Conventional oil and gas work continues to lead the way for Subsea 7.
The Oslo-listed offshore player said on Thursday that it recorded a $36m profit for the three months ending on 30 September, up from nothing for the same period last year.
For the third quarter of 2023, revenue came in at $1.6bn, up from $174m year-over-year, $1.3bn of which was from oil and gas work and $269m from renewables.
“The group is on track to meet guidance for the full year 2023,” chief executive John Evans said in the earnings release.
“During the quarter, good operational progress was made on key projects in both subsea and conventional, and renewables, including early activity on the backlog of higher-margin contracts.”
Evans added that tendering levels remain high with contract visibility extending into 2025 and beyond, with its ships operating in the oil and natural gas space competing for work into 2026.
For offshore wind, Subsea 7 said its foundation and cable lay vessels were nearly sold out through 2025 despite issues in the UK and US markets that pushed Orsted to suspend wind projects offshore New Jersey.
Subsea 7 said there was still plenty of work in the Netherlands, Germany and Poland.
The increased tendering activity boosted the company’s chartering backlog by $2.1bn to $10.8bn, consisting of $1.4bn in new awards and $700m in contract escalations.
Of the $10.8bn, $1.7bn will be executed in the fourth quarter, $4.8bn in 2024 and $3.2bn in 2025.
For full-year 2023, the company expects revenue to come in higher than the $5.1bn earned in 2022, with administrative expenses growing from $245m to between $255m and $275m.
It expects to record adjusted Ebitda in excess of the $559m earned last year, with net operating income in line with 2022’s $149m.
