Subsea 7 Remains Undervalued as Global Offshore Production Begins to Pick Up Speed

Subsea 7 posted solid third-quarter results, with revenue slightly decreasing by 3% year over year and increasing 13% sequentially. The firmwide operating margin was 4%, decreasing by 50 basis points year over year and increasing 240 basis points sequentially. We’re slightly raising our fair value estimate to NOK 136 from NOK 134 as improving offshore production activity worldwide continues to yield valuable prospects for Subsea 7 over the next several years.