Subsea 7 Hit by Offshore Wind
- Business & Finance
Engineering and construction specialist Subsea 7 has seen red in the fourth quarter 2019 on activity drop in renewables and heavy lift division.
The Oslo-listed firm posted quarterly loss of $129 million, or $45 cents per diluted share, on revenue of $889 million, versus profit of $32 million, or $12 cents per diluted share on revenue of approximately 1 billion same time last year.
The bottom line was impacted by goodwill impairment charge of $100 million related to drop in the offshore wind turbine foundation market.
The company reported adjusted EBITDA and adjusted EBITDA margin for the quarter of $168 million and 19 percent respectively, against $163 million and 16 percent in Q4 2018.
Total vessel utilization was 66 percent, down four percentage points from the prior-year period.
SURF and Conventional revenue for Q4 2019 was $760 million, down 13 percent from Q4 2018.
Revenue for the Renewables and Heavy Lifting division was cut from $82 million in Q2 2018 at $59 million. This division recognized net operating loss of $129 million in Q4 2019 compared to a net operating loss of $13 million in Q4 2018, reflecting the impact of the competitive wind turbine foundations market in the near-term.
Order backlog was $5.2 billion, with order intake totaling $1.1 billion. $4.1 billion is related to Subsea 7 SURF and Conventional business unit.
For the twelve months of 2019, Subsea 7 recognised net loss of $82 million on revenue of $3.6 billion, against profit of $165 million on revenue of close to $4.1 billion compared to the equivalent period in 2018.
The company said it expects its revenue and adjusted EBITDA to be higher than in 2019.
Subsea World News Staff