Deepwater subsea engineering firm Subsea 7 managed to stave off further pre-tax losses for the first quarter of 2019 thanks to modest revenue growth.
The company experienced a pre-tax loss of £22 million in Q1 for this year, a slight improvement on £22.4m loss for the same period in 2018.
Revenues rose at the firm from £620m in 2018, to £558m for the first period of 2019.
Subsea 7 attributed the revenue growth to increased operations offshore Africa, Norway, the UK and the Gulf of Mexico.
Jean Cahuzac, Chief Executive Officer, said: “Tendering activity remained robust in the first quarter of 2019.
“We continued to experience a steady increase in interest from our
clients to engage early and create the right solutions for SURF projects on both an integrated and stand-alone basis.
“Our strong client relationships and track record of reliable delivery helped us to secure a book-to-bill ratio of 1.3 and three FEED (Front End Engineering and Design) awards that are expected to progress to EPIC projects in due course.
“We are now guiding for 2019 Group revenue to be broadly in line with 2018 as we continue to experience a gradual volume-ledrecovery in integrated and stand-alone SURF projects. Our guidance on Adjusted EBITDA being lower in 2019 compared to the
prior year remains unchanged.
“We have started to see increased pricing on tenders for major new projects, but this will take time to materialise in our financial results due to an anticipated two to three year time lag, on average, between tender, award and execution.”