Subsea 7 starts 2015 well despite challenging marketNews // April 29, 2015
Subsea 7 has announced results for the first quarter ending 31 March 2015. Jean Cahuzac, the company's Chief Executive Officer, said: "Subsea 7 has started the year well compared with the prior year quarter, with an increase in adjusted EBITDA in the first quarter of 2015 despite the difficult market environment and a decline in revenue.
"Operational performance has remained strong with good execution and cost control. Vessel utilisation in the period was 68 per cent, in line with the fourth quarter
2014. Adjusted EBITDA margin of 24 per cent reflected increased contribution from projects nearing completion, including the Guará-Lula NE project in Brazil where there was a further US$29 million reduction in the full-life project loss.
"The continuation of challenging market conditions resulted in subdued order intake and order backlog declined to US$7.6 billion, which included an adverse foreign exchange impact of US$0.4 billion.
"New orders and escalations totalled US$1.0 billion and included the Persephone project for Woodside, offshore Australia, and the extension of two Life of Field contracts for Shell, offshore UK, both announced in the quarter. Unannounced order
intake included fabrication work for Sonamet in Angola and an award for the i-Tech division, offshore Australia. Since the quarter end, a two-year PLSV contract has been awarded offshore Brazil for Seven Seas.
"Net debt increased by $283 million from the 2014 year end position, reflecting the timing of payments for the newbuild vessel programme and movements in working capital in the quarter, largely due to the normal phasing of project related cash receipts and payments."