Welcome everybody. With me on the call today are John Evans, our CEO, and Ricardo Rosa, our CFO. The results press release is available to download on our website, along with the presentation slides that we'll be referring to during today's call. May I remind you that this call includes forward-looking statements that reflect our current views and are subject to risks, uncertainties and assumptions. Similar wording is included in our press release. I'll now turn you over to John.
Thank you, Katherine, and good afternoon, everyone. I will start with highlights from the first quarter before passing over to Ricardo to cover the financial results. Turning to slide four. Subsea 7 delivered solid revenue and EBITDA growth in the first quarter and made progress on its strategic objectives. Revenues improved 33% year-on-year to $1 billion, driven by both Renewables and Subsea and Conventional. While our EBITDA margin improved slightly to 10%. At the end of the quarter, our balance sheet remained strong with $527 million of cash and equivalents and net cash of $74 million. We announced two exciting projects this quarter. First, our entry to the carbon capture market with the award that's part of the Northern Lights project, and secondly, a new joint venture in floating wind. Turning to slide five and our operational highlights.
During the first quarter, we completed the Zinia project and restarted work on the Barossa project. Seven Eagle finished our scope of work on the West Barracouta work in Australia, and equipment fabrication continued for the Sangomar project in Senegal. In the U.K., Seven Atlantic executed our scope of work on the Pierce project, whilst in the Gulf of Mexico, Seven Navica, Pegasus, Oceans and Pacific continued offshore activities on Ichthys and Mad Dog 2. The PLSVs achieved good utilization despite the challenges of COVID-19 in Brazil. In Saudi Arabia, Seven Champion recommenced installation of the 28 jackets and three gas PDM projects, and preparations continued for Berri Zuluf. After our hiatus in offshore activity in Saudi Arabia during 2020, we expect the Seven Champion to be busy throughout 2021.
The Renewables business unit continued to make good progress in the fabrication of jackets and inner-array cables for Seagreen. Seaway Yudin remained on standby for most of the quarter due to weather in Taiwan, while Seaway Aimery and Seaway Moxie were in transit to Europe for Hornsea 2. As we flagged in the last quarter, we experienced a seasonal swing in vessel utilization this quarter with several of our global enablers in transit. Seven Vega also incurred downtime for repairs after storm damage and only returned to full operation in mid-April. The delay in executing BP Manuel has had a knock-on effect on the Seven Vega's other projects, but these have largely been accommodated through the reallocation of work to our other pipelay vessels. Turning to slide six.
We ended the first quarter with a backlog of $6 billion, up 6% from the first quarter last year, broadly in line with the year-end 2020 position. During the quarter, we announced the award of SLGC in Angola and Northern Lights in Norway, as well as an order for an unnamed project within Subsea and Conventional. Including unannounced awards and escalations, we achieved a book-to-bill ratio of 0.8 times, a good outcome for a relatively quiet quarter. We have good visibility on revenue for the remainder of 2021, with $3.4 billion still to be executed, whilst our 2022 backlog of $1.6 billion is in line with the equivalent level reported at the same point in 2020 and 2019. Now I'll pass over to Ricardo to run through the financial results in more detail.
Thank you, John, and good afternoon, everyone. Slide seven shows our income statement highlights. First quarter revenue was $1 billion, 33% higher than the prior year period, reflecting higher levels of activity in both the Subsea and Conventional and Renewables business units. Adjusted EBITDA of $102 million after incurring net costs associated with COVID-19 of approximately $9 million, was up 50% year-on-year. This resulted in an adjusted EBITDA margin of 10%, a modest improvement on the prior year period margin of 9%. Net income was $1 million, equivalent to diluted earnings per share of $0.01. Turning to slide eight for additional details of the income statement. Administrative expenses improved by $7 million against the prior year, reflecting progress in the implementation of our cost reduction plan.
Depreciation and amortization decreased by $6 million compared to the same period last year, reflecting the impact of reduced vessel lease commitments. The net operating loss of $9 million in the first quarter included $9 million in net COVID costs and a credit of $18 million, mainly related to downward revisions to the restructuring costs of the group's resizing program. Other gains and losses of $16 million included net foreign currency gains of $9 million. On slide nine, we summarize the performance of our three business units. The Subsea and Conventional business unit, which encompasses all our activities in oil and gas, generated $735 million of revenue in the first quarter, 10% higher than the prior year period, mainly due to higher activity in the Gulf of Mexico, Brazil, and Saudi Arabia. As John mentioned, four vessels were active on offshore phases of projects in the Gulf of Mexico.
We had good utilization of the PLSVs in Brazil and the quarter benefited from higher activity on three of our contracts in Saudi Arabia. We also recorded some progress on the Lingshui 17-2 project in China as Seven Borealis mobilized to the region. Renewables revenue was $241 million, a near four-fold increase compared to the prior year, mainly driven by the ramp-up in activity related to the Seagreen project. Our corporate business unit, which now includes Xodus and 4Subsea, our autonomous subsidiaries, which provide specializing engineering services, generated $20 million in revenue. Subsea and Conventional recorded a $7 million net operating loss in the quarter, compared to a loss of $28 million in the first quarter of 2020, reflecting increased conventional activity in Saudi Arabia and the completion of the Zinia project. This was partly offset by high levels of transit time for the global enabler vessels.
The net operating loss of our Renewables business unit was $20 million, in line with the first quarter of 2020. Progress on Seagreen continued as planned, but was offset by bad weather affecting Seaway Yudin in Taiwan, Seaway Strashnov undergoing maintenance in shipyard, and the transit of both Seaway Aimery and Seaway Moxie to the North Sea. In the Corporate business unit, net operating income of $18 million reflected the $18 million credit relating to the resizing program I mentioned when discussing the previous slide. Slide 10 shows our cash flow waterfall chart for the quarter. Net cash generated from operating activities was $71 million, despite a $25 million adverse movement in working capital, driven by a combination of reduced operating liabilities and a minor increase in operating receivables. There has been no deterioration at this juncture in client payments.
Our capital expenditure was $24 million, including payments related to the conversion of Seaway Phoenix, dry docking costs associated with the Seven Falcon, and continued investment in the group's digitalization program. At the end of the quarter, we had $527 million in cash and cash equivalents, an increase of $15 million from the end of 2020. Our net cash position improved to $74 million, including lease liabilities of $251 million. Our capital allocation strategy remains unchanged, you are familiar with our three priorities, reinvesting in the business, protecting the balance sheet, and returning excess cash to shareholders. After approval from our shareholders at our EGM held on the 14th of April, the board reaffirmed its commitment to returning excess cash to shareholders by extending the authorization to repurchase shares until April 2023. $190 million of the current $200 million program is outstanding.
To conclude, slide 12 shows our guidance for the full year. Guidance for 2021 remains largely unchanged since the last update in February. Subject to the impact of COVID-19, we continue to anticipate revenue and adjusted EBITDA to be above 2020 levels with positive net income. Net operating income. The financial impact of COVID-19, including the rate of recoveries from clients, remains very difficult to predict. The operational challenges have not diminished since 2020, and it is possible that going forward, the quarterly charge could revert to levels reported in Q2 and Q3 last year. We have made a minor adjustment to our guided tax charge range, which has been revised upward $10 million, mainly to reflect increased tax burdens in certain jurisdictions. I'll now pass you back to John.
Thank you, Ricardo. On slide 13, we revisit the summary of our two-pronged strategy comprising Subsea Field of the Future Systems and Delivery, and a proactive participation in the energy transition. Today, we'll take a closer look at the progress we've made in the first quarter in emerging energy and in Renewables. Turning to slide 14. We were very pleased to win our first carbon capture award during the quarter, a part of Equinor's Northern Lights projects in Norway. Subsea 7 will be responsible for the engineering, fabrication, and installation of a pipeline running 100 km from shore to the offshore field, where carbon dioxide emitted by cement and waste to energy operations will be permanently sequestrated. The project plans have an initial capacity of up to 1.5 million tons of CO2 per year, and it will be operational in 2024.
The carbon capture market is expected to grow significantly in the coming years as governments increase their targets to cut CO2 emissions, and we are well-placed to seize the opportunities that this will bring. Moving to slide 15 and the latest progress in our renewable strategy. During the quarter, we announced a new joint venture with Simply Blue Energy for the Salamander floating offshore wind project in Scotland. Subsea 7 has taken a minority stake in this pre-commercial 200 megawatt project and will bring to the joint venture its expertise in delivering offshore energy projects and its knowledge of the Scottish supply chain. Simply Blue Energy will bring its floating wind development experience from the Xodus has been supporting the project from inception and will continue to work with the project to deliver the concept in readiness for acquiring a lease from Crown Estate Scotland.
This is our third involvement in a floating wind project after Hywind Scotland and Hywind Tampen, and will help ensure that Subsea 7 develops a strong position from which to capture a share of this promising long-term growth market. On slide 16, we have a view of the outlook for prospects in the coming 12 months. The level of tendering activity has improved during the quarter, although it remains focused on the three key regions with advantaged economics, Brazil, Gulf of Mexico, and Norway. The number of prospects in Brazil has increased with Mero-3, Mero-4, Buzios-6, Buzios-7, and Buzios-8, BM-C-33, Gato do Mato, and Lapa Southwest, all expected to be bid in the next year. In addition, we expect a tender for the various packages of Petrobras' rigid riser replacement program, whilst our tender for the PLSV contracts has already been submitted.
We continue to expect the conversion of our FEED contract on Bacalhau to full EPCI by mid-year, subject to FID by the client. In Norway, we've increased the size of our early engagement team to handle the high levels of FEED work. We anticipate that this will lead to tenders for EPCC contracts in 2022 as clients take advantage of the government's tax incentives for new developments. The prospects include a portfolio of projects for Aker BP, for which we are the preferred supplier. In other areas of the world, the prospects remain patchy. We have seen some slight improvement in Saudi Arabia. Having restarted offshore activities there, new prospects such as Zuluf have emerged. In Renewables, we are seeing good long-term opportunities in Europe and Asia. The tendering for projects in the U.S. market is now active.
We anticipate these to be awarded to the industry from late 2021 onwards. To conclude, we'll turn to slide 17. After the first three months of the year, Subsea 7 remains in a strong position with a robust backlog of $6 billion and net cash on the balance sheet. The number of prospects in the oil and gas market is picking up in key regions, improving the outlook for offshore activity from late 2023 onwards. In the interim period, our cost reduction plan is designed to optimize our fleet utilization. We're also actively pursuing a number of offshore wind prospects, including those in the U.S. Overall, our strategy to be a market-leading, diversified energy services company leaves us well-positioned to capture a recovery in the oil and gas market.
In parallel, we'll continue to build on our strong position in the high-growth fixed and floating wind markets, as well as the carbon capture market. Now we'll be happy to take your questions.
Thank you. We now begin the question and answer session. As a reminder, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press the hash key. Once again, please press star one if you wish to ask a question. We are taking our first question from the line of Michael Alsford at Citi.
Hi there. Good afternoon. Thanks for taking my questions. I've got a couple if I could please. Just firstly on vessel utilization, clearly you commented on the fact that there was a number of vessels that were in transit, and there was a couple of operational issues. Can you talk a little bit more about how you see vessel utilization trending in the coming quarters, and maybe a little bit more elaboration on what you're doing from the cost side to reduce the fleet and manage the utilization while you're waiting for the award inflow to come through, and more activity in 2023? Secondly, just on the treatment of the $18 million credit in 1Q, could you just talk a little bit more about exactly what that relates to? Thank you.
Thank you, Michael. I'll take the first, and I'll ask Ricardo to take the $18 million credit question. As we mentioned, a lot of our global enablers were in transit during the quarter to position themselves for this year's campaigns. We do expect the utilization to pick up in quarter two and quarter three. As we also mentioned, the Seven Vega had to do some repairs in the first quarter, so we've reallocated some of its project activities onto some of our other reelers. Again, we are seeing a higher level of utilization on the reeled pipelay vessels this year as well. I think as we normally see, first quarter relatively quiet. It's picking up as we expect. We're pretty clear we've got all the work we need to do this year.
It's now about liquidating the work that we have this year. We do see, though, that the lack of awards in 2020 and early 2021 will need to mean that we will continue to have to reshape the fleet going into 2023. At the end of the season, we will again shape the fleet to get it to be the right size and scale into 2022 and into 2023. As I mentioned, we expect to see these awards that will be in the market in Q2 and Q3 and Q4 this year, leading to quite significant uptick in the work in mid 2023 onwards. I'll ask Ricardo to talk about the makeup of the $18 million credit.
Good afternoon, Michael. Consistent with our approach in 2020, we have commented on all adjustments to the restructuring reserve, which we took in Q2 last year. We have always commented on those adjustments within the interim management reports that support the press release. In Q1, we benefited from two adjustments to the reserve. The first was a downward revision to our redundancy costs after reassessing our resource needs, something we've been doing every quarter, and that was about $4 million. The second item was the unexpected payment of a client receivable that has been outstanding for several years, and that was approximately $14 million. I hope that clarifies.
That helps. Thanks, Ricardo, and thanks, John.
We're taking our next question from the line of Frederik Lunde at Carnegie.
Yes. Hi. I was wondering if you could comment on how you see 2022 shaping up. Obviously, backlog coverage has improved, but there's still the question of how incoming orders will sort of impact utilization next year. You alluded to late 2023 as more the base case.
Yeah. Thank you, Frederik. For us, and I made it in my prepared comments that as we stand today, we've got $1.9 billion for 2022, and we had $1.9 billion of work on the books at this time last year and the year before. The ratio between Renewables and Subsea and Conventional is slightly different. I think for us, we expect to see that we will be building backlog during this year, but a lot of that backlog will be for work that will go offshore. Bacalhau is a 2023 project offshore. We would expect Scarborough, which is a 2023, 2024 project. Brasse, which we've just taken back through FID with our client and is on our books now, will be also late 2023, 2024.
The reason we're flexing our fleet is just to get the size right for 2022, and then be ready then to expand it back out again as we pick up in 2023. I think our backlog coverage overall will be in a good place at the end of the year, and we don't see any real change. As I talked in outlook, we can see quite an acceleration of a number of prospects in Brazil. We see that Norway will also be pushing ahead. We expect to see backlog building up, and let's see how 2022 plays out in the next few quarters.
Okay. Thank you.
We're now taking our next question from the line of Amy Wong at UBS.
Hi, good afternoon. A couple of questions from me, please. The first one is just a bigger picture on your higher tendering levels that you're seeing, particularly in your oil and gas business. What are you seeing in terms of competitive behavior? How many number of competitors are tendering for these projects, and help us understand how that compares to maybe like the pre-pandemic levels. Thank you.
Thank you, Amy. I think what we're seeing is that certainly the flow of opportunities in Brazil is growing, which is a very positive sign. I read the list of all the bids that we expect to see in the next 12 months. In our discussions with Petrobras, there's another group of projects to come behind those as well. As you know, in Brazil, it's an opening tendering type environment, but we would expect to see our usual suspects on those bids. These are major projects. Mero-3 and Mero-4 are pretty much identical in size. Each of these projects will soak six to eight months of a pipe layer up on each one. We're quite excited by what we're seeing.
The other thing that's very interesting, there is a riser replacement bid which the market wasn't aware of, which has come out already this quarter, which is to replace some flexibles which are failing with steel risers. There's more than one of those packages due to be bid over the next two years. We do expect to see, and the PLSV renewal came out quicker than most of us saw. I think we will see Brazil, and it'll be ourselves and the usual two suspects in that list. In terms of Norway, we feel in a strong position in Norway. We're the market leader in Norway for that work. We're in good dialogues with our main clients in Norway.
As I mentioned in my prepared remarks, Aker BP have a very ambitious slate of projects that they would like to try to get sanctioned by the end of 2022. Again, we're part of the alliance that does all Aker BP's work. Again, we're feeling strong, well-positioned on those. The last area we do well is the Gulf of Mexico. In the last few years, we've done over 50% of the work in the SURF world, and we're feeling very strong there as well. For us, what's been very good for us is that the recovery in the markets are areas that we feel strong about and we're very well positioned in. We remain optimistic that we will always get our fair share of the market there. This bodes well for late 2023, 2024 and 2025.
It's really just trying to work out how all this will fit together is on our minds at this stage. We've priced Mero 3. That's in the market today. The PLSVs are priced. We'll see how the market reacts and who wins the different packages associated with that. We'll see then the other packages such as Buzios 7 and the riser package going in this quarter, and then a series of other bids going in in Brazil. Norway is slightly different. Most clients are doing early engagement work to optimize the fields, the designs, the layouts, the cost efficiency of those projects. We'd expect those to go to sanction in 2022.
That's very good color. Thank you very much for that. A quick follow-up, if I may. Going back to your corporate division, there's the $18 million credit in there. My question is, if you disregard the credit, I mean, they still suggest that their corporate division would break even in the quarter, and that compares to a normal underlying, like you usually mid to high single digit corporate loss or expense in that division. Could we read that as improvement in your Xodus and 4Subsea businesses, or how should we interpret that break-even underlying result?
Amy, I'll ask Ricardo to answer that.
Hello, Amy. As you know, we've reorganized our business units such that Xodus and 4Subsea are now included in the corporate business unit. These autonomous subsidiaries are inherently profitable and do make a contribution. I would warn you that the corporate activities will also include restructuring provisions and adjustments as and when they occur, potentially including impairments, as well as differentials between allocated costs and underlying costs of our corporate overhead. Please don't assume that the profitability or lack of it within corporate is attributable to the two subsidiaries. They're just a part of a bigger equation.
Amy, just to pick up on, as Ricardo said there, the reason we put them into corporate is that those two divisions work equally across our energy transition Renewables business and our oil and gas business. They're both growing. They're both expanding. We're both hiring. We're hiring people in both areas. They provide some fantastic insights into how these markets are developing. As I mentioned in my prepared remarks, the Salamander project and our discussions with Simply Blue started through work that Xodus had done for that developer. Again, these are very good, profitable businesses for us, and we expect quite a bit of growth in those sectors over the next few years.
Thank you very much for that.
We are taking our next question from the line of Nick Constantakis at Exane.
Hi, guys. Thanks for taking my questions. A few if I could, please. Starting with the PLSVs, we've seen the different categories and different rates bid there. It's kind of a complicated process. Could you just explain to us if you had any more discussion with Petrobras, how many vessels they look from each category? I guess to go directly to the question, what would be your expectations of how many vessels would you keep in the country in the future? Secondly, on CCS. Congrats on the Northern Lights awards. I was wondering if you have any addressable market estimates for us considering the growth that we're seeing there. If I can squeeze a last one through, apologies if you have talked about this before, around Salamander and the equity stake, is that something you would like to keep doing going forward?
Do you think it brings something in terms of you securing some work? Would you be looking to farm down before the startup of a project once it's risked? Thank you.
I'll take Salamander first, and then I'll answer your other two questions. Yeah, the intention is that there will be a farm down on that before it sanctions in 2025. It goes for its CFD in 2025. For us, it's a new sector. It's a new area for the industry. It's also to work with a developer such as Simply Blue, which have a successful track record on their other projects in floating wind to understand the economic dynamics and the development dynamics that come there. Some of the elements like concept selection, which will come later. To understand the moving parts of the business, because if we intend to grow in that business, understanding that, but the aim would be that there would be a farm down in that before it finally sanctions.
In carbon capture and storage, I think it's early days, but we were doing a review internally earlier this week on the U.K. government's plans for carbon capture. You can see, for example, the U.K., which is one of the more proactive governments moving ahead with carbon capture plans, that there are regional plans around Humberside, Teesside, the North West and South Wales, for government to spend money on reducing carbon emissions there. There are projects around that area which will need an infrastructure offshore, similar to a Northern Lights type project. What we're interested in is our view, Nick, is the world will go that way. More carbon will be captured, more carbon will be sequestrated offshore.
We don't have a fixed market in mind, but being a first mover and involved in these projects and just you're in the ecosystem with the carbon capture technology that's fitted onshore. You're working with the clients on the reservoir and everything offshore, and you're part of that system is what this is about for us at this point, to become knowledgeable and a relevant provider of services there. It's been fascinating to look at the U.K. market and how that fits together. Again, market size will be developed. Lastly, on the PLSVs, you're right to say the bid is complex. You tried bidding it. It was complex, but we did it, and I think that it's fair to say that Petrobras have not declared how many ships they want in each category.
There are 5 categories, as you know, public opening, and we know where our ships are in each of those categories. We're very comfortable with our bids, and we expect that Petrobras, over the next six to eight weeks, will make their decisions. We'd expect the reward either late Q2 or early Q3 on that. That's all I can say at this point.
Thank you.
We are taking our next question from the line of Vladimir Sergievskiy at Bank of America.
Yes. Hi, gentlemen. Thanks for taking my questions. First one on the order intake. 0.8x book-to-bill in Q1, you are pointing to increasing tendering activity for the rest of the year. Is it feasible to achieve 1x book-to-bill or above for this year? That's the first one, and the second one on wind profitability. A bit was set back in Q1 compared to the second half of last year. In light of that, are you still expecting to make progress this year in the direction of your 10% margin target for wind? Thank you.
Thank you, Vlad. Two very good questions. Renewables in Q1 was really about the fact that most of our assets weren't working in Q1 in Renewables. Our two cable layers were offloading cables in Taiwan, which we couldn't install because of access issues, which we discussed to the market before, and then returning to Europe, to be ready for Hornsea 2. The Yudin stood by on weather. We're now working in a weather window, which we hadn't contracted with originally, and we're in discussions with our clients on that. Ourselves and most of the other contractors did very little work in Taiwan through a very rough winter there. Lastly then, the Oleg was on maintenance. Really, the drag in that period was really about the four assets not getting much recoveries. Seagreen, though, has gone very well and continues to do well and is profitable.
We'd expect we'll be back on Hornsea. In fact, this week we start on Hornsea. Our ships will be laying cables, and they're pretty well full for the rest of the year. We're seeing the weather start to come down, we expect the Yudin to be working in Taiwan for a part of this year. Then the Oleg will start its campaigns in Europe quite soon. We do expect this on Seagreen. We expect to make progress on the first offshore phase on Seagreen will be the back end of this year. We do expect just to make progress along that path that we talked about on our Investor Day in September.
In terms of book-to-bill, as we've mentioned, we would expect to see projects where we are already nominated as the preferred bidder, hopefully turn to sanction this year, such as Bacalhau and Scarborough. We would also expect to see some of these awards in Brazil, such as the PLSVs and some of the Buzios Mero portfolio turn to backlog for ourselves. We'd expect to get a reasonable share of that this year. The main question is really the timing of the big American awards. These are very large projects in the U.S. with quite some ambitious timelines. Whether some of those will be awarded early Q1 next year or the back end of this year is on our minds at this point. At the moment, directionally, we're heading towards where we want to be for the year.
It'll just be how those big renewables projects in the U.S. land and get sanctioned.
Thanks very much, John. If I can squeeze another quick one here. You mentioned some small delay on BP's Mad Dog project. Would you be able to give us color on the financial impact of this one in Q1, and whether any financial effects are still in your way to Q2 as well or not? Thank you.
Yeah. Sorry, just to correct you there, Vladimir, it's BP Manuel, which was the project that we had the issue with the Vega on, because we had to do the repairs on the Vega post the storm damage. That's been delayed. We reallocated the delayed work to our other reelers, as I mentioned in my prepared remarks. We've planned that around this year. I don't believe there's a significant impact on that. There is some logistics issues that we have in terms of pulling that together. We're working now, and all the pipe layers are doing the jobs as we plan them for the year at the moment.
Super. Thanks very much.
We're taking our next question from the line of Mark Wilson at Jefferies.
All right. Thank you for taking my question. I'd just like to ask on the book-and-turn side of the awards in 1Q, it's been a very strong book-and-turn additions for revenue this year, about $400 million. Given you did about $1 billion, you've got $3.4 billion for the rest of the year. Given your comments on projects you're viewing, like Bacalhau and in Brazil, one would imagine the chance of adding additional book-and-turn of about that amount through 2021 is quite likely. I was just wondering about the revenue guidance staying at higher than 2020 when you've arguably got visibility on quite significantly higher than that, certainly if we assume some more book-and-turn.
I think, Mark, the way we look at it, we're reasonably okay for this year. We're comfortable that we've got the work to liquidate this year. Any of the new work that will come in will probably not have a material impact on this year other than the projects we know that are going to be in, such as Bacalhau and Scarborough, that we expect to be in this year. I think that in terms, all of this is for execution in later years, so we don't expect to see this year really pushing up much higher than this. I think, it's the speed at which the Brazil projects may get turned into awards is the only thing that's not clear to us at the moment.
I think it's caught us a little bit as an industry on the hop with the amount of bids coming out, but we're not planning on that at this stage.
Okay, thanks. On the back of that, John, just maybe explain what was specific about one Q awards that so much of it falls in 2021, but the rest of the year is less likely to.
That's a good question. I think, not clear to me, sorry. Could we have the question again, sorry?
Well, in your answer there, you seem to suggest that awards in the rest of the year shouldn't really change your revenue backlog for this year.
Yeah.
The won Q awards, about half of that actually is falling as 2021 revenue. I'm just wondering why those won Q awards were so short cycle for quite a large part, but the rest of the year, what you win, you won't see a decent short cycle revenue addition to this year.
Yeah. There's one project in there where we're buying some long lead materials which go through our books this year. There's some material to be ordered on those which have an impact on this year.
All right. Very clear. Thank you very much.
There are no further questions on the line. Please continue.
Well, thank you very much. We appreciate you joining. We know it's a very busy day today with many companies reporting. Thank you very much for your continued interest in Subsea 7 and your very probing questions. Hopefully, we've answered them. If there's any further questions, please let Katherine know, and we'll try to give you an update on Q2. We look forward to talking to you then. Thanks a lot.