Subsea 7 Swings to Q4 Profit

Oslo-listed Subsea 7 has returned to profit in the quarter ended December 31, 2017 on no goodwill impairment charges and a higher taxation credit.

The subsea engineering and construction specialist posted quarterly profit of $51 million, or $17 cents per diluted share, on revenue of $1 billion, versus loss of $13 million, or $1 cent per diluted share on revenue of $932 million in the comparable period in 2016.

Higher quarterly results were contributed by the activity increase in renewables and conventional divisions.

Subsea 7 booked no goodwill impairment charges in Q4 2017, compared to a charge of $90 million in Q4 2016, and recognised taxation credit of $32 million in Q4 2017, compared to a taxation credit of $13 million in Q4 2016.

SURF and Conventional revenue for the quarter was $754 million, up $49 million or 7 per cent compared to Q4 2016. Year-to-date revenue ($2.7 billion) was down by $288 million due to lower offshore activities levels.

i-Tech Services revenue for Q4 2017 was $67 million, a decrease of $18 million or 21 per cent compared to Q4 2016.

Revenue for the Renewables and Heavy Lifting division was $181 million in Q4 2017. Full-year was $959 million.

Revenue for the twelve months of 2017 was $4 billion, up 12 percent when compared to twelve months of 2016. Net income year-to-date was $455 million, or $1.36 per share, compared to $418 million, or $1.27 per share in 2016.

Subsea 7’s order intake was $3.3 billion for the full year. The company said its order backlog at the end of December 2017 was $5.2 billion, compared to $5.7 billion same time in 2016. $4.3 billion of the backlog is related to the SURF and Conventional business unit.

The company’s board of directors will recommend to the shareholders that a special dividend of NOK 5.00 per share be paid, equivalent to a total dividend of approximately USD 200 million.

Subsea 7 said its guidance for the full year 2018 remains unchanged. Revenue is expected to be broadly in line with 2017 and adjusted EBITDA percentage margin (27%) is expected to be significantly lower than that achieved in 2017, the company noted.

Subsea World News Staff

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6th Offshore Well Intervention Conference Gulf of Mexico

The Offshore Well Intervention Gulf of Mexico conference (OWI GOM) is returning to Houston, Texas for its sixth year on Wednesday 20 – Thursday 21 November.

Featuring Anadarko, BP, Shell, Chevron, BHGE and Oceaneering, the conference aims to help operators transition to the latest compliance updates, WI systems and business models that enhance safety, quicken well access and improve commerciality.

Across two days, more than 200 delegates, 15 exhibitors and 30 speakers will network together and create solutions to some of the most pertinent industry challenges right now, through a conference programme focused on:

  1. Clarifying compliance updates
  2. Quicker well access and safer well control
  3. ​Understanding HPHT well intervention (systems)
  4. Forecasting well intervention activity, discussing new commercial models and comparing platform options
  5. Best practice riserless well intervention
  6. ​The latest well intervention equipment

For registration, speaking or sponsorship enquiries contact Abigail Clifton on aclifton@offsnet.com; +44 (0) 203 793 8800.

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