Subsea 7 SA
OTC:SUBCY
Subsea 7 SA
Subsea 7 SA navigates the depths of the ocean floor with a prowess that underscores its position as a pivotal player in the energy sector, specifically focusing on the offshore installation and construction of energy projects. Rooted in a rich maritime engineering tradition, Subsea 7 combines advanced technology with a global footprint to execute complex projects the world over. The company primarily serves the oil and gas industry, providing a comprehensive suite of services that cover the engineering, procurement, installation, and commissioning (EPIC) of seabed-to-surface infrastructure. This includes intricate activities such as laying pipeline networks, installing subsea systems, and executing deepwater construction tasks—each project tailored to the unique demands of the underwater environment.
The revenue streams of Subsea 7 manifest through long-term contracts awarded by major oil companies and national oil firms. These contracts are typically substantial, involving intricate contractual negotiations and partnerships that often span several years. As energy needs expand and renewable resources like offshore wind farms become more prevalent, Subsea 7 has adeptly diversified into these burgeoning sectors, leveraging its offshore expertise to capitalize on the growing demand for sustainable energy solutions. By positioning itself at the intersection of traditional and renewable projects, Subsea 7 not only ensures steady cash flows from existing oil and gas operations but also captures emerging opportunities in the energy transition landscape. Through this dual focus, the company secures profitability while supporting the world's evolving energy needs.
Subsea 7 SA navigates the depths of the ocean floor with a prowess that underscores its position as a pivotal player in the energy sector, specifically focusing on the offshore installation and construction of energy projects. Rooted in a rich maritime engineering tradition, Subsea 7 combines advanced technology with a global footprint to execute complex projects the world over. The company primarily serves the oil and gas industry, providing a comprehensive suite of services that cover the engineering, procurement, installation, and commissioning (EPIC) of seabed-to-surface infrastructure. This includes intricate activities such as laying pipeline networks, installing subsea systems, and executing deepwater construction tasks—each project tailored to the unique demands of the underwater environment.
The revenue streams of Subsea 7 manifest through long-term contracts awarded by major oil companies and national oil firms. These contracts are typically substantial, involving intricate contractual negotiations and partnerships that often span several years. As energy needs expand and renewable resources like offshore wind farms become more prevalent, Subsea 7 has adeptly diversified into these burgeoning sectors, leveraging its offshore expertise to capitalize on the growing demand for sustainable energy solutions. By positioning itself at the intersection of traditional and renewable projects, Subsea 7 not only ensures steady cash flows from existing oil and gas operations but also captures emerging opportunities in the energy transition landscape. Through this dual focus, the company secures profitability while supporting the world's evolving energy needs.
Strong Profit Growth: Q3 adjusted EBITDA rose to $407 million, up 27% year-on-year, with margin expanding to 22%.
Record Backlog: Backlog reached nearly $14 billion, providing over 80% revenue visibility for 2026.
Guidance Raised: 2025 adjusted EBITDA margin guidance increased to 20–21% (from 18–20%), and revenue guidance narrowed to $6.9–7.1 billion.
Growth Outlook: 2026 revenue expected between $7–7.4 billion, with an EBITDA margin of about 22%.
Renewables Steady: Renewables EBITDA margin guidance for 2026 maintained at 14–16% with strong backlog coverage.
Fleet Optimization: Company plans to reduce leased vessels in 2026, lowering lease costs and focusing on higher-margin projects.
High Tendering Activity: Subsea tendering remains robust across key regions with a $21 billion prospect pipeline.
Merger Timeline: Brazilian antitrust review for the merger proceeding as expected; completion targeted for H2 2026.
