Subsea 7 S.A. (OTCPK:SUBCY) Q2 2024 Earnings Call July 25, 2024 7:00 AM ET
Company Participants
Katherine Tonks - Investor Relations
John Evans - Chief Executive Officer
Mark Foley - Chief Financial Officer
Stuart Fitzgerald - Chief Executive Officer, Seaway 7
Conference Call Participants
Guilherme Levy - Morgan Stanley
Christopher Mollerlokken - Sparebank 1 Markets
Kate O’Sullivan - Citi
Victoria McCulloch - RBC
Richard Dawson - Berenberg
Katherine Tonks
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 we will 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 2023 Annual Report or today’s quarterly press release.
I’ll now turn the call over to John.
John Evans
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 on the financial results.
Turning to Slide 3. Subsea 7 delivered a strong second quarter adjusted EBITDA of $292 million, up 80% year-on-year and with a margin of 17%. We’re on track to meet EBITDA guidance, which has been revised upwards by 5%. The second quarter was a record for Subsea 7, both in terms of order intake and backlog. The addition of more high-quality projects support our expectations of strong margins in the remainder of 2024 as well as our goal to achieve a margin of 18% to 20% in 2025 and over