Subsea 7 S.A. (SUBCY)

[Wildbilly]

Subsea 7 swings to profit, launches share buyback

By
DOMINIC
CHOPPING
Norwegian seabed-to-surface engineering contractor Subsea 7 S.A. (SUBC.OS) said Thursday it swung to a second quarter net profit, maintained full-year guidance and said it is launching a new $200 million share buyback programme.

CEO Jean Cahuzac said "The group has now completed the $200 million share repurchase programme announced in October 2013. In the light of continued strong performance, the strength of the balance sheet and confidence in our business, the Board of Directors has authorised a further share repurchase programme of up to $200 million."

The company posted a second quarter net profit of $270.3 million from a loss of $17.3 million, on revenue of $1.91 billion, up from $1.68 billion in the same period last year.

The backlog at June 30 totaled $11.2 billion, compared to $10.4 billion.

"Tendering activity remains high in many areas where we operate, which suggests a positive medium- and long-term outlook for our business. However, given the continuing uncertainty over the timing of market awards for a number of large SURF projects, as well as for our Conventional business, it is premature to offer guidance beyond the current year."

At 0759 GMT shares traded 6.1% higher at NOK109.30.

http://www.marketwatch.com/story/subsea-7-swings-to-profit-launches-share-buyback-2014-07-31


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