Subsea 7 Third Quarter Earnings Down 22 per Cent on a Year Ago
26 October 2010Global 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.