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Subsea 7

DB:SOC
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SOC
DB
NOK34B
Market Cap
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Last updated 2019/05/21 21:35
Company description

Subsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide. The last earnings update was 19 days ago. More info.

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SOC Share Price and Events
7 Day Returns
4.8%
DB:SOC
3.5%
Europe Energy Services
0.3%
DE Market
1 Year Returns
-19.3%
DB:SOC
-26.4%
Europe Energy Services
-11.6%
DE Market
SOC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Subsea 7 (SOC) 4.8% 3.2% 11.1% -19.3% 42.6% -22.7%
Europe Energy Services 3.5% -5.8% 0.7% -26.4% -24.4% -84.2%
DE Market 0.3% -3.8% 2.5% -11.6% 10.1% 7.9%
1 Year Return vs Industry and Market
  • SOC outperformed the Energy Services industry which returned -26.4% over the past year.
  • SOC underperformed the Market in Germany which returned -11.6% over the past year.
Price Volatility
SOC
Industry
5yr Volatility vs Market

Value

 Is Subsea 7 undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Subsea 7 to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Subsea 7.

DB:SOC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SOC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.013 (1 + (1- 26.01%) (17.11%)) 		1.095
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.095 * 5.96%) 		6.75%

Discounted Cash Flow Calculation for DB:SOC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Subsea 7 is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:SOC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.75%)
2019 238.24 Analyst x5 223.17
2020 342.28 Analyst x9 300.34
2021 440.93 Analyst x6 362.43
2022 339.00 Analyst x1 261.02
2023 385.00 Analyst x1 277.68
2024 387.14 Est @ 0.56% 261.56
2025 388.91 Est @ 0.46% 246.14
2026 390.43 Est @ 0.39% 231.46
2027 391.75 Est @ 0.34% 217.56
2028 392.96 Est @ 0.31% 204.42
Present value of next 10 years cash flows $2,585.77
DB:SOC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $392.96 × (1 + 0.23%) ÷ (6.75% – 0.23%) 		$6,035.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,035.55 ÷ (1 + 6.75%)10 		$3,139.74
DB:SOC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,585.77 + $3,139.74 		$5,725.52
Equity Value per Share
(USD)		 = Total value / Shares Outstanding
= $5,725.52 / 307.27 		$182.54
DB:SOC Discount to Share Price
Calculation Result
Exchange Rate USD/NOK
(Reporting currency to currency of OB:SUBC) 		8.768
Value per Share
(NOK)		 = Value per Share in USD x Exchange Rate (USD/NOK)
= $18.63 x 8.768 		NOK163.39
Non-primary Listing Adjustment Factor 1 share in DB:SOC represents 0.10208x of OB:SUBC
(This could be a different class, a depositary receipt, a different currency, or all of these things.) 		0.10208x
Value per Share
(Listing Adjusted, EUR)		 = Value per Share (NOK) x Listing Adjustment Factor
= NOK 163.39 x 0.10208 		€16.68
Value per share (EUR) From above. €16.68
Current discount Discount to share price of €11.30
= -1 x (€11.30 - €16.68) / €16.68 		32.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Subsea 7 is available for.
Intrinsic value
32%
Share price is €11.3 vs Future cash flow value of €16.68
Current Discount Checks
For Subsea 7 to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Subsea 7's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Subsea 7's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Subsea 7's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Subsea 7's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SOC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.54
OB:SUBC Share Price ** OB (2019-05-21) in NOK NOK110.65
OB:SUBC Share Price converted to USD reporting currency Exchange rate (NOK/ USD) 0.114 $12.62
Europe Energy Services Industry PE Ratio Median Figure of 27 Publicly-Listed Energy Services Companies 21.44x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 20.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Subsea 7.

DB:SOC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:SUBC Share Price ÷ EPS (both in USD)

= 12.62 ÷ 0.54

 23.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Subsea 7 is overvalued based on earnings compared to the Europe Energy Services industry average.
  • Subsea 7 is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Subsea 7's expected growth come at a high price?
Raw Data
DB:SOC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts		 32.3%per year
Europe Energy Services Industry PEG Ratio Median Figure of 21 Publicly-Listed Energy Services Companies 1.08x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

DB:SOC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.41x ÷ 32.3%

 0.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Subsea 7 is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Subsea 7's assets?
Raw Data
DB:SOC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.05
OB:SUBC Share Price * OB (2019-05-21) in NOK NOK110.65
OB:SUBC Share Price converted to USD reporting currency Exchange rate (NOK/ USD) 0.114 $12.62
Europe Energy Services Industry PB Ratio Median Figure of 62 Publicly-Listed Energy Services Companies 0.93x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.79x
DB:SOC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:SUBC Share Price ÷ Book Value per Share (both in USD)

= 12.62 ÷ 18.05

 0.7x

* Primary Listing of Subsea 7.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Subsea 7 is good value based on assets compared to the Europe Energy Services industry average.
Show me more potentially undervalued companies in the Energy Services industry
X
Value checks
We assess Subsea 7's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
    5. Subsea 7 has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Subsea 7 expected to grow at an attractive rate?
  • Subsea 7's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Subsea 7's earnings growth is expected to exceed the Germany market average.
  • Subsea 7's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SOC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SOC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 32.3%
DB:SOC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 5.9%
Europe Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 31.1%
Europe Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 8.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SOC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SOC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,725 660 225 1
2022-12-31 4,630 645 204 3
2021-12-31 4,707 678 223 17
2020-12-31 4,346 628 148 21
2019-12-31 4,018 555 62 21
DB:SOC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,124 476 174
2018-12-31 4,074 424 183
2018-09-30 4,054 256 201
2018-06-30 4,035 160 238
2018-03-31 3,897 150 303
2017-12-31 3,986 209 455
2017-09-30 3,915 523 401
2017-06-30 3,780 664 438
2017-03-31 3,718 829 431
2016-12-31 3,567 1,046 436
2016-09-30 3,659 1,133 12
2016-06-30 3,931 1,308 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Subsea 7's earnings are expected to grow significantly at over 20% yearly.
  • Subsea 7's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SOC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Subsea 7 Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SOC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.70 0.70 0.70 1.00
2022-12-31 0.64 0.72 0.56 2.00
2021-12-31 0.73 1.13 0.41 17.00
2020-12-31 0.46 0.81 0.22 21.00
2019-12-31 0.20 0.28 0.14 16.00
DB:SOC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.54
2018-12-31 0.56
2018-09-30 0.62
2018-06-30 0.73
2018-03-31 0.93
2017-12-31 1.40
2017-09-30 1.23
2017-06-30 1.34
2017-03-31 1.32
2016-12-31 1.34
2016-09-30 0.04
2016-06-30 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Subsea 7 is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Energy Services industry
X
Future performance checks
We assess Subsea 7's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Subsea 7 has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Subsea 7 performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Subsea 7's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Subsea 7's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Subsea 7's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Subsea 7's 1-year earnings growth is negative, it can't be compared to the Europe Energy Services industry average.
Earnings and Revenue History
Subsea 7's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Subsea 7 Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SOC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,123.80 174.00 248.40
2018-12-31 4,073.80 182.50 264.40
2018-09-30 4,053.70 201.20 256.80
2018-06-30 4,034.60 238.00 257.10
2018-03-31 3,897.30 303.30 249.30
2017-12-31 3,985.60 454.80 222.60
2017-09-30 3,915.20 400.60 171.00
2017-06-30 3,779.70 438.00 169.70
2017-03-31 3,718.00 431.40 180.30
2016-12-31 3,566.70 436.00 185.70
2016-09-30 3,659.30 11.50 185.80
2016-06-30 3,931.30 19.00 211.90
2016-03-31 4,323.00 -24.50 221.80
2015-12-31 4,758.10 -17.00 239.10
2015-09-30 5,128.20 -563.00 297.20
2015-06-30 5,830.40 -513.90 294.20
2015-03-31 6,383.20 -334.90 283.00
2014-12-31 6,869.90 -337.80 293.40
2014-09-30 7,060.70 711.50 300.10
2014-06-30 6,722.50 656.30 304.20
2014-03-31 6,498.00 366.30 302.80
2013-12-31 6,297.10 349.70 297.60
2013-09-30 6,322.10 409.30 336.20
2013-06-30 6,501.90 441.60 325.40
2013-03-31 6,305.70 872.20 337.00
2012-12-31 6,296.60 830.40 353.10
2012-09-30 5,682.13 757.21 303.28
2012-06-30 5,370.43 737.91 318.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Subsea 7 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Subsea 7 used its assets less efficiently than the Europe Energy Services industry average last year based on Return on Assets.
  • Subsea 7's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Subsea 7's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Subsea 7 has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Subsea 7's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Subsea 7's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Subsea 7 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Subsea 7's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Subsea 7's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Subsea 7 Company Filings, last reported 1 month ago.

DB:SOC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,681.90 664.60 665.90
2018-12-31 5,721.80 260.00 780.80
2018-09-30 5,826.10 264.40 732.00
2018-06-30 5,764.80 270.50 613.60
2018-03-31 6,012.90 276.70 1,007.40
2017-12-31 5,941.00 284.50 1,109.10
2017-09-30 5,904.40 646.90 1,524.20
2017-06-30 5,712.80 649.80 1,474.40
2017-03-31 5,716.50 857.80 1,871.80
2016-12-31 5,536.60 429.10 1,676.40
2016-09-30 5,634.10 454.20 1,397.40
2016-06-30 5,497.40 451.30 1,179.70
2016-03-31 5,440.90 452.50 1,085.30
2015-12-31 5,346.20 526.70 946.80
2015-09-30 5,796.00 553.40 657.00
2015-06-30 5,774.80 583.90 433.30
2015-03-31 5,550.50 661.50 373.10
2014-12-31 5,561.70 582.10 572.60
2014-09-30 6,841.50 844.20 661.60
2014-06-30 6,843.40 919.30 844.60
2014-03-31 6,728.40 915.50 538.40
2013-12-31 6,571.10 922.20 691.50
2013-09-30 6,417.40 1,406.20 952.80
2013-06-30 6,089.20 1,397.00 1,084.10
2013-03-31 6,262.40 1,387.40 1,202.80
2012-12-31 6,368.30 1,540.50 1,287.90
2012-09-30 6,144.60 904.60 586.60
2012-06-30 5,791.20 897.30 752.20
  • Subsea 7's level of debt (11.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (13.6% vs 11.7% today).
  • Debt is well covered by operating cash flow (71.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 289.9x coverage).
Show me more healthy companies in the Energy Services industry
X
Financial health checks
We assess Subsea 7's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Subsea 7 has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.35%
Current annual income from Subsea 7 dividends. Estimated to be 2.55% next year.
If you bought €2,000 of Subsea 7 shares you are expected to receive €27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Subsea 7's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Subsea 7's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SOC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Europe Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SOC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.39 2.00
2021-12-31 0.38 16.00
2020-12-31 0.35 18.00
2019-12-31 0.21 14.00
DB:SOC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-17 0.171 1.378
2018-03-01 0.569 4.633
2015-03-04 0.000 0.000
2014-05-21 0.461 4.145
2013-03-14 0.600 3.014
2012-03-16 0.000 0.000
2011-11-02 0.000 0.000
2011-08-10 0.000 0.000
2011-05-11 0.000 0.000
2011-03-02 0.000 0.000
2011-02-23 0.000 0.000
2010-05-28 0.230 1.219

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Subsea 7 has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Subsea 7 has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Subsea 7's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Subsea 7 has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Subsea 7's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Subsea 7 afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Subsea 7 has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Subsea 7's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jean Cahuzac
COMPENSATION $0
AGE 64
TENURE AS CEO 11.1 years
CEO Bio

Mr. Jean P. Cahuzac has been the Chief Executive Officer of Subsea 7 SA since April 14, 2008 and its Executive Director since May 23, 2008. Mr. Cahuzac served as a Controller of Steel Plus Network, Inc. He served as an Executive Vice President of Assets of Transocean Ltd. (formerly, Transocean Inc) from 2007 to February 26, 2008. He served as the Chief Operating Officer and Executive Vice President of Transocean Ltd. since October 2002 and also served as its President since October 18, 2006. He served as Executive Vice President of Operations at Transocean from February 2001 to October 2002. He served as an Executive Vice President and President of Europe, Middle East and Africa of Transocean. Mr. Cahuzac has over 29 years of experience within the oil and gas industry, having held various technical and senior management positions around the world. He served as a Vice President of Engineering of Schlumberger since 1989 and also served as its Vice President of Europe and Africa Business Unit since 1994. He was employed by Schlumberger since 1979. He served as President of Sedco Forex since January 1999. He served as Vice President of Operations Manager of Sedco Forex from May 1998 to January 1999, Region Manager of Europe, Africa and CIS of Sedco Forex from September 1994 to May 1998 and Vice President and General Manager of North Sea Region of Sedco Forex from February 1994 to September 1994. He serves as Active Member and a Director at the International Association of Drilling Contractors and a Member in the Society of Petroleum Engineers. Mr. Cahuzac holds a master in Mechanical Engineering from École des Mines de St Etienne and is graduated from the French Petroleum Institute in Paris.

CEO Compensation
  • Jean's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jean's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Subsea 7 management team in years:

9.1
Average Tenure
57.5
Average Age
  • The average tenure for the Subsea 7 management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jean Cahuzac

TITLE
CEO & Executive Director
AGE
64
TENURE
11.1 yrs

Ricardo Rosa

TITLE
Chief Financial Officer
AGE
62
TENURE
6.8 yrs

John Evans

TITLE
Chief Operating Officer
AGE
55
TENURE
13.8 yrs

Stuart Fitzgerald

TITLE
Executive Vice President of Strategy & Commercial
AGE
49
TENURE
1.3 yrs

Isabel Green

TITLE
Investor Relations Director

Nathalie Louys

TITLE
General Counsel
AGE
55
TENURE
7.1 yrs

Keith Tipson

TITLE
Executive Vice President of Human Resources
AGE
60
TENURE
15.5 yrs

Victor Bomfim

TITLE
Senior Vice President of Brazil

Dick Martin

TITLE
Senior Vice President of Alliances

Maitre Hoss

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the Subsea 7 board of directors in years:

4.1
Average Tenure
64
Average Age
  • The tenure for the Subsea 7 board of directors is about average.
Board of Directors

Kristian Siem

TITLE
Chairman
COMPENSATION
$200K
AGE
69
TENURE
8.3 yrs

Jean Cahuzac

TITLE
CEO & Executive Director
AGE
64
TENURE
11 yrs

Dod Fraser

TITLE
Independent Director
COMPENSATION
$119K
AGE
68
TENURE
9.4 yrs

Allen Stevens

TITLE
Senior Independent Director
COMPENSATION
$105K
AGE
75
TENURE
1 yrs

Eystein Eriksrud

TITLE
Director
COMPENSATION
$111K
AGE
48
TENURE
7.2 yrs

David Mullen

TITLE
Independent Director
COMPENSATION
$75K
AGE
60
TENURE
1.1 yrs

Niels Kirk

TITLE
Independent Director
COMPENSATION
$79K
AGE
56
TENURE
1.1 yrs

Elisabeth Proust

TITLE
Non-Executive Independent Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. May 19 Buy Siem Industries Inc. Company 10. May 19 10. May 19 1,981,046 €10.77 €21,343,713
X
Management checks
We assess Subsea 7's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Subsea 7 has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 in shallow water. In addition, it operates heavy lifting vessels and 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 35 vessels; 2 vessels under construction; and 166 ROVs. Subsea 7 S.A. was incorporated in 1993 and is based in Luxembourg City, Luxembourg.

Details
Name: Subsea 7 S.A.
SOC
Exchange: DB
Founded: 1993
NOK3,479,355,876
307,267,393
Website: http://www.subsea7.com
Address: Subsea 7 S.A.
412F, Route d'Esch,
Luxembourg City,
2086,
Luxembourg
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB SUBC Common Shares Oslo Bors NO NOK 21. May 1993
OTCPK ACGY.F Common Shares Pink Sheets LLC US USD 21. May 1993
DB SOC Common Shares Deutsche Boerse AG DE EUR 21. May 1993
LSE 0OGK Common Shares London Stock Exchange GB NOK 21. May 1993
BATS-CHIXE SUBCO Common Shares BATS 'Chi-X Europe' GB NOK 21. May 1993
OTCPK SUBC.Y ADR EACH REPR 1 COM SPON Pink Sheets LLC US USD 26. Jun 1998
DB SOCA ADR EACH REPR 1 COM SPON Deutsche Boerse AG DE EUR 26. Jun 1998
Number of employees
Current staff
Staff numbers
11,000
Subsea 7 employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 21:35
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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