Subsea 7 chief executive John Evans says the company delivered ‘solid’ operational results in 2019 and continued to progress orders awarded at lower prices during the downturn in the oil and gas market
It also commenced work on offshore oil and gas projects with more favourable terms but had a more challenging year in renewables and heavy lift.
In the company’s renewables and heavy lifting segment, although its cable-lay vessels continued to deliver good utilisation, Mr Evans said the foundations market remains ‘competitive.’
“We have therefore had to record a goodwill impairment charge associated with this business,” he said, noting that in the long-term he remains confident that the company’s approach and experience managing complex projects leaves it well-positioned to create sustainable value.
Mr Evans said the outlook for subsea, umbilicals, risers and flowlines and conventional projects continues to improve, with the level of tendering increasing year-on-year and pricing recovering gradually.
“Subsea Integration Alliance, our SPS-SURF partnership with OneSubsea has made a significant contribution to recent order intake,” Mr Evans said.
“With the award of the full EPIC scope for the Julimar project following earlier FEED activity and, in recent weeks, the announcement of contracts that further extend our momentum in large greenfield subsea projects, we have reaffirmed our strategy of early engagement and an integrated approach.”