Subsea 7 S.A.: A Deep-Dive into the 4Q24 Earnings Call Notification

Subsea 7 S.A. (SUBC), a leading global provider of subsea engineering and construction services, has announced its fourth quarter results for the period ended 31 December 2024. The earnings call is scheduled for 27 February 2025 at 07:00 GMT / 08:00 CET, with a conference call and simultaneous webcast for the investment community at 12:00 GMT / 13:00 CET. The results announcement and presentation will be available on Subsea7.com from 07:00 GMT / 08:00 CET.



Subsea 7's strong financial performance in 2024 has been driven by robust growth in adjusted EBITDA and renewables, with a promising outlook for shareholder returns. In the third quarter of 2024, the company reported a significant increase in adjusted EBITDA, reaching $321 million, up 59% from the previous year. The company has revised its full-year EBITDA guidance upwards for the second time this year, indicating strong financial performance. Subsea 7's backlog remains robust at $11.3 billion, providing good visibility and confidence in future revenue streams.

The company is committed to returning at least $1 billion to shareholders from 2024 to 2027, demonstrating a strong focus on shareholder returns. In 2024, Subsea 7 returned approximately $250 million to shareholders, including $80 million in share repurchases and $170 million in dividends. The company's revenue guidance for 2024 is expected to be at the upper end of $6.5 billion to $6.8 billion, with an adjusted EBITDA margin of 18% to 20%. For 2025, Subsea 7 expects revenue to be in the range of $6.8 billion to $7.2 billion, with an adjusted EBITDA margin of 18% to 20%.

Subsea 7's order intake in the third quarter of 2024 was $0.6 billion, which is lower compared to the exceptional second quarter. However, the company's backlog remains strong, with $1.8 billion to be executed in the fourth quarter and $5.3 billion in 2025. The company's robust backlog and positive financial outlook can be attributed to several factors, including the strength of its delivery in the second quarter of 2024, the renewal of long-term contracts for four PLSVs in Brazil, and the good demand for capacity stretching to the end of the decade, with major new prospects continuing to replenish its bidding pipeline.



In conclusion, Subsea 7 S.A. has demonstrated strong financial performance and a promising outlook for shareholder returns in 2024. The company's robust backlog, commitment to returning capital to shareholders, and positive financial guidance indicate a strong position in the subsea engineering and construction market. Investors should closely monitor the company's 4Q24 earnings call for further insights into its financial performance and growth prospects.