Subsea 7 S.A. Announces Third Quarter 2023 Results

Luxembourg – 16 November 2023 – Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355, the Company) announced today results of Subsea7 Group (the Group, Subsea7) for the third quarter which ended 30 September 2023.

Third quarter highlights  

  • Third quarter Adjusted EBITDA of $201 million, a margin of 13%
  • Free cash flow of $223 million, resulting in an increase in cash and cash equivalents to $530 million
  • Net debt including lease liabilities $606 million, down from $805 million in the second quarter
  • Order intake of $2.1 billion resulted in a book-to-bill of 1.3 times and continued backlog growth to $10.8 billion
  • Backlog for execution in 2024 of $4.8 billion, up 51% on the equivalent position a year ago, with $3.2 billion for 2025
  • Recent awards and high levels of ongoing tendering activity support a return of Adjusted EBITDA margins to a range of 15-20%, reaching towards the upper end of the range in 2025
  • Full year 2023 guidance reconfirmed. In 2024, we anticipate that revenue will be between $6.0 and $6.5 billion, while Adjusted EBITDA is expected to be within a range from $950 million to $1.0 billion

 Third QuarterNine Months Ended
For the period (in $ millions, except Adjusted EBITDA margin and per share data)Q3 2023
Q3 2022
30 Sep 2023 Unaudited30 Sep 2022 Unaudited
Adjusted EBITDA(a)201171470391
Adjusted EBITDA margin(a)13%12%11%10%
Net operating income64535040
Net income362110
Earnings per share – in $ per share    
At (in $ millions)   

30 Sep 2023

30 June 2023
Backlog(a)  10,79410,363
Book-to-bill ratio(a)  1.3x1.4x
Cash and cash equivalents   530398
Borrowings  (726)(760)
Net debt excluding lease liabilities(a)  (196)(363)
Net debt including lease liabilities(a)  (606)(805)

(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 reported solid third quarter results in line with management’s expectations and the Group is on-track to meet guidance for the full year 2023. During the quarter, good operational progress was made on key projects in both Subsea and Conventional, and Renewables, including early activity on the backlog of higher-margin contracts. As these contracts mature, we are confident that Adjusted EBITDA margins will return to a range of 15-20%, reaching towards the upper end of the range for the full year 2025. Tendering activity in both subsea and offshore wind remains at high levels, extending our visibility beyond 2025 and supporting our view of a sustained upcycle into the latter part of the decade.

In Q3, the Renewables business unit delivered a double-digit Adjusted EBITDA margin for the second consecutive quarter by stabilising execution and high-grading new orders to rebalance risk and return. While the offshore wind industry continues its non-linear growth trajectory, we are confident that we have the right approach to sustain this improved level of performance.

On 2 October, the OneSubsea joint venture between Subsea7, SLB and Aker Solutions completed and, simultaneously, Subsea Integration Alliance between Subsea7 and OneSubsea was extended to 2033. The joint venture and Alliance leverage our combined market-leading assets, services and technologies to reinforce our ability to deliver greater efficiencies to clients, enabling them to unlock lower-carbon subsea reserves. During the quarter, the Alliance signed an agreement with BP for integrated subsea developments, working in a collaboration that will create value for BP, Subsea7 and OneSubsea, through enhanced visibility and optimised delivery.

Operational highlights

During the third quarter, Subsea7 made good progress on its major Subsea and Conventional projects. In Norway, for the large Yggdrasil project, activity was focused on design engineering, while offshore activities continued on Hanz, Hasselmus, Heimdal, Kobra East Gekko, Ormen Lange, Northern Lights and Tyrving utilising Seven Oceans, Seven Oceanic, Seven Falcon and Seven Navica. In Brazil Seven Vega and Seven Pacific were active offshore on the Bacalhau project and good progress was made on Mero 3, where we installed torpedo piles and fabrication works at Ubu commenced. In Senegal, Seven Seas installed structures at Sangomar while, in Angola, onshore fabrication for the CLOV 3 project continued. In Saudi Arabia, Seven Borealis completed the first campaign for the Marjan 2 project and in Indonesia, fabrication of pipe stalks began at the Bintan spoolbase for the Scarborough and Barossa projects in Australia.

In Renewables, activity was high in the UK where Seaway Strashnov completed the installation of monopiles for Dogger Bank A. In October, Seaway Alfa Lift commenced mobilisation for the installation of the transition pieces. Elsewhere, Seaway Phoenix continued cable lay at the Changfang and Xidao project in Taiwan and our newbuild foundation and turbine installation vessel, Seaway Ventus, underwent sea trials in China ahead of yard delivery in the fourth quarter.

Third quarter financial review
Revenue of $1.6 billion increased 12% compared to the prior year period. Adjusted EBITDA of $201 million equated to an Adjusted EBITDA margin of 13%, slightly ahead of the prior year period. This reflected the continued improved profitability in Renewables and a good performance in Subsea and Conventional. After a depreciation and amortisation charge of $137 million, net operating income increased to $64 million from $53 million in the prior year period. After net finance costs of $12 million, and a net foreign exchange loss of $7 million, net income for the quarter was $36 million compared to breakeven in the third quarter of 2022.

Net cash generated from operating activities was $289 million including an $88 million improvement in net working capital. Net cash used in investing activities was $61 million mainly related to payments for Seaway Ventus. Net cash used in financing activities was $94 million including lease payments of $45 million and repayment of borrowings of $31 million. Overall, cash and cash equivalents increased by $132 million from 30 June 2023 to $530 million at 30 September 2023. Net debt at the end of the third quarter was $606 million including lease liabilities of $410 million.

Third quarter order intake was $2.1 billion comprising new awards of $1.4 billion and escalations of $0.7 billion resulting in a book-to-bill ratio of 1.3 times. Backlog at the end of September was $10.8 billion, of which $1.7 billion is expected to be executed in the fourth quarter of 2023, $4.8 billion in 2024 and $3.2 billion in 2025.


We continue to expect revenue and Adjusted EBITDA in 2023 to be higher than 2022. In 2024, we anticipate that revenue will be between $6.0 and $6.5 billion, while Adjusted EBITDA is expected to be within a range from $950 million to $1.0 billion. We expect capital expenditure to reduce to between $280 and $320 million. We therefore anticipate a sharp increase in free cash flow generation in 2024 which will enable us to extend our decade-long track record of shareholder returns. As pricing and contract terms continue to improve, Adjusted EBITDA margins should increase within a range of 15-20%, reaching towards the upper end of the range for the full year 2025.

With a tight subsea vessel market in 2024 and 2025, we are now tendering work for major EPCI projects with offshore activity in 2026 and beyond. We see sustained capital expenditure by clients in the subsea market, where the carbon intensity of resources and extraction method is lower than the global hydrocarbon average. A positive outlook for demand, combined with stability in the competitive landscape and the absence of newbuild global enabler pipelay vessels should ensure we generate an appropriate return on the substantial capital already invested in our subsea fleet.

In offshore wind, our foundation and cable lay installation vessels are near-fully utilised on world-class projects through 2024 and 2025. Despite the recent uncertainty in the regulatory and fiscal environments in the UK and US markets, demand for our services is strong, including in the Netherlands, Germany and Poland. With a focus on balancing risk and returns, we believe our offshore wind business will deliver sustainable value creation for shareholders for the long term.

Overall, through strong positions in lower-carbon oil and gas, as well as offshore wind, Subsea7 is well-placed to deliver the energy the world needs for today and tomorrow.

Conference Call Information
Date: 16 November 2023
Time: 12:00 UK Time, 13:00 CET
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Register for the conference call at

For further information, please contact:

Katherine Tonks
Head of Investor Relations
Telephone: +44 20 8210 5568

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 Fourth 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; and (xvii) 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 the Norwegian Securities Trading Act.

This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 16 November 2023 at 08:00 CET.



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