Subsea 7 S.A. (the Group) (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355) introduced as we speak outcomes for the third quarter which ended 30 September 2018.
Third Quarter highlights
- Adjusted EBITDA of $217 million and margin of 20% mirrored greater vessel utilisation associated to undertaking exercise and elevated demand for lifetime of discipline providers worldwide
- New awards and escalations totalled $zero.eight billion with 4 awards introduced within the quarter; order backlog was $5.1 billion on the quarter finish
- Net money generated from working actions of $190 million included $eight million lower in internet working liabilities because the Group's working capital place stabilised
- Tendering and awards exercise confirmed continued restoration for the oil and fuel market and market progress for renewables
- New steerage for 2019 forecasts Revenue and Adjusted EBITDA decrease then 2018, with gradual restoration anticipated from 2020
Jean Cahuzac, Chief Executive Officer, mentioned:
‘Our client-focused mindset and collaborative strategy to creating the correct options have helped to ship our good operational and monetary outcomes this quarter. Our complete vessel utilisation was the very best it has been since 2014 with a number of giant tasks executing offshore set up campaigns utilizing our key enabling vessels supplemented by vessels from the broader fleet.
Third quarter Revenue and Adjusted EBITDA benefitted from the upper ranges of exercise in SURF and Conventional tasks and Inspection, Repair and Maintenance (IRM) providers, which made good progress within the beneficial offshore circumstances of the summer time months within the northern hemisphere. Renewables and Heavy Lifting exercise diminished because the Beatrice undertaking was considerably accomplished; the following wave of huge EPCI wind farm tasks are usually not anticipated to be awarded till 2019.
Subsea 7 is nicely positioned for the restoration with its differentiated functionality, long-standing relationships and market-leading know-how. We will proceed to concentrate on price self-discipline and effectivity whereas making ready for the long run improve in exercise associated to the bigger greenfield tasks that are actually being tendered and awarded.'
Third quarter 2018 operational efficiency
SURF and Conventional tasks progressed nicely within the third quarter. Offshore Egypt, the West Nile Delta Phase Two undertaking achieved key milestones together with the set up of two giant diameter export pipelines. Offshore Australia, the Sole undertaking commenced offshore set up and the Greater Western Flank undertaking neared completion. The Conventional PUPP undertaking, offshore Nigeria, started offshore operations lower than six months after undertaking award. In the Middle East, the four Decks undertaking was considerably accomplished and the Hasbah undertaking progressed with pipelay actions.
Renewables and Heavy Lifting exercise diminished within the quarter. The Beatrice wind farm undertaking, offshore UK, was considerably accomplished with the ultimate six jackets and 33 inter-array cables put in. Offshore Germany, the Borkum II undertaking progressed extra slowly than anticipated as a consequence of opposed climate circumstances, because of this, further prices have been incurred. Subsea 7's vessel, Seven Borealis, was mobilised in October to help with transition piece set up to speed up execution within the fourth quarter.
i-Tech Services skilled a rise in IRM exercise with extra curiosity from shoppers in all areas. Additional demand is being met with short-term vessel charters matched to satisfy shoppers' wants. Demand for ROV providers for floating drill rigs remained subdued.
Active Vessel Utilisation was 89%, up 11 share factors from the prior yr interval and 9 share factors greater than within the second quarter. Utilisation was excessive in all three operational Business Units, reflecting key offshore phases on the West Nile Delta Phase Two, Hasbah and Borkum II tasks along with elevated IRM exercise. Offshore exercise is anticipated to be considerably decrease within the fourth quarter reflecting the tougher climate circumstances within the North…