Subsea7's renewables division has disclosed a decline in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the first quarter of 2024, registering $1m compared to $6m in Q1 2023.
The unit also recorded a net operating loss of $24m in Q1 2024, reflecting challenges within the renewables sector.
The adjusted EBITDA margin for the renewables business stood at 0.7% for the quarter, attributed in part to North Sea seasonality. Subsea7 anticipates a return to margins exceeding 10% for the remainder of the year.
Commenting on the performance, Subsea7 CEO John Evans expressed confidence in the company's positioning amidst high tendering activity in both the subsea and offshore wind sectors. Evans stated, “Tendering activity is high in both the subsea and offshore wind sectors, and we are confident that the group's differentiated, value accretive solutions and strong, collaborative client relationships position us well to grow the backlog with high-quality contracts at improved margins.”
The company emphasized that bidding for subsea and offshore wind projects remains robust, with ongoing engagement with clients to support their development plans, extending beyond 2026.
