Subsea 7 S.A. Reports Strong 2024 Financial Results

Subsea 7 SA ( (SUBCY) ) has released its Q4 earnings. Here is a breakdown of the information Subsea 7 SA presented to its investors.

Subsea 7 S.A. is a leading global provider of offshore engineering and construction services, specializing in the energy sector with a focus on subsea, conventional, and renewable energy projects. The company operates in both the hydrocarbon and renewable sectors, offering a diverse range of services including subsea umbilicals, risers, flowlines, and offshore wind farm installations.

Subsea 7 S.A. reported a strong financial performance for the fourth quarter and full year of 2024, with significant increases in revenue and adjusted EBITDA. The company’s full-year adjusted EBITDA reached $1,090 million, marking a 53% increase from the previous year, while the fourth quarter adjusted EBITDA was $315 million, up 29% from the same period last year. The company also announced a robust free cash flow of $408 million in the fourth quarter and a high-quality backlog of $11.2 billion.

Key financial highlights include a 15% increase in fourth-quarter revenue to $1.9 billion and a net operating income of $126 million, more than doubling from the previous year. The company’s net income for the fourth quarter was $26 million, compared to a net loss in the prior year. Subsea 7 also reported a book-to-bill ratio of 1.2, indicating strong order intake and future revenue visibility. The proposed dividend of approximately $350 million underscores the company’s commitment to shareholder returns.

Looking ahead, Subsea 7 anticipates continued growth with expected revenue between $6.8 billion and $7.2 billion for 2025 and an adjusted EBITDA margin of 18% to 20%. The company’s strategic focus on both hydrocarbon and renewable sectors positions it well to capitalize on long-term energy demand growth. Additionally, the proposed merger with Saipem S.p.A. is expected to create a global leader in energy services, enhancing value for shareholders and stakeholders.

Overall, Subsea 7’s strong financial performance and strategic initiatives indicate a positive outlook for the company, supported by a solid backlog and ongoing client engagements. The management remains optimistic about delivering strong results in the coming years, driven by structural energy trends and a diversified service offering.