Subsea 7 has hailed order intake of $7bn for 2022, its largest since 2013
However, after a $100m tax charge, Subsea 7 saw flat net income, staying at $36m, the same as 2021.
Subsea 7 has also today announced plans to acquire more shares – 21.57% – of its renewables subsidiary Seaway 7, taking its total holding to 93.94%.
The firm is acquiring the shares from Songa Capital AS, West Coast Invest AS and Lotus Marine AS.
Announcing full-year results yesterday, CEO John Evans hailed a “resurgence in demand” for the firm’s services, with backlog now at over $9bn.
He said: "2022 was a year of strong momentum for Subsea7 as the recovery in our subsea market gathered pace. The cumulative impact of years of underinvestment by the oil and gas industry combined with a new urgency for energy security supported a resurgence in demand for our services.
"The increase in tendering and early engineering activity that we were experiencing twelve months ago translated into strong order intake over the course of 2022, driving a rapid tightening of vessel availability and an improvement in new project margins.
"Total order intake for the year was over $7 billion – the highest since 2013 – with a backlog of over $9 billion. This resulted in high revenue visibility for 2024 and beyond.
"Our success in subsea in 2022 has been underpinned by our long-held strategy of early engagement, and collaboration and partnerships. In the fourth quarter we booked new orders in Norway totalling $1.8 billion as a result of our subsea alliance with Aker BP and Aker Solutions. This partnership enabled us to engage early in the field development process, optimising design solutions and enhancing field economics to unlock these developments."
Transition business
Mr Evans said the firm has reinforced its relationship with SLB in 2002 with the agreement to invest in its new subsea hardware joint venture with Aker Solutions.
He added: "The joint venture will become our new partner in Subsea Integration Alliance and our investment will strengthen this partnership as well as offering strong returns on a standalone basis.
"Our energy transition strategy includes carbon capture, floating wind and hydrogen, and in 2022, we prepared for the pipelay on our first CCUS project at Northern Lights in Norway, and executed our third floating wind project at Hywind Tampen. We also successfully engaged Ørsted as a strategic investor in our Salamander floating wind project with Simply Blue Energy, and we joined a consortium of companies working on the design of the Gray Whale 3 floating wind project in South Korea.
"In hydrogen, we formed an alliance with OneSea to develop solutions for offshore green hydrogen and we advanced our evaluation of this potentially significant market."
Click here to read the company's full 2022 results.
FTSE 100
The UK's top share index, the FTSE 100, started the day up eight points, at 7,952, shortly after opening this morning, following yesterday's 29-point gain.
Brent crude futures slipped -0.25% to $84.54 a barrel.
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