Subsea 7

Earnings Release • Apr 30, 2025

Subsea 7 S.A. Announces First Quarter 2025 Results

Subsea 7 S.A. Announces First Quarter 2025 Results

Luxembourg - 30 April 2025 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN:

LU0075646355, the Company) announced today results of Subsea7 Group (the Group,

Subsea7) for the first quarter which ended 31 March 2025.

Highlights

* First quarter Adjusted EBITDA of $236 million, up 46% on the prior year,

equating to a margin of 15%

* Strong operational and financial performance from both Subsea and

Conventional and Renewables, with Adjusted EBITDA margins of 18% and 10%

respectively

* Guidance for full year 2025 reaffirmed

* A high-quality backlog of $10.8 billion gives over 80% visibility on 2025

revenue guidance and supports the outlook for Adjusted EBITDA margin

expansion to 18 to 20%

* Balance sheet remains strong with net debt including lease liabilities of

$632 million, equating to 0.5 times the Adjusted EBITDA generated in the

last four quarters

Three Months Ended

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For the period (in $ millions, except Adjusted 31 Mar 2025 31 Mar 2024

EBITDA margin and per share data)     Unaudited Unaudited

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Revenue     1,529 1,395

Adjusted EBITDA((a))     236 162

Adjusted EBITDA margin((a))     15% 12%

Net operating income     77 20

Net income     17 29

Earnings per share - in $ per share

Basic     0.06 0.09

Diluted((b))     0.06 0.09

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31 Mar 2025  31 Dec 2024

At (in $ millions)     Unaudited Unaudited

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Backlog((a))     10,819 11,175

Book-to-bill ratio((a))     0.6x 1.2x

Cash and cash equivalents     459 575

Borrowings     (691) (722)

Net debt excluding lease liabilities((a))     (232) (147)

Net debt including lease liabilities((a))     (632) (602)

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(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA

margin, Backlog, Book-to-bill ratio and Net 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 had a good start to 2025 with solid financial performance underpinned by

strong project execution, which offset a heavy vessel maintenance schedule. The

Group reported 10% revenue growth year-on-year and Adjusted EBITDA margin

expansion of 380bps, putting us on track to meet full year expectations. With

backlog of $10.8 billion including $4.8 billion for execution in the remainder

of the year, we have a high level of visibility for 2025.

Although uncertainty in the global economy has increased in recent months, the

outlook for long-term energy demand growth remains positive. Subsea7's strategy

to focus on long-duration developments in cost-advantaged sectors of the

deepwater adds resilience to our subsea business, and our exposure to strategic

gas developments, such as the Sakarya field in Türkiye, and new oil provinces

such as Namibia, gives us further confidence. In offshore wind, we are positive

about the opportunities presented by this year's CFD allocation round in the UK,

where it is expected that the volume of projects sanctioned will nearly double

year-on-year. We are well-positioned in this market, with a strong track record

and collaborative client relationships.

Overall, while volatility in commodity prices and global tariffs create

headwinds for investor sentiment in the sector, the fundamentals of our industry

remain robust and our focused strategy leaves the Group well-positioned to

deliver strong growth in profitability and cash generation in 2025.

First quarter project review

During the first quarter, we undertook significant planned vessel maintenance.

This maintenance ensures that our vessels are optimised ahead of a busy year.

Nevertheless we made good progress on our subsea, conventional and renewables

projects. In Africa, Seven Arctic was active installing flexibles and umbilicals

at Agogo in Angola, where it was joined by Seven Borealis, after it completed

Zuluf in Saudi Arabia. Seven Pacific was busy at the Raven field in Egypt before

mobilising for early flexlay work at Sakarya in Türkiye. In the Americas, Seven

Oceans undertook work on a range of projects including Sunspear, Salamanca and

Shenandoah in the US, while Seven Seas worked mainly on Cypre in Trinidad and

Tobago and Seven Vega continued rigid pipelay at Mero 3 in Brazil.

In Renewables, Seaway Strashnov and Seaway Alfa Lift underwent maintenance

before preparing to restart work at Dogger Bank in the UK. We also took

advantage of the winter off-season to install a monopile gripper on Seaway

Ventus before starting the East Anglia THREE project in the UK, where we will

install 95 monopiles. In Taiwan we were active on Hai Long.

First quarter financial review

Revenue was $1.5 billion an increase of 10% compared to the prior year period.

Adjusted EBITDA of $236 million equated to a margin of 15%, up from 12% in Q1

2024. A strong operational performance in Subsea and Conventional, and high

activity in Taiwan in Renewables helped offset seasonal weakness and vessel

maintenance.

Depreciation and amortisation charges were $160 million, resulting in net

operating income of $77 million compared to $20 million in the prior year

period. Net finance costs of $17 million and a net foreign exchange loss of $28

million, resulted in net income for the quarter of $17 million compared to $29

million in the prior year period.

Net cash generated from operating activities in the first quarter was $51

million, including a $163 million adverse movement in net working capital. Net

cash used in investing activities was $68 million mainly related to purchases of

property, plant and equipment. Net cash used in financing activities was $106

million including lease payments of $59 million. Overall, cash and cash

equivalents decreased by $116 million in the quarter to $459 million at 31 March

2025 and net debt was $632 million, including lease liabilities of $400 million.

First quarter order intake was $0.9 billion comprising new awards of $0.4

billion and escalations of $0.5 billion resulting in a book-to-bill ratio of

0.6 times. Backlog at the end of March was $10.8 billion, of which $4.8 billion

is expected to be executed in 2025, $3.5 billion in 2026 and $2.5 billion in

2027 and beyond.

Guidance

Our financial guidance for 2025 is unchanged. We continue to anticipate that

revenue in 2025 will be between $6.8 billion and $7.2 billion, while the

Adjusted EBITDA margin is expected to be within a range from 18% to 20%. Based

on our firm backlog of contracts and the prospects in our tendering pipeline, we

expect margins to exceed 20% in 2026.

Conference Call Information

Date: 30 April 2025

Time: 12:00 UK Time, 13:00 CET

Access the webcast at subsea7.com (https://edge.media-server.com/mmc/p/sdhad4b2)

or https://edge.media-server.com/mmc/p/3v6564ut/

Register for the conference call https://register-conf.media-

server.com/register/BI419d51592b6f40e8823c7efe91ab9dab

For further information, please contact:

Katherine Tonks

Head of Investor Relations

Tel: +44-20-8210-5568

Email: ir@subsea7.com

Special Note Regarding Forward-Looking Statements

This document may contain 'forward-looking statements' (within the meaning of

the safe harbour provisions of the U.S. Private Securities Litigation Reform Act

of 1995). These statements relate to our current expectations, beliefs,

intentions, 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 expressed or implied in these statements.

Forward-looking statements may be identified by the use of words such as

'anticipate', 'believe', 'estimate', 'expect', 'future', 'goal', 'intend',

'likely', 'may', 'plan', 'project', 'seek', 'should', 'strategy', 'will', and

similar expressions. The principal risks which could affect future operations of

the Group are described in the 'Risk Management' section of the Group's Annual

Report. Factors that may cause actual and future results and trends to differ

materially from our forward-looking statements include (but are not limited to):

(i) our ability to deliver fixed-price projects in accordance with client

expectations and within the parameters of our bids, and to avoid cost overruns;

(ii) our ability to collect receivables, negotiate variation orders and collect

the related revenue; (iii) our ability to recover costs on significant projects;

(iv) capital expenditure by oil and gas companies, which is affected by

fluctuations in the price of, and demand for, crude oil and natural gas; (v)

unanticipated delays or cancellation of projects included in our backlog; (vi)

competition and price fluctuations in the markets and businesses in which we

operate; (vii) the loss of, or deterioration in our relationship with, any

significant clients; (viii) the outcome of legal proceedings or governmental

inquiries; (ix) uncertainties inherent in operating internationally, including

economic, political and social instability, boycotts or embargoes, labour

unrest, changes in foreign governmental regulations, corruption and currency

fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster;

(xi) liability to third parties for the failure of our joint venture partners to

fulfil their obligations; (xii) changes in, or our failure to comply with,

applicable laws and regulations (including regulatory measures addressing

climate change); (xiii) operating hazards, including spills, environmental

damage, personal or property damage and business interruptions caused by adverse

weather; (xiv) equipment or mechanical failures, which could increase costs,

impair revenue and result in penalties for failure to meet project completion

requirements; (xv) the timely delivery of vessels on order and the timely

completion of ship conversion programmes; (xvi) our ability to keep pace with

technological changes and the impact of potential information technology, cyber

security or data security breaches; (xvii) global availability at scale and

commercial viability of suitable alternative vessel fuels; and, (xviii) the

effectiveness of our disclosure controls and procedures and internal control

over financial reporting. Many of these factors are beyond our ability to

control or predict. Given these uncertainties, you should not place undue

reliance on the forward-looking statements. Each forward-looking statement

speaks only as of the date of this document. We undertake no obligation to

update publicly 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 pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange

release was published by Katherine Tonks, Investor Relations, Subsea7, on 30

April 2025 08:00 CET.