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    Subsea 7 results find Cahuzac in positive mood

    News // November 19, 2012

    Delivering the sompany's third quarter 2012 results, Jean Cahuzac, Chief Executive Officer, said: "We have delivered a good quarter in line with our expectations. These results reflect high offshore activity in West Africa, and high vessel utilisation in the North Sea. We are on track to deliver full year Adjusted EBITDA in line with consensus expectations.

    "We have not seen an impact from macro-economic uncertainties on our clients' plans, and tendering levels remain high, in particular in the North Sea, Africa and Brazil.

    "We see significant growth prospects ahead which our strong balance sheet should help capture."

    "We remain positive about medium and long term market prospects," he said, "but we expect that the outlook in 2013 will be tempered by delays in project awards in 2012 and by some of the supply chain bottlenecks affecting the industry.

    "We expect West Africa to move through a period of lower offshore activity in 2013 as delays to SURF contract awards mean offshore execution of these new awards is projected to start in 2014 and beyond.

    "In the North and Norwegian Seas levels of tendering remain strong with improved pricing.

    "It is still too early to be definitive about 2013. A number of factors may temper the rate of progress. The first quarter of 2012 benefited from unusually high vessel utilisation as clients sought to progress projects in spite of the risk of bad weather, it remains to be seen if the first quarter of 2013 will enjoy similarly high utilisation.

    "Some of our backlog was awarded late in 2012, meaning that associated offshore activity will largely be in 2014.

    In Brazil, we expect Petrobras' demand for pipelay vessels to remain strong. Four Subsea 7 vessel contracts are due to complete in late 2013, and we are currently in discussions for their renewal. In addition, we have participated in the recently announced Petrobras tender for newbuild PLSVs. Petrobras is expected to make further contract awards to the industry in 2013 for the development of the pre-salt fields. We will continue to be disciplined in our approach to tendering for these opportunities.

    "In the Asia Pacific, tendering levels are slowly improving and we expect projects to come to market award during 2013, with associated offshore activity in 2014 and beyond.

    "In the Gulf of Mexico we see an increased number of prospects as our clients‟ activity slowly picks up."


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