Update shared on16 Sep 2025
Fair value Decreased 1.24%Analysts revised Subsea 7’s price target slightly lower to NOK218.18, citing macro uncertainty, elevated valuations, and share price strength prompting caution despite ongoing operational improvements and peer outperformance.
Analyst Commentary
- Ongoing preference for oilfield services companies with self-help levers and superior growth prospects in the European market compared to exploration and production peers.
- Bullish analysts cite incremental improvements in project execution and backlog visibility supporting upward price target revisions.
- Continued share price strength, with valuations reaching record levels, prompts some bearish analysts to temper ratings despite raising price targets.
- Macro-economic uncertainty remains a concern, leading to more cautious perspectives from bearish analysts on sector performance.
- Outperformance relative to peers is driving positive sentiment, though some remain neutral pending further evidence of sustainable growth.
What's in the News
- Awarded a major EPCI contract under Aramco’s LTA for offshore Saudi Arabia, valued between $750 million and $1.25 billion, with project work starting immediately and offshore activities scheduled for 2027-2028.
- Seaway7, part of Subsea7, secured a substantial contract from Synera Renewable Energy for transport and installation of 35 inter-array cables at the Formosa 4 Wind Farm in Taiwan and is the preferred contractor for Formosa 6 with contract finalization expected in 2026.
- Won a major EPCI contract from Turkish Petroleum for Sakarya Phase 3 in the Black Sea, with project work commencing at the Istanbul office and contract value of $750 million to $1.25 billion.
- Proposed a special dividend distribution of EUR 105 million (~NOK 4.15 per share) following a business divestment related to a merger agreement with Saipem, subject to shareholder approval.
- Maintained 2025 earnings guidance with expected revenue between $6.8 billion and $7.2 billion.
Valuation Changes
Summary of Valuation Changes for Subsea 7
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from NOK220.92 to NOK218.18.
- The Future P/E for Subsea 7 has significantly risen from 16.54x to 155.18x.
- The Net Profit Margin for Subsea 7 has risen from 6.40% to 6.76%.
Disclaimer
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