - Assets our strategy Page 19
New organisational and reporting structure As of 1 January 2015 the Group organisational structure comprises two Business Units and a Corporate segment Northern Hemisphere and Life of Field Southern Hemisphere and Global…
Challenging market conditions Lower levels of market awards Downward pressure on capital expenditure by major oil and gas companies highlighted as a concern in 2013 Oil price declines in second half on 2014 compounded concerns and…
Collaboration, innovation, standardisation and simplification Proprietary Early technologies engagement Global Lower cost Procurement Project of field expertise Centres development Standardise Simplify Page 22
Reducing our costs (2014 2016) Continue adjusting organisation size to market trend Adjustments initiated late 2013 when we identified business slowdown Headcount reduced to 13,000 from over 14,000 Further adaption to suit lower oil…
Market outlook SURF: Tendering activity ongoing, but timing of new awards is uncertain Our project management and technical expertise positions us well No change to acceptable risk profile Life of Field: Steady North Sea demand,…
Summary In 2014, operational excellence supported good underlying 2014 Full Year financial results Fourth quarter:21% Adjusted EBITDA margin; 0.61 Adjusted diluted EPS Year end net debt of 6 million Backlog 8.2 billion as at 31…
Q&A Page 26
Appendix Page 27
Main projects in portfolio 2015-2016 Catcher, Premier Aasta Hansteen, Statoil Clair Ridge, BP Martin Linge, Total Montrose, Talisman Knarr, BG International Western Isles, Dana LOF, Statoil Mariner, Statoil Hebron development for…
Major project progression Continuing projects 100m between 5% and 95% complete as at 31 December 2014 excluding PLSV and Life of Field day-rate contracts Knarr (Norway) Line 67 (Mexico) Eldfisk 2 (Norway) Guar-Lula NE (Brazil)…
Income statement supplementary details Three months ended Twelve months ended 31 Dec 14 31 Dec 13(1) 31 Dec 14 31 Dec 13(1) In millions Unaudited Unaudited Audited Audited Administrative expenses (81) (81) (315) (296) Impairment…
Segmental analysis: Territory structure For the three months ended 31 December 2014 In millions (unaudited) AFGOM APME BRAZIL NSC CORP TOTAL Revenue 511 217 209 459 - 1,395 Net operating income excluding goodwill 64 22 35 85 (105) 101…
Segmental analysis: pro-forma Q4 and Full Year 2014 based on Hemisphere structure For the three months ended 31 December 2014 Northern Southern Hemisphere and Hemisphere and CORP TOTAL In millions (unaudited) Life of Field Global…
Segmental analysis: pro-forma Q1 Q3 2014 based on Hemisphere structure For the three months ended 30 September 2014 Northern Southern Hemisphere and Hemisphere and CORP TOTAL(1) In millions (unaudited) Life of Field Global Projects…
Adjusted EBITDA Adjusted earnings before interest, taxation, depreciation and amortisation (Adjusted EBITDA) is a non-IFRS measure that represents net income before additional specific items that are considered to impact the comparison…
Reconciliation of Adjusted EBITDA Net operating (loss)/income to Adjusted EBITDA Three Months Ended Three Months Ended For the period (in millions) 31 Dec 2014 31 Dec 2013(1) Net operating (loss)/income (1,082) 112 Depreciation,…
Earnings per share and Adjusted earnings per share Earnings used in calculation of EPS Three Months Ended Three Months Ended For the period (in millions) 31 Dec 2014 31 Dec 2013(2) Earnings used in the calculation of: Basic earnings…
One of the worlds most versatile fleets Assets Onshore infrastructure of pipeline spoolbases, fabrication and operations support yards Page 37
Rigid pipelay/heavy lift assets (1) (1) (1) (1) Owned and operated by a joint venture Page 38
Diving Support Vessels (1) (1) Formerly Seven Havila Page 39
Construction/vertical flex-lay assets (1) (1) (2) (1) (1) Long-term charter (2) Long-term charter from a vessel-owning joint venture Page 40
Life of Field/Light Construction Vessels (1) (2) (2) (2) (3) (2) 2 (1) Long-term charter from a vessel-owning joint venture (2) Long-term charter (3) Call-out contract Page 42
Other assets Jack-up vessel Trenching vessel (1) and over 175 ROVs (1) Long-term charter Page 43
Under construction Construction/vertical Flex-lay Vessels Diving Support Vessel Page 44
Loading...
