Subsea 7 Bags Sizeable Deal
Subsea 7 (OTCMKTS: SUBCY) revealed Tuesday that it has bagged a “sizeable” contract for work offshore Trinidad and Tobago.
The contract, which will be recorded in backlog in the third quarter, covers the project management, engineering, procurement, installation and pull-in of one subsea rigid flowline and flexible riser together with flexible flowlines and the associated subsea infrastructure and umbilical system. Offshore installation activities are scheduled for 2021, Subsea 7 outlined.
Subsea 7 did not disclose the exact value of the contract but revealed that it defines a “sizeable” contract as being worth between $50 million and $150 million.
In the last two months alone, Subsea 7 has been awarded several energy contracts. In July, for example, the company netted a “sizeable” contract for the installation of the submarine cable system on an offshore wind farm project in Taiwan and a “sizeable” deal for work in the Gulf of Mexico.
Back in June, Subsea 7 received a sizeable contract by Aker BP for the Hod Field Development Project, a “substantial” contract by Vattenfall for the Hollandse Kust Zuid (HKZ) 1-4 offshore wind farm project and a “major” contract by SSE Renewables for the engineering, procurement, construction and installation of the foundations and inter array cables for the Seagreen Offshore Wind Farm project.
Subsea 7 defines a substantial contract as being worth between $150 million and $300 million and a major contract as being worth more than $750 million.
The company reported revenues of $1.5 billion in the first half of 2020, along with a net operating loss of $979 million. Subsea 7 recorded impairment charges relating to property, plant and equipment and right-of-use assets of $229 million and goodwill impairment charges of $578 million, which it said “adversely impacted” net operating income.
Subsea 7 describes itself as a global leader in the delivery of offshore projects and services for the evolving energy industry. Registered in Luxembourg, the business was established back in 2011.
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