DB:SOC

Stock Analysis Report

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Executive Summary

Subsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Subsea 7's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.6%

SOC

19.0%

DE Energy Services

6.8%

DE Market


1 Year Return

-47.5%

SOC

-41.5%

DE Energy Services

5.6%

DE Market

Return vs Industry: SOC matched the German Energy Services industry which returned -48.4% over the past year.

Return vs Market: SOC underperformed the German Market which returned 0.5% over the past year.


Shareholder returns

SOCIndustryMarket
7 Day10.6%19.0%6.8%
30 Day15.0%18.2%14.0%
90 Day-33.2%-15.0%7.5%
1 Year-47.5%-47.5%-40.5%-41.5%7.4%5.6%
3 Year-52.5%-55.2%-49.1%-53.3%0.3%-7.3%
5 Year-36.2%-41.9%-72.4%-84.7%12.4%-2.0%

Price Volatility Vs. Market

How volatile is Subsea 7's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Subsea 7 undervalued compared to its fair value and its price relative to the market?

0.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SOC (€5.37) is trading above our estimate of fair value (€5.13)

Significantly Below Fair Value: SOC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOC is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: SOC is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOC is good value based on its PB Ratio (0.4x) compared to the XE Energy Services industry average (0.4x).


Next Steps

Future Growth

How is Subsea 7 forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

64.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: SOC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SOC's is expected to become profitable in the next 3 years.

Revenue vs Market: SOC's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: SOC's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOC's Return on Equity is forecast to be low in 3 years time (0.9%).


Next Steps

Past Performance

How has Subsea 7 performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOC is currently unprofitable.

Growing Profit Margin: SOC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOC is unprofitable, but has reduced losses over the past 5 years at a rate of 30.4% per year.

Accelerating Growth: Unable to compare SOC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SOC is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (8%).


Return on Equity

High ROE: SOC has a negative Return on Equity (-1.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Subsea 7's financial position?


Financial Position Analysis

Short Term Liabilities: SOC's short term assets ($1.6B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: SOC's short term assets ($1.6B) exceed its long term liabilities ($580.6M).


Debt to Equity History and Analysis

Debt Level: SOC's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: SOC's debt to equity ratio has reduced from 11.9% to 4.3% over the past 5 years.

Debt Coverage: SOC's debt is well covered by operating cash flow (167.5%).

Interest Coverage: SOC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Subsea 7's current dividend yield, its reliability and sustainability?

0.85%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SOC is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

John Evans (56yo)

0.42

Tenure

Mr. John Evans has been Chief Executive Officer of Subsea 7 SA since January 1, 2020 and served as its Chief Operating Officer since July 2005 until Jnauary 01, 2020. Mr. Evans has over 25 years experience ...


Leadership Team

NamePositionTenureCompensationOwnership
John Evans
Chief Executive Officer0.42yrno data0.024% $429.5k
Ricardo Rosa
Chief Financial Officer7.92yrsno data0.011% $203.6k
Phillip Simons
Executive Vice President of Projects & Operations0.42yrno datano data
Katherine Tonks
Head of Investor Relationsno datano datano data
Nathalie Louys
General Counsel8.17yrsno data0.0075% $135.2k
Katherine Lyne
Executive Vice President of Human Resources0.75yrno data0.0038% $68.7k
Victor Bomfim
Senior Vice President of Brazil no datano datano data
Dick Martin
Senior Vice President of Alliancesno datano datano data
Stuart Fitzgerald
Executive Vice President of Alliances & Strategy2.42yrsno data0.0046% $83.2k
Olivier Blaringhem
Executive Vice President of SURF & Conventional0.42yrno datano data

0.8yrs

Average Tenure

53yo

Average Age

Experienced Management: SOC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jean Cahuzac
Non-Executive Director12.08yrsno data0.057% $1.0m
Dod Fraser
Independent Non-Executive Director10.5yrsUS$119.00k0.0014% $24.4k
Kristian Siem
Chairman9.42yrsUS$200.00kno data
Allen Stevens
Senior Non-Executive Independent Director2.08yrsUS$105.00k0.0036% $64.7k
Elisabeth Proust
Non-Executive Independent Director1.17yrsUS$105.00k0.00028% $5.1k
David Mullen
Independent Non-Executive Director2.17yrsUS$105.00kno data
Niels Kirk
Independent Non-Executive Director2.17yrsUS$111.00kno data

2.2yrs

Average Tenure

65yo

Average Age

Experienced Board: SOC's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Subsea 7 S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Subsea 7 S.A.
  • Ticker: SOC
  • Exchange: DB
  • Founded: 1993
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr19.313b
  • Listing Market Cap: kr1.808b
  • Shares outstanding: 297.21m
  • Website: https://www.subsea7.com

Number of Employees


Location

  • Subsea 7 S.A.
  • 412F, Route d'Esch
  • Luxembourg City
  • 2086
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUBCOB (Oslo Bors)YesCommon SharesNONOKMay 1993
ACGY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1993
0OGKLSE (London Stock Exchange)YesCommon SharesGBNOKMay 1993
SOCDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1993
SUBCOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKMay 1993
SUBC.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 COM SPONUSUSDJun 1998
SOCADB (Deutsche Boerse AG)ADR EACH REPR 1 COM SPONDEEURJun 1998

Biography

Subsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, construction, and installation of subsea umbilicals, risers, and flowlines; life of field services, such as inspection, repair, maintenance, integrity management, and remote intervention of subsea infrastructure; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines; hook-up services; and refurbishment of fixed and floating platforms and associated pipelines in shallow water. In addition, it operates heavy lifting operations for oil and gas structures; and installs offshore wind farm foundations and inter-array cables, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities. It has a fleet of 5 chartered vessels and 91 ROVs. Subsea 7 S.A. was incorporated in 1993 and is based in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 22:37
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.