30 April 2014, News Wires – Subsea 7 saw profit rise only slightly in the first quarter despite a significant jump in revenues.
Subsea 7 saw profit rise only slightly in the first quarter despite a significant jump in revenues.
The services giant said delays in contract awards had spilled over from last year but remains confident of an increased top line this year, with the medium-term market outlook positive.
Net profit for the three months to the end of March was $136.8 million, an increase from the $131.9 million in the comparable period a year ago.
Sales, however, ballooned from $1.47 billion to $1.67 billion, despite there being a decline in the record order backlog with which the company ended 2013. The backlog as at the end of the quarter was $11.6 billion.
Administrative expenses were up around $5 million but there was a $10 million hike in the tax bill, while operating expenses shot up $185 million.
Chief executive Jean Cahuzac said: “The trend that began in 2013 for many clients to take longer to award subsea contracts continued in the first quarter of 2014.
“We expect these delays to have an impact on order intake in the near-term, although high tendering activity in all territories bodes well for the medium-term outlook.
“We reiterate our previous guidance for an expected increase in group revenue for the full year 2014, although with a moderate increase in group (earnings before interest, tax, depreciation and amortisation).”