Subsea 7 — Earnings Release 2024

Jul 25, 2024

Subsea 7 S.A. Announces Second Quarter and Half Year 2024 Results

Luxembourg = 25 July 2024 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355, the Company announced today results of Subsea7 Group (the Group, Subsea7) for the second quarter and first half of 2024 which ended 30 June 2024.

Second quarter highlights

• · Adjusted EBITDA of \$292 million, up 80% on the prior year period, equating to a margin of 17%.
• Order intake of \$4.0 billion, equivalent to a book-to-bill ratio of 2.3 times, resulted in a record backlog of \$12.5 billion. Of this, \$3.3 billion is due to be executed in the remainder of 2024, \$4.9 billion in 2026 and beyond.
• · Full year 2024 guidance increased. Revenue expected to be in a range from \$6.5 to \$6.5 billion (from \$6.0 to \$6.5 billion)
• while Adjusted EBITDA is expected to be between \$1,000 and \$1,050 million (from \$950 to \$1,000 million). · High tendering activity supports management's confidence in the outlook for order intake and margin expansion. Full Year
• 2025 Adjusted EBITDA margin is expected to be within an 18 to 20% range, exceeding 20% in full year 2026.

	Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (in \$ millions, except Adjusted EBITDA margin and per share data)	Unaudited	Unaudited	Unaudited	Unaudited
Revenue	1,739	1,518	3,134	2,764
Adjusted EBITDA(a)	292	162	454	268
Adjusted EBITDA margin(a)	17%	11%	15%	10%
Net operating income/(loss)	137		157	(14)
Net income/(loss)	63	14	92	(15)
Earnings per share – in \$ per share
Basic	0.20	0.06	0.29	(0.01)
Diluted(b)	0.20	0.06	0.29	(0.01)

At (in \$ millions)	30 June 2024 Unaudited	31 Mar 2024 Unaudited
Backlog(a)	12.544	10.429
Book-to-bill ratio(a)	2.3x	0.9x
Cash and cash equivalents	290	604
Borrowings	(783)	(814)
Net debt excluding lease liabilities(a)	(494)	(211)
Net debt including lease liabilities(a)	(1,027)	(782)

(a) For explanations and reconcliations of Adjusted EBTDA margin, Backog, Box-to-illi ratio and Net debt refer to the "Alternative Performance Measures" sestion of the Condensed Consolidated Financial Statements.

(b) For the explanation and a reconciliation of diving per share to the Condensed Consolidated Financial Statements.

John Evans, Chief Executive Officer, said:

Subsea7 achieved several milestones in the second quarter of 2024 that support management's confidence in the Group.

First, our confidence in the future is underpin of our delivery in the second quarter. Adjusted EBITDA of \$292 million – equating to a margin of 17% – was driven by operational performance from both our project teams excepting major contracts, and by our offshore crews delivering high utilisation and efficiency of our global enabler vessels.

Second, our order intake continues to extend visibility for the coming years. A record intake of \$4.0 billion in the second quarter increased our backlog to \$12.5 billion, including the renewal of long-term contracts for four PLSVs in Brazil. We see good demand for capacity stretching to the end of the decade, with major new prospects continuing to replenish our bidding pipeline.

Finally, the quality of the backlog continued to improve in the second quarter, underpinning our outlook for Adjusted EBITDA margins within a range of 18 to 20% in 2025 and in excess of 20% in full year 2026. This improving embedded profitability gives us confidence in the outlook for strong cash generation and supports our commitment to shareholder returns of at least \$1 billion in 2024 to 2027.

With the right teams and assets in place, we are confident that the Group's differentiated, value accretive slient relationships position us to deliver strong financial performance in the coming years.

Second quarter operational highlights

During the second quarter, good progress was made in Subsea and Conventional on our major projects. For Yggdrasil, we completed the rigid pipelay fabrication at the Vigra spoolbase in Norway, while fabrication of the Wick spoolbase in Scotland. In Brazil, we commenced stalk fabrication for Mero 4 at the Bintan spoolbase in Indonesia we completed the fabrication and loadout of pipeline for Barossa.

During the quarter utilisation of our subsea global enabler vessels was very high. Seven Borealis completed its pipelay scope for the Gas to Energy project in Guyana while, in Brazil, Seven Vega cope for Bacalhau before mobilising for Mero 3. In Australia, Seven Oceans completed its scope for Scarborough as well as, on 2 July, its second offshore campaign for Barossa. In Norway, Seven Navica completed offshore activities for the Northern Lights carbon capture project.

In Renewables, utilisation of our key installation vessels was high including Seaway Alfa Lift at Dogger Bank B, and Seaway Aimery at Moray West, both in the UK. Seaway Ventus completed its inaugural turbine installation scope for Gode Wind 3 in

Germany and commenced Borkum Riffgrund 3 in the UK. Seaway Phoenix continued activities in Taiwan for Zhong Neng and Yunlin, and Seaway Moxie transited to Taiwan to support the Yunlin project.

Second quarter financial review

Revenue of \$1.7 billion increased 15% compared to the prior year period. Adjusted EBITDA of \$292 million equated to an Adjusted EBITDA margin of 17%, up from 11% in Q2 2023. This was driven by a strong performance in Subsea and Conventional, reflecting high utilisation of the global enabler vessels as well as good progress in engineering and procurement activities.

After depreciation and amorisation of \$156 million, net operating income was \$137 million, compared to net operating income of \$1 million in the prior year period. Net finance costs of \$24 million, a net foreign exchange loss of \$8 million, resulted in net income for the quarter of \$63 million compared with \$14 million in the prior year period.

Net cash generated from operating activities in the second quarter was \$187 million increase in net working capital. Net cash used in investing activities was \$202 million mainly comprisent of \$155 million relating to our investment in OneSubsea. Net cash used in financing activities was \$213 million including dividend payments of \$82 million, share repurchases of \$19 million and lease payments of \$55 million related to the purchase of a vesse, to be renamed Seven Merlin (formerly African Inspiration), which was completed in July 2024. Overall, cash and cash equivalents decreased by \$314 million to \$290 million at 30 June 2024. This resulted in net debt of \$494 million excluding or \$1,027 million including lease liabilities of \$533 million.

Second quarter order intake was \$4.0 billion comprising new awards of \$3.2 billion resulting in a book-to-bill ratio of 2.3 times. Backlog at the end of June was \$12.5 billion is expected to be executed in 2024, \$4.9 billion in 2025 and \$4.3 billion in 2026 and beyond.

Guidance

Revenue expected to be in a range from \$6.5 to \$6.8 billion) while Adjusted EBITDA is expected to be between \$1,000 and \$1,050 million (previously \$950 to \$1,000 million).

In full year 2025, as the mix of activity continues to shift to projects won in a more favourable environment, our Adjusted EBTDA margin is expected to be within an 18 to 20% range. We expect the margin to continue to improve, exceeding 20% in full year 2026.

Conference Call Information

Date: 25 July 2024 Time: 12:00 UK Time, 13:00 CET Access the webcast at subsea7.com or https://edge.media-server.com/mmc/p/af8ir6ef/ Register for the conference call https://register.vevent.com/register/Bl3b41ee083451486b8d18c074b312bd5e

For further information, please contact:

Katherine Tonks Head of Investor Relations Email: ir@subsea7.com Telephone: +44 20 8210 5568

Special Note Regarding Forward-Looking Statements

This document may contain 'forward-looking statements' (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those statements. Forward-looking statements may be identified by the use of words such as ' expect', 'future', 'future', 'fitely' ' may', 'plan', 'project', 'should', 'strategy ' will', and similar expressions. The principal risks which could affect tuture operations of the Group are described in the 'Risk Management' section of the Group's Annual Report. Factors that may cause and trends to differ materially from our forward-looking statements include (but are not linted to): () our ability to deliver fixed projects in accordance and within the parameters of our bids, and to avoid cost overuns; (i) our ability to collect receivables, negotiate related revenue; (ii) our ability to recover costs on significant projects; (i) captal expenditure by oil and gas companies, which is a rice of, and demand for, cruce oil and natural gas; (y) unanticipated delation of projects included in our backing; (i) competition and price fluctuations in the markets and businesses in which we cperate; (vi) the loss of, or detericant clients; (wii) the outcome of legal proceedings or governmental inquires; interent in oceating internationally, including economic, policial and scial instability, boyotts or embarges, labour unrest, changes in foreign governmental regulations; (x) the effects of a pandemic or epidemic or epidemic or a natural disaster; (x) lability to third cartes for the failure of our inters to fulfit their obligations; /xij changes in, or our failure to comply with, applicable laws and regulations (including regulatory climate change); (xii) operating hazards, including spills, environmental damage, personal or property damage and business internet weather; (xiy equipment or mechanical failures, which could increase costs, impair revenue and result in peralties for failure to meet project completion requirements; (xv) the timely completion of ship conversion programmes; (xi) our ability to keep pace with impact of potential information technology, cyber security or data security breaches; (xi) global availability at sale and commercially viability of suitable atternative vessel fuels; and, (xii) the effectiveness of our disclosure controls and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainies, you should not place on the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no oblicy or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This information is considered to be inside information pursuation and is subject to the disdosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 25 July 2024 08:00 CET.

Second Quarter 2024

Income Statement

Revenue

Revenue for the second quarter was \$1.7 billion, an increase of \$221 million or 15% compared to Q2 2023. The increase was due to increased activity in the Subsea and Conventional business unit with strong demand for the Group's services within the offshore oil and gas sector.

Adjusted EBITDA

Adjusted EBITDA was \$292 million or 80% compared to Q2 2023, resulting in an Adjusted EBITDA margin of 17% compared to 11% in the prior year period. The year-on-year increase was driven by higher Adjusted EBTDA in the Subsea and Conventional business unit reflecting increased activity levels and the execution of projects awarded at improved margins.

Net operating income

Net operating income was \$137 million in Q2 2023. The increase was driven by net operating income of \$126 million in the Subsea and Conventional business unit compared to net operating loss of \$10 million in Q2 2023. The year-on-year increase in profitability was mainly due to higher activity levels and the execution of projects awarded at improved margins.

Net income

Net income was \$63 million compared to \$14 million in Q2 2023. The year-on-year improvement of \$49 million was mainly driven by:

· an increase in net operating income of \$136 million

partly offset by:

• net loss within other gains and losses of \$9 million, mainly driven by losses on foreign exchange of \$8 million, compared to a net gain within other gains and losses of \$59 million in Q2 2023, which was mainly driven by non-cash foreign exchange movements; and

· finance costs of \$30 million, reflecting higher levels of borrowings, compared with finance costs of \$16 million in Q2 2023.

Earnings per share

Diluted earnings per share was \$0.20 compared to \$0.06 in Q2 2023, calculated using a weighted average number of shares of 300 million and 301 million, respectively.

Business Unit Highlights

Subsea and Conventional

Revenue for the second quarter was \$1.4 billion, an increase of \$253 million or 21% compared to Q2 2023.

During the quarter Sangomar (Senegal) neared completion and work progressed on Sanha Lean Gas, CLOV 3 and Agogo (Angola); Marjan 2 (Saudi Arabia); Sakarya Phase 2a (Türkiye); Barossa and Scarborough (Australia); Cypre, Shenandoah and Guyana G2E (Gulf of Mexico); and Skarv Satellites, Yggdrasil and Northern Lights (Norway).

In Brazil, there were high levels of utilisation of the PLSVs and work progressed on Bacalhau, Mero 384, Búzios 8 and B.P Salema.

Net operating income was \$126 million compared to net operating loss of \$10 million in Q2 2023. The year-on-year increase reflected higher activity levels, the execution of projects awarded at improved margins and the Group's share of net income in its associate, OneSubsea, of \$9 million.

Renewables

Revenue for the second quarter was \$281 million, a decrease of \$28 million or 9% compared to Q2 2023.

During the quarter work progressed on Dogger Bank B, Moray West and East Anglia THREE (UK); and Yunlin, Hai Long and Zhong Neng (Taiwan).

Net operating income was \$8 million in Q2 2024, compared to net operating income of \$9 million in Q2 2023.

Corporate

Revenue, which was mainly driven by the Group's autonomous wholly-owned subsidiaries Xodus and \$25 million, compared to \$28 million in the prior year period. Net operating income was \$3 million in Q2 2023.

Vessel utilisation and fleet

Vessel utilisation for the second quarter was 87% compared with 85% in Q2 2023. At 30 June 2024, there were 40 vessels in the Group's fleet, including 12 chartered vessels.

Cash flow

Cash flow statement

At 30 June 2024, cash and cash equivalents were \$290 million in the quarter. The movement in cash and cash equivalents during the quarter was mainly attributable to:

• net cash generated from operating activities of \$187 million, which included a modest unfavourable movement of \$12 million in net working capital

more than offset by:

• · net cash used in investing activities of \$202 million related to purchases of property, plant and equipment and intangible assets and the final instalment of \$153 million related to the Group's investment in its associate, OneSubsea;
• · net cash used in financing activities of \$213 million, which included payments related to lease liabilities of \$55 million, scheculed repayments of borrowings of \$31 million and the first instalment of \$82 million related to dividends payable to the shareholders of the parent company; and
• an increase of \$83 million in restricted cash related to the purchase of a 250 tonne crane class, to be renamed Seven Merlin (formerly African Inspiration), which was completed in July 2024.

Free cash flow

During the second quarter, the Group generated free cash flow of \$132 million (Q2 million) which is defined as net cash generated from operating activities of \$187 million (Q2 2023: net cash used in operating activities of \$31 million) less purchases of property, plant and equipment and intangible assets of \$55 million (Q2 2023: \$197 million),

Half Year 2024

Income Statement

Revenue

Revenue for the first half of 2024 was \$3.1 billion or 13% compared to 1H 2023. The increase was due to increased activity in the Subsea and Conventional business unit with strong demand for the Group's services within the offshore oil and gas sector.

Adjusted EBITDA

Adjusted EBITDA was \$454 million, an increase of \$185 million or 69% compared to 1H 2023, resulting in an Adjusted EBITDA margin of 15% compared to 10% in the prior year period. The year increase was driven by significantly higher Adjusted EBTDA in the Subsea and Conventional business unit reflecting high activity levels and the execution of projects awarded at improved margins.

Net operating income

Net operating income was \$157 million compared to net operating loss of \$14 million in 1H 2023.

Net operating income for the first half of 2024 was mainly driven by:

• net operating income of \$173 million in the Subsea and Conventional business unit comparing loss of \$7 million in 1H 2023. The year-on-year increase in profitability was mainly driver activity levels and the execution of projects awarded at improved margins

partly offset by:

• net operating loss of \$16 million in the Renewables business unit compared to net operating loss of \$9 million in 1H 2023.

Net income

Net income was \$92 million compared to net loss of \$15 million in 1H 2023. The year-on-year improvement of \$107 million was mainly driven by:

· an increase in net operating income of \$171 million

partly offset by:

• net gains within other gains and losses of \$41 million compared to net gains and losses of \$56 million in 1H 2023, mainly driven by non-cash foreign exchange movements in both periods;
• · finance costs of \$53 million, which reflected higher levels of borrowings, compared with finance costs of \$30 million in 11 2023; and
• taxation of \$67 million, equivalent to an effective tax rate of 42%, compared to taxation of \$40 million in 1H 2023.

Earnings per share

Diluted earnings per share was \$0.29 compared to diluted loss per share of \$0.01 in 1H 2023, calculated using a weighted average number of shares of 301 million and 296 million, respectively.

Business Unit Highlights

Subsea and Conventional

Revenue for the first half of 2024 was \$2.6 billion, an increase of \$381 million or 17% compared to 1H 2023.

During the period Sangomar (Senegal) neared completion and work progressed on Sanha Lean Gas, CLOV 3 and Agogo (Angola); Marjan 2 (Saudi Arabia); Sakarya Phase 2a (Türkiye); Barossa and Scarborough (Australia); Oyore, Shenandoah and Guyana G2E (Gulf of Mexico); and Skarv Satellites and Yggdrasil (Norway).

In Brazil, there were high levels of utilisation of the PLSVs and work progressed on Bacalhau, Mero 3&4, Búzios 8 and B.P Salema.

Net operating income was \$173 million in the first half of 2024 compared to net operating loss of \$7 million in 1H 2023. The year-on-year increase reflected higher activity levels, the execution of projects awarded at improved margins and the income in its associate, OneSubsea, of \$18 million.

Renewables

Revenue for the first half of 2024 was \$459 million, a decrease of \$9 million or 2% compared to 1H 2023.

During the period work progressed on Dogger Bank A&B, Moray West and East Anglia THREE (UK); and Yunlin, Hai Long and Zhong Neng (Taiwan).

Net operating loss was \$16 million in 1H 2024, compared to net operating loss of \$9 million in the prior year period.

Corporate

Revenue, which was mainly driven by the Group's autonomous wholly-owned subsidiaries Xodus and 4Subsea, was \$53 million, compared to \$54 million in the prior year period. Net operating income was \$nil compared to net of \$2 million in 1H 2023

Vessel utilisation and fleet

Vessel utilisation for the first half of 2024 was 81% compared with 76% in 1H 2023.

Cash flow

Cash flow statement

Cash and cash equivalents were \$290 million at 30 June 2024, a decrease of \$461 million compared to 31 December 2023. The movement in cash and cash equivalents was mainly attributable to:

· net cash generated from operating activities of \$174 million, which included an unfavourable movement of \$168 million in net working capital

more than offset by:

• · net cash used in investing activities of \$219 million in relation to the final instal instal instal instal net the Group's investment in its associate, OneSubsea, \$138 million related to purchases of property, plant and intangible assets partly offset by \$59 million related to vessel disposal proceeds;
• · net cash used in financing activities of \$331 million, which included payments related to lease liabilities of \$104 million, scheduled repayments of borrowings of \$62 million and the first instalment of \$82 million related to dividends payable to the shareholders of the parent company; and
• an increase of \$81 million in restricted cash related to the purchase of a 250 tome crane class, heavy construction vessel, to be renamed Seven Merlin (formerly African Inspiration), which was completed in July 2024.

Free cash flow

During the half year ended 30 June 2024, the Group generated free cash flow of \$36 million which is defined as net cash generating activities of \$174 million (1H 2023: net cash used in operating activities of \$158 million) less purchases of property, plant and equipment and intangible assets of \$138 million (1H 2023: \$289 million).

Balance Sheet

Non-current assets

At 30 June 2024, non-current assets were \$5.3 billion). The movement of \$38 million was largely driven by an increase in right of-use assets of \$62 million and deivative financial instruments of \$28 million partly offset by a decrease in property, plant and equipment of \$69 million.

Non-current liabilities

At 30 June 2024, total non-current liabilities were \$1.1 billion). The decrease of \$40 million was largely driven by \$62 million reclassified to current borrowings in ine with repayment schedules partly of the see liabilities of \$31 million.

Net current assets

At 30 June 2024, current assets were \$2.6 billion (31 December 2023: \$2.9 billion) and current liabilities were \$2.6 billion (31 December 2023: \$2.6 billion), resulting in net current assets of \$64 million (31 December 2023: \$249 million). The decrease of \$185 million in the period was largely driven by:

• · decrease in cash and cash equivalents of \$461 million;
• · increase in lease liabilities of \$44 million

partly offset by:

• · increase in construction contract assets of \$127 million:
• · decrease in construction contract liabilities of \$127 million: and
• · increase in restricted cash of \$81 million.

Equity

At 30 June 2024, total equity was \$4.3 billion (31 December of \$107 million was largely driven by dividends declared of \$164 million, of which \$82 million was paid in the period, and share repurchases of \$34 million partly offeet by net income of \$92 million.

Borrowings, lease liabilities, net cash/(debt) and liquidity

Borrowings

At 30 June 2024, total borrowings were \$783 million). The decrease of \$62 million). The decrease of \$62 million was driven by scheduled repayments.

A summary of the borrowing facilities available at 30 June 2024 is as follows:

(in \$ millions)	Total facility	Drawn(a)	Undrawn Maturity Date
Multi-currency revolving credit and guarantee facility	700.0		700.0 June 2029₪
2021 UK Export Finance (UKEF 2021) facility	375.0	(375.0)	— February 2028
2023 UK Export Finance (UKEF 2023) facility	450.0	(292.4)	157.6 July 2030
South Korean Export Credit Agency (ECA) facility	122.9	(122.9)	— January 2027©
Total	1.647.9	(790.3)	857.6

Borrowings presented in the Condensed Concelled are shown net of capitalised fees of \$6.9 million, which are amortised over the pariod of the facility (a) (b) The Group's multi-ourner revolving creating will nature in June 2029. The facility size will reduce from \$700 million in June 2027 and to \$500 million in June 2027 an

June 2028 until maturity in June 2029. 90% of the facility is provided by an Export Creating of the ECA tranche is January of the ECA tranche is January of the commercial (c) tranche is January 2027.

Lease liabilities

At 30 June 2024, lease liabilities were \$533 million compared with 31 December 2023. The increase was mainly driven by vessel leases, including options, related to vessels on long-term charters.

Net debt

At 30 June 2024:

• net debt (excluding lease liabilities) was \$494 million compared to \$94 million at 31 December 2023; and

· net debt (including lease liabilities) was \$1,027 million, compared to \$552 million at 31 December 2023.

Gearing

At 30 June 2024, gross gearing (borrowings divided by total equity) was 18.4% (31 December 2023: 19.4%).

Liquidity

At 30 June 2024, the Group's liquidity, represented by cash and undrawn borrowing facilities was \$1.1 billion (31 December 2023: \$1.6 billion).

Shareholder distributions

Share repurchase programme

During the second quarter, 1.1 million shares were repurchased for a cost of \$19 million, in accordance with the Group's share repurchase programme authorised on 24 July 2019, extended on 19 April 2023. At 30 June 2024, the Group had cumulatively repurchased 12.1 million shares for a total cost of \$111 million under this programme. At 30 June 2024, the Group directly held 3.8 million shares (31 December 2023: 3.8 million) as treasury shares, representing 1.27% (31 December 2023: 1.26%) of the total number of issued shares.

Backlog

At 30 June 2024, backlog was \$12.5 billion at 31 March 2024. Order intake was \$4.0 billion representing a book-to-bill ratio of 2.3 times. Order intake included new awards of approximately \$3.8 billion, including Búzios 9 and four long-term dayrate contracts for pipelay support vessels (PLSVs) in Brazil, and the FPU scope related to Sakations of approximately \$200 million and unfavourable foreign exchange impact of approximately \$150 million were recognised during the quarter.

\$10.7 billion of the backlog at 30 June 2024 related to the Subsea and Corventional business unit (which included approximately \$1.5 billion related to long-term day-rate contracts for PLSVs in Brazil) and \$1.8 billion related to the Renewables business unit. \$3.3 billion of the backlog is expected to be executed in 2024, \$4.9 billion in 2026 and thereater. Backlog related to associates and joint ventures is excluded from these amounts.

Risks and uncertainties

The principal risks and uncertainties which adversely impact the Group's reputation, operations and/or financial performance and position are noted on pages 28 to 47 of Subsea 7 S.A.'s 2023 Annual Report. Management has considered these principal risks and uncertaintes and concluded that these have not changed significantly in the six-month period ended 30 June 2024.

Responsibility statement

We confirm that, to the best of our knowledge, the financial statements for the period 1 January 2024 to 30 June 2024 have been prepared in accordance with current applicable acounting standards and fair view of the assets, liabilitis, financial position and results of the Company and the Group taken as a whole. We also confirm that, to the best of our knowledge, this report together with the Subsea 7 S.A. 2023 Annual Report include a fair review of the development and performance of the business and the position of the Group, including a description of the principal risks and uncertainties facing the Group.

Kristian Siem

John Fvans

Chairman

Chief Executive Officer

Subsea 7 S.A.

Condensed Consolidated Income Statement

	Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
(in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
Revenue	1,738.9	1,517.8	3,134.3	2,764.1
Operating expenses	(1,542.0)	(1,448.0)	(2,856.1)	(2,642.6)
Gross profit	196.9	69.8	278.2	121.5
Administrative expenses	(68.3)	(69.4)	(139.2)	(135.2)
Share of net income/(loss) of associates and joint ventures	8.1	0.7	17.6	(0.5)
Net operating income/(loss)	136.7	1.1	156.6	(14.2)
Finance income	5.9	7.5	15.2	13.6
Other gains and losses	(8.6)	58.7	40.5	55.7
Finance costs	(29.9)	(15.9)	(53.2)	(29.8)
Income before taxes	104.1	51.4	159.1	25.3
Taxation	(41.2)	(37.2)	(67.1)	(40.3)
Net income/(loss)	62.9	14.2	92.0	(15.0)
Net income/(loss) attributable to:
Shareholders of the parent company	59.1	18.2	86.1	(1.7)
Non-controlling interests	3.8	(4.0)	5.9	(13.3)
	62.9	14.2	92.0	(15.0)
Earnings per share	S per share	ಕಾ per share	S per share	ಕಾ per share
Basic	0.20	0.06	0.29	(0.01)
Diluted(a)	0.20	0.06	0.29	(0.01)

(a) For the explanation and a reconciliation of divis 7 'Eamings per share' to the Condensed Consolidated Financial Statements.

Subsea 7 S.A. Condensed Consolidated Statement of Comprehensive Income

		Second Quarter		Half Year
	Q2 2024	02 2023	1H 2024	1H 2023
(in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
Net income/(loss)	62.9	14.2	92.0	(15.0)
Items that may be reclassified to the income statement in subsequent periods:
Net foreign currency translation gains/(losses)	12.2	12.0	(0.4)	17.5
Net commodity cash flow hedge (losses)/gains	(0.6)	(1.4)	1.2	(4.4)
Tax relating to components of other comprehensive income	(0.3)	(3.4)	0.6	(3.2)
Other comprehensive income	11.3	7.2	1.4	9.9
Total comprehensive income/(loss)	74.2	21.4	93.4	(5.1)
Total comprehensive income/(loss) attributable to:
Shareholders of the parent company	70.6	25.4	87.8	8.1
Non-controlling interests	3.6	(4.0)	5.6	(13.2)
	74.2	21.4	93.4	(5.1)

Subsea 7 S.A. Condensed Consolidated Balance Sheet

(in \$ millions)	30 June 2024 Unaudited	31 Dec 2023 Audited
Assets
Non-current assets
Goodwill	191.8	192.2
Intangible assets	66.8	58.5
Property, plant and equipment	4,000.6	4,070.0
Right-of-use assets	481.1	419.4
Interest in associates and joint ventures	359.4	342.0
Advances and receivables	62.0	67.0
Derivative financial instruments	57.9	29.5
Other financial assets	1.1	1.1
Deferred tax assets	48.3	50.9
	5,269.0	5,230.6
Current assets
Inventories	64.1	60.1
Trade and other receivables	881.2	921.8
Current tax assets	127.0	100.5
Derivative financial instruments	69.6	31.4
Assets classified as held for sale		57.0
Construction contracts - assets	818.9	691.8
Other accrued income and prepaid expenses	296.3	244.0
Restricted cash	87.9	7.4
Cash and cash equivalents	289.6	750.9
	2,634.6	2,864.9
Total assets	7,903.6	8,095.5
Equity
Issued share capital	604.4	608.6
I reasury shares	(47.7)	(31.1)
Paid in surplus	2,569.0	2,579.7
Translation reserve	(613.1)	(607 .2)
Other reserves	(6.1)	(1.3)
Retained earnings	1,708.0	1,780.3
Equity attributable to shareholders of the parent company	4,214.5	4,323.0
Non-controlling interests	35.6	34.1
Total equity	4,250.1	4,357.1
Liabilities
Non-current liabilities
Borrowings	659.9	721.4
Lease liabilities	321.1	290.5
Retirement benefit obligations	8.8	8.4
Deferred tax liabilities	41.5	43.2
Provisions	32.9	24.6
Contingent liabilities recognised	0.5	0.5
Derivative financial instruments	16.7	32.6
Other non-current liabilities	1.1	1.1
	1,082.5	1,122.3
Current liabilities
Trade and other liabilities	1,716.6	1,683.9
Derivative financial instruments	18.4	35.3
Tax liabilities	117.4	76.4
Borrowings	123.5	123.5
Lease liabilities	212.2	167.8
Provisions	69.0	100.5
Construction contracts - liabilities	297.8	424.8
Deferred revenue	16.1	3.9
	2,571.0	2,616.1
Total liabilities	3,653.5	3,738.4
Total equity and liabilities	7,903.6	8,095.5

Subsea 7 S.A. Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2024

(in \$ millions)	lssued share capital	Treasury shares	surplus	Paid in Translation reserve	Other reserves	Retained earnings	Total	Non- controlling interests	Total equity
Balance at 1 January 2024	608.6	(31.1)	2,579.7	(607.2)	(7.3)	1,780.3	4,323.0	34.1	4,357.1
Comprehensive income
Net income						86.1	86.1	5.9	92.0
Net foreign currency translation losses				(0.1)			(0.1)	(0.3)	(0.4)
Commodity cash flow hedges					1.2		1.2		1.2
Tax relating to components of other comprehensive income				0.6			0.6		0.6
Total comprehensive income				0.5	1.2	86.1	87.8	5.6	93.4
Transactions with owners
Dividends declared						(163.7)	(163.7)		(163.7)
Shares repurchased		(34.1)				-	(34.1)		(34.1)
Share cancellation	(4.2)	1 / .5	(13.3)
Share-based payments			2.6			-	2.6		2.6
Reclassification adjustment relating to ownership interests				(6.4)		5.3	(1.1)	(4.1)	(5.2)
Total transactions with owners	(4.2)	(16.6)	(10.7)	(6.4)		(158.4)	(196.3)	(4.1)	(200.4)
Balance at 30 June 2024	604.4	(47.7)	2,569.0	(613.1)	(6.1)	1,708.0	4,214.5	35.6	4,250.1

Subsea 7 S.A.

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2023

(in \$ millions)	ssued share capital	Treasury shares	surplus	Paid in Translation reserve	Other reserves	Retained earnings	Total	Non- controlling interests	Total equity
Balance at 1 January 2023	600.0	(75.0)	2,503.2	(628.0)	(18.4)	1,739.8	4,121.6	329.1	4,450.7
Comprehensive income/(loss)
Net loss						(1.7)	(1.7)	(13.3)	(15.0)
Net foreign currency translation gains				17.4			17.4	0.1	17.5
Commodity cash flow hedges					(4.4)		(4.4)		(4.4)
Tax relating to components of other
comprehensive income				(3.2)			(3.2)		(3.2)
Total comprehensive income/(loss)				14.2	(4.4)	(1.7)	8.1	(13.2)	(5.1)
Transactions with owners
Dividends declared						(112.1)	(112.1)		(112.1)
Share issuance	20.0		107.0			-	127.0	(127.0)
Transaction costs			(0.5)				(0.5)		(0.5)
Share cancellation	(11.4)	41.6	(30.2)
Reclassification adjustment relating to ownership interests						150.2	150.2	(150.2)
Acquisition of non-controlling interest								(12.6)	(12.6)
Share-based payments			1.9				1.9		1.9
Shares reallocated related to share-based payments		0.1				(0.1)
Total transactions with owners	8.6	41.7	78.2			38.0	166.5	(289.8)	(123.3)
Balance at 30 June 2023	608.6	(33.3)	2,581.4	(613.8)	(22.8)	1,776.1	4,296.2	26.1	4,322.3

Subsea 7 S.A. Condensed Consolidated Cash Flow Statement

	Half Year
(in \$ millions)	30 June 2024 Unaudited	30 June 2023 Unaudited
Operating activities
Income before taxes	159.1	25.3
Adjustments for non-cash items:
Depreciation and amortisation charges	297.5	259.4
Impairment of property, plant and equipment		23.2
Increase in foreign exchange embedded derivatives	(98.6)	(30.1)
Adjustments for investing and financing items:
Share of net (income)/loss of associates and joint ventures	(17.6)	0.5
Net (gain)/loss on disposal of property, plant and equipment	(0.2)	1.0
Net (gain)/loss on maturity of lease liabilities	(0.1)	0.2
Release of contingent consideration post measurement period		(0.5)
Remeasurement loss on business combination	0.9
Finance income	(15.2)	(13.6)
Finance costs	53.2	29.8
Adjustments for equity items:
Share-based payments	2.6	1.9
	381.6	297.1
Changes in working capital:
Increase in inventories	(4.6)	(1.1)
Decrease/(increase) in trade and other receivables	9.9	(185.3)
Increase in construction contract - assets	(213.1)	(258.4)
Increase in other working capital assets	(65.1)	(34.2)
Increase in trade and other liabilities	167.4	172.5
Decrease in construction contract - liabilities	(54.6)	(98.9)
(Decrease)/increase in other working capital liabilities	(7.9)	15.7
Net movement in working capital	(168.0)	(389.1)
Income taxes paid	(39.5)	(65.1)
Net cash generated from/(used in) operating activities	174.1	(15/. ()
Cash flows used in investing activities
Proceeds from disposal of property, plant and equipment	58.7	0.3
Purchases of property, plant and equipment and intangible assets	(138.1)	(289.0)
Investments in associates and joint ventures	(153.3)
Interest received	14.2	13.6
Net cash used in investing activities	(218.5)	(275.1)
Cash flows (used in)/generated from financing activities
Interest paid	(41.8)	(18.7)
Repayment of borrowings	(62.4)	(37.3)
Proceeds from borrowings		442.5
Cost of share repurchases	(34.1)
Acquisition of shares from non-controlling interest		(12.6)
Payments related to lease liabilities - principal	(86.7)	(64.6)
Payments related to lease liabilities - interest	(17.5)	(13.9)
Payments to non-controlling interests	(6.4)
Dividends paid to shareholders of the parent company	(82.0)	(112.1)
Net cash (used in)/generated from financing activities	(330.9)	183.3
Net decrease in cash and cash equivalents	(375.3)	(249.5)
Cash and cash equivalents at beginning of period	750.9	645.6
Increase in restricted cash	(80.5)	(3.0)
Effect of foreign exchange rate movements on cash and cash equivalents	(5.5)	4.5
Cash and cash equivalents at end of period	289.6	397.6

Notes to the Condensed Consolidated Financial Statements

• •
• •
• •
• •
• •

6. Segment information

For management and reporting purposes, the Group is crganised into three business units; Subsea and Conventional, Renewables and Corporate. These business units represent the Group's operating segments and are defined as follows:

Subsea and Conventional

The Subsea and Conventional business unit includes:

• Subsea Umbilicals, Risers and Flowlines related to the engineering, procurement, installation and commissioning of highly complex subsea oil and gas systems in deep waters, including the long-term contracts for PLSVs in Brazil;
• · Conventional services including the fabrication, extension and refurbishment of fixed and floating platforms and associated pipelines in shallow water environments;
• · Activities associated with the provision, repair and maintenance (RM) services, integrity management of subsea infrastructure and remote intervention support;
• · Activities associated with heavy lifting operations and decommissioning of redundant offshore structures;
• · Activities associated with carbon capture, utilisation and storage (CCUS); and
• · Share of net income of the Group's associate, OneSubsea.

This segment includes costs, including depreciation and impairment charges, related to owned and long-term leased vessels, equipment and offshore personnel deployed in Subsea and Conventional activities.

Renewables

The Renewables business unit comprises activities related to the delivery of fixed offshore wind farm projects and floating wind activities. Activities include the procurement and installation of offshore wind turbine foundations and inner-array lifting operations and heavy transportation services for renewables structures. This segment includes costs, including depreciation, amortisation and impairment charges, related to owned and long-term leased vessels, equipment and offshore personnel deployed in Renewables activities.

Corporate

The Corporate business unit includes group-wide activities, and associated costs, including captive insurance activities, operational support, corporate services and costs associated with discrete events such as restructuring. The Corporate business unit also includes the results of the Group's autonomous subsidiaries, Xodus and its activities in emerging energies such as hydrogen. A significant portion of the Corporate business unit's costs are allocated to the Subsea and Conventional and Renewables business units based on a percentage of external revenue.

Summarised financial information relating to each operating segment is as follows:

For the three months ended 30 June 2024

(in \$ millions) Unaudited	Subsea and Conventional	Renewables	Corporate	Total
Revenue
Fixed-price contracts	1,274.9	267.2	3.8	1,545.9
Day-rate contracts	158.6	13.4	21.0	193.0
	1,433.5	280.6	24.8	1,738.9
Net operating income	126.3	7.9	2.5	136.7
Finance income				5.9
Other gains and losses				(8.6)
Finance costs				(29.9)
Income before taxes				104.1
Adjusted EBITDA(a)	246.7	38.1	6.8	291.6
Adjusted EBITDA margin(a)	17.2%	13.6%	27.4%	16.8%

For the three months ended 30 June 2023

(in \$ millions) Unaudited	Subsea and Conventional	Renewables	Corporate	Total
Revenue
Fixed-price contracts	975.5	308.4	4.0	1,287.9
Day-rate contracts	205.0	0.6	24.3	229.9
	1.180.5	309.0	28.3	1,517.8
Net operating (loss)/income	(10.1)	9.0	2.2	1.1
Finance income				7.5
Other gains and losses				58.7
Finance costs				(15.9)
Income before taxes				51.4
Adjusted EBITDA(a)	121.2	34.2	6.3	161.7
Adjusted EBITDA margin(a)	10.3%	11.1%	22.3%	10.7%

Notes to the Condensed Consolidated Financial Statements continued

6. Segment information continued For the six months ended 30 June 2024

Subsea and Conventional	Renewables	Corporate	Total
2,316.1	438.7	7.5	2,762.3
306.3	20.6	45.1	372.0
2,622.4	459.3	52.6	3,134.3
173.4	(16.4)	(0.4)	156.6
			15.2
			40.5
			(53.2)
			159.1
406.3	39.3	8.2	453.8
15.5%	8.6%	15.6%	14.5%

For the six months ended 30 June 2023

	Subsea and Conventional	Renewables
(in \$ millions) Unaudited			Corporate	Total
Revenue
Fixed-price projects	1,879.8	467.8	8.9	2,356.5
Day-rate projects	362.0	0.6	45.0	407.6
	2,241.8	468.4	53.9	2,764.1
Net operating (loss)/income	(7.4)	(9.0)	2.2	(14.2)
Finance income				13.6
Other gains and losses				55.7
Finance costs				(29.8)
Income before taxes				25.3
Adjusted EBITDA(a)	218.0	40.3	10.1	268.4
Adjusted EBITDA margin(a)	9.7%	8.6%	18.7%	9.7%

(a) Adjusted EBTDA and Adjusted EBTDA nargin are noncliations of Adjusted EBTDA and Adjusted EBTDA margin refer to the 'Atterative Performance Measures' section of the Condensed Consolidated Financial Statements.

7. Earnings per share

Basic and diluted earnings per share

Basic earnings per share is calculated by dividing the net income attributable to shareholders of the weighted average number of common shares in issue during the period, excluding common shares purchased by the Group and held as treasury shares.

Diluted earnings per share is calculated by adjusting the weighted average number of common shares onversion of all potentially dilutive common share data used in the calculation of basic and diluted earnings per share were as follows:

Second Quarter			Half Year
For the period (in \$ millions)	Q2 2024 Unaudited	Q2 2023 Unaudited	1H 2024 Unaudited	1H 2023 Unaudited
Net income/(loss) attributable to shareholders of the parent company	59.1	18.2	86.1	1.7)
Earnings/(loss) used in the calculation of diluted earnings per
share	59.1	18.2	86.1	1.7)

	Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (number of shares)	Unaudited	Unaudited	Unaudited	Unaudited
Weighted average number of common shares used in the calculation
of basic earnings/(loss) per share	298,938,990	299,983,169	299,559,437	295,948,494
Performance shares	1,025,320	1,063,897	979.979
Weighted average number of common shares used in the calculation of diluted earnings/(loss) per share		299,964,310 301,047,066 300,539,416 295,948,494

		Second Quarter		Half Year
	Q2 2024	02 2023	1H 2024	1H 2023
For the period (in \$ per share)	Unaudited	Unaudited	Unaudited	Unaudited
Basic earnings/(loss) per share	0.20	0.06	0.29	(0.01)
Diluted earnings/(loss) per share	0.20	0.06	0.29	(0.01)

The following shares that could potentially dilute earnings per share were excludion of diluted earnings per share clue to being anti-dilutive:

	Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (number of shares)	Unaudited	Unaudited	Unaudited	Unaudited
Performance shares	836.248	717.059	881.588	1.785.252

8. Goodwill

The movement in goodwill during the period was as follows:

(in \$ millions)	1H 2024 Unaudited	1H 2023 Unaudited
At year beginning	192.2	191.3
Exchange differences	(0.4)	0.6
At period end	191.8	191.9

9. Treasury shares

At 30 June 2024, the Company directly held 3,839,804 shares (Q1 2024: 4,811,370) as treasury shares, representing 1.27% (Q1 2024: 1.58%) of the total number of issued shares.

The movement in treasury shares during the period was as follows:

	30 Jun 2024 Number of shares	30 Jun 2024 in \$ millions	30 Jun 2023 Number of shares	30 Jun 2023 in \$ millions
	Unaudited	Unaudited	Unaudited	Unaudited
At year beginning	3.839.804	31.1	9,794,267	75.0
Shares repurchased	2.106.000	34.1
Shares cancelled	(2,106,000)	(17.5)	(5,681,967)	(41.6)
Shares reallocated relating to share-based payments	I	I	(9,913)	(0.1)
At period end	3.839.804	47.7	4.102.387	33.3

Notes to the Condensed Consolidated Financial Statements continued

9. Treasury shares continued

On 28 June 2024, in accordance with the authorisation given to the Extraordinary General Meeting of the shareholders of the Company held on 18 April 2023 EGM), the Board resolved to reduce share capital by an amount of \$4,212,000 through the cancellation of 2,106,000 treasury shares. Following the Company's issued share capital was \$604,376,544 represented by 302,188,272 common shares with a par value of \$2.00.

10. Share repurchase programme

During the second quarter, 1,134,434 shares were repurchased for a cost of \$19.4 million, under the Group's \$200 million share repurchase programme authorised by the Board of Directors on 24 July 2019, the Board of Directors authorised a 24-month extension to this programme which will now expire on 18 April 2025.

At 30 June 2024, the Group had cumulatively repurchased 12, 106, 212 shares for a total cost of \$1 10.9 million under this programme.

11. Borrowings

During the second quarter, the Group requested a one-year extension to its multi-currency revolving credit and guarantee facility which will now mature in June 2029. The facility will reduce from \$700 million in June 2027 and will reduce further to \$500 million in June 2028 until maturity in June 2029. The facility was unutilised at 30 June 2024.

12. Commitments and contingent liabilities

Commitments

At 30 June 2024, the Group had contractual commitments totalling \$183.8 million (31 December 2023: \$204.4 million) including commitments related to the purchase of a be renamed Seven Merlin (formerly African Inspiration), which was completed in July 2024.

Contingent liabilities not recognised in the Consolidated Balance Sheet

The Group is subject to tax audits and receives tax assessments in a number of jurisdictions where it has, or has had, operations. The estimation of the ultimate outcome of these audits and disputed tax assessments is complex and subjective. The likely outcome of the audits and associated cash outflow, if any, may be impacted by technical uncertainty and the availability of supporting documentation.

Between 2009 and 2023, the Group's Brazilian businesses were audited and formally assessed for ICMS and federal taxes (including import duty) by the Brazilan state and federal tax authorities. The amount assessed, including peralies and interest, at 30 June 2024 amounted to BRL 981.4 million, equivalent to \$182.0 million, equivalent to \$196.6 million, equivalent to \$196.6 million). The Group has challenged these assessments. A contingent liability has been disclosed for the tisclosure criteria have been met however management believes that the likelihood of payment is not probable.

During 2018, 2019 and 2020, the Group's Brazilian business received several labour claims. The amount assessed at 30 June 2024 amounted to BRL 170.3 million , equivalent to \$31.6 million , equivalent to \$39.4 million, equivalent to \$39.4 million). The Group has challenged these claims. A contingent liability has been disclosed for BRL 119.2 million as the disclosure criteria have been met (31 December 2023: BRL 137.2 million), however, management believes that the likelihood of payment is not probable. At 30 June 2024, a provision of BRL 51.1 million was recognised within the Consolidated Balance Sheet (31 December 2023: BRL 54.6 million), as the IAS 37 Provisions, contingent liabilities and contingent assets' recognition criteria were met.

Contingent liabilities recognised in the Consolidated Balance Sheet

As part of the accounting for the business combination of Pioneer Linited, IFRS 3 required the Group to recognise a provision in respect of contingent conside to a third party following the acquisition of intangible assets in 2009. The value of the provision recognised within the Consolidated Balance Sheet at 30 June 2024 was \$0.5 million (31 December 2023: \$0.5 million). While complying with the requirements of IFRS 3, management continues to believe that payment relating recognised contingent liabilities is not probable.

13. Fair value and financial instruments

The carying values of the Group's financial liabilities recorded at amortised cost in the Condensed Consolicated Financial Statements approximate their fair values.

Borrowings

Fair value is deternined by matching the maturity profile of amcunts utilised under each facility to market interest rates available to the Group for borrowings with similar security, and repayment profiles. At 30 June 2024, interest charged under each facility is representative of market rates currently available to the Group and therefore the carrying amount approximates fair value.

Fair value measurements

Fair value hierarchy

The Group classifies fair value measurements using a fair value hierarchy that reflects the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 Inputs other than quoted prices included within Level 1 that are observable for the directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 Inputs for the asset or liability that are not based on observable inarket data (unobservable inputs).

Recurring and non-recurring fair value measurements

Recurring fair value measurements are that IFRS require at the end of each reporting period and non-recurring fair value measurements are those that IFRS require or permit in particular circumstances.

Assets and liabilities which are measured at fair value in the Consolidated Balance Sheet and their level in the fair value hierarchy were as follows:

At (in \$ millions)	2024 30 Jun Level 1	2024 30 Jun Level 2	2024 30 Jun Level 3	2023 31 Dec Level 1	2023 31 Dec Level 2	2023 31 Dec Level 3
Recurring fair value measurements
Financial assets:
Financial assets measured at fair value through profit and loss - embedded derivatives		126.6			58.5
Financial assets measured at fair value through profit and loss - forward foreign exchange contracts		0.4			0.8
Financial assets measured at fair value through other comprehensive income - commodity derivatives		0.5			1.6
Financial liabilities:
Financial liabilities measured at fair value through profit and loss - embedded derivatives		(33.7)			(64.2)
Financial liabilities measured at fair value through profit and loss - forward foreign exchange contracts		(0.2)			(1.2)
Financial liabilities measured at fair value through profit and loss - commodity derivatives		(0.1)			(0.1)
Financial liabilities measured at fair value through other comprehensive income -
commodity derivatives Contingent consideration		(1.1)	(1.2)		(2.4)	(1.2)

During the period ended 30 June 2024 there were no transfers between levels of the fair value hierarchy. The Group accounts for transfers between levels of the fair value hierarchy from the date of the event or change in circumstance that caused the transfer.

Notes to the Condensed Consolidated Financial Statements continued

• •
• •

•

•

APM	Description	Closest equivalent IFRS measure	Adjustments to reconcile to primary financial statements	Rationale for utilising APM
Income Statement APMs
Adjusted EBITDA and Adjusted FBIIDA margin	Adjusted earnings before interest, taxation, depreciation and amortisation represents net income/(loss) before additional specific items that are considered to impact the comparison of the Group's performance either period-on-period or with other businesses. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue, expressed as a percentage.	Net income/(loss)	Net income/(loss) adjusted to exclude depreciation and amortisation costs, including amortisation of prepaid mobilisation expenses and amortisation of intangible assets, impairment charges or impairment reversals, gains and losses on disposal of property, plant and equipment and maturity of lease liabilities, finance income, remeasurement gains and losses on business combinations, other gains and losses (including foreign exchange gains and losses, gains on disposal of subsidiaries, gains and losses resulting from remeasurement of contingent consideration, gains on distributions and bargain purchase gains on business combinations), finance costs and taxation.	Adjusted EBITDA and Adjusted EBITDA margin are important indicators of the operational strength and the performance of the Group and provide a meaningful comparative for its business units. The presentation of Adjusted EBITDA is also useful as it is similar to measures used by companies within Subsea7's peer group. Adjusted EBITDA margin may also be a useful ratio to compare performance to the Group's competitors and is widely used by shareholders and analysts. Notwithstanding the foregoing, Adjusted EBITDA and Adjusted EBITDA margin as presented by the Group may not be comparable to similarly titled measures reported by other companies.
Effective tax rate (ETR)	The effective tax rate is expressed as a percentage, calculated as the taxation expense/(credit) divided by the income/(loss) before taxes.	Taxation	n/a	Provides a useful and relevant measure of the effectiveness of the Group's tax strategy and tax planning.
	Balance Sheet APM
Net cash/(debt) excluding lease liabilities and net cash/(debt) including lease liabilities	Net cash/(debt) is defined as cash and cash equivalents less borrowings. The Group utilises both net cash/(debt) excluding lease liabilities and net cash/(debt) including lease liabilities as financial position measures.	No direct equivalent	Calculated as cash and cash equivalent less borrowings (current and non-current). The measure may exclude lease liabilities (current and non- current) or include them.	Net cash/(debt) provides a meaningful and reliable basis to evaluate financial strength and liquidity of the Group.

Alternative Perfomance Measures (APMs) continued

Cash flow APMs
Cash conversion	Cash conversion is defined as net cash generated from/(used in) operating activities, add back income taxes paid, divided by Adjusted EBITDA, expressed as a percentage.	No direct equivalent	Calculated as net cash generated from/(used in) operating activities in the Group's Consolidated Cash Flow Statement, add back income taxes paid and divided by Adjusted EBITDA.	Cash conversion is a financial management tool to determine the efficiency of the Group's ability to generate cash from its operating activities.
Free cash flow	Free cash flow is defined as net cash generated from/(used in) operating activities less purchases of property, plant and equipment and intangible assets.	No direct equivalent	Calculated as net cash generated trom/(used in) operating activities trom the Group's Consolidated Cash Flow Statement less purchases of property, plant and equipment and intangible assets.	Free cash flow is a relevant metric for shareholders and analysts when determining cash available to the Group to invest or potentially distribute.
Other APMs
Backlog	Backlog represents expected future revenue from projects. Awards to associates and joint ventures are excluded from backlog figures, unless otherwise stated. Despite being a non- IFRS term, the Group recognises backlog in accordance with the requirements of IFRS 15, 'Revenue from Contracts with Customers', which represents revenue expected to be recognised in the future related to performance obligations which are unsatisfied, or partially unsatisfied, at the reporting date.	Transaction price allocated to the remaining performance obligations	n/a	Utilising the term backlog is in accordance with expected industry- wide terminology. It is similarly used by companies within Subsea/'s peer group and is a helpful term for those evaluating companies within Subsea7's industry. Backlog may also be useful to compare performance with competitors and is widely used by shareholders and analysts. Notwithstanding this, backlog presented by the Group may not be comparable to similarly titled measures reported by other companies.
Order intake	Order intake represents new project awards plus escalations on existing projects.	No direct equivalent	n/a	Order intake is in accordance with expected industry-wide terminology and primarily enables the book-to-bill APM to be calculated.
Book-to-bill ratio	Book-to-bill ratio represents total order intake divided by revenue for the reporting period.	No direct equivalent	n/a	The book-to-bill metric is widely used in the energy sector by shareholders and analysts and is a helpful term for those evaluating companies within Subsea/'s industry. Notwithstanding this, the book-to-bill ratio presented by the Group may not be comparable to similarly titled measures reported by other companies.

Alternative Performance Measures - calculations

1a.

	Second Quarter		Half Year
For the period (in \$ millions)	Q2 2024 Unaudited	02 2023 Unaudited	1H 2024 Unaudited	1H 2023 Unaudited
Net operating income/(loss)	136.7	1.1	156.6	(14.2)
Depreciation, amortisation and mobilisation	155.5	137.4	297.5	259.4
Impairment of property, plant and equipment		23.2		23.2
Net gain on disposal of property, plant and equipment and maturity of lease liabilities	(0.6)		(0.3)
Adjusted EBITDA	291.6	161.7	453.8	268.4
Revenue	1,738.9	1,517.8	3,134.3	2,764.1
Adjusted EBITDA marqin	16.8%	10.7%	14.5%	9.7%

1b.

	Second Quarter		Half Year
For the period (in \$ millions)	Q2 2024 Unaudited	Q2 2023 Unaudited	1H 2024 Unaudited	1H 2023 Unaudited
Net income/(loss)	62.9	14.2	92.0	(15.0)
Depreciation, amortisation and mobilisation	155.5	137.4	297.5	259.4
Impairment of property, plant and equipment		23.2		23.2
Net gain on disposal of property, plant and equipment and maturity of lease liabilities	(0.6)		(0.3)
Finance income	(5.9)	(7.5)	(15.2)	(13.6)
Other gains and losses	8.6	(58.7)	(40.5)	(55.7)
Finance costs	29.9	15.9	53.2	29.8
Taxation	41.2	37.2	67.1	40.3
Adjusted EBITDA	291.6	161.7	453.8	268.4
Revenue	1,738.9	1,517.8	3,134.3	2,764.1
Adjusted EBITDA margin	16.8%	10.7%	14.5%	9.7%

2. Effective tax rate

		Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
Taxation	(41.2)	(37.2)	(67.1)	(40.3)
Income before taxation	104.1	51.4	159.1	25.3
Effective tax rate (percentage)	39.6%	72.4%	42.2%	159.3%

3.

At (in \$ millions)	30 June 2024 Unaudited	30 June 2023 Unaudited
Cash and cash equivalents	289.6	397.6
Total borrowings	(783.4)	(760.4)
Net debt excluding lease liabilities	(493.8)	(362.8)
Total lease liabilities	(533.3)	(442.4)
Net debt including lease liabilities	(1,027.1)	(805.2)

4. Cash conversion

	Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
Net cash generated from/(used in) operating activities	187.3	(31.0)	174.1	(157.7)
Income taxes paid	26.4	41.4	39.5	65.1
	213.7	10.4	213.6	(92.6)
Adjusted EBITDA	291.6	161.7	453.8	268.4
Cash conversion	0.7x	0.1x	0.5x	(0.3)x

5. Free cash flow

	Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
Net cash generated from/(used in) operating activities	187.3	(31.0)	174.1	(157.7)
Purchases of property, plant and equipment and intangible assets	(55.2)	(196.5)	(138.1)	(289.0)
Free cash flow	132.1	(227.5)	36.0	(446.7)

6. Backlog

IFRS 15 'Revenue from Contracts with Customers' disclosure in relation to remaining performance obligations is contained in the 'Construction contracts' note, in the Group's 2023 Annual Report. Unless otherwise stated, backlog and remaining performance obligations, as required by IFRS 15, will be the same number. Backlog by year of execution is as follows:

	30 June 2024	30 June 2023
At (in \$ millions)	Unaudited	Unaudited
Total backlog	12,543.8	10,362.5
Expected year of execution:
2023	-	3,012.7
2024	3,339.3	4,306.2
2025	4,907.3	2,492.0
2026	2,319.7	551.6
2027 and thereafter	1,977.5

7. Order intake

		Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
New project awards	3.806.6	1.508.0	4.642.6	2.736.7
Escalations on existing projects	196.2	684.0	685.6	1.375.8
Order intake	4.002.8	2,192.0	5,328.2	4.112.5

8. Book-to-bill ratio

		Second Quarter		Half Year
	Q2 2024	Q2 2023	1H 2024	1H 2023
For the period (in \$ millions)	Unaudited	Unaudited	Unaudited	Unaudited
Order intake	4.002.8	2.192.0	5,328.2	4.112.5
Revenue	1,738.9	1.517.8	3,134.3	2,764.1
Book-to-bill ratio	2.3x	1.4x	1.7x	.5X