Seaway 7 ASA Trading Update

Seaway 7 ASA Trading Update

13 Jun 2022 08:00 CEST

Oslo - 13 June 2022 at 08:00 CET - Seaway 7 ASA (the "Company") (Euronext
Growth: SEAW7) announced today updates on its projects and updated Adjusted
EBITDA guidance for full year 2022.

As a result, the Company has updated its guidance for full year 2022. Revenue
is expected to be in line with previous guidance towards $1 billion with an
Adjusted EBITDA margin now expected to be approximately 6%.

The Company has encountered reduced progress on the Hollandse Kust Zuid project
relating primarily to adverse weather conditions and mechanical breakdowns. The
cost increases associated with these challenges will result in a contract loss
provision of approximately $30 million to be recognised in the second quarter
2022.

The installation of foundations for the Dogger Bank A and B project is expected
to commence in 2022, as originally planned, although due to Seaway Alfa Lift's
delivery delay, Seaway Strashnov will now be deployed on the project for a full
2023 campaign. The increased cost of the extended Seaway Strashnov campaign
will result in an increase in the contract loss provision of approximately $35
million. This loss will be reflected in a revision to the preliminary purchase
price adjustment relating to the combination to form Seaway 7 ASA and will not
affect Adjusted EBITDA. This revision will be recognised in the second quarter
2022.

The Company has also encountered reduced progress on the Formosa 2 project in
Taiwan, related primarily to lower offshore productivity. Pursuant to an
indemnity from Subsea 7 as part of the combination to form Seaway 7 ASA, the
related costs will be reimbursed by Subsea 7 and will not affect Seaway 7.

As regards other operations, Seaway Ventus has commenced construction with the
laying of the keel in early June 2022, in accordance with the planned delivery
schedule, while Seaway Alfa Lift is now expected to join the fleet in the second
half 2023.

The Seagreen project, which is significant to the Company's portfolio, continues
to perform well with 98 of the 114 jackets fabricated and 26 jackets installed.
All jackets are scheduled to be installed during 2022, as originally planned,
with S7000 Heavy Lift Vessel back in field delivering its scope.

Contact for investment community enquiries:
Stuart Fitzgerald
Tel +47 911 89 669

Mark Hodgkinson
Tel +44 7788 316 501
[email protected]

About Seaway 7
Seaway 7 is a global leader in the delivery of fixed offshore wind projects,
committed to contributing to an efficient and sustainable energy supply for the
future.

Seaway 7 is listed on Oslo's Euronext Growth (SEAW7).

Forward-Looking Statements: This announcement may contain 'forward-looking
statements'. These statements relate to our current expectations, beliefs,
intentions, assumptions or strategies regarding the future and are subject to
known and unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied in these statements.
Forward-looking statements may be identified by the use of words such as
'anticipate', 'believe', 'estimate', 'expect', 'future', 'goal', 'intend',
'likely' 'may', 'plan', 'project', 'seek', 'should', 'strategy' 'will', and
similar expressions. The principal risks which could affect future operations of
the Group are described in the 'Risk' section of the Group's Annual Report.
Factors that may cause actual and future results and trends to differ materially
from our forward-looking statements include (but are not limited to): (i) our
ability to deliver fixed price projects in accordance with client expectations
and within the parameters of our bids, and to avoid cost overruns; (ii) our
ability to collect receivables, negotiate variation orders and collect the
related revenue; (iii) our ability to recover costs on significant projects;(iv)
unanticipated delays or cancellation of projects included in our backlog; (v)
competition and price fluctuations in the markets and businesses in which we
operate; (vi) the loss of, or deterioration in our relationship with, any
significant clients; (vii) the outcome of legal proceedings or governmental
inquiries; (viii) uncertainties inherent in operating internationally, including
economic, political and social instability, boycotts or embargoes, labour
unrest, changes in foreign governmental regulations, corruption and currency
fluctuations; (ix) the effects of a pandemic or epidemic or a natural disaster;
(x) changes in, or our failure to comply with, applicable laws and regulations
(including regulatory measures addressing climate change); (xi) operating
hazards, including spills, environmental damage, personal or property damage and
business interruptions caused by adverse weather; (xii) equipment or mechanical
failures, which could increase costs, impair revenue and result in penalties for
failure to meet project completion requirements; (xiii) the timely delivery of
vessels on order and the timely completion of ship conversion programmes; (xiv)
our ability to keep pace with technological changes and the impact of potential
information technology, cyber security or data security breaches; and (xv) the
effectiveness of our disclosure controls and procedures and internal control
over financial reporting. Many of these factors are beyond our ability to
control or predict. Given these uncertainties, you should not place undue
reliance on the forward-looking statements. Each forward-looking statement
speaks only as of the date of this announcement. We undertake no obligation to
update publicly or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.

The stock exchange announcement was published by Stian Lysaker, Treasurer in
Seaway 7 ASA, at the date and time as set out above.

More information:
Access the news on Oslo Bors NewsWeb site

564666_Seaway 7 ASA Trading Update.pdf

Source

Seaway 7 ASA

Provider

Oslo Børs Newspoint