Subsea 7 S.A. announce results of Subsea7 Group for 1st quarter to 31 March 2023.
Revenue of $1.2 billion increased 4% compared to the prior year period reflecting strong growth of 18% in Subsea and Conventional, partially offset by a decline in Renewables due to the phasing of the Seagreen project. Adjusted EBITDA of $107 million equated to an Adjusted EBITDA margin of 8.6%, up from 7.2% in Q1 2022. After depreciation and amortisation charges of $122 million, net operating loss improved to $15 million from a loss of $31 million in the prior year period. After net finance costs of $8 million and
without the benefit of the prior year’s tax credit, net loss for the quarter increased to $29 million compared to a net loss of $12 million in Q1 2022.
Net cash used in operations was $127 million including a $209 million anticipated increase in net working capital. Net cash used in investing activities was $86 million while net cash generated by financing activities was $256 million which included $300 million proceeds from borrowings. Overall, cash and cash equivalents increased by $40 million from 31 December 2022 to $686 million at 31 March 2023. Net debt at the end of the first quarter was $419 million including lease liabilities of $456 million.
First quarter order intake was $1.9 billion comprising new awards of $1.2 billion and escalations of $0.7 billion resulting in a book-tobill ratio of 1.5x. Backlog at the end of March was $9.7 billion, of which $4.0 billion is expected to be executed in 2023 and $3.4 billion in 2024.
Outlook – full year 2023 on track
We continue to expect revenue and Adjusted EBITDA in 2023 to be higher than 2022, with a weighting towards the second half of the year. Pricing and contract terms continued to improve during the first quarter and recent awards, as well as ongoing tenders, support our view that Adjusted EBITDA margins should trend back to a range of 15-20% over the coming four years. This is approaching the margin necessary to yield an appropriate return on capital employed.
First quarter highlights
• First quarter Adjusted EBITDA of $107 million resulting in a margin of 9%
• Order flow remains strong, with a book-to-bill of 1.5x
• Backlog of $9.7 billion at 31 March 2023, of which $4.0 billion to be executed in 2023 and $3.4 billion in 2024
• High tendering activity with continued momentum in pricing
• Recent awards and ongoing bids underpin management’s confidence in the outlook, including a return of Adjusted
EBITDA margins to a range of 15-20% over the coming four years
• Offer for Seaway7 progressing towards delisting of Seaway 7 ASA from Euronext Growth in early May 2023
Information Source: Read More “
Energy Monitors , Electric Power , Natural Gas , Oil , Climate , Renewable , Wind , Transition , LPG , Solar , Electric , Biomass , Sustainability , Oil Price , Electric Vehicles,
