Subsea Partner Of Choice

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Subsea Partner Of Choice

Subsea 7 Inc.

Earnings PresentationQuarter Ended30 June 2007

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Quarter Highlights

• Continued high levels of activity and asset utilisation

• Satisfactory project execution particularly in North Sea, Gulf of Mexico and Asia Pacific

• Seven Oceans delivered on schedule

• USD 175 million raised from the issue of a convertible bond

• Satisfactory financial performance in the quarter

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Operational Performance by RegionNorth Sea

300

217

7251

0

50

100

150

200

250

300

350

$M

Revenue Profit Before Tax

Quarter Ended 30 June

2007 2006

463

352

9874

050

100150200250300350400450500

$M


Six Months Ended 30 June

2007 2006

• High level of activity in quarter

• Pipelay operations on Norsk Hydro Oseberg Delta, Venture GKA and Talisman Rev projects successfully completed

• Statoil Tyrihans project and hyperbaric welding on ConocoPhillips H7 bypass project also successfully completed

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Operational Performance by RegionAfrica

77

136

(4)

22

-20

0

20

40

60

80

100

120

140

160

$M



2007 2006

164

254

(6)

45

-50

0

50

100

150

200

250

300

$M



2007 2006

• Petro SA project impacted by Rockwater 1 breakdown and conservative position taken over outstanding variation orders

• Saxi Batuque, Tombua Landana and Agbami projects continue to progress on schedule but have not yet reached a stage of completion to permit any significant profit recognition

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Operational Performance by RegionBrazil

4955

(14) (1)

-20

0

20

40

60

80

$M



2007 2006

177

132

(11) (1)

-200

20406080

100120140160180200

$M



2007 2006

• K3000 successfully completed its planned drydock and conversion, and commenced new 6 year contract with Petrobras

• Progress of pre-commissioning and span rectification work on PDEG slower than planned

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Operational Performance by RegionGulf of Mexico

48

12 14

2

0

20

40

60

$M



2007 2006

85

44

22

8

0

20

40

60

80

100

$M



2007 2006

• 2007 offshore phase of Independence Subsea and BP Atlantis projects successfully completed

• Project management, engineering and onshore pipeline fabrication continues on Chevron Blind Faith project

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Operational Performance by RegionAsia Pacific

56

40

114

0

20

40

60

80

$M



2007 2006

114

73

26

7

0

20

40

60

80

100

120

140

$M



2007 2006

• Murphy Kikeh, BHP Stybarrow and TUI development projects ongoing

• Joint Venture also continuing to support Woodside frame agreement

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Backlog at Q2 2006 & Q2 2007By Region

717

2,170444

964

140

112234

586

119

78

30 June 2006 30 June 2007

North Sea Brazil GoM AP WA

$1,626 M $3,938 M

By Contract Type

949

1,832

677

2,106

30 June 2006 30 June 2007

Lump Sum Day Rate

$1,626 M $3,938 M

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1,832

2,106

30 June 2007

$3,938 M Year of Execution

660731

441

271

458

327

1,050

2007 2008 2009 2010 - 2014

Lump Sum Day Rate

Backlog at 30 June 2007 by Year of Execution

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Financial Highlights

30/06/2007 30/06/2006 30/06/2007 30/06/2006In USD millions Unaudited Unaudited Unaudited UnauditedRevenue 531.7 462.2 1,007.6 861.0Adjusted EBITDA 90.6 84.5 153.1 145.0Net operating profit 71.9 69.3 117.5 114.2Profit before tax 71.4 78.3 117.4 128.7Net profit attributable to equity shareholders 44.8 52.8 77.2 86.4

Earnings per share, in USD per shareEarnings per share, basic 0.30 0.36 0.52 0.58Earnings per share, diluted 0.30 0.36 0.52 0.58

Three months ended Year to date

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Cash Flows

30/06/2007 30/06/2006(Amounts in USD 1,000) Unaudited Unaudited

Net profit 77,196 86,356 Non-cash income statement items 81,697 72,498 Changes in working capital (8,780) (118,396) Cash generated from operations 150,113 40,458

Proceeds of convertible bond loans 175,000 300,000 Purchase of property, plant and equipment (189,879) (108,132) Drawdown/(repayment) of bank loans 20,000 (66,500) Purchase of own shares - (13,573) Other cash flows (16,480) (7,122)

Net increase in cash and cash equivalents 138,754 145,131

Cash and cash equivalents at start of period 86,585 64,917

Cash and cash equivalents at end of period 225,339 210,048

Year to date

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Balance Sheet

At 30/06/2007 At 30/06/2006 At 31/12/2006(Amounts in USD 1,000) Unaudited Unaudited AuditedAssetsNon-current assets 849,122 510,148 683,158

Cash and cash equivalents 225,339 210,048 86,585 Other current assets 719,294 514,494 502,472 Current assets 944,633 724,542 589,057

Total assets 1,793,755 1,234,690 1,272,215

Equity and liabilitiesShareholders' equity 671,158 459,012 531,936

Borrowings 396,011 237,484 243,176 Other non-current liabilities 45,290 16,882 37,480 Non-current liabilities 441,301 254,366 280,656

Current liabilities 681,296 521,312 459,623

Total liabilities 1,122,597 775,678 740,279

Total shareholders' equity and liabilities 1,793,755 1,234,690 1,272,215

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Shareholders’ Equity

30/06/2007 30/06/2006(Amounts in USD 1,000) Unaudited UnauditedShareholders' equity at start of period 531,936 288,678 Share issues 450 23,894 Purchase of own shares - (13,573) Result for the period 77,196 86,356 Share based payment 964 439 Convertible bond 2006-11 equity component - 63,265 Convertible bond 2007-17 equity component 48,019 - Currency translation differences 12,593 9,953 Shareholders' equity at end of period 671,158 459,012

Year to date

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Adjusted EBITDA

30/06/2007 30/06/2006 30/06/2007 30/06/2006(Amounts in USD 1,000 except percentages) Unaudited Unaudited Unaudited UnauditedNet profit attributable to equity shareholders 44,800 52,788 77,196 86,356 Adjustments:Taxation expense 26,637 25,491 40,163 42,381 Net financial items 986 (9,013) 1,616 (14,560) Depreciation, amortisation and impairments 18,167 16,684 36,485 31,944 Profit on disposal of property, plant and equipment - (1,410) (2,407) (1,131) Adjusted EBITDA 90,590 84,540 153,053 144,990

Revenue 531,728 462,194 1,007,625 860,984 Adjusted EBITDA % 17.0% 18.3% 15.2% 16.8%

Year to date

Reconciliation of net profit attributable to equity shareholders to Adjusted EBITDA

The Company calculates "Adjusted EBITDA" (adjusted earnings before interest, taxation, depreciation and amortisation) as netprofit attributable to equity shareholders plus interest, taxation, depreciation, amortisation and impairments adjusted to excludefinancial items other than interest and profits or losses on disposals of property, plant and equipment.

Three months ended

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Summary

• High level of project activity and asset utilisation continues

• Satisfactory financial performance in the quarter

• Backlog now at USD 3.9 billion

• Seven Oceans has joined the fleet and other new build vessels remain on schedule

• Market outlook remains strong with USD 8.0 billion of contracts currently being tendered

Subsea Partner Of Choice

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