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Subsea 7 profit drops

Subsea 7 profit drops
Subsea 7 has reported a $160m profit for the third quarter, down from a $194m profit in the same period last year.

A drop in nine month operating profit from $628m last year to $464m in 2013 comes despite revenue holding steady at $4.7bn; the second quarter $300m project loss provision for Huara-Lula NE weighing down 2013's results.

The result brings net income for the first nine months to $278m, 60% lower than the $698m for the first three quarters of 2012. The company attributes the drop to the $244m gain on the sale of NKT flexibles last year, increasing finance costs and foreign exchange costs due to the weakening dollar.

The group's backlog stood at $11.8bn at the end of the quarter, and has since seen the addition of $1.1bn of new contracts in Brazil and Ghana, secured since 30 September.

"We have delivered good financial results and are on track to deliver full year adjusted EBITDA in line with consensus expectations. The results reflect high offshore activity, project phasing in West Africa and high vessel utilisation in the North Sea. We have achieved a record-breaking backlog of $11.8bn which includes the award of three 5 year contracts for newbuild PLVSs in Brazil. We remain focused on building quality backlog with the appropriate risk profile," commented Jean Cahuzac, ceo of Subsea 7.

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