Norwegian seabed-to-surface engineering contractor Subsea 7 S.A.
(SUBC.OS) said late Wednesday that the project costs for the
Guara-Lula NE hydrocarbon project offshore Brazil are expected to
increase, leading the company to cut its guidance for the full-year
EBITDA.
MAIN FACTS:
-Project costs for the Guara-Lula NE project are expected to
increase by between $250 million and $300 million.
-Delays have been experienced during the quarter as a result of
on-going problems with the supply chain and adverse weather
conditions in the winter season, the company said.
-The project represents 5% of Subsea 7's backlog as of March 31,
2013. The remaining contracts are performing in line with
expectations.
-The impact is expected to be reflected in the net operating
income for the second quarter in 2013.
-2013 EBITDA is no longer expected to show progress compared to
2012, the company said.
-At 0749 GMT shares were down 14.4% at 105.00 Norwegian kroner
($17.2).
-Write to Johannes Ledel at johannes.ledel@dowjones.com; Twitter
@DowJonesNordics
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