Subsea 7 posts below forecast Q4, outlook uncertain
Posted on 05.02.2009 - 02:57 EST in GENERAL NEWS by Rons_ROV_Links
Norwegian oilfield engineering group Subsea 7 reported flat fourth-quarter core profit, lagging analyst forecasts, and said that the outlook for offshore services was unclear in the medium-term.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $102 million in the three months to the end of December from $103 million a year earlier, below an average forecast from a Reuters poll for a rise to $114 million.
"Whilst the market outlook will retain a degree of uncertainty for the medium term as a result of the current economic climate, there has been no dramatic deterioration in the subsea market sector," Subsea 7 said about its core market.
It said that national oil companies and oil majors were "generally maintaining spending levels," but as it anticipated the spending of smaller operators has been reduced, delaying or deferring "a number of development plans."