Q4 2012 Earnings Call Transcript

Transcript Call Date 03/14/2013

Operator: Thank you for standing by and welcome to the Subsea 7 SA Fourth Quarter 2012 Results Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. I must advice you that this conference is being recorded today on Thursday 14 of March 2013.

I'd now like to hand the conference over to your speaker today Paul Gooden. Please go ahead, sir.

Paul Gooden - IR: Thank you and good afternoon. This is Paul Gooden, Investor Relations Officer at Subsea 7. Joining us today are Jean Cahuzac, our Chief Executive Officer; Ricardo Rosa, our Chief Finance Officer and John Evans our Chief Operating Officer. Today's results for the fourth quarter and 12 months period which ended on December 31, 2012. The press release can be found on our website with the presentation slides we'll be referring to in today's call.

Before we start the presentation, I'd remind you that certain statements made in the course of this conference call, which express the Company's intentions, beliefs and expectations, are forward-looking statements. Future results and trends could differ materially from those which are in such statements for various factors. Details of these can be found in the Company's filings, including the Company's Annual Report.

May I also draw your attention to the more detailed disclosure on forward-looking statements that appeared in today's press release. The call will run for around an hour.

With that, I'll hand you over to Jean.

Jean Cahuzac - CEO: Thank you, Paul, and good afternoon and welcome to everybody. I would like to reflect briefly 2012 results and then Ricardo will run through our financials. And before we take your questions I will make some observation on the market and our expectations for 2013.

2012 was another year of significant achievement for Subsea 7. In light of this performance and our confidence in the future the Board recommend that shareholders approved a special dividend in 2013, a $0.60 per share at the AGM in June for payment in early July.

To summarize what has been achieved last year, we have very delivered strong signature results in line with our expectation. As 2012 full year revenue grew by 20% and adjusted EBITDA by 16% compared with the prior 12 month period.

We have reached a record backlog of $9.1 billion at yearend. Our new backlog is a good quality work. It includes a good balance of medium size and large projects with the right split between EPIC, lump sum and day rate. The integration process following the merger in early 2011, has been successfully completed ahead of schedule and we have met our objectives.

We've been able to broaden and deepen our engineering and project management expertise worldwide and have increased this workforce by over 400 in 2012. We continue to attract talented people to our business, helped by our graduate and commercial training as well as our development programs.

We also made significant progress on our fleet enhancement program. The highlight was the addition to the fleet of the Seven Borealis for staff operation. She was delivered on budget and on schedule to start operation on the CLOV project offshore Angola. She has already completed the first phase of project pipe laying scope, with six lines installed in 1,100 meter water depth.

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