Subsea 7 enjoyed a third quarter profit lift, but warned the dipped oil price was filling the market with uncertainty and delaying contracts.
The UK-based engineering and construction firm recorded a net income of $206million compared to last year’s third quarter total of $160million.
Year-to-date, Subsea 7 is sitting on a profit of $607million – a significant increase on last year’s $278million.
However, the firm’s chief executive, Jean Cahuzac warned market uncertainty regarding oil prices was dampening the backlog of awards.
“As we have indicated consistently throughout 2014, uncertainty remains over the timing of the market awards for most large SURF projects,” he said.
“This trend was particularly evident in the third quarter when a number of potential market awards were postponed to 2015 and beyond.
“The decline in crude oil prices, which began at the start of the third quarter, is adding to the uncertainty over our clients’ timing to proceed with offshore field development projects.”
The company leader said his firm had “execution plans” in place to overcome the deferral of awards. He added it was currently focused on fulfilling its existing backlog of work.
Subsea 7 carried out work offshore the UK on the Western Isles, Montrose, Clair Ridge and Laggan Tormore projects.
For the first nine months of its financial year, Subsea 7 recorded a total revenue of $5.5billion compared to last year’s $4.7billion.
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