Subsea 7 Net Income Rises

Subsea 7, a UK-headquartered offshore oilfield services provider, today reported net income for the 4Q 2012 of USD 149 million, an increase when compared to the same period in 2011, when the company reported a net income of $107 million. The revenue increased to $1,6 billion, compared to $1.4 billion in 4Q 2011.

Jean Cahuzac, Chief Executive Officer, said that the results are in line with the company’s expectations.

For the full year 2012, the company reported income of $847 million, up from $451 million in 2011.

In the light of continued strong performance, the strength of the balance sheet and confidence in the company’s business, the Board of Directors has recommended that shareholders approve the payment of a special dividend of $0.60 per share at the next Annual General Meeting on 28 June 2013.

“The Board of Directors has stated that it will continue to prioritise value-adding investment opportunities and has reaffirmed its policy of returning excess cash to shareholders either in the form of share buy-backs or dividends,” Cahuzac added.

 Outlook

“Levels of tendering remain strong and we remain positive about the medium and long-term market prospects. As we have previously highlighted, delays in project awards and supply chain bottlenecks will temper the rate of progress in 2013. Nevertheless, we expect both revenue and Adjusted EBITDA to show some progress although higher depreciation, finance costs and effective tax rate will negatively impact earnings per share,” Cahuzac said.

Capex

Subseq 7 has said that the company’s Capex for 2013 will be $750-850 million comprising:- $425-475 million operating capex and; $325-375 million committed to the construction or acquisition of vessels: Seven Waves, Seven Sisters, Seven Falcon, new build Dive Support Vessel.

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