Subsea 7 Earnings: Offshore Oil and Gas Projects Continue to Support Subsea 7’s Strong Growth

No-moat-rated Subsea 7 posted solid first-quarter results. Subsea and conventional revenue rose 12% year on year to $1.2 billion, while renewables revenue similarly increased by 12% year on year to $179 million. Strong offshore oil and gas revenue supported firmwide revenue of $1.4 billion, which was offset by winter-weather-related seasonality in the renewables business unit. After our initial review of these and other financial results, we don't anticipate materially changing our NOK 196 fair value estimate or moat rating.