Edition:
United States

Subsea 7 Q3 EBITDA beats forecast, sees lower 2019 EBITDA vs 2018


Thursday, 8 Nov 2018 02:00am EST 

Nov 8 (Reuters) - Subsea 7 SA ::SUBSEA 7 Q3 ADJUSTED EBITDA $217 MILLION (REUTERS POLL $210 MILLION).SUBSEA 7 SA: TENDERING AND AWARDS ACTIVITY SHOWED CONTINUED RECOVERY FOR OIL AND GAS MARKET AND MARKET GROWTH FOR RENEWABLES.SUBSEA 7 BACKLOG AT END Q3 $5.1 BILLION VERSUS $5.4 BILLION AT END OF Q2 (REUTERS POLL $5.08 BILLION).SUBSEA 7 SA: NEW GUIDANCE FOR 2019 FORECASTS REVENUE AND ADJUSTED EBITDA LOWER THEN 2018, WITH GRADUAL RECOVERY EXPECTED FROM 2020.SUBSEA 7 Q3 REVENUE $1.08 BILLION (REUTERS POLL $1.10 BILLION).SUBSEA 7 Q3 EBIT $111 MILLION (REUTERS POLL $107 MILLION).SUBSEA 7 Q3 NET PROFIT $76 MILLION (REUTERS POLL $76 MILLION).SUBSEA 7 SA: REVENUE IN 2019 IS EXPECTED TO BE SLIGHTLY LOWER THAN SUBSEA 7’S GUIDANCE FOR 2018 DUE TO A REDUCTION IN OUR RENEWABLES AND HEAVY LIFTING ACTIVITY.SUBSEA 7 SA: ADJUSTED EBITDA IN 2019, INCLUSIVE OF THE POSITIVE IMPACT FROM THE ADOPTION OF IFRS 16, IS EXPECTED TO BE LOWER THAN 2018.SUBSEA 7 SA: THE GROUP EXPECTS TO ACHIEVE A DOUBLE-DIGIT ADJUSTED EBITDA PERCENTAGE MARGIN AND POSITIVE NET OPERATING INCOME FOR THE YEAR.SUBSEA 7 SA: POSITIVE MOMENTUM IN TENDERING ACTIVITY HAS CONTINUED IN ALL THREE OF SUBSEA 7’S OPERATIONAL BUSINESS UNITS BUT PRICING ON NEW AWARDS REMAINS UNDER PRESSURE, PARTICULARLY FOR SHORT-CYCLE PROJECTS.SUBSEA 7 SA: GUIDANCE IS UNCHANGED FOR THE FULL YEAR 2018 REVENUE AND ADJUSTED EBITDA PERCENTAGE MARGIN.