Subsea 7 Reports Loss of $922 Million in Q2 and Outlines Cost-Cutting Plans

The Company Reported A Major Loss In The Second Quarter Of 2020, As Well As A Decline In Activities In Both Onshore And Offshore Business Units

Subsea 7, a specialist in engineering and construction, reported a quarterly net loss of US$ 922 million, compared to a profit of US$ 24 million in the second quarter of 2019. The losses, due to the poor scenario, directly impact activities in some of the company’s locations.

See Other News:

• Helper, Boilermaker, Painter, Plumber, Electrician, Mechanic, Scaffolder and More Job Openings For Construction In São João Da Barra, Today July 29
• Engineering And Industrial Maintenance Company Hiring Technical Professionals For Job Openings, On This Day 29
• Petrobras Starts Selling New Gasoline Produced In Its Refineries That Protects Engines, Prevents Fraud And Allows For Reduced Consumption

The revenue for the second quarter, of US$ 754 million, was 21% lower than the previous year’s period, but largely in line with the first quarter of 2020. This reflected the continuation of low activity levels in the North Sea, an absence of conventional activity along the African coast, and in the Middle East.

The company recorded a restructuring charge of US$ 104 million and costs of US$ 30 million associated with Covid-19. It also accounted for losses totaling US$ 807 million.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

This included US$ 229 million related to fixed assets and right-of-use assets and US$ 578 million related to impairment of goodwill.

Cost-Reduction Plans

In May, Subsea 7 announced planned measures to reduce its cost base, anticipating a sharp decline in oil and gas activity driven by low oil prices.

The consultation process to reduce the group’s employee count by around 3,000 is underway, as well as the intention to reduce its fleet by up to ten vessels.

At the end of June, the company released two chartered vessels and placed two others on hold, reducing its active fleet to 28. The utilization of the active fleet was 71% in the second quarter, compared to 80% in the same period last year.

An additional net reduction of six vessels is currently anticipated over the next twelve months.