Subsea7’s renewables business unit reported a significant increase in earnings for 2024, with adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rising to $185 million, up from $103 million the previous year. This resulted in an EBITDA margin of 15.0%, an increase from 10.7% in 2023.
The company attributed the improved performance to a heightened focus on execution and more selective project bidding, ensuring a favourable balance of risk and reward. In addition to the EBITDA increase, Subsea7’s revenue for the renewables business unit grew by 29% to $1.2 billion, while net operating income rose to $53 million, reversing a loss of $74 million in 2023.
The renewables business primarily encompasses the operations of its offshore wind subsidiary, Seaway7. During the year, Seaway7’s vessels, including Seaway Strashnov and Seaway Alfa Lift, were active on major offshore wind projects such as Dogger Bank A and B, and Moray West in the UK. In Germany, Seaway Ventus completed its first turbine installations at Gode Wind 3 and Borkum Riffgrund 3.
Subsea7’s cable-lay vessels, including Seaway Aimery, Seaway Phoenix, and the chartered Maersk Connector, were engaged in projects in Taiwan and the US, including the Yunlin, Zhong Neng, Hai Long, and Revolution offshore wind farms.
The company also secured several significant new contracts in 2024, including the Baltica 2 substation project in Poland, East Anglia Two and Hornsea 3 cable-lay projects in the UK, and an expanded scope at Dogger Bank for turbine installation.
Subsea7 CEO John Evans commented: “Revenue in Renewables increased 29% year-on-year to $1.2bn due to high utilisation of our vessels in the UK, Germany, and Taiwan. Our adjusted EBITDA margin reached 15% as a result of the decisive action taken to improve the selectivity of our bids, as well as strong project execution.”
He added, “Tendering activity remained at high levels in 2024, with order intake of $8.2bn, equivalent to a book-to-bill of 1.2 times, including major awards in Brazil, the US, Turkey, and in the UK in offshore wind. Tendering activity remains strong and our teams in subsea and offshore wind are actively bidding for projects worth around $28bn, supporting our confidence in the outlook for both business units.”
Subsea7’s strong performance in the renewables sector reflects the ongoing growth of offshore wind and subsea projects, as the company continues to expand its presence in key global markets.
