Subsea 7 — Earnings Release 2014

Apr 30, 2014

Subsea 7 S.A. Announces First Quarter 2014 Results

Subsea 7 S.A. Announces First Quarter 2014 Results

Luxembourg - 30 April 2014 - Subsea 7 S.A. (the

Group) (Oslo Børs: SUBC) announced today results for

the first quarter which ended on 31 March 2014. The

Group's reporting segments are set out in Note

6 'Segment information'.

Three months ended

For the period (in $ millions, except Adjusted EBITDA

margin and per share data) 31

Mar 2014

Unaudited 31 Mar 2013

Unaudited

Revenue 1,668 1,467

Adjusted EBITDA(1) 264

241

Adjusted EBITDA margin(1)

16% 16%

Net operating income 166

154

Net income 137 132

Earnings per share - in $ per share(2)

Basic 0.46 0.40

Diluted 0.41 0.37

As at (in $ millions) 31 Mar 2014

Unaudited 31 Dec 2013

Audited

Backlog 11,552 11,770

Cash and cash equivalents

538 650

Borrowings 916 912

(1) For explanations and reconciliations of

Adjusted EBITDA and Adjusted EBITDA margin please

refer to Note 8 of the Condensed Consolidated

Financial Statements included herein.

(2) For explanations and calculations for basic

and diluted earnings per share please refer to Note 7

of the Condensed Consolidated Financial Statements

included herein.

Jean Cahuzac, Chief Executive Officer, said:

First quarter 2014

'The Group has had a good start to 2014, with first

quarter revenue and Adjusted EBITDA both increasing

from the levels achieved in the first quarter of

2013. I am pleased overall with the operational

performance in executing our project portfolio.

In line with our expectation, the record order

backlog with which we started 2014 declined

marginally in the quarter, ending the period at $11.6

billion. In addition to announced contract awards,

scope changes and commitments made under frame

agreements augmented order intake.

The Seven Waves, the first of the four new-build

PLSVs, successfully completed final equipment trials

in the first quarter and is expected to commence

operations for Petrobras in May this year under a

five-year contract. The vessel has been built and

commissioned in line with our cost estimates and will

be operational three months ahead of schedule.

Cash levels declined somewhat in the quarter,

consistent with our expectations, mainly reflecting

the timing of milestone payments on vessel

construction projects and the continuation of our

share repurchase programme.

Operational highlights for the first quarter 2014

In West Africa, the CLOV project offshore Angola

achieved key execution milestones with the

installation of two Hybrid Riser Towers and

associated buoyancy tanks in the first quarter, led

by the Seven Borealis. Other projects that progressed

significantly included Block 31 GES, offshore Angola,

and Erha North, offshore Nigeria.

In Australia, the Gorgon Heavy Lift and Tie-ins

project was in its offshore phase throughout the

quarter, while in India, the G1 project for ONGC

commenced the third phase of its offshore campaign.

The Guará-Lula NE project in Brazil realised a good

quarter of operational achievements, with the second

and third buoys successfully placed in position and

additional risers installed. The previously

communicated project timetable remains unchanged and

no adjustment has been made to the estimated full-

life project loss.

In the North Sea and Canada, the diverse portfolio of

work progressed well, with Life-of-Field particularly

active.

Vessel utilisation for the Group was 79% (74% in Q1

2013), which was relatively high for a first quarter

period and reflected robust activity levels and

moderate out of service time due to dry-dockings.

Outlook

The trend that began in 2013 for many clients to take

longer to award subsea contracts continued in the

first quarter of 2014. We expect these delays to have

an impact on order intake in the near-term, although

high tendering activity in all Territories bodes well

for the medium-term outlook.

We reiterate our previous guidance for an expected

increase in Group revenue for the full year 2014,

together with a moderate increase in Group Adjusted

EBITDA from the level achieved in 2013 after adding

back the full-life project loss provision recognised

on the Guará-Lula NE project in 2013 that amounted to

$355 million.'