Subsea 7 — Earnings Release 2015

Apr 29, 2015

Subsea 7 S.A. Announces First Quarter 2015 Results

Subsea 7 S.A. Announces First Quarter 2015 Results

Luxembourg - 29 April 2015 - Subsea 7 S.A. (the

Group) (Oslo Børs: SUBC) announced today results

for the first quarter which ended on 31 March 2015.

The Group's reporting segments are set out in Note

6 'Segment information'.

Jean Cahuzac, Chief Executive Officer, said:

First quarter 2015

'Subsea 7 has started the year well compared with

the prior year quarter, with an increase in

Adjusted EBITDA in the first quarter of 2015

despite the difficult market environment and

decline in revenue. Operational performance has

remained strong with good execution and cost

control discipline. Vessel utilisation in the

period was 68%, in line with the fourth quarter

2014. Adjusted EBITDA margin of 24% reflected

increased contribution from projects nearing

completion, including the Guará-Lula NE project in

Brazil where there was a further $29 million

reduction in the full-life project loss.

The continuation of challenging market conditions

resulted in subdued order intake and order backlog

declined to $7.6 billion by the period end which

included an adverse foreign exchange impact of $0.4

billion. New orders and escalations totalled $1.0

billion and included the Persephone project for

Woodside, offshore Australia, and the extension of

two Life of Field contracts for Shell, offshore UK,

both announced in the quarter. Unannounced order

intake included fabrication work for Sonamet in

Angola and an award for the i-Tech division,

offshore Australia. Since the quarter end, a two-

year PLSV contract has been awarded offshore Brazil

for Seven Seas.

Net debt increased by $283 million from the 2014

year end position, reflecting the timing of

payments for the new-build vessel programme and

movements in working capital in the quarter,

largely due to the normal phasing of project

related cash receipts and payments.

Operational highlights for the first quarter 2015

In the Northern Hemisphere and Life of Field

Business Unit, the Knarr project offshore Norway

was substantially completed. Significant progress

was made on the Aasta Hansteen and Martin Linge

projects offshore Norway and the Montrose project

offshore UK. Life of Field activity was low,

particularly in the North Sea, as clients,

influenced by the low oil price, reduced offshore

activity in the more operationally challenging

winter months. i-Tech activity was steady in the

quarter.

In the Southern Hemisphere and Global Projects

Business Unit, significant progress was made on the

Lianzi SURF, Lianzi Topside and Mafumeira Sul

projects offshore Angola, the Erha North project

offshore Nigeria, the TEN project offshore Ghana

and the Gorgon Heavy Lift and Tie-ins project

offshore Australia. Offshore Brazil, the Guará-Lula

NE project progressed with the final commissioning

stage and Seven Oceans and Skandi Neptune were

redeployed. The vessels under long-term PLSV

contracts with Petrobras recorded high levels of

utilisation with a reduction in days spent in

planned dry-dock compared to the prior quarter.

Outlook

Contract awards to the market continue to be

delayed, reflecting the low oil price environment

and resultant capital expenditure reductions by oil

companies. Subsea 7 is positioned competitively for

the projects that are still expected to be awarded

to the market in 2015. However, visibility on the

timing of SURF awards remains low. Life of Field

activity is expected to show a seasonal improvement

in the second quarter. As guided previously,

revenue is expected to be significantly lower in

2015 compared to the record level reported last

year and Adjusted EBITDA margin is expected to

decrease compared to 2014. Cost reduction measures

to more closely align Subsea 7's cost base to

current market conditions are making good progress

and additional measures will be implemented in 2015.

The fundamental long-term outlook for deepwater

subsea field developments remains intact despite

the challenges facing the industry as a result of

the lower oil price. Subsea 7 is a top tier service

provider with a solid financial position, and is

well placed to win and execute projects in a lower

oil price environment.'

The full results release is available on

www.subsea7.com

For further information, please contact:

Isabel Green

Investor Relations Director

email: isabel.green@subsea7.com

Telephone: +44 (0) 208 210 5568

Special Note Regarding 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', 'may', 'might', 'plan

', 'predict', 'project', 'scheduled', 'seek', 'shoul

d', 'will', and similar expressions. The forward-

looking statements reflect our current views and

are subject to risks, uncertainties and

assumptions. The principal risks and uncertainties

which could impact the Group and the factors which

could affect the actual results are described but

not limited to those in the 'Risk Management'

section in the Group's Annual Report and

Consolidated Financial Statements 2014. These

factors, and others which are discussed in our

public announcements, are among those that may

cause actual and future results and trends to

differ materially from our forward-looking

statements: actions by regulatory authorities or

other third parties; our ability to recover costs

on significant projecs; the general economic

conditions and competition in the markets and

businesses in which we operate; our relationship

with significant clients; the outcome of legal and

administrative proceedings or governmental

enquiries; uncertainties inherent in operating

internationally; the timely delivery of vessels on

order; the impact of laws and regulations; and

operating hazards, including spills and

environmental damage. Many of these factors are

beyond our ability to control or predict. Other

unknown or unpredictable factors could also have

material adverse effects on our future results.

Given these factors, you should not place undue

reliance on the forward-looking statements.