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Subsea 7 Third Quarter Earnings Down 22 per Cent on a Year Ago

26 October 2010

Global oil and gas firm says it is "confident for the future" having secured a significant number of new North Sea contracts.

Oil and gas industry engineering and construction group Subsea 7 has reported a drop in third quarter earnings, which fell well short of City expectations.

But the global company which has its UK base in Aberdeen employing 1200 people said it was confident for the future, led by a significant number of new North Sea contracts.

The company said that earnings before interest and tax fell 22 per cent to $109 million in the three months from July to September, down from $140 million the year before.

Analysts had been predicting third quarter earnings of $115 million.

In its outlook Subsea 7 said tendering activity remained high, with major new project awards expected in the remainder of 2010 and in the first half of 2011. It reported a worldwide order book of about $2.9 billion.

In its financial statement the firm said: "The North Sea is particularly active with a number of significant projects being progressed for execution in 2012 and 2013.

Earlier this month Subsea 7 reported it had secured a major North Sea contract worth $250 million form Total to lay pipelines for the Laggan Tormore deepwater gas filed development, west of Shetland.

Subsea 7 added that it expects activity levels in the Gulf of Mexico to pick up again, now that the U.S. government has lifted its moratorium on deepwater drilling.