London, 26 July, 2023, (Oilandgaspress) – Subsea 7 S.A. announced today results of Subsea7 Group (the Group, Subsea7) for the second quarter and first half of 2023 which ended 30 June 2023.
Second quarter highlights
- Second quarter Adjusted EBITDA of $162 million resulting in a margin of 11%
- Renewables business unit back on track, with Adjusted EBITDA margin of 11%
- Order intake remains strong at $2.2 billion, resulting in a book-to-bill of 1.4 times
- Backlog of $10.4 billion, of which $3.0 billion to be executed in 2023 and $4.3 billion in 2024
- Recent awards and high levels of ongoing tendering activity continue to support a return of Adjusted EBITDA margins to a range of 15-20% over the coming four years
- Full year 2023 guidance reconfirmed
| Second Quarter | Half Year | |||
| For the period (in $ millions, except Adjusted EBITDA margin and per share data) | Q2 2023 Unaudited |
Q2 2022 Unaudited |
1H 2023 Unaudited | 1H 2022 Unaudited |
| Revenue | 1,518 | 1,247 | 2,764 | 2,441 |
| Adjusted EBITDA(a) | 162 | 134 | 268 | 220 |
| Adjusted EBITDA margin(a) | 11% | 11% | 10% | 9% |
| Net operating income/(loss) | 1 | 18 | (14) | (13) |
| Net income/(loss) | 14 | 22 | (15) | 10 |
| Earnings per share – in $ per share | ||||
| Basic | 0.06 | 0.14 | (0.01) | 0.09 |
| Diluted(b) | 0.06 | 0.14 | (0.01) | 0.09 |
| At (in $ millions) |
30 June 2023 |
31 March 2023 |
||
| Backlog(a) | 10,363 | 9,683 | ||
| Book-to-bill ratio | 1.4x | 1.5x | ||
| Cash and cash equivalents | 398 | 686 | ||
| Borrowings | (760) | (649) | ||
| Net (debt)/cash excluding lease liabilities(a) | (363) | 37 | ||
| Net debt including lease liabilities(a) | (805) | (419) | ||
(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA margin, Backlog, Book-to-bill ratio and Net cash/(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 satisfactory financial results for the second quarter of 2023 reflecting a good operational performance in Subsea and Conventional and a strong result in Renewables. Continued positive momentum in new orders saw over $2 billion new work booked during the quarter, including notable awards of the Sakarya Phase 2A integrated subsea development in Türkiye, and an integrated monopile and cable installation contract for the East Anglia THREE wind development in the UK. Our book-to-bill was 1.4 times and the backlog grew to $10.4 billion. The Group is on track to meet Adjusted EBITDA expectations for the full year 2023, and the strong backlog, combined with the current positive dynamics in project tendering, gives us confidence that the Group Adjusted EBITDA margin will return to a range of 15-20% over the coming four years.
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