High activity levels across the North Sea helped offshore engineering firm Subsea 7 post a jump in revenue and profits in the first half of this year.
Revenue in the first six months of 2012 was £1.8billion, up from £1.6billion in the same period last year, with pre-tax profits up 150% year-on-year at £415million.
Of that, the firm said its North Sea, Mediterranean and Canada business area accounted for £767million of revenue; up from £531million in the first half of 2011. This was driven by projects in the UK, Norwegian and Danish sectors of the North Sea, which helped to offset lower activity levels in its Africa, Gulf of Mexico and Brazil business, said Subsea 7.
The business, which employs more than 1,500 people out of its Westhill base, said second-quarter activity in the North Sea had been affected by weather, but it expected results to improve during the rest of the year, as previously awarded low-margin contracts ended and work from current tendering activity came through.
The order backlog as at June 30 was £5.3billion.
Oslo-listed Subsea 7 said much of its current North Sea project work was in the Norwegian Sea and the Norwegian sector of the mature basin.
The company added, however, that its frame agreements with firms including Shell, Statoil, ConocoPhillips, Total and BP in the rest of the North Sea had also helped its revenue. UK and Canada vice-president Steph McNeill said: “Our UK North Sea business continues to be a major contributor to Subsea 7’s global performance. We have seen sustained high activity levels in the UK sector and have a large backlog of projects that will continue to keep our Aberdeen and Wick employees busy.”
