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

Share this article

Follow Subsea World News


<< Feb 2020 >>
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1


The Offshore Technology Conference (OTC) is where energy professionals meet to exchange ideas and opinions to advance…

read more >

Oceanology International 2020

Exhibitors from industry, government and research institutions share their knowledge and come…

read more >


The Offshore Technology Conference Asia (OTC Asia) is where energy professionals meet to exchange…

read more >

Shallow and Deepwater Mexico Exhibition and Conference

Shallow and Deepwater Mexico, an offshore oil and gas exhibition and conference is the key center for the international offshore oil and gas community in Mexico. 

read more >