Subsea 7 - 3rd Qtr Report
The company’s performance summary gave highlights for the quarter including: good project execution in all regions delivering EBITDA of $164.8 million; satisfactory financial result despite currency losses and mark-to-market adjustment of derivatives; and award of largest contract to date in Africa from BP (BP) in respect of Block 31 - signed first call-off contract under the framework agreement with an estimated value of $460 million.
Furthermore, the report noted that the Boards of Directors of Subsea 7 Inc. and Acergy discussed the possibility of a combination between the two companies. These discussions were terminated on Monday 20 October 2008.
The report summarized the company’s outlook, saying that although there is higher uncertainty related to the oil price in the coming years, the underlying macro economics for the sector remain strong. The activity level in this industry will be high on existing projects in the near term. The award of the Block 31 contract in , together with a continued high level of tendering activity, indicates a strong market through to 2012.