Subsea 7 has predicted “increased profitability” in the second half of 2021 and says a ramp-up in tendering activity has strengthened its long-term outlook.
To help cover the increases in tendering and engineering activity, Subsea 7 is likely to beef up its onshore workforce.
However, plans to cut its active fleet remain in place, taking account of the current offshore workload projected for next year.
The firm did say increased global demand for pipelay vessels from late 2023 would create “positive momentum” in the pricing.
Subsea 7 is also confident of a step-up in offshore wind farm activity, with bidding for several projects underway.
The Luxembourg-registered energy service firm is currently working on the Seagreen wind farm project off the coast of Angus.
The first five jackets have begun their voyage from China to Europe, and progress on the remaining 109 jackets is “running to schedule”.
Good progress was is also being made in the UK on the Hornsea II project.
But the company’s work on renewables projects in Taiwan was “adversely impacted” by restrictions imposed by the government to control the spread of Covid-19.
In addition, environmental conditions at the worksite and a number of changes in scope have hampered progress.
Subsea 7 said it was in talks to recover the incremental costs from its client “in accordance with contractual terms”.
Subsea 7 provided the updates in its first half results, which showed a narrowing of pre-tax losses to $25.3 million from $971.7m in the corresponding period last year.
Revenues climbed 45% to $2.2 billion, on the back of increased activity in its subsea and conventional and renewables business units.
Subsea 7 the period with net debts of $39m and a backlog of $6.8bn, of which $2.7bn is expected to be executed during the remainder of 2021 and $2.4bn in 2022.
