Subsea 7’s revenue fell more than US$1 billion in the first nine months of the year, however, the company remains positive that there will be a surge in subsea, umbilical, riser, and flowline (SURF) projects within the next 18 months.
 |
|
Image from Subsea 7. |
In Q3 2016, Subsea 7 posted revenue of US$928 million, a 23% decline from $1.2 billion when compared to Q3 2015 that the company said reflected significantly lower activity levels across the group. When looking at the first nine months of 2016, revenue came in at $2.6 billion, a decrease of $1.1 billion or 29% when compared to 2015’s $3.7 billion. The decrease, Subsea 7 said, was due to significantly lower activity levels in all business units driven by the challenging market conditions within the industry.
“We have delivered another quarter of strong performance despite the continued industry-wide downturn in activity, with good execution across all our market segments and high utilization of our active vessels,” Jean Cahuzac, Subsea 7 CEO said. “We have engaged with clients on 30 potential integrated projects and undertaken eight early engineering studies. Industry conditions remained challenging in the third quarter and there were few awards made to the market. However, assuming the oil price increase over the last nine months is sustained and the cost reductions identified by the industry are consistently achieved, there is cause to believe that the number of SURF project awards to the market could increase within the next 18 months.”
Subsea 7’s active vessel utilization was reported at 91% in Q3, and total vessel utilization was 75%.
During Q3 2016, two vessels left Subsea 7’s fleet in September, with the Seven Petrel sold to a company outside of the oil and gas sector, and the Normand Seven flexible pipelay vessel returned to its owner at the end of its charter contract.
The newbuild Seven Sun pipelay support vessel completed its final commissioning offshore Brazil and started its five-year contract in November 2016.
The company did report progress on several project during the period offshore Europe, and Egypt.
At Statoil’s Aasta Hansteen project offshore Norway, the third seasonal campaign finished with all flowlines and control cables connected, and the subsea infrastructure is now ready to hook up to the SPAR platform when it arrives in 2018.
Also offshore Norway, Wintershall’s Maria and Total’s Martin Linge projects progressed well.
Offshore the UK, the Cairn’s Catcher project neared completion with the installation of a technically complex riser system comprising 10 flexible risers and three umbilicals supported by three large tethered mid-water arches, Subsea 7 said.
Offshore Egypt, the first phase of the BP’s West Nile Delta project progressed well with pipelay by Seven Borealis and offshore operations on the fast-track East Nile Delta project were successfully concluded on time.
Subscribe
