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Subsea 7 SA (SUBCY.PK)

SUBCY.PK on OTC Markets Group

15.28USD
26 May 2017
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Latest Key Developments (Source: Significant Developments)

Subsea 7 CEO says Q1 margin level not sustainable in short term
Thursday, 27 Apr 2017 07:30am EDT 

April 27 (Reuters) - Subsea 7 CEO Jean Cahuzac told a conference call on Thursday::The earnings margin level the company achieved in Q1 is not sustainable in short term."We are going to see pressure on the margin, however we are able to optimise our margins via cost savings and more efficient execution".  Full Article

Subsea 7 now says 2017 margin to be "lower" vs earlier "significantly lower"
Thursday, 27 Apr 2017 02:12am EDT 

April 27 (Reuters) - Subsea 7 Sa :Q1 adjusted ebitda of $268 million, at a margin of 30%, resulted from strong operational performance and continued cost discipline.New awards totalled $626 million and included the mad dog 2 project that was awarded on an integrated basis with onesubsea, a schlumberger company.Our early engineering activity has increased and we expect this trend to continue as the market recovers in the future.Says we anticipate additional renewable energy project awards to market as the economics of offshore wind farms continue to improve.Subsea 7 guidance for the full year has been updated to include the consolidation of seaway heavy lifting for ten months of 2017. Revenue for 2017 is still expected to be in line with 2016..Adjusted ebitda percentage margin for 2017 is expected to be lower than the record level reported in 2016. In March the company predicted "significantly lower" 2017 margin.Assuming a sustained oil price improvement and that cost reductions identified by the industry are consistently achieved, there is still cause to believe that the number of surf project awards to the market could increase within the next 12 months..Subsea 7 backlog at end q1 $5.7 billion versus $5.7 billion at end of q4.  Full Article

Subsea 7 buys back convertible bonds totalling $55.0 mln
Friday, 7 Apr 2017 02:00am EDT 

Subsea 7 Sa : Subsea 7 s.a. Repurchase of convertible bonds .It has bought bonds totalling usd 55.0 million in nominal value at an average price of 99.40 of the USD 700 million 1.00% Subsea 7 S.A. Convertible Bond Issue 2012/2017 (ISIN NO 001 066 116 8).  Full Article

Subsea 7 buys remaining 50 pct of Seaway Heavy Lifting
Monday, 13 Mar 2017 03:00am EDT 

Subsea 7 Sa : Subsea 7 announces acquisition of Seaway Heavy Lifting . Today announced acquisition, from K&S Baltic Offshore (Cyprus) limited, of its 50 pct shareholding in Seaway Heavy Lifting Holding Limited . Following signing and completion, after close of business on 10 March 2017, Seaway Heavy Lifting and its subsidiaries became wholly-owned by Subsea 7 . Our investment to acquire remaining shares in Seaway Heavy Lifting, such that it becomes a wholly-owned subsidiary of our group, is aligned with our strategy to grow and strengthen our business for long-term . Consolidating Seaway Heavy lifting into the group increases our participation in renewables, heavy lifting and decommissioning services . Group will report revenues and net operating income from Seaway Heavy Lifting within a new business unit 'renewables and heavy lifting' .This new reporting structure will be reflected within group's q1 results, which will be announced on 27 april 2017.  Full Article

Subsea 7 says continues to view share buybacks as a flexible option
Thursday, 2 Mar 2017 08:03am EST 

Subsea 7 Chief Financial Officer Ricardo Rosa said during a call with analysts on Thursday: continues to view share buybacks as a flexible option . share repurchase program is valid through July 2017 . "We are constantly evaluating the flexible option (to return cash to shareholders) that repurchases represent" Further company coverage: [SUBC.OL] (Reporting By Nerijus Adomaitis) ((nerijus.adomaitis@thomsonreuters.com;)).  Full Article

Subsea 7 plans special dividend; Q4 core earnings beat forecast
Thursday, 2 Mar 2017 02:00am EST 

Subsea 7 Sa : Says a special dividend of NOK 5.00 per share to be recommended to shareholders . Says special dividend reflects excellent operating performance and resulting strong financial and liquidity position . q4 operating revenue $932 million (Reuters poll $934 million) . q4 adjusted EBITDA $288 million (Reuters poll $187 million) . guidance for the full year 2017 is unchanged, revenue is expected to be broadly in line with 2016, supported by current backlog . q4 net loss $13 million (Reuters poll profit $48 million) . Total vessel utilisation for the fourth quarter was 65% compared with 62% for Q4 2015, active vessel utilisation, which excludes stacked vessel days, was 78%. . Adjusted EBITDA percentage margin is expected to be significantly lower than that achieved in 2016 . Says lower EBITDA margin expectation reflects lower margins from projects tendered during the market downturn, fewer large projects in the final stages of execution and a higher proportion of procurement costs . Says expects a gradual recovery of oil and gas field development activity as the market stabilises . Says it has a cause to believe that the number of SURF project awards to the market could increase within the next 12 months .Says is seeking to expand its presence in renewable energy.  Full Article

BRIEF-Oil services firm Subsea 7 posts better-than-expected Q2 results
Thursday, 28 Jul 2016 02:42am EDT 

Removes mention of $100 mln charge in 8th bullet point, adds it to 5th bullet point.: Q2 operating revenue $961 million (Reuters poll $1.0 billion) . Adjusted EBITDA $280 million (Reuters poll $191 million) . Backlog at end Q2 $7.1 billion (Reuters poll $6.95 billion) . Subsea 7 Q2 net profit $136 million (Reuters poll $46.4 million) . Q2 adjusted EBITDA included a $53 million restructuring charge related to group's global resizing and cost reduction measures. The restructuring charge for the full year is expected to be less than $100 million . Says sustained downturn in oil company expenditure continues to result in low industry activity and timing of new awards to market is still uncertain . Early discussions with clients are taking place more frequently on solutions to offset decline rates in production of existing fields through extended tieback and marginal field developments in various locations worldwide . Subsea 7 says to cut costs further, resizing is expected to deliver annualised savings of approximately $350 million. .Workforce to be reduced to about 8,000 employees by early 2017 from about 9,200 at the end of May.  Full Article

Subsea 7 says to cut 1,200 jobs, reduce cost by $350 mln
Wednesday, 22 Jun 2016 05:02am EDT 

Subsea 7 : announces staff and cost cuts . In view of continued difficult business and economic conditions in oil and gas market, a second phase of global resizing and cost reduction measures will begin in 2016 . Plans to resize its global workforce to approximately 8,000 by early 2017, down from the current level of 9,200 . Consultation with employees and employee representatives will take place on a local basis and consultation processes have begun in Norway and UK . Expected to deliver approximately usd 350 million in annualised cost savings . Charge related to resizing will be recognised in 2016 and is expected to be less than usd 100 million . Up to five vessels are scheduled to leave the current active fleet by early 2017, based on stacking owned vessels and returning chartered vessels when existing contracts expire . With effect from 1 July 2016, group will change structure of its organisation . Reduction in size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through oil price cycle .We remain confident in long-term future for deepwater oil and gas production.  Full Article

Subsea 7 comments on FY 2016 guidance
Thursday, 28 Apr 2016 02:00am EDT 

Subsea 7:Says FY 2016 revenue is expected to be significantly lower than in FY 2015 and adjusted EBITDA percentage margin is expected to be lower compared to FY 2015.  Full Article

Subsea 7 wins North Sea contract in $50-150 mln range
Monday, 25 Apr 2016 02:00am EDT 

Subsea 7 SA:Subsea 7 awarded contract offshore UK.Announced award of a sizeable engineering, procurement, installation and commissioning (epic) contract by apache North Sea, as part of the Callater field development, located 335km north east of Aberdeen.The company defines a sizeable contract as being between USD 50 million and USD 150 million.Project management and engineering work will commence immediately from Subsea 7's offices in Aberdeen, with offshore activities planned for the first quarter 2017.The contract work scope covers the project management, engineering, procurement, construction and installation of a 4km, 45" Pipeline Bundle system consisting of production lines, and power and supply services.It also includes the installation of a 13km electro-control umbilical, associated structures, field testing and pre-commissioning works.  Full Article

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