Subsea 7 today posted flat year-on-year revenue.
The company’s adjusted earnings before interest, tax, depreciation and amortisation declined by 13% year-on-year in the quarter to $250 million.
However, the firm’s earnings were cushioned by an uptake in renewables work.
Chief executive Jean Cahuzac said the firm’s projects landscape is shifting.
“Our project portfolio composition is changing as we complete the remaining SURF projects that were awarded prior to the downturn,” he said.
“Major awards to market in the last three years have been more price-competitive and relatively few in number. As a result of the change in our mix of activity, our Adjusted EBITDA percentage margin has begun to decline from the exceptionally high levels reported since the second half of 2015.”
The group has a strong financial and liquidity position with cash and cash equivalents of $1.5billion and net cash of $877million.
Subsea 7 has committed in the third quarter to invest up to $300million in a new-build reel-lay vessel, with expected delivery in 2020, timed to meet a projected increase in offshore activity. This vessel will install complex pipe-in-pipe systems,including Subsea 7’s proprietary Electrically Heat Traced Flowline, which enables long-distance tie-back developments.
Active Vessel Utilisation was 78% in the third quarter and Total Vessel Utilisation was 69%.
Several SURF projects were substantially completed in the third quarter including the Clair Ridge, Callater and Western Isles projects,offshore UK, and the Stampede project in the US Gulf of Mexico. The firm also made “good progress” on the Beatrice windfarm project with almost all the piles installed by the quarter end. Installation of the wind turbine jackets by the heavy lift vessel Oleg Strashnov commenced in August and 24 jackets had been installed by the end of September.
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