Q1 2025 Subsea 7 SA Earnings Call Transcript
Key Points
- Subsea 7 SA (SUBCY) reported a strong first quarter with adjusted EBITDA of $236 million, representing a 46% growth year-on-year and a margin of 15%.
- The company has a robust backlog of $10.8 billion, providing over 80% revenue visibility for the remainder of 2025.
- Revenue increased by 10% year-on-year to $1.5 billion, driven by strong performance in both subsea and renewables segments.
- Subsea 7 SA (SUBCY) maintains a solid pipeline of tendering prospects, particularly in cost-advantaged deepwater markets and the UK offshore wind sector.
- The company announced a strategic alliance with bp, enhancing collaboration and project efficiency, particularly in the Subsea Integration Alliance projects.
- Net income for the first quarter was relatively low at $17 million, despite strong revenue and EBITDA growth.
- Cash and cash equivalents decreased by $116 million to $459 million, with net debt standing at $632 million.
- The renewables segment, despite showing improvement, still reported a net operating loss of $5 million.
- The macroeconomic environment remains uncertain, which could impact future project decisions and financial performance.
- There are ongoing concerns about potential impacts from global tariffs and raw material costs, particularly in the US market.
Good day, and thank you for standing by. Welcome to the Subsea 7 Q1 2025 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, and 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 use 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 the Subsea 7's annual report or in today's quarterly press release. The call today
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