Oslo-listed Subsea 7 has lifted its profit in the second quarter ended June 30, 2016, on nearly-halved restructuring costs, foreign currency gains and more favorable tax rate compared to the prior-year quarter.
The subsea engineering and construction specialist generated net income of $136 million, or 40 cents per diluted share, on revenue of $961 million, versus net income of $88 million, or 27 cents per diluted share on revenue of $1.53 billion same time last year.
The company reported adjusted EBITDA of $280 million, including $53 million restructuring charge, (approx. $100 million in Q2 2015) and margin of 29 percent (20.3 percent in Q2 2015). Despite revenue drop of 29 percent, higher operating income, lower costs and $23 million forex boost have pushed the company up by close to 55 percent in the Q2 2016.
Revenue for the half-year 2016 decreased by $827 million year-over-year at $1.7 billion. However, operating income increased by $26 million, as well as the net income, which was $283 million, compared to $239 million for 1H 2015.
Subsea 7’s order intake was $1.6 billion, including approximately $1.3 billion related to the Beatrice wind farm project and a Pipeline Bundle solution for the Callater project.
The company said its order backlog at the end of June was $7.1 billion, $0.6 billion higher than at the start of the quarter, this included adverse foreign exchange impacts of approximately $50 million.
As of July 1, 2016, Subsea 7 operates in three new segments: SURF and Conventional, i-Tech Services and Corporate (including Renewables and Heavy-lift).
Subsea World News Staff