Earnings Presentation Third Quarter 2014 12 November 2014 12:00 noon UK time
A strong quarter both operationally and financially FINANCIAL OPERATIONAL Revenue increased 22% from prior year Good overall project execution third quarter 91% Group vessel utilisation, up from 86% 22% Adjusted EBITDA margin during…
Backlog and order in-take Backlog ended Q3 2014 at 9.4 billion, net of 300 million negative foreign exchange impact Order intake in Q3: 0.4 billion, which included contracts below 50 million value, escalations on existing contracts…
Income statement key highlights Three months ended 30 Sept 14 30 Sept 13 In millions, unless otherwise indicated Revenue 1,902 1,564 Net operating income (NOI) 324 269 Income before taxes 288 219 Taxation (83) (60) Net…
Territory performance Q3 2014 AFGOM Brazil 624m 249m 83m 88m Revenue NOI Revenue NOI APME NSC 784m 246m 109m 35m Revenue NOI Revenue NOI Note: excludes contribution from Corporate segment Page 6
Income statement supplementary details Three months ended In millions 30 Sep 14 30 Sept 13 Administrative expenses (86) (74) Share of net income of associates and joint ventures 24 49 Net operating income 324 269 Net finance…
Overview of YTD 2014 cash flow millions Cash and cash equivalents at 31 Dec 2013 650 * Includes decrease in net operating Net cash generated from operating activities 1,070 assets of 170m Includes capital expenditure of 635m Net cash…
Summary balance sheet 30 Sept 31 Dec 30 Sept 31 Dec In millions 2014 2013 In millions 2014 2013 Assets Equity & Liabilities Non-current assets Total equity 6,842 6,612 Goodwill 2,578 2,585 Non-current liabilities Property, plant and…
Financial guidance Full year 2014 guidance reaffirmed and refined: Group revenue expected to increase from 2013 level Adjusted EBITDA expected to increase moderately from that achieved in 2013 after adding back the 355 million full…
Capital expenditure for on-going vessel new-build programme1 millions 397 557 595 225 215 Up to 31 Dec 2013 2014 E 2015 E 2016 E Forecast Actual spend to date Note: 1 Includes four PLSVs being constructed for long-term…
Fleet investments to meet growth objectives: vessel new-build programme Ship Vessel Type Rationale Operational Seven Waves Under 5-year contract with 2nd Quarter 2014 Petrobras Pipelay Support Vessel (commenced operations (PLSV) mid…
Market overview SURF: Uncertainty around timing of awards continues; a number of large potential SURF market awards have been postponed from 2014 to 2015, for various reasons Recent oil price weakness creates additional uncertainty…
Market outlook Africa SURF: Tendering in West and East Africa remains high but timing of market awards remains uncertain Potential market awards over the next twelve months include: West Nile Delta - Zinia Phase 2 Bonga SouthWest -…
Market outlook APME SURF: Potential market awards for large projects in Indonesia and India over the next twelve months: KG-D6 and Vashista in India - Gehem-Gendalo in Indonesia Market award of large SURF projects unlikely near-term…
Market outlook Brazil Territory financial turn-around in line with expectations Good operational progress on the Guar-Lula NE project since the beginning of the year 22 of 27 risers successfully installed by end of Q3 2014 completion…
Market outlook North Sea and Canada SURF: A number of tendered projects have been postponed to 2015 Statoil postponing capex projects in Norway until 2015 and 2016 Our technology remains a key differentiator Strong interest from…
Examples of Subsea 7 technology application Bubi pipe First successful reeled installation on the Guar-Lula project in Brazil New application with the Aasta Hansteen project in Norway in 2015 Several other opportunities High…
Adapting to changing market conditions With our clients and suppliers: Early engagement to help lower the overall cost of field developments F.E.E.D., engineering and procurement expertise Integrated project teams and new business…
Summary A strong quarter both operationally and financially 22% Adjusted EBITDA margin; 0.57 diluted EPS Good overall project execution and significant progress on the Guar- Lula NE project in Brazil High Group vessel utilisation at…
Appendix Page 21
Major project progression Continuing projects 100m between 5% and 95% complete as at 30 September 2014 excl. PLSVs and Life-of-Field day-rate contracts Eldfisk (Norway) Knarr (Norway) Guar Lula NE (Brazil) Clair Ridge (UK) Brazil…
Segmental analysis For the three months ended 30 September 2014 In millions AFGOM APME BRAZIL NSC CORP TOTAL Revenue 624 246 249 784 (1) 1,902 Net operating income from ops 83 35 88 109 10 324 Finance income 4 Other gains and losses…
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 income to Adjusted EBITDA Three Months Ended Three Months Ended For the period (in millions) 30 Sep 2014 30 Sep 2013 Net operating income 324 269 Depreciation, amortisation and…
Rigid pipelay/heavy lift assets 1 1 1 1 Owned and operated by a joint venture Page 28
Diving Support Vessels 1 1 Formerly Seven Havila Page 29
Construction/vertical flex-lay assets 1 1 2 1 1 Long-term charter 2 Long-term charter from a vessel-owning joint venture Page 30
Construction/horizontal flex-lay assets 1 2 2 1 Formerly the Seven Sisters 2 Long-term charter Page 31
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 32
Other assets Jack-up vessel Trenching vessel 1 and over 175 ROVs 1 Long-term charter Page 33
Under construction Construction/vertical Flex-lay Vessels Diving Support Vessel Page 34
Vessel Divestments from 2011 to the end of Q3 2014 Rigid Pipelay / Construction: Jun 2011 Sep 2011 Jan 2013 DSV: Construction / Horizontal Flex-lay: Jan 2013 Aug 2013 LOF / Light Construction: Aug 2011 Feb 2013 Page…
Terminated Long-Term Vessel Charters from 2011 to the end of Q3 2014 DSV: May 2011 LOF / Light Construction: Dec 2012 Jan 2014 Jan 2014 Mar 2014 Page 36
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