Subsea 7, a company in the delivery of offshore projects and services for the energy industry, has reported a net operating loss of $18m for its renewables business in the first quarter of 2023. This is compared to a net operating loss of $17m in the same period of 2022. The unit's revenue for Q1 2023 was $160m, down from $266m in Q1 2022.
Despite the loss, Subsea 7's CEO, John Evans, remained positive about the company's future, stating, “The first quarter of 2023 unfolded as we expected and Subsea 7 is on track to meet management's guidance for the full year. Our backlog continued to grow during the quarter, with awards in both subsea and offshore wind, and bidding remains very active in both businesses.” He also expressed confidence in the company's strategy, saying, “While this year marks a period of re-investment in both the subsea and renewables businesses, we are confident that our strategy positions the group for strong cash generation, and the return of excess capital to shareholders, next year and beyond.”
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In the renewables business unit, Seaway Aimery and Seaway Moxie were engaged in the cable lay scope of Hollandse Kust Zuid in the Netherlands, while Seaway Strashnov was in dry dock, as planned, for most of the first quarter and resumed operations on Dogger Bank A&B at the end of March. Subsea 7 also resumed activity at Seagreen, and the final jacket was installed in mid-April.
The sustained high level of demand from clients supports Subsea 7's view of a return to an adjusted EBITDA margin range of 15%-20% in the coming four years. While this year marks a period of re-investment in both the subsea and renewables businesses, the company is confident that its strategy positions it for strong cash generation and the return of excess capital to shareholders in the future.
