Subsea 7’s bottom line flipped into the black in the first quarter, in part due to activity in warmer climates.
The Kristian Siem-backed offshore vessel owner reported a $29m profit for the first three months of 2024, reversing a $29m loss for the same period last year.
The company pointed to a $35m increase in operating income, pushing total revenue to $1.4bn as Subsea 7 vessels continued work in Brazil, Senegal, Saudi Arabia and Guyana, driving the year-over-year improvement.
“Tendering activity is high in both the subsea and offshore wind sectors, and we are confident that the group’s differentiated, value accretive solutions and strong, collaborative client relationships position us well to grow the backlog with high-quality contracts at improved margins,” chief executive John Evans said.
Driving quarterly revenue growth
Most revenue continues to come from the owner’s conventional oil and gas business, which drove $1.2bn in revenue for the quarter, a $128m boost from the same period last year, while renewables contributed $179m.
Boosting the top line further was $49m in gains on non-cash foreign exchange movements.
Evans said the company was still on track to deliver its target of $6bn to $6.5bn in revenue for the full year.
“Subsea7 delivered a strong operational and financial performance in the first quarter with adjusted Ebitda of $162m — up 52% on the prior year — and the group is on track to achieve its full-year objectives,” he said.
At the end of the first quarter, the company’s backlog stands at $10.4bn.
In late March, Subsea 7 announced a deal worth as much as $150m each for work on the Baltica 2 wind farm off Poland on behalf of PGE Polska Grupa Energetyczna and Orsted.
Earlier this month, it announced a similar-sized deal with Talos Energy to aid in an offshore oil development in the Gulf of Mexico.
In early trading on Thursday, Subsea 7 shares shot up to NOK 177.50 ($16.17) from Wednesday’s close of NOK 174.80, before cooling to NOK 176.30.
