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Subsea 7 says COVID-19 may impact its ability to execute existing contracts

Oil&Gas Materials 1 April 2020 16:32 (UTC +04:00)
Subsea 7 says COVID-19 may impact its ability to execute existing contracts

BAKU, Azerbaijan, April 1

By Leman Zeynalova - Trend:

UK-based Subsea 7 company says COVID-19 may impact its ability to execute existing contracts, Trend reports citing the company.

Subsea 7 S.A. has announced that due to the general uncertainty in the world and for our industry caused by the coronavirus and the collapse in commodity prices, it is withdrawing the guidance and outlook statements issued on 27 February 2020.

The company’s first priority is to protect the health and safety of its 12,000 employees, while it continues to deliver projects to its clients.

“While the current year’s results are underpinned by a backlog at year-end 2019 of $5.2 billion, including $3.3 billion for execution in 2020, the dual impacts of the coronavirus and sharply lower commodity prices represent a significant headwind to the pace of the new awards required to meet prior guidance,” said Subsea 7.

In addition, it is possible that measures taken around the world to contain the virus may impact the company’s ability to execute existing contracts and recognise revenue in 2020.

The company said it has significant liquidity available to weather these challenges, with $398 million cash and equivalents, as well as undrawn banking facilities of $656 million.

Subsea 7 S.A. is a subsea engineering, construction and services company serving the offshore energy industry.

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Follow the author on Twitter: @Lyaman_Zeyn

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