4.1.5Outlook and Guidance
The challenges seen in 2020 will undoubtedly continue in 2021. Clients are restructuring and have cut their budgets significantly. However strong fundamentals of deepwater projects in quality resource areas allow these to rank favorably in capital allocation. The investments made over many years to transform the Company for the future underpinned by the cashflow foundation of the long-term backlog leave the company well positioned to deliver its strategy, notwithstanding the continued challenges associated with the pandemic.
The Company’s 2021 Directional revenue guidance is around US$2.6 billion, of which around US$1.6 billion is expected from the Lease and Operate segment and around US$1 billion from the Turnkey segment. Directional 2021 EBITDA guidance is around US$900 million for the Company.
This guidance includes Directional revenues and EBITDA of US$77 million related to the expected cash receipts in 2021 from the Deep Panuke contract, which were both excluded from the 2020 outlook and underlying results. It also considers the currently foreseen COVID-19 impacts on projects and fleet operations. The Company highlights that the direct and indirect impact of the pandemic could continue to have a material impact on the Company’s business and results and the realization of the guidance for 2021.