Q2 2024 Subsea 7 SA Earnings Call Transcript
Key Points
- Subsea 7 SA (ACGYF) delivered a strong second quarter adjusted EBITDA of $292 million, up 80% year-on-year, with a margin of 17%.
- The company achieved a record order intake of $4 billion in the second quarter, with a book-to-bill ratio of 2.3x.
- Subsea 7 SA (ACGYF) has a robust backlog of $12.5 billion, providing good visibility for future projects.
- Revenue increased by 15% year-on-year to $1.7 billion, driven by strong performance in subsea and conventional segments.
- The company has raised its revenue and adjusted EBITDA guidance for the full year 2024, reflecting strong project execution and new vessel acquisition.
- Net finance costs amounted to $24 million, with a net foreign exchange loss of $8 million and taxation of $41 million.
- Net cash used in investing activities was $202 million, including significant capital expenditure and payments for investments.
- Net debt stood at $1 billion at the end of the quarter, including lease liabilities of $533 million.
- The renewables business unit's revenue remained flat year-on-year, indicating limited growth in this segment.
- Political uncertainty in the US could impact future offshore wind projects, despite recent governmental approvals.
Welcome, everyone, and thank you for joining us. With me on the call today are John Evans, our CEO; Mark Foley, our CEO; and Stuart Fitzgerald of Seaway 7. The results press release is available to download on our website, along with the slides we will be using during today's call. Please note that some of the information discussed on this call today will include forward-looking statements that reflect our current views. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast.
For more information, please refer to the risk factors discussed in Subsea7s 2023 annual report or today's quarterly press release.
I'll now turn the call over to John.
Thank you, Katherine and good afternoon, everyone. I will start with a summary of the second quarter before passing over to Mark for more details of the financial results. Turning to slide three, Subsea7 delivered a strong second
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