Q4 2024 Subsea 7 SA Earnings Call Transcript
Key Points
- Subsea 7 SA (ACGYF) reported a strong fourth-quarter adjusted EBITDA of $315 million, contributing to a full-year EBITDA of $1,090 million, marking a 50 basis point increase.
- The company achieved a robust order intake of $8.2 billion for the full year, up 10% year on year, with a book-to-bill ratio of 1.2 times.
- Subsea 7 SA (ACGYF) has a high-quality project backlog of $11.2 billion, providing over 80% revenue visibility for 2025.
- The Board proposes a 40% increase in dividends, equating to $350 million, reflecting confidence in future performance.
- The company has shown significant growth in its renewables segment, with a 29% increase in revenue year on year and an improved EBITDA margin of 15%.
- The effective tax rate remains high at 41%, impacting net income.
- Net cash used in financing activities was $680 million, contributing to a decrease in cash and cash equivalents by $176 million.
- The company faces increased depreciation costs in 2025, projected between $700 million and $720 million, up from $645 million in 2024.
- There is a notable increase in planned maintenance days for vessels in the first quarter of 2025, expected to be around 600 days, which could impact operational efficiency.
- Subsea 7 SA (ACGYF) reported a net foreign exchange loss of $69 million in Q4, adding volatility to financial results.
Good day, and thank you for standing by. Welcome to the Subsea 7 fourth-quarter 2024 results conference call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Katherine Tonks. Please go ahead.
Welcome, everyone. Thank you for joining us. With me on the call today are John Evans, our CEO; Mark Foley, our CFO; and Stuart Fitzgerald, CEO of Seaway 7. The results press release is available to download on our website, along with the slides that we'll be using during today's call.
Please note that some of the information discussed on the 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 Subsea 7's annual report or today's quarterly press release.
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