Subsea 7 S.A. Reports Strong Q2 Growth and Financial Stability
Subsea 7 S.A. Delivers Impressive Q2 Results
Subsea 7 S.A. has recently shared a compelling overview of its performance for the second quarter and first half of 2025. The company reported a significant growth in profitability, fueled by successful project executions across its Subsea, Conventional, and Renewables divisions.
Highlights of the Financial Results
In the second quarter of 2025, Subsea 7 posted an Adjusted EBITDA of $360 million, marking a 23% increase compared to the previous year. This achievement translates to a remarkable margin of 21%. The combined efforts of Subsea and its Conventional and Renewables segments resulted in strong operational performance, with EBITDA margins of 21% and 17%, respectively.
Future Guidance and High Backlog Visibility
The company confirmed its revenue guidance for the full year 2025. With a robust backlog valued at $11.8 billion, Subsea 7 enjoys a high level of visibility on its revenue forecast, exceeding 90% for the year. Additionally, the company reported a strong balance sheet, with net debt of $695 million, translating to an impressive 0.6 times the Adjusted EBITDA generated over the last four quarters.
Key Operational Developments
Subsea 7 has also recently secured a merger agreement with Saipem, aiming to merge strengths to form a leading energy services entity. This strategic move is expected to enhance Subsea 7's capabilities and market presence.
Financial Review: Second Quarter Breakdown
In terms of revenue, Subsea 7 generated $1.8 billion in the second quarter, reflecting a slight improvement compared to the same period last year. The company’s Adjusted EBITDA margin reached 20.5%, up from 16.8% in Q2 2024.
Looking at net income, Subsea 7 achieved $131 million after accounting for various expenses and taxation, notably holding strong against the backdrop of rising operational costs.
Cash Flow and Investment Overview
The operational activities yielded $339 million in net cash, buoyed by a positive adjustment in working capital. Investment expenditures totaled $81 million primarily directed towards property, plant, and equipment. Financing activities led to a cash outflow of $306 million, which included substantial dividend payments totaling $184 million.
Project Highlights
Throughout the second quarter, Subsea 7 engaged in numerous projects. The vessels Seven Arctic and Seven Borealis made notable contributions at the Agogo field in Angola. Concurrently, Seven Pacific, following its class survey, moved to Angola for continued project work.
In the U.S., vessels such as Seven Oceans and Seven Seas played pivotal roles in ongoing projects, while Seven Cruzeiro commenced a new three-year project with Petrobras in Brazil.
On the Renewables front, Seaway Strashnov and Seaway Alfa Lift commenced work at Dogger Bank C, anticipating installation of 87 monopiles, marking a significant step in their offshore wind initiatives.
Outlook for 2025
As we move deeper into the year, Subsea 7 maintains its revenue outlook for 2025 to fall between $6.8 billion and $7.2 billion, with expectations for an Adjusted EBITDA margin ranging from 18% to 20%. Following a strong backlog and promising tender prospects, Subsea 7 forecasts margins exceeding 20% into 2026.
Frequently Asked Questions
What were the main financial highlights of Subsea 7 for Q2 2025?
Subsea 7 reported an Adjusted EBITDA of $360 million, a 23% increase, with a margin of 21% in Q2 2025.
How does Subsea 7's backlog and revenue visibility look for 2025?
The company has a high-quality backlog of $11.8 billion, providing over 90% visibility on its revenue for 2025.
What strategic moves did Subsea 7 undertake recently?
Subsea 7 signed a merger agreement with Saipem to form a global leader in energy services, enhancing its market capabilities.
What is the expected revenue range for Subsea 7 in 2025?
Revenue is anticipated to fall between $6.8 billion and $7.2 billion for the year.
How did Subsea 7 manage cash flow in the second quarter?
Subsea 7 generated $339 million in net cash from operating activities, despite being impacted by investments and financing activities.
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