– In general, this is probably a little comforting. The company’s positive outlook on the market makes it safer in 2023 and 2024, says Amundsen, who thinks consensus estimates will come in shortly.
Operation as expected
Of revenue of $1,365 million, the subsea contractor dominated by Christian Sim left adjusted operating profit before depreciation and amortization (EBITDA) of $143 million in the fourth quarter, which equates to a margin of 10.5 percent.
Up front, analysts expected revenue of $1,467 million and adjusted EBITDA of $144 million.
The net result fell at just under $4 million, while it was expected at $26 million.
Subsea 7 generated net cash flow from operations of $227 million in the fourth quarter. At the end of the year, the company had a cash balance of $598 million and a net debt of $55 million.
Recovery is on its way
The company continues to take care of contracts.
In the fourth quarter, it had a purchase order of $2 billion, which equates to 1.3. In total for 2021, Subsea won 7 orders for $6.1 billion, up 38 percent from the previous year. At the end of the year, Subsea had 7 backlogs worth $7.2 billion.
In 2022, the company expects revenue to be essentially in line with 2021 and EBITDA-adjusted and the result will be in line with or better than 2021. In 2021, the company generated $5 billion in revenue, which is a ratio Adjusted EBITDA of $521 million and profit of $72 million.
“We firmly believe that a recovery in the market is underway, buoyed by high bidding activity in both business areas and with signs of better pricing and payment terms in the award of new contracts,” the company wrote in the quarterly report.
Traditionally, Subsea 7 operates in the oil and gas business, but in recent years it has taken new strides in the field of renewable energy.
Last summer, the company combined its renewable business with heavy-duty transport company OHT, which is dominated by Arne Blystad. The new company was named Seaway 7 and listed in Euronext Growth. Later that year, the company entered into an agreement to acquire a majority stake in Nautilus Floating Solutions, which develops offshore floating wind technology.
| (mill in usd) | 4.kv/21 | 4.kv/20 |
| operating revenue | 1,365.2 | 1,014.4 |
| Operating results | 30.5 | −61.8 |
| Result before taxes | 19.6 | −89.3 |
| Result after tax | 3.7 | 3103.1 |
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