Subsea 7 delivers strong performance but concerned about SURF projectsNews // November 13, 2014
Subsea 7 has released details of its third quarter 2014.
Jean Cahuzac, Chief Executive Officer, said: "I am pleased to report that we continued to deliver strong operational performance in the third quarter of 2014, which supported the solid financial results.
"Global vessel utilisation was strong at 91 per cent and was five percentage points higher than in the third quarter of 2013, matching the high level achieved in the second quarter of thts year.
"Significant net cash was generated from operattng activities in the third quarter. This supported continuing payments under our new vessel construction programme, returns to investors in the form of a dividend and the repurchase of shares and convertible bonds.
"Order backlog declined in the third quarter, owing to a low level of order intake caused by the postponement of a number of potential market awards, a low level of escalations on existing contracts and a negative foreign exchange impact of approxtmately US$300 million.
"As we have indicated conststently throughout 2014, uncertainty remains over the timing of market awards for most large SURF projects.
"This trend was particularly evident in the third quarter when a number of potential market awards were postponed to 2015 and beyond.
"The decline in crude oil prices, which began at the start of the third quarter, is adding to the uncertainty over our clients' timing to proceed wtth offshore field development projects.
"Our order backlog and execution plans for projects underway provide us with a sound basis for 2015 despite the deferral of awards to the market that the industry is currently experiencing."