International oilfield services firm Subsea 7 said Thursday that levels of tendering remain strong across its markets and that it remains positive about medium and long-term market prospects.
Reporting its fourth quarter results for 2012, Subsea 7 said that despite the strong tender levels delays in project awards and supply chain bottlenecks will temper the firm's rate of progress in 2013. However, it expects both revenue and profit at the EBITDA level to show some progress during the year.
For 2012 Subsea 7 reported a 15-percent increase in its revenue to $6.3 billion, compared with 2011. Adjusted EBITDA for the year came in 13.6-percent greater at $1.1 billion. For 4Q 2012, the firm reported 13.7-percent increase in revenue to $1.6 billion, with EBITDA improving to $270 million (4Q 2011: $227 million).
Subsea 7 warned that its West Africa business will see a period of lower offshore activity in 2013 as operations on SURF (subsea umbilicals, risers and flowlines) contracts awarded in the second half of 2012 and early 2013 are projected to start in 2014.
However, Subsea 7 said that it sees increased tendering in the Gulf of Mexico and strong tendering in both the North Sea and the Norwegian Sea. The firm added that in Brazul demand from Petrobras for flexible pipelay vessels remains strong, while it also recently won its first contract in Mexico – which will require the deployment of its Seven Borealis vessel.
Subsea 7 CEO Jean Cahuzac commented in a statement:
"2012 was another year of significant achievement for Subsea 7. We have delivered strong financial results in line with our expectations. We have built a record backlog, exited non-core businesses and successfully completed the integration process following the Combination in January 2011. Our fleet enhancement program is also on track with the start-up of Seven Borealis in Angola, the ongoing construction of Seven Waves, and the recent order of a new-build diving support vessel for the North Sea.
"Tendering activity increased through the year, in particular in the North Sea, Africa and Brazil, reflecting our clients' ambitious investment plans. We remained disciplined in our bidding approach with a focus on project risk management and profitability, and I am pleased with the quality of our new awards and current level of order in-take."
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