Executive Summary
Subsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable 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: SUBC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.9%
SUBC
-3.5%
NO Energy Services
0.2%
NO Market
1 Year Return
-3.9%
SUBC
-27.0%
NO Energy Services
-0.7%
NO Market
Return vs Industry: SUBC exceeded the Norwegian Energy Services industry which returned -27% over the past year.
Return vs Market: SUBC underperformed the Norwegian Market which returned -0.7% over the past year.
Shareholder returns
| SUBC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | -3.5% | 0.2% |
| 30 Day | -8.2% | -12.2% | -1.3% |
| 90 Day | -3.6% | -13.1% | 1.7% |
| 1 Year | -2.6%-3.9% | -24.9%-27.0% | 4.5%-0.7% |
| 3 Year | -8.3%-16.5% | -18.9%-24.6% | 33.3%16.6% |
| 5 Year | 38.9%26.5% | -13.2%-46.3% | 58.2%24.1% |
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
1 week ago | Simply Wall St
If You Had Bought Subsea 7 (OB:SUBC) Shares Five Years Ago You'd Have Made 31%1 month ago | Simply Wall St
What Does Subsea 7 S.A.'s (OB:SUBC) P/E Ratio Tell You?2 months ago | Simply Wall St
Is Subsea 7 (OB:SUBC) Using Too Much Debt?Valuation
Is Subsea 7 undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SUBC (NOK96.12) is trading below our estimate of fair value (NOK205.93)
Significantly Below Fair Value: SUBC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SUBC is poor value based on its PE Ratio (35.8x) compared to the Energy Services industry average (10.6x).
PE vs Market: SUBC is poor value based on its PE Ratio (35.8x) compared to the Norwegian market (15.7x).
Price to Earnings Growth Ratio
PEG Ratio: SUBC is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SUBC is overvalued based on its PB Ratio (0.6x) compared to the NO Energy Services industry average (0.6x).
Next Steps
Future Growth
How is Subsea 7 forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
28.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SUBC's forecast earnings growth (28.8% per year) is above the savings rate (0.7%).
Earnings vs Market: SUBC's earnings (28.8% per year) are forecast to grow faster than the Norwegian market (18.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SUBC's revenue (4.6% per year) is forecast to grow faster than the Norwegian market (3.3% per year).
High Growth Revenue: SUBC's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SUBC's Return on Equity is forecast to be low in 3 years time (5%).
Next Steps
Past Performance
How has Subsea 7 performed over the past 5 years?
29.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SUBC has high quality earnings.
Growing Profit Margin: SUBC's current net profit margins (2.4%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: SUBC's earnings have grown significantly by 29.3% per year over the past 5 years.
Accelerating Growth: SUBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SUBC had negative earnings growth (-55.2%) over the past year, making it difficult to compare to the Energy Services industry average (-44.4%).
Return on Equity
High ROE: SUBC's Return on Equity (1.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Subsea 7's financial position?
Financial Position Analysis
Short Term Liabilities: SUBC's short term assets ($1.8B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: SUBC's short term assets ($1.8B) exceed its long term liabilities ($640.8M).
Debt to Equity History and Analysis
Debt Level: SUBC's debt to equity ratio (4.4%) is considered satisfactory.
Reducing Debt: SUBC's debt to equity ratio has reduced from 12.3% to 4.4% over the past 5 years.
Debt Coverage: SUBC's debt is well covered by operating cash flow (158.9%).
Interest Coverage: SUBC's interest payments on its debt are well covered by EBIT (19x coverage).
Balance Sheet
Inventory Level: SUBC has a high level of physical assets or inventory.
Debt Coverage by Assets: SUBC's debt is covered by short term assets (assets are 7.3x debt).
Next Steps
Dividend
What is Subsea 7's current dividend yield, its reliability and sustainability?
1.55%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SUBC's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.83%).
High Dividend: SUBC's dividend (1.55%) is low compared to the top 25% of dividend payers in the Norwegian market (6.18%).
Stability and Growth of Payments
Stable Dividend: SUBC's dividend payments have been volatile in the past 10 years.
Growing Dividend: SUBC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SUBC's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.4yrs
Average management tenure
CEO
John Evans (56yo)
0.08yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.08yrs | no data | 0.024% $6.8m | |
| Chief Financial Officer | 7.6yrs | no data | 0.011% $3.2m | |
| Head of Investor Relations | 0yrs | no data | no data | |
| General Counsel | 7.8yrs | no data | 0.0074% $2.1m | |
| Executive Vice President - Human Resources | 0.4yrs | no data | 0.0038% $1.1m | |
| Senior Vice President of Brazil | 0yrs | no data | no data | |
| Senior Vice President of Alliances | 0yrs | no data | no data | |
| Executive Vice President of Alliances and Strategy | 2.1yrs | no data | 0.0046% $1.3m | |
| Executive Vice President of SURF and Conventional | 0.08yrs | no data | no data | |
| Executive Vice President of Renewables | 0.08yrs | no data | no data |
0.4yrs
Average Tenure
56yo
Average Age
Experienced Management: SUBC's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Non-Executive Director | 11.8yrs | no data | 0.057% $16.4m | |
| Independent Director | 10.2yrs | US$119.00k | 0.0013% $384.9k | |
| Chairman | 9.1yrs | US$200.00k | no data | |
| Senior Independent Director | 1.8yrs | US$105.00k | 0.0036% $1.0m | |
| Director | 7.9yrs | US$111.00k | 0.0010% $298.7k | |
| Independent Director | 1.8yrs | US$74.55k | no data | |
| Independent Director | 1.8yrs | US$78.81k | no data | |
| Non-Executive Independent Director | 0.8yrs | no data | no data |
4.9yrs
Average Tenure
65yo
Average Age
Experienced Board: SUBC's board of directors are considered experienced (4.9 years average tenure).
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: SUBC
- Exchange: OB
- Founded: 1993
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: kr28.724b
- Shares outstanding: 298.84m
- Website: https://www.subsea7.com
Number of Employees
Location
- Subsea 7 S.A.
- 412F, Route d'Esch
- Luxembourg City
- 2086
- Luxembourg
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SUBC | OB (Oslo Bors) | Yes | Common Shares | NO | NOK | May 1993 |
| ACGY.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 1993 |
| 0OGK | LSE (London Stock Exchange) | Yes | Common Shares | GB | NOK | May 1993 |
| SOC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 1993 |
| SUBCO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | NOK | May 1993 |
| SUBC.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jun 1998 | |
| SOCA | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Jun 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 21:08 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.