Subsea 7 S.A.

Subsea 7 is a provider of seabed-to-surface engineering, construction and services contractor to the offshore energy industry. Co. provides products and services required for subsea field development, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of these facilities to fixed or floating platforms or to the shore. Co. also provides products and capabilities to deliver full Life of Field services to its clients. Through its i-Tech Division, Co. provides remotely operated vehicles and tooling services to support exploration, production and drilling activities.
  • TickerSOC
  • ISINLU0075646355
  • ExchangeBerlin Stock Exchange
  • SectorOil Equipment, Services & Distribution
  • CountryGermany
Martin Huseby Karlsen

Huge Petrobras development, but limited services need

Huge Petrobras development, but limited services need Petrobras has again highlighted the bright future of the Buzios field, part of the ‘transfer of rights area’, looking to add eight new FPSOs. From an oil service perspective, we welcome new developments but at the same time, we consider the oil service intensity for this development to be low. Wells are highly productive (40k–50k barrels/d per well), resulting in a need for few wells, which is the main demand driver for rig and subsea services. We estimate a need for 3–4 UDW rigs (largely flat compared to recent years), and that local cont...

Baptiste Lebacq

Subsea 7 : Strategy in renewable energy validated, still moving towards a re-rating

>Buy recommendation maintained, target price raised to NOK 85 - Beyond adjusted earnings that beat forecasts, this publication has above all emphasised the group’s positioning in the offshore wind market. As such, the renewable energy activity now represents more than 30% of the order book. We have adjusted our forecasts (primarily to factor in numerous exceptional elements: impairments, restructuring charges, etc.). All told, our investment case remains intact and we...

Baptiste Lebacq

Subsea 7 : Stratégie dans le renouvelable validée, vers la poursuite du rerating

>Recommandation Achat maintenue OC relevé à 85 NOK - Au-delà de résultats retraités au-dessus des attentes, cette publication a surtout mis en exergue le positionnement du groupe sur le marché des fermes éoliennes offshore. Ainsi, l’activité renouvelable représente désormais plus de 30% du carnet de commandes. Nous avons ajusté nos attentes (afin d’intégrer principalement les nombreux éléments exceptionnels : dépréciations, charges de restructuration…). Au final, notr...

Martin Huseby Karlsen

Huge Petrobras development, but limited services need

Huge Petrobras development, but limited services need Petrobras has again highlighted the bright future of the Buzios field, part of the ‘transfer of rights area’, looking to add eight new FPSOs. From an oil service perspective, we welcome new developments but at the same time, we consider the oil service intensity for this development to be low. Wells are highly productive (40k–50k barrels/d per well), resulting in a need for few wells, which is the main demand driver for rig and subsea services. We estimate a need for 3–4 UDW rigs (largely flat compared to recent years), and that local cont...

Baptiste Lebacq

Subsea 7 : Strategy in renewable energy validated, still moving towards a re-rating

>Buy recommendation maintained, target price raised to NOK 85 - Beyond adjusted earnings that beat forecasts, this publication has above all emphasised the group’s positioning in the offshore wind market. As such, the renewable energy activity now represents more than 30% of the order book. We have adjusted our forecasts (primarily to factor in numerous exceptional elements: impairments, restructuring charges, etc.). All told, our investment case remains intact and we...

Baptiste Lebacq

Subsea 7 : Stratégie dans le renouvelable validée, vers la poursuite du rerating

>Recommandation Achat maintenue OC relevé à 85 NOK - Au-delà de résultats retraités au-dessus des attentes, cette publication a surtout mis en exergue le positionnement du groupe sur le marché des fermes éoliennes offshore. Ainsi, l’activité renouvelable représente désormais plus de 30% du carnet de commandes. Nous avons ajusté nos attentes (afin d’intégrer principalement les nombreux éléments exceptionnels : dépréciations, charges de restructuration…). Au final, notr...

Haakon Amundsen ...
  • Lukas Daul

Subsea 7 - Offshore wind growth could boost valuation

Robust operational performance in Q2 Strong orders and backlog coverage Upside potential on Renewable valuation; BUY

Baptiste Lebacq

Subsea 7 : Positioning in offshore wind supported by the backlog

>Buy recommendation maintained, target price of NOK 75 - These results beat forecasts, despite including new exceptional items. One of the group’s strengths is its exposure to renewables, where clients seem less affected than those in the oil sector. Proof of this success is the fact that around 31% of the order backlog is in offshore wind! We reiterate our Buy recommendation on the stock (target price of NOK 75).Conference call at 1pm.Adjusted EBITD...

Christer Magnergård ...
  • Joachim Gunell
  • Martin Huseby Karlsen
  • Ole-Andreas Krohn

Northern Lights

SUBSEA 7 sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of SUBSEA 7 (NO), a company active in the Oil Equipment & Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date July 24, 2020, the closing price was NOK 67.20 and its potential was estimated at NOK 79.13.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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