Norway's Subsea 7 Core Profit up 53% in 2024

Norway's Subsea 7 core profit up 53% in 2024

OSLO (Reuters) - Oslo-listed energy service group Subsea 7, which plans to merge with Italian rival Saipem, said on Thursday its core profit rose 53% last year, in line with its previous guidance.

Subsea 7 reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.09 million for the full year 2024, up from $714 million in 2023, and compared with $1 billion-$1.1 billion guidance last November.

Subsea 7 and Saipem announced on Sunday a plan to create a leading provider of offshore engineering and construction services for petroleum and renewable energy industries.

"The combination would enhance value for shareholders, clients and other stakeholders, both in the current market and in the long term," Subsea 7's chairman and largest shareholder, Kristian Siem, said in a statement.

Subsea 7's board proposed on Thursday to pay a total of $350 million in dividend to shareholders this year, 40% up from the last year, identical to Saipem and in line with a cap agreed under the proposed merger deal.

Subsea 7 won $2.3 billion in new contract awards in 2024, bringing its total end-year backlog of orders to $11.2 billion, up from $10.6 billion at end-2023.

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)