Subsea7 and Saipem awaiting regulatory approvals, with completion of the merger expected in the second half of the year
Norwegian energy services contractor Subsea7 has reported revenues in line with analysts’ consensus for the fourth quarter of 2025, though net income was below forecasts.
According to the company’s financial results report released on Thursday, Subsea7’s top line exceeded $1.96 billion in the fourth quarter of 2025 against $1.87 billion in the same period of 2024.
Analysts surveyed by investment resource Marketscreener, expected quarterly revenues of $1.95 billion.
Subsea7 said its net income was $148 million for the quarter against $26 million in the fourth quarter of 2024. However, analysts on average anticipated net income of around $174 million. RBC Capital Markets said the net income was negatively impacted by a $50 million foreign exchange loss.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were 51% year-on-year, at $477 million, well above analysts’ consensus of $431 million.
“Subsea7 delivered a strong performance in the final quarter of 2025, resulting in adjusted EBITDA for the full year of $1.5 billion, up 36% on the prior year and driving free cash flow generation of $1.2 billion,” said chief executive John Evans.
“We ended the year with a solid balance sheet, with net cash of $21 million, an improvement of $622 million from the prior year end.
“We closed the year with an order book approaching $14 billion, providing excellent visibility on the years ahead and this, along with high tendering activity, support our confidence in the outlook for the group,” he added.
Subsea7 reaffirmed guidance for the full year of 2026, when it is scheduled to complete its planned merger with Italy’s Saipem.
The Norwegian player expects annual revenue within a range of $7 billion to $7.4 billion, and adjusted EBITDA margin of approximately 22%.
Speaking during a conference call on Wednesday this week, Saipem chief executive Alessandro Puliti reiterated that he expects the merger to close during the second half of 2026, despite objections raised with Brazil’s antitrust regulator Cade.
The merged company will be owned 50:50 by both sets of shareholders and will combine Saipem’s global onshore and offshore construction capabilities with Subsea7’s offshore business.
On Thursday, Subsea 7 said it proposed a dividend of Nkr13 (1.36 US cents) per share, totalling about $400 million and payable in one instalment in May before the completion of the merger. This is ahead of consensus dividend expectations of Nkr10 per share, RBC said.
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