Subsea 7 Profit Beats Forecast
Subsea 7 posted higher-than-expected fourth-quarter profits on Thursday and announced a special dividend payment as well as an extension of its share buybacks.
The Oslo-listed offshore services provider's adjusted earnings before interest, tax, depreciation and amortization fell 7.4 percent year-on-year to $163 million, while analysts in a Reuters poll on average predicted a $146 million profit.
"A new two-year $200 million share repurchase program has been announced, enabled by our strong financial and liquidity position and improving market outlook," Subsea 7 said in a statement.
Pending owners' approval, the company will also pay a $1.50 dividend per share, it added.
"In 2019 we expect continued pressure on our financial performance from the projects awarded at lower prices during the downturn and from a reduction in our offshore wind farm installation activity," Chief Executive Jean Cahuzac said.
"However, offshore activity levels are improving and the projects we are now tendering and winning give us confidence that the expected market recovery will translate into better performance for Subsea 7 in the future," he added.
Subsea 7's shares are down 18 percent year-on-year.
(Reporting by Terje Solsvik, editing by Gwladys Fouche)