Subsea 7 (SUBC) Investor Day 2024 summary

Strategic direction and market outlook

• Committed to long-term participation in oil and gas while expanding into renewables, hydrogen, and carbon capture, adapting to evolving energy needs and country-specific transitions.

• Focuses on enabling the global offshore energy transition by combining lower-carbon oil and gas with renewables and emerging energy solutions.

• Operates in over 30 countries with 15,000+ employees, a global network of 8,000+ partners, and a modern fleet of 40 vessels, leveraging advanced technologies.

• Two business lines: Subsea7 (subsea oil & gas, carbon capture, hydrogen) and Seaway7 (fixed and future floating wind), both supported by project management, engineering, and offshore execution.

• Early client engagement, system innovation, digitalization, and sustainable delivery optimize project outcomes and reduce emissions.

Financial performance and shareholder returns

• Record $12bn backlog with improved embedded margins and higher quality contracts, providing high revenue visibility for 2025 and 2026.

• Adjusted EBITDA margin guidance tightened to 18–20% for 2025, expected to exceed 20% in 2026 and increase thereafter.

• Over $2bn returned to shareholders between 2012–2023, with at least $1bn committed for 2024–2027 through dividends and share buybacks, and ongoing annual reviews for excess cash distribution.

• Maintains a strong, investment-grade balance sheet and disciplined reinvestment strategy, focusing on owning key enabling assets and chartering additional capacity as needed.

• Return on capital employed is improving, supported by strong cash generation and a focus on projects with returns above WACC.

Business developments and operational highlights

• Early engagement and alliances with clients (e.g., Aker BP, Equinor, BP, SLB) drive project success, optimize delivery, and secure long-term revenue visibility.

• Proprietary digital tools (OceanPlan, digital twins) enhance project design, scenario analysis, and operational efficiency.

• Unique technologies such as pipeline bundles and advanced welding support cost-effective, low-carbon solutions and market differentiation.

• Regional strength in Norway and Brazil, with significant ongoing and future projects, including Yggdrasil (largest subsea development in Norway) and multiple Petrobras contracts.

• Proven track record in project execution, with 1,000+ projects delivered globally.