Subsea 7 S.A.

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 Seaway7. The results press release is available to download on our website along with the slides that we'll 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 forecasts. For more information, please refer to the risk factors discussed in Subsea Seven's annual report or today's quarterly press release. I'll now turn the call over to John.

Thank you, Catherine, and good morning and good afternoon, everyone. I will start with a summary of the fourth quarter and full year results before passing over to Mark for more details of our financial performance. Turning to slide three, Subsea 7 delivered four-quarter adjusted EBITDA of $477 million, resulting in a full-year EBITDA of $1.48 billion, up 36% year-on-year. The combination of revenue growth and margin expansion was driven by a good performance in both subsea and conventional and renewables. With continued momentum and new awards and a book to build 1.3 times, we grew our year-end backlog to $13.8 billion. This order book of high-quality projects gives us excellent visibility on 2026 and beyond. Supported by a robust backlog and tendering pipeline, as well as our optimism in the longer-term output for the group, Turn into slide four. After a solid fourth quarter with new orders of $1.9 billion, order intake in the full year was $9 billion, up 10% year-on-year, and equating to a book-to-bill of 1.3 times. We have a combined backlog for execution in 2026 of $6.9 billion, giving us high visibility on the year ahead. Our backlog for 2027 is up 27% from the equivalent position last year, giving us over 50% visibility on consensus revenue. And now I'll pass over to Mark to run through the financial results.

Thank you, John, and good day, everyone. I'll begin with some details of group and business unit financial performance in 2025. before turning to the group cash flow bridge and providing financial guidance for 2026. I will conclude with some comments on shareholder returns. Slide five summarizes the group's headline results. In 2025, revenue was $7.1 billion, up 4% compared to 2024. driven by strong operational and financial performance in both business unit portfolios as major projects continued to progress well. Adjusted EBITDA of $1.5 billion was up 36% compared with the prior year, and their margin increased five percentage points to 21% from 16%. Net income was $404 million, compared with $217 million in 2024. This bottom line expansion contributed to a further improvement in our return on average invested capital. I will now discuss business unit performance in the next few slides. Slide six presents the key metrics for subsidy and conventional, with my comments focused on full year 2025. Revenue was $5.8 billion in 2025, up 5% year-on-year, reflecting high activity levels in Brazil through Mero 3 and 4, BUSIOS 8 and BUSIOS 9, in Norway, contributed by IKDRASIL, and in Turkey, generated from SAKARIAT 2. Adjusted EBITDA was $1.3 billion, equating to a margin of 23%, an increase of over six percentage points from the prior year. This performance represents the fifth consecutive year of growth in adjusted EBITDA from subscene conventional, underpinned by high standards of execution and vessel utilization. Net operating income is $762 million, corresponding to a margin of 13%, a significant improvement from the $404 million reported in 2024. This financial outcome is testimony to the favorable effect of higher activity liquidated from quality backlog. Selected renewable performance metrics are shown in slide seven. Once again, my comments will be focused on full year 2025. Revenue in 2025 was $1.2 billion. stable year-on-year, reflecting continued activity in our whole markets of the UK and Taiwan, with notable revenue generated from East Anglia fee and high loan respectively. Adjusted EBITDA was $202 million, equally at a margin of almost 17%, up from 15% in 2024, and marking a third year of progress. This progress is due to applying a further selective approach to bidding with the consequent high grading of our backlog allied with strong project execution. Net operating income was $75 million, an increase of $22 million compared to the prior year. Slide eight shows the cash flow bridge for 2025. Net cash generated from operating activities was $1.5 billion, which included a better than expected favourable movement in net working capital of $244 million. Capital expenditure of $281 million was below the lower end of our guidance due to a culmination of continued focus on ensuring capital discipline and certain amounts being displaced in 2025 into 2026. Net cash used in financing activities was $874 million, which included lease principal and interest payments of $292 million, repayment of borrowings of $149 million, reflecting the amortization profile of our facilities, and dividends of $376 million. At the end of the year, cash and cash equivalents was $970 million, which was underpinned by almost $1.2 billion generated through free cash flow. Net cash was $21 million, including lease liabilities of $365 million, and the group had liquidity of $1.6 billion at year end, which included $600 million of unutilized committed facilities. To conclude the financials, slide nine shows our guidance of 2026, including a reiteration of the preliminary metrics that I shared with the market in November last year. We continue to expect revenue to be in a range of seven to $7.4 billion. with an adjusted EBITDA margin of approximately 22%. Administrative expense is forecast to be roughly stable year on year at between $340 to $360 million. Depreciation and amortization is anticipated to reduce to between $580 and $600 million, mainly because of the reduction in the number of leased vessels in our fleet. The impact of fewer leased vessels can also be noted in our net finance costs, which is expected to reduce to between $40 and $50 million in 2026. The effective tax rate is projected to be between 30% and 35%. As I communicated in November of last year, capital expenditure is expected to be between $350 million and $380 million, which includes certain amounts displaced from 2025 into 2026, as mentioned some moments ago. In terms of the first quarter of 2026, I would like to remind you of the seasonally lower activity in subsea and wind in the Northern Hemisphere, which will be reflected in our financial performance. Lastly, based on the group's solid financial performance, position and prospects, the Subsea 7 SA Board of Directors will propose a £13 per share dividend at the Annual General Meeting on 12 May to be paid in one installment on the 28th of May. This is equivalent to approximately $400 million of shareholder returns and represents a dividend yield of around 5% based on the SLB's closing share price. I will now pass you back to John.