Subsea 7 Earnings: Robust Offshore Contracting Activity Will Lift Margins and Revenue Through 2027

Subsea 7 continues to benefit from the early stages of the long-awaited upcycle in offshore oil and gas production. We’re raising our fair value estimate to NOK 161 from NOK 153 due to improved confidence in the firm’s potential for significant revenue and margin expansion over the next five years. We now estimate annual revenue growth will average 6.5% through 2027 with operating margins averaging 5.5%, compared to our prior estimates of 6% and 4%, respectively. We maintain our no-moat rating following results.