Delays, Bottlenecks to Temper Subsea 7's Progress in 2013
Oilfield services firm Subsea 7 expects positive momentum in 2013 to be tempered by delays in projects awards during this year as well as supply chain bottlenecks affecting the industry, it said Monday.
Reporting its 2012 third quarter results, Subsea 7 said that its expects West Africa to move through a period of lower offshore activity in 2013 as delays to SURF (subsea umbilical, riser and flowline) contract awards mean execution of these projects will begin in 2014 and beyond.
Subsea 7 said that in the North and Norwegian seas levels of tendering remain strong with improved pricing, but that it was too still too early to be definitive about 2013. The firm added that a number of factors may temper the rate of progress here, including some of its backlog being awarded late in 2012 which will mean associated offshore activity will largely occur in 2014.
In Brazil, Subsea 7 reported that it expects demand from Petrobras for pipelay vessels will remain strong, and that it was negotiating the renewal of four vessel contracts due to be completed in late 2013.
In Asia Pacific, the firm said that tendering levels are slowly improving and that it expected projects to be awarded during 2013.
Meanwhile, in the Gulf of Mexico, Subsea 7 sees an increased number of prospects as its clients' activity slowly picks up.
In terms of the firm's third quarter, it reported 3Q revenue up around 21.8 percent at $1.7 billion, with 3Q net income coming in at $194 million (3Q 2011: $173 million).
"We have delivered a good quarter in line with our expectations. These results reflect high offshore activity in West Africa, and high vessel utilization in the North Sea. We are on track to deliver full year Adjusted EBITDA in line with consensus expectations," Subsea 7 CEO Jean Cahuzac commented in a company statement.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension