Subsea 7 Revenue Up But Profit Cut in Half
Oslo-listed Subsea 7 has seen profit cut by close to 50 percent in the quarter ended June 30, 2018 on fewer large projects, lower margins and lower activity levels in some of its business units.
The subsea engineering and construction specialist posted quarterly profit of $74 million, or $24 cents per diluted share, on revenue of $1.16 billion, versus profit of $146 million, or $43 cent per diluted share on revenue of $1 billion in the comparable period in 2017.
The company reported adjusted EBITDA and adjusted EBITDA margin for the quarter of $186 million and 16% respectively, against $340 million and 33% in Q2 2017.
The year-on-year revenue increase was due to higher activity levels in the SURF and Conventional business unit, partially offset by lower activity levels in the Renewables and Heavy Lifting, and i-Tech Services.
SURF and Conventional revenue for the quarter was $842 million, up $228 million compared to Q2 2017.
i-Tech Services revenue for Q2 2018 was $61 million, a decrease of $23 million or 27 per cent in the corresponding period in 2017.
Revenue for the Renewables and Heavy Lifting division was $257 million in Q2 2018, versus $325 million same time last year.
Order backlog was $5.4 billion ($4.5 billion SURF and Conventional), with order intake totaling $1.4 billion comprising new awards, project escalations of $1.3 billion and backlog related to the acquisition of Siem Offshore Contractors.
Subsea World News Staff