Subsea 7 Bags Sizeable Deal

Subsea 7 (OTCMKTS: SUBCY) revealed Tuesday that it has bagged a “sizeable” contract for work offshore Trinidad and Tobago.

The contract, which will be recorded in backlog in the third quarter, covers the project management, engineering, procurement, installation and pull-in of one subsea rigid flowline and flexible riser together with flexible flowlines and the associated subsea infrastructure and umbilical system. Offshore installation activities are scheduled for 2021, Subsea 7 outlined.

Subsea 7 did not disclose the exact value of the contract but revealed that it defines a “sizeable” contract as being worth between $50 million and $150 million.

In the last two months alone, Subsea 7 has been awarded several energy contracts. In July, for example, the company netted a “sizeable” contract for the installation of the submarine cable system on an offshore wind farm project in Taiwan and a “sizeable” deal for work in the Gulf of Mexico.

Back in June, Subsea 7 received a sizeable contract by Aker BP for the Hod Field Development Project, a “substantial” contract by Vattenfall for the Hollandse Kust Zuid (HKZ) 1-4 offshore wind farm project and a “major” contract by SSE Renewables for the engineering, procurement, construction and installation of the foundations and inter array cables for the Seagreen Offshore Wind Farm project.

Subsea 7 defines a substantial contract as being worth between $150 million and $300 million and a major contract as being worth more than $750 million.

The company reported revenues of $1.5 billion in the first half of 2020, along with a net operating loss of $979 million. Subsea 7 recorded impairment charges relating to property, plant and equipment and right-of-use assets of $229 million and goodwill impairment charges of $578 million, which it said “adversely impacted” net operating income.

Subsea 7 describes itself as a global leader in the delivery of offshore projects and services for the evolving energy industry. Registered in Luxembourg, the business was established back in 2011.

To contact the author, email andreas.exarheas@rigzone.com