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According to the Subsea 7 financial report, revenue increased by 45% compared to 2020. Moreover, the company’s net profit was US$ 36 million
The Norwegian multinational Subsea 7 released its financial report for 2021 this week. Subsea 7’s revenue reached US$ 5 billion, a value 45% higher compared to the revenue of 2020. The company’s EBITDA increased by 55% compared to 2020, reaching US$ 521 million. The company claims that Brazil was essential for this achievement.
In the Subsea 7 financial report, the company announced that there was a 16% increase in the global order book compared to 2020, totaling US$ 7.2 billion. In addition, there was a 38% increase in new orders at Subsea 7, reaching US$ 6.1 billion.
The company states that Brazil was essential for the multinational to secure major contracts in deep-water services, which consequently contributes to the development of this market in Brazil. The financial report also revealed that approximately US$ 700 million in the order book is related to contracts for PLSVs (Pipe Laying Support Vessel) in Brazil, such as the projects in the Mero-3 and Bacalhau fields, as well as the new three-year contracts for three PLSV vessels in Brazil.
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As in the cases of the projects in the Bacalhau and Mero-3 fields, along with the acquisition of new three-year contracts for three PLSV-type vessels in Brazil. The PLSV vessels have seen high demand in the country and project actions in the Bacalhau field have progressed in the pre-salt of the Santos Basin. The PLSV Seven Waves has begun the repair and inspection process, known as dry dock, in preparation for the start of its new contract with Petrobras.
Operations in the Wind Sector
Seaway 7 ASA, a leader in the wind sector, was established in the energy transition; the launch of the new floating wind energy business with the joint venture Salamander and the majority stake of Nautilus occurred; in addition to announcing the goal of achieving carbon neutrality by 2050.
According to Subsea 7’s Global CEO, John Evans, the company achieved excellent operational and financial performance last year. Regarding Subsea and conventional business units, John Evans highlights the growth in activities related to the first recovery practices in the oil and gas industry, such as the high demand for engineering services.
“Over the last year, we made good progress in our strategy. Our focus on the underwater field of the future played a significant role in the successful outcome of many recent bids for subsea and conventional units, including Bacalhau and Mero-3 in Brazil.” explains Evans. The Global CEO of Subsea 7 also points out that in 2021, 60% of the contracts won by value had early engagement, 62% included integrated solutions, and 64% leveraged Subsea 7’s Carbon Estimator.
Shareholder Return Policy
According to Subsea 7, considering the group’s financial results and outlook, “the Board decided to adopt a regular dividend policy, in addition to approving a US$ 100 million return to shareholders in 2022, including an annual dividend of NOK 1.00 per share, equivalent to US$ 33 million, to be recommended for approval by shareholders at the Annual General Meeting. The return of excess cash in the form of special dividends or share buybacks will be evaluated by the Board annually. For this year, share buybacks of approximately US$ 70 million are planned.”
Revenue of US$ 1.4 Billion in the Last Quarter of 2021
According to the financial report, Subsea 7 achieved revenue of US$ 1.4 billion in the fourth quarter of 2021, 35% higher than reported in the same period in 2020, indicating increased activity in both Renewables and Subsea and Conventional areas. The quarterly net profit was US$ 4 million and the net cash generated from operating activities was US$ 227 million. In addition, the adjusted EBITDA was US$ 143 million.
Subsea 7’s Expectations for 2022
Subsea 7 expects that the revenue for 2022 will align with that of the previous year and that the Adjusted EBITDA and net operating revenue will be similar to or even better than that of 2021. The company seeks to achieve results based on market recovery, supported by high levels of bidding in both business units and signs of pricing. There is hope for new orders throughout 2022.
For Daniel Hiller, Vice President of Subsea 7 in Brazil, the expectation is that the company will generate jobs and income in the country, thanks to business growth. For 2022, the company estimates that more than 400 hires will take place, in addition to working in Brazil to generate sustainable growth.
“We are pursuing sustainable growth and reliable execution is a key factor for us. The main goal is to prevent inherent market fluctuations from significantly impacting our business, ensuring solidity and ushering in a new phase for the company in Brazil,” explained Hiller.
To view the company’s sustainability report for 2021, click here.
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