Subsea 7 S.A. · OSL:SUBC
Subsea 7 — Non-Deal Roadshow (March 2008)
39 slides from Subsea 7's roadshow presentation, Mar 12, 2008
Slide 1: Subsea 7 Inc. Presentation
Subsea 7 Inc. Presentation Mel Fitzgerald Chief Executive Officer Barry Mahon Chief Financial Officer New York, Boston, March 12th & 13th, 2008 Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 2: Forward looking statement
Forward looking statement Certain statements contained in this presentation constitute “forward-looking information” within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. In order to utilize the “safe ha
Slide 3: Company Overview
Company Overview Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 4: Who We Are
Who We Are A company dedicated to pure play SURF (Subsea Umbilicals, Risers and Flowlines) engineering and construction in the global oil and gas sector. Established in 2002 from the merger of Halliburton Subsea and DSND. Listed on the Oslo Stock Exchange (ticker SUB) since August 2005. Market capit
Slide 5: What we do: Subsea Field Development
What we do Subsea Field Development Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 6: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets •Major EPIC project management and engineering The Saxi Batuque EPIC project in Block 15, offshore Angola for Esso Angola included the design, fabrication and installation of 16 short flowline
Slide 7: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering •Up to 16” pipeline and riser system installation Engineering, procurement, fabrication, transportation and installation of rigid flowlines (14k
Slide 8: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation •Design, fabrication and installation of subsea structures Woodside Enfield Project comprised
Slide 9: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures •Tie-ins and commissioning The qu
Slide 10: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 11: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 12: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 13: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 14: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 15: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 16: Where we operate
Where we operate North and Central America region North Sea region Brazil region Africa region Asia-Pacific region Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 17: Clients
Clients Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 18: Financial highlights - 2007
Financial highlights - 2007 Revenue +31% Net Profit +55% $1,670m $2,187m $214m $138m 2006 2007 2006 2007 EBITDA +48% Capex +45% $392m $265m $384m $265m 2006 2007 2006 2007 Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 19: Market Overview
Market Overview Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 20: Market Outlook
Market Outlook mboe/day Subsea Tree Installation Forecast Deepwater Production 800 14 700 12 600 10 Oil Gas 500 8 400 6 300 4 200 100 2 0 0 2006 2007e 2008e 2009e 2010e 2011e 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Quest Source: Douglas-Westwood/S7 • Strong forecasts for key SURF i
Slide 21: Medium-term SURF Market Demand: Annual Average Capex 2008-2012
Medium-term SURF Market Demand: Annual Average Capex 2008-2012 S7’s Target Market $5.8bn $16.2bn +45% $4.4bn $11.2bn $2.6bn $5.3bn $1.0bn <250m Water Depth: $14.3bn 250-1000m Water Depth: $4.3bn $6.4bn Now 2010-12 1000m+ Water Depth : $7.0bn Total : $25.6bn Source: Infield Systems Subsea Partner of
Slide 22: Vision and Business Focus
Vision and Business Focus Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 23: Our Vision
Our Vision We will be the Subsea Partner of Choice in the challenging and exciting global oil and gas industry We will build our business around a motivated and valued workforce We will be the recognised leader in safety and quality, delivering exceptional performance with appropriate technical solu
Slide 24: Key Focus Areas
Key Focus Areas Working towards the Vision of being the Subsea Partner of Choice in the challenging and exciting global oil and gas industry, entails relentless pursuit of value delivery to our customers by focusing on our People and Teamwork, Asset Investment and Project Execution Subsea Partner of
Slide 25: Skilled and Experienced Global Workforce
Skilled and Experienced Global Workforce Resourcing initiatives: Asia Pacific 212 - Improving engineering efficiency Brazil 1123 - Engineering conversion courses Gulf of Mexico 206 - Open new engineering offices Norway 638 - Recruitment from non-traditional Africa 90 resource areas UK 2746 - Local c
Slide 26: Investment in Assets and Equipment
Investment in Assets and Equipment $1 bn investment in new assets and equipment between 2006 – 2008. 7 new vessels joining the fleet - increase our capacity and capability, in particular to service deep and ultra deepwater water markets. A rejuvenated fleet that will increase by 50% from 14-21 vesse
Slide 27: New Vessels Entering Fleet
New Vessels Entering Fleet Delivery Programme 2007 2008 2009 Seven Seven Seven Oceans Seas Atlantic Seven Normand Sisters Seven Skandi Seven Skandi Bergen Normand Subsea 7 Vessel Owned Vessel Chartered Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 28: Seven Oceans – Reeled Pipelay Vessel – July 2007
Seven Oceans – Reeled Pipelay Vessel – July 2007 Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 29: Normand Seven – Pipelay & Construction Vessel – July 2007
Normand Seven – Pipelay & Construction Vessel – July 2007 Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 30: Project Execution
Project Execution Business improvement initiatives: improving our reliability and ability to get it right • Robustness and consistency of bids – the Gateway team has been created. • Dealing with the technical challenges of projects - 17 global Centres of Excellence created. • Security of supply – 17
Slide 31: Chevron - Blind Faith, Gulf of Mexico
Chevron - Blind Faith, Gulf of Mexico Project Overview Engineering, procurement, fabrication, transportation & installation. 2 x Rigid flowlines (7km) 2 x Steel Catenary Risers (2.6km) Seven Oceans’ first pipelay job. New PLET handling system First deepwater Steel Catenary Riser for Subsea 7 Ass
Slide 32: Esso Exploration Angola - Saxi Batuque, Angola
Esso Exploration Angola - Saxi Batuque, Angola Project Overview Engineering, design, procurement, fabrication and installation 16 Flowlines (50km) 32 FLETs 14 heavy suction piles Luanda Spoolbase – 100% local content Challenging pipe and weld design Assets: Luanda Spoolbase, Skandi Navica, Sei
Slide 33: Shell - Integrated Subsea Services, North Sea
Shell - Integrated Subsea Services, North Sea Project Overview Construction, repair, inspection and maintenance Shell’s European subsea oil and gas infrastructure • Construction & IRM • Umbilical installation • Pipeline installation • ROV & Diving support • Well servicing Assets: - Newbuilds: Seven
Slide 34: Financial Overview
Financial Overview Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 35: Financial Performance 2004 – 2007 (USDm)
Financial Performance 2004 – 2007 (USDm) 2,400.0 31% 220.0 2189 214 2,200.0 200.0 2,000.0 55% 180.0 1,800.0 1670 30% 160.0 138 140.0 1,600.0 1,400.0 120.0 1287 58% 206% 100.0 1,200.0 80.0 1,000.0 819 60.0 800.0 45 40.0 600.0 250% 20.0 400.0 0.0 200.0 (30) (20.0) 0.0 (40.0) 2004 2005 2006 2007 Revenu
Slide 36: Backlog at 31 December 2007 and by Year of Execution
Backlog at 31 December 2007 and by Year of Execution By Contract Type Year of Execution $1,355m $3,748m $4,215m $1,710m $1,017m $647m $814m 4000 >200% growth 1600 560 2,389 3000 1200 2,165 2000 800 457 1150 346 1,826 814 1000 400 531 1,583 560 1,009 116 31 Dec 2005 31 Dec 2006 31 Dec 2007 2008 2009
Slide 37: Cash Flow Year Ended 31 December, 2007
Cash Flow Year Ended 31 December, 2007 600 175 384 500 324 400 $M 300 34 200 168 87 100 0 Cash at start Cash Proceeds of Capital Other Cash at 31 of year generated convertible Expenditure December, from bond loans 2007 operations Subsea Partner of Choice www.subsea7.com 12.03.2008
Slide 38: Summary
Summary • Improvement in year on year performance since 2004. • $4.2 bn backlog provides a solid platform on which to build. • Key focus on improving efficiency and project execution. • $1 bn investment programme in new vessels, equipment and spool bases in key geographical locations, in particular
Slide 39: Subsea partner of choice
subsea partner of choice Subsea Partner of Choice www.subsea7.com 12.03.2008