Subsea 7 posts 46 per cent higher YOY gross profit in Q1 2025

Subsea 7 achieved an adjusted gross operating profit of US$236 million in the first quarter of 2025, a 46 per cent increase from the same period in the previous year.

The company said it experienced strong operational and financial performance from both the subsea and conventional and renewables business units, with adjusted gross profit margins of 18 per cent and 10 per cent, respectively.

"Subsea 7 had a good start to 2025 with solid financial performance underpinned by strong project execution, which offset a heavy vessel maintenance schedule," said Subsea 7 CEO John Evans.

"The group reported 10 per cent revenue growth year-on-year and an adjusted [gross profit] margin expansion of 380 bps, putting us on track to meet full year expectations. With backlog of US$10.8 billion including US$4.8 billion for execution in the remainder of the year, we have a high level of visibility for 2025."

Evans said that while uncertainty in the global economy has increased in recent months, the outlook for long-term energy demand growth remains positive.

"Subsea 7’s strategy to focus on long-duration developments in cost-advantaged sectors of the deepwater adds resilience to our subsea business, and our exposure to strategic gas developments, such as the Sakarya field in Turkey, and new oil provinces such as Namibia, gives us further confidence.

"In offshore wind, we are positive about the opportunities presented by this year’s CFD allocation round in the UK, where it is expected that the volume of projects sanctioned will nearly double year-on-year. We are well-positioned in this market, with a strong track record and collaborative client relationships."