Subsea 7 SA

SUBC: XOSL (NOR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	NOK 885.00	Xstp	Zbjscppj

Subsea7 Earnings: Strong Cash Conversion Drives Shareholder-Friendly Capital Allocation Program

Joshua Aguilar ,

Feb 29, 2024

Upon initial review, nothing in no-moat rated Subsea7’s latest results materially alters our long-term view of the firm. For now, we maintain our NOK 196 fair value estimate. Fourth-quarter revenue of $1.63 billion increased 26% year on year and marginally exceeded our expectations on higher subsea revenue, though renewables underperformed. Even on higher revenue, however, adjusted EBITDA came in quite a bit below our fourth-quarter expectations.

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