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 strategy as the energy transition evolves.

• Focus on early client engagement, system innovation, digitalization, and integrated services to optimize project delivery and reduce emissions.

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

• Industry consolidation has resulted in a stable competitive landscape with high barriers to entry and rational behavior among leading players.

• Both subsea and wind markets are robust, with a $21 billion tender pipeline and strong backlog visibility.

Financial performance and guidance

• Record backlog of $12 billion, with embedded margins improving as older, lower-margin contracts roll off.

• Adjusted EBITDA margin guidance tightened to 18%-20% for 2025, expected to exceed 20% in 2026 and rise further.

• 2023 Subsea and Conventional revenue reached $5bn with a 12% EBITDA margin.

• Committed to returning at least $1 billion to shareholders between 2024-2027 through dividends and buybacks, with over $2bn returned between 2012–2023.

• Strong balance sheet, disciplined capital allocation, and improving return on capital employed underpin ongoing shareholder returns and future reinvestment.

Business developments and operational highlights

• Six key differentiators: early engagement, system innovation, enabling products, digitalization, sustainable delivery, and integrated services.

• Strategic alliances, such as with Aker BP, Equinor, and SLB (Subsea Integration Alliance), provide long-term revenue visibility and foster innovation through shared risk and reward models.

• Notable project wins and execution in Brazil, Norway, and Turkey, including industry records for speed and scale, with 1,000+ projects delivered globally.

• Digital platforms like OceanPlan and project life cycle management systems enhance efficiency, scenario planning, and delivery of digital twins.

• Ongoing investment in technology, welding, and pipeline solutions to address client challenges in harsh and complex environments.