Subsea 7 — Earnings Release 2018

Feb 28, 2019

Subsea 7 S.A. Announces Fourth Quarter and Full Year 2018 Results

Subsea 7 S.A. Announces Fourth Quarter and Full Year 2018 Results

Luxembourg – 28 February 2019 – Subsea 7 S.A. (the Group) (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355) announced today results for the fourth quarter and full year which ended 31 December 2018. Unless otherwise stated the comparative period is the full year which ended 31 December 2017.

Fourth Quarter and Full Year 2018 highlights

• Reported Adjusted EBITDA percentage margin of 16% for the full year 2018 and fourth quarter, reflecting challenging market conditions as we executed projects that were awarded at lower prices during the downturn

• Successful early engagement activity with a significant increase in early engineering awards

• Enhanced capability in renewables through acquisition of Seaway Offshore Cables and two associated vessels in the first half of the year

• Net cash of $507 million at 31 December 2018, and $656 million unutilised credit facilities

• $297 million returned to shareholders in 2018 comprising $204 million special dividend and $93 million in share repurchases

• Following successful conclusion of the 2014 share repurchase programme in February 2019, a new two-year $200 million share repurchase programme has been announced, enabled by our strong financial and liquidity position and improving market outlook

• Special dividend of NOK 1.50 per share will be recommended for shareholder approval at the AGM, rebalancing cash returns to favour share repurchases

Jean Cahuzac, Chief Executive Officer, said:

‘Subsea 7 delivered good operational and financial results in 2018, despite the challenge of delivering projects awarded at lower prices during the downturn. The number of deepwater oil and gas projects awarded by our clients started to increase as industry-wide cost reductions and higher oil and gas prices supported better economic returns. We received a good share of new awards reflecting our enabling technology, early engagement and integrated solutions.

Subsea 7’s performance reflects our strategy to be a global leader in the delivery of offshore projects and services for the evolving energy industry and create sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs. We invested in our business during 2018, acquiring additional early engineering capability with our investment in Xodus and expanding our renewables capability with the acquisition of Seaway Offshore Cables. We invested in our fleet, with continued progress constructing our new reel-lay vessel, Seven Vega, which is due to commence operations in 2020. We also invested in our people, with 53 new graduate engineers and 40 marine cadets joining us in the year. Subsea Integration Alliance, our collaboration with OneSubsea, Schlumberger, has delivered positive results with the award of integrated projects offshore Australia and in the Gulf of Mexico, and integrated early engineering awards offshore Senegal and Australia that are expected to progress to the execute phase after final investment decisions are made. We remain committed to our long-term relationship with Schlumberger and are encouraged by the success of Subsea Integration Alliance and our integrated technology programmes.

In 2019 we expect continued pressure on our financial performance from the projects awarded at lower prices during the downturn and from a reduction in our offshore wind farm installation activity. However, offshore activity levels are improving and the projects we are now tendering and winning give us confidence that the expected market recovery will translate into better performance for Subsea 7 in the future.’

The full release is available at wwww.subsea7.com

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Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry. We create sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs.

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For further information, please contact:

Isabel Green

Investor Relations Director

email: isabel.green@subsea7.com

Telephone: +44 20 8210 5568