OFFSHORE engineering group Subsea 7 said yesterday that activity levels in the North Sea remained high in the second quarter of 2008.
It added that the market outlook globally was positive, with a major contract award in Africa and high levels of tendering activity providing further support for a strong market until 2012.
During the latest period it worked in the North Sea on Total’s Jura project, for Venture Production on Chestnut, Total’s K5F project, Talisman’s Galley and Claymore developments, for BP on Foinaven, and for StatoilHydro on several contracts.
The company, whose worldwide operations are supported out of Westhill, near Aberdeen, said its new Vigra spoolbase in Norway was fully operational, having begun fabrication for Aberdeen-based Venture’s Grouse, Chestnut P2 and Stamford projects.
Subsea 7 added that inspection, repair and maintenance operations continued under framework agreements with Shell, ConocoPhillips, Total and BP.
It reported second-quarter core earnings above forecast yesterday, with adjusted earnings before interest, tax, depreciation and amortisation of £73.75million in April-June versus £45.5million a year earlier. Revenue for the period was £299.45million, up from £265.85million the year before.
Subsea 7 said its order backlog had shrunk to £1.85billion at the end of June from £1.95billion at the end of March. Since the end of June, Subsea 7 said it had been awarded a £230million contract offshore Africa, and North Sea projects worth about £68.5million.