Oil services company, Subsea 7 has recorded a net income of $147 million in the Q1 2016 compared to $151 million in the Q1 2015.

During the quarter Subsea 7 released one chartered vessel and stacked two owned vessels, including Seven Waves which returned to Europe for extensive repairs following damage to the lay-tower.

As at March 31, 2016 there were 38 vessels in the total fleet, which comprised 27 active vessels, seven stacked vessels and four vessels under construction.

The vessels under construction include Seven Sun and Seven Cruzeiro, due to start operations for Petrobras in Q2 and Q4 2016. Other two vessels include Seven Arctic and Seven Kestrel due to begin operations in Q2 2016.

Subsea 7 reported revenue of $746 million in the first quarter, 37% lower than the prior year period, due to the reduction of SURF project activity worldwide.

Adjusted EBITDA was $284 million with an Adjusted EBITDA margin of 38%, which was significantly higher than 2015 despite the lower revenues.

“The outlook remains challenging and the timing of new contract awards is still uncertain as clients continue to postpone capital investment decisions in the current market environment,” said Jean Cahuzac, CEO of Subsea 7.

“Full year 2016 revenue is expected to be significantly lower than in 2015 and Adjusted EBITDA percentage margin is expected to be lower compared to 2015. In this context, additional cost reduction measures will be implemented during the year,” he added.