2014 Citi Global Energy & Utilities Conference Boston 14 May 2014
Forward-looking statements Certain statements made in this announcement may include forward-looking statements. These statements may be identified by the use of words like anticipate, believe, could, estimate, expect, forecast, intend,…
Subsea 7 assets and resources Page 3
Core business segments Engineering, construction, Services over the life of a installation and fields production, including procurement of Subsea inspection, repair and Umbilicals, Risers and maintenance. Flowlines. Subsea 7…
Complementary business segments SHL JV i-Tech Seaway Heavy Lifting: ROV and Engineering, construction, intervention installation and tooling support procurement of offshore services - onboard turbines and cables for semis, drill ships,…
Competitors in SURF and Life-of-Field Global leaders in Subsea 7 Technip Saipem EPIC Deepwater alliance EMAS-AMC McDermott Heerema Allseas Petrofac Sapura Kencana Ocean Installer Ocean eering Sea Trucks…
Competitive advantage in SURF is multi-faceted CHALLENGES DEGREE Access to capital Medium Vessels Medium (high in ultra deep water) Technology High (in deep water, harsh environment) Engineering and project High management…
Subsea 7s technology leadership Technology Category Specific Technology Types Steel Deep water and harsh Hybrid Riser Submerged Composite Catenary environment solutions Towers buoys Materials Risers Rigid Pipe Flexible Pipe…
Addressing clients needs in a capex-constrained environment Helping to reduce the cost of our clients projects Early engagement to define optimal technical and cost-effective options Technology-driven solutions Focus on…
Quality backlog - good spread by geography and contract mix Backlog progression ( billions) 11.8 11.8 11.6 10.2 10.4 9.1 8.7 8.3 8.1 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Backlog by Award Date Backlog by…
Fleet investments to meet growth objectives: vessels under construction Ship Vessel Type Rationale Operational Seven Waves Under 5-year contract with 2nd Quarter 2014 Petrobras Pipelay Support Vessel (commencing operations (PLSV)…
Capital expenditure for on-going vessel new-build programme1 millions 161 Total = 1.9 billion (E) 600 557 410 190 Up to 31 Dec 2013 2014 E 2015 E 2016 E Forecast Actual spend to date Notes: 1 Includes four PLSVs being…
Company financial performance history CONSOLIDATED 7,0 00.0 12% 13% 9% 10 % 6,5 00.0 6,0 00.0 6,297m 6,297m 0% 5,5 00.0 5,477m Revenue 5,0 00.0 NOI -10% 4,5 00.0 Adj EBITDA 4,0 00.0 NOI %…
Guar-Lula NE project update Good operational progress in late 2013 / early 2014 All new technology/technically difficult steps have been completed at least once Three submerged buoys (BSRs) installed; fourth (and final) BSR expected…
Brazil: PLSVs foundation for the future Vessel Contract/Renewal Duration (years) Approximate Start Total Contract Value (USm) Normand Seven Q4 13 4.8 (to Q3 2018) 400 Kommandor 3000 Q2 13 5.0 (to Q2 2018) 350 Seven Phoenix Q3…
Market overview Tendering activity is high; however, the timing of some large contract awards remains uncertain SURF: strong tendering activity in the North Sea, Africa, Gulf of Mexico and Asia Life-of-Field: strong demand,…
2014 outlook AFGOM Africa SURF: high tendering activity in West and East Africa; timing of large project market awards remains uncertain Conventional: lack of short-term visibility on timing of IOCs activity growth in Nigeria Gulf…
2014 outlook Brazil Guar-Lula NE project: good operational progress thus far in 2014 All four buoys to be fully installed by end of Q2 Riser installation and other offshore operations to be completed by late Q4 The Seven Waves…
2014 outlook NSC SURF: High level of tendering activity; timing of large project market awards remains somewhat uncertain Our technology remains a key differentiator: strong interest from operators for our Bundle solution…
Financial liquidity and cash returns to shareholders Robust balance sheet Strong operational cashflow generation Investment grade debt metrics Revolving credit facility and three bilateral lines = 400 million in committed borrowing…
Summary Good start to 2014, with increased revenue, Adjusted EBITDA, net income and EPS in Q1 compared to the prior year first quarter Strong order backlog of 11.6 billion at end of first quarter Brazil turnaround on track,…
Appendix Page 23
Income statement Q1 2014 key highlights Three months ended 31 Mar 14 31 Mar 13 In millions, unless otherwise indicated Revenue 1,668 1,467 Net operating income (NOI) 166 154 Income before taxes 173 158 Taxation (36) (26) Net…
Overview of Q1 2014 cash flow millions Cash and cash equivalents at 31 Dec 2013 650 Includes decrease in net operating Net cash generated from operating activities 257 assets of 70m Includes capital expenditure of 288m Net cash flow…
Summary balance sheet 31 Mar 31 Dec 31 Mar 31 Dec In millions 2014 2013 In millions 2014 2013 Assets Equity & Liabilities Non-current assets Total equity 6,728 6,612 Goodwill 2,609 2,585 Non-current liabilities Property, plant and…
Income statement supplementary details Three months ended In millions 31 Mar 14 31 Mar 13 Administrative expenses (81) (76) Share of net income of associates and joint ventures 16 16 Net operating income 166 154 Finance costs…
Segmental analysis For the three months ended 31 March 2014 In millions AFGOM APME BRAZIL NSC CORP TOTAL Revenue 669 205 231 558 5 1,668 Net operating income/(loss) from ops 77 11 19 73 (14) 166 Finance income 4 Other gains and losses 8…
Major project progression Continuing projects 100m between 5% and 95% complete as at 31 March 2014 excl. PLSVs and Life-of-Field day-rate contracts Line 60 (Mexico) CLOV (Angola) West Franklin (UK) Laggan Tormore UK) G1-GS15…
2014 financial guidance No change to previously communicated guidance (repeated below), other than lower expected effective tax rate Group revenue expected to increase from 2013 level Adjusted EBITDA expected to increase moderately from…
Gorgon heavy lift and umbilicals - Australia Located 130km off the northwest coast of Western Australia The Gorgon project is one of the world's largest natural gas projects Heaviest and deepest subsea lifts in the history of…
CLOV Block 17 - Angola Technology-rich SURF project High local content with Sonamet fabrication facility Successful deployment of the Seven Borealis to install 40km of pipe-in-pipe production, 60km of water injection, 32km of gas…
Aasta Hansteen gas field - Norway Technology-rich SURF project 1,200m water depth, deepest in North Sea 300km off northern Norway, harsh environment First SCRs (x4) in the Norwegian Sea, manufactured at Vigra spoolbase First…
Hybrid Riser Tower (HRT) Total CLOV Prospect (1200msw) (1650msw) Brief Application Partners 1440Te Description Tower The HRT is Numerous key assembly of applicable to technology multiple most future companies risers; deepwater…
Buoy Supported Riser (BSR) Brief Application Partners Description A submerged The BSR is Numerous buoy anchored being installed technology to the seabed. on Guar-Lula companies NE project in partnering us Brazil with this…
High-performance pipe-in-pipe Brief Application Partners Description A pipe-in-pipe Subsea ITP - exclusive system pipelines agreement providing high which require thermal high thermal insulation for insulation subsea oil and…
Reel-lay of Mechanically Lined Pipe (BuBi) BuBi Pipe Brief Application Partners Description Use of BuBi Worlds first BUTTING - Mechanically award on a exclusive Lined Pipe Petrobras Pre- agreement offers Salt project…
Towed bundles Brief Application Partners Description Towed integrated Mainly North Numerous assembly of Sea subsea technology flowlines and production companies service systems tie partnering us lines/control backs. Towed with…
Autonomous Inspection Vehicle (AIV) Brief Application Partners Description A game changing Can be Seebyte inspection deployed from technology system FPSO comprising an (avoiding the autonomous need for a vehicle without a…
Rigid pipelay/heavy lift assets 1 1 1 1 Owned and operated by a joint venture Page 41
Diving Support Vessels 1 1 Formerly Seven Havila Page 42
Construction/vertical flex-lay assets 1 1 2 1 1 Long-term charter 2 Long-term charter from a vessel-owning joint venture Page 43
Construction/horizontal flex-lay assets 1 2 2 1 Formerly the Seven Sisters 2 Long-term charter Page 44
Life-of-Field/Light Construction Vessels 1 2 2 2 3 2 1 Long-term charter from a vessel-owning joint venture 2 Long-term charter 3 Call-out contract Page 45
Other assets Jack-up vessel Trenching vessel 1 and over 175 ROVs 1 Long-term charter Page 46
Under construction Construction/Vertical Flex-lay Vessels Diving Support Vessel Page 47
Vessel Divestments from 2011 to the end of Q1 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 Q1 2014 DSV: May 2011 LOF / Light Construction: Dec 2012 Jan 2014 Jan 2014 Mar 2014 Page 49
Loading...
