By Dominic Chopping
Norwegian seabed-to-surface engineering contractor Subsea 7 S.A.
(SUBC.OS) said Thursday it still has a positive view on the market
as it hasn't seen any impact from oil price volatility or
macro-economic uncertainties and it expects the present high level
of bidding activity to translate into market awards later this
year.
MAIN FACTS:
-CEO Jean Cahuzac says: "In this growing worldwide market, the
key challenges for the industry continue to be the availability of
qualified and experienced personnel, and the need to manage an
increasingly tight supply chain and assure reliability in complex
project delivery."
-"In West Africa, market award of some large SURF contracts has
been delayed by a few months. As a consequence, the offshore
execution of the majority of these new projects is now expected to
start in 2014."
-"In the North and Norwegian Seas, levels of tendering remain
strong with improved pricing. While our operations in 2Q have been
somewhat impacted by weather, we expect results to continue to
improve year-on-year as low margin contracts awarded in prior years
are phased out."
-"In the Gulf of Mexico, we see an increased number of prospects
in the medium term as our clients‟ activity slowly picks up."
-"In Brazil, we expect Petrobras' (PBR) demand for PLSV vessels
to remain strong in the years to come. Four Subsea 7 vessel
contracts are due to complete in the second half of 2013, and we
are currently reviewing our options for their renewal. Our Guara
Lula project execution remains on track to achieve its revised
targets as previously announced."
-"In Asia Pacific, pricing conditions remain more challenging
than in other parts of the world. However, we expect projects to
come to market award later this year, with associated offshore
activity in late 2013 and beyond."
-"As previously announced, the contribution of the SapuraAcergy
joint venture will be affected by the revised schedule of the
offshore operations of the Gumusut project which are now planned
for 2013."
-Backlog $8.29 billion, from $7.88 billion.
-Revenue $1.48 billion, from $1.34 billion.
-Operating profit $246.4 million, from $209.9 million.
-Gain from sale of interest in NKT Felxibles $220 million.
-Net profit $413.3 million, from $118.3 million.
-Shares closed Wednesday at NOK128.50, valuing the company at
NOK45.21 billion.
-Write to Dominic Chopping at dominic.chopping@dowjones.com
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