Subsea 7 braces for coronavirus impact on market
- Business & Finance
Due to the general uncertainty in the world and for the industry caused by the coronavirus and the collapse in commodity prices, UK subsea engineering company Subsea 7 is withdrawing its guidance and outlook statements issued in February 2020.
Subsea 7 said on Wednesday that, while the current year’s results are underpinned by a backlog at year-end 2019 of $5.2 billion, including $3.3 billion for execution in 2020, the dual impacts of the coronavirus and sharply lower commodity prices represent a significant headwind to the pace of the new awards required to meet prior guidance.
In addition, Subsea 7 said it is possible that measures taken around the world to contain the virus may impact the company’s ability to execute existing contracts and recognize revenue in 2020.
According to the company, it has significant liquidity available to weather these challenges, with $398 million cash and equivalents, as well as undrawn banking facilities of $656 million.
The company is currently scheduled to update investors with its first-quarter 2020 results and an updated market view on April 30, 2020.
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