Luxembourg, February 27, 2025 – Subsea 7 S.A. has released its financial results for the fourth quarter and full-year 2024, demonstrating solid performance across its core business segments. The company reported a 53% year-on-year increase in Adjusted EBITDA, reaching $1.09 billion, with a 16% margin. Revenue for the year stood at $6.8 billion, reflecting 14% growth compared to 2023.
Financial Performance and Market Confidence
In the fourth quarter alone, the company recorded $315 million in Adjusted EBITDA, a 29% increase from Q4 2023, achieving a 17% margin. Revenue for the quarter reached $1.9 billion, up 15% from the previous year’s period. Net income for Q4 was $26 million, compared to a $11 million loss in Q4 2023.
The company also highlighted a robust free cash flow of $408 million and a significant reduction in net debt by $256 million from the previous quarter. With an order intake of $2.3 billion, Subsea 7 closed the year with a backlog of $11.2 billion, providing over 80% revenue visibility for 2025.
CEO John Evans emphasized the company’s resilience, stating, “We exceeded our top-end guidance with a strong operational and financial performance. Our backlog and order intake reinforce confidence in delivering higher margins and robust cash flow in the coming year.”
Operational Highlights
The company reported continued progress in major subsea and conventional projects across global markets:
- In Brazil, vessels Seven Vega, Seven Cruzeiro, and Seven Merlin were active on the Mero 3 project, while the pipelay support vessels (PLSVs) saw high utilization.
- In North America, Seven Navica worked on Sunspear, while Seven Seas was deployed at Shenandoah and Cypre.
- In the Middle East and Africa, Seven Borealis, Seven Pacific, and Seven Arctic were engaged in projects across Saudi Arabia, Egypt, and Angola.
- In Europe, the company advanced fabrication for the Yggdrasil project in Norway.
The Renewables segment delivered strong margins of 21% in Q4, supported by active projects:
- Dogger Bank B (UK) neared completion, with monopile installations progressing efficiently.
- Seaway Aimery completed cable installations for the Revolution project (US).
- Taiwan remained a key market, with ongoing work on the Yunlin, Zhong Neng, and Hai Long projects.
Shareholder Returns and Outlook
The board has proposed a $350 million dividend, pending shareholder approval, to be distributed in two installments in 2025. This represents a 40% year-on-year increase, aligning with the company’s capital discipline and commitment to shareholder value.
Looking ahead, Subsea 7 expects 2025 revenue between $6.8 billion and $7.2 billion, with Adjusted EBITDA margins forecasted at 18-20%, driven by a strong backlog and continued high tendering activity.
Merger with Saipem in Progress
A major strategic development is Subsea 7’s agreement in principle to merge with Saipem S.p.A., forming a 50/50 joint entity. Under the terms, Subsea 7 shareholders will receive 6.688 Saipem shares per Subsea 7 share, along with a €450 million extraordinary dividend before completion. The merger, expected to finalize in H2 2026, aims to create a global leader in energy services.
Chairman Kristian Siem commented, “The scale of energy projects continues to grow, and the complementary strengths of Saipem and Subsea 7 will provide significant value for all stakeholders.”
Final Thoughts
With a strong financial position, a growing backlog, and continued success in both subsea and renewables, Subsea 7 enters 2025 well-positioned for sustained growth. The proposed Saipem merger adds another layer of strategic expansion, setting the stage for long-term market leadership.
