Subsea 7
Subsea 7 S.A. is a multinational engineering, construction, and services contractor specializing in subsea and offshore projects for the energy industry, including oil and gas, renewables, and emerging low-carbon technologies such as offshore wind, carbon capture and storage, and hydrogen.[1] The company is registered in Luxembourg with its operational headquarters located in Sutton, London, United Kingdom, and it employs approximately 15,000 people across more than 30 countries worldwide.[2][3] Led by Chief Executive Officer John Evans since 2020, Subsea 7 focuses on delivering sustainable offshore energy solutions throughout the project lifecycle, from engineering and installation to maintenance and decommissioning.[4][5] Subsea 7 traces its origins to a joint venture formed on May 23, 2002, between Norwegian firm DSND Subsea and Halliburton Subsea, which was fully acquired by DSND in 2004 and listed on the Oslo Stock Exchange as Subsea 7 Inc.[6] The modern entity emerged in January 2011 through a merger with Acergy S.A., creating Subsea 7 S.A. and retaining its listing on the Oslo Børs under the ticker SUBC.[6] Its legacy incorporates more than 25 predecessor companies dating back to the 1950s, including diving and marine operations firms that evolved into advanced subsea capabilities.[6] Over its history, the company has completed more than 1,000 offshore projects globally, establishing itself as a leader in subsea umbilicals, risers, flowlines (SURF), and conventional offshore construction.[7] Today, Subsea 7 operates through key segments including Subsea and Conventional, and Renewables and Emerging Energies, supported by subsidiaries such as Seaway7 for offshore wind installation and 4Subsea for digital engineering solutions.[1][8] The company maintains a fleet of 41 vessels and emphasizes local partnerships in major offshore regions like the North Sea, Gulf of Mexico, Brazil, and West Africa to support energy transition goals.[9] In 2024, Subsea 7 reported revenue of $6.8 billion, with a backlog exceeding $11 billion providing strong visibility into 2025 operations, where it anticipates revenue between $6.8 billion and $7.2 billion.[10] A significant development in 2025 includes the announced merger with Italian firm Saipem on July 24, which has received regulatory clearances including from the UK CMA in November 2025 and is expected to complete in the second half of 2026.[11][12][13]History
Formation and early development
Subsea 7 Inc. was established on May 23, 2002, as a 50/50 joint venture between DSND, a Norwegian diving and engineering firm founded in 1957, and Halliburton Subsea, with the aim of creating a leading provider of subsea engineering, construction, and services for the offshore oil and gas industry.[6][14] The new entity combined the expertise and assets of both partners, including a fleet of 23 dynamically positioned vessels and 113 remotely operated vehicles (ROVs), to deliver comprehensive subsea solutions from initial design through installation and maintenance.[14] From its inception, Subsea 7 focused on offshore oil and gas services, specializing in subsea installation, pipeline construction, and diving operations. These capabilities were bolstered by the legacy of predecessor companies.[15] This heritage enabled Subsea 7 to inherit advanced techniques in subsea intervention and engineering, positioning it as a key player in challenging underwater environments. In 2004, DSND acquired Halliburton's 50% stake in the joint venture, gaining full ownership of Subsea 7 Inc., which was subsequently listed on the Oslo Stock Exchange (Oslo Børs) under the ticker SUBC.[6][15] This transition marked a pivotal step toward independent growth, allowing the company to invest in fleet expansion and technological advancements. During its early years up to 2010, Subsea 7 achieved key milestones by expanding into deepwater projects, leveraging its growing vessel fleet to execute complex subsea campaigns in the North Sea and Gulf of Mexico.[6] Notable efforts included enhancing ROV capabilities for remote interventions and securing contracts for subsea tie-backs and pipeline installations, which solidified its reputation for reliable execution in high-pressure offshore settings.[14]Key mergers and expansions
In January 2011, Subsea 7 Inc. merged with Acergy S.A., a specialist in subsea engineering, construction, and installation services, to form Subsea 7 S.A., retaining the Subsea 7 name and commencing trading on the Oslo Børs under the ticker SUBC on January 10, 2011.[16] The merger created a combined entity with approximately 12,000 employees and a project backlog of $6.8 billion as of December 2010, effectively doubling the workforce from the pre-merger levels of each company and significantly expanding capabilities for large-scale offshore projects.[17][18] Between 2011 and 2024, Subsea 7 pursued a series of strategic acquisitions, totaling seven notable deals with activity peaking in 2017 and 2018, to bolster its technological and operational footprint.[19] In 2017, the company acquired the remaining 50% stake in Seaway Heavy Lifting (SHL) to enhance its heavy-lift and installation expertise, and purchased key assets from the bankrupt EMAS Chiyoda Subsea, including facilities for subsea umbilicals, risers, and flowlines (SURF), which strengthened its engineering and manufacturing capabilities in deepwater projects.[20][21] In 2018, Subsea 7 completed two major transactions: the acquisition of a 60% stake in Xodus Group, an energy consultancy, forming a joint venture to integrate advanced subsea design and analysis services, and the purchase of Siem Offshore Contractors along with vessels Siem Aimery and Siem Moxie, which added inter-array cable-lay and support capabilities.[22][23] Subsea 7's expansion into the renewables sector accelerated around 2018, driven by investments in offshore wind infrastructure and the integration of acquired assets to support heavy-lift and installation operations. The 2018 Siem Offshore Contractors acquisition directly enhanced renewables capabilities by incorporating specialized vessels for subsea cable installation in wind farms, while the company restructured its Renewables and Heavy Lifting business unit to focus on emerging offshore wind markets in regions like Taiwan, France, and the U.S. East Coast.[24][25] These efforts contributed to the formation of Seaway 7 in 2021 as a dedicated entity within Subsea 7 for offshore wind and heavy-lift projects, enabling participation in high-profile contracts such as jacket foundations and array cables.[26] By 2024, these mergers and expansions had contributed to Subsea 7's delivery of over 1,000 projects worldwide, underscoring its growth into a leading provider of subsea solutions across the energy lifecycle.[27] The company emphasized technological advancements, including subsea robotics for inspection and intervention tasks and hybrid vessels designed for reduced emissions through biofuel trials and electric propulsion systems, enhancing efficiency in both conventional and renewables operations.[10][1]Recent strategic developments
On July 24, 2025, Subsea 7 and Saipem, an Italian engineering and construction firm, announced a binding merger agreement to combine their operations through an EU cross-border statutory merger, under which Subsea 7 would be absorbed into Saipem and the resulting entity renamed Saipem7.[28][29] This strategic move aims to create a global leader in energy services with enhanced capabilities in subsea engineering, offshore construction, and low-carbon solutions, including renewables and carbon capture and storage (CCS), to better compete in the energy transition market.[30] The merger is expected to generate annual synergies of approximately €300 million starting from the third year post-completion, primarily through optimized operations in subsea, renewables, and CCS projects.[31] As of November 2025, the deal has received clearance from the UK Competition and Markets Authority on November 4, but remains subject to additional antitrust and regulatory approvals, including ongoing review by Brazil's CADE, where ExxonMobil, Petrobras, and TechnipFMC raised concerns in September 2025 about potential reductions in competition for subsea umbilicals, risers, flowlines, and pipe-laying vessels, prompting further market testing; completion is anticipated in the second half of 2026.[12][28][32] Under the proposed integration, Saipem7 will be incorporated in Italy and headquartered in Milan, with a 50/50 ownership split between the shareholders of both companies.[31] Leadership for the combined entity includes Alessandro Puliti, current CEO of Saipem, designated as CEO of Saipem7, and Kristian Siem, a key stakeholder through Siem Industries, as Chairman; John Evans, Subsea 7's CEO, is slated to lead the offshore engineering and construction division.[28] The structure emphasizes synergies across subsea infrastructure, renewable energy projects, and CCS technologies to accelerate delivery of sustainable offshore solutions.[33] In parallel with the merger, Subsea 7 advanced its energy transition efforts in 2025 through operational innovations and new partnerships. On September 14, 2025, the company was awarded a major engineering, procurement, construction, and installation (EPCI) contract by Saudi Aramco for approximately 106 km of infield and export pipelines offshore Saudi Arabia, valued between $750 million and $1.25 billion.[34] The company continued trials of biofuels and hybrid propulsion systems on select vessels, including the Seven Arctic and Seaway Ventus, to reduce emissions in offshore operations, building on prior hybrid conversions and biofuel testing.[35] Additionally, in September 2025, Subsea 7 partnered with HydePoint and EnBW to launch a feasibility study for integrating offshore hydrogen production with wind farms in the Dutch North Sea, exploring subsea storage and transport solutions to support emerging hydrogen economies.[36] These initiatives underscore Subsea 7's strategic shift toward low-emission technologies amid the pending merger.[10]Business operations
Subsea and conventional segment
Subsea 7's subsea and conventional segment encompasses the company's core operations in the offshore oil and gas sector, focusing on subsea field development and life-of-field services. This includes engineering, procurement, construction, and installation (EPCI) of subsea umbilicals, risers, and flowlines (SURF), which involve the design and deployment of pipelines, subsea structures, and associated infrastructure to connect offshore wells to production facilities. Additionally, the segment provides inspection, repair, and maintenance (IRM) services, along with integrity management, drill rig support, production enhancement, and decommissioning support to ensure the longevity and efficiency of subsea assets throughout their operational lifecycle.[37][38] Key capabilities in this segment are supported by a modern fleet of 41 vessels as of the end of the second quarter of 2025, enabling deepwater installations in water depths up to 3,000 meters across challenging environments. These vessels facilitate pipelay, heavy-lift construction, and remote intervention operations worldwide. Complementing the fleet are strategically located spoolbases and fabrication yards, such as those in Vigra (Norway), Ingleside (USA), and Ubu (Brazil), where pipelines and subsea structures are manufactured and pre-assembled to optimize offshore efficiency and reduce project timelines.[39][40][41] In the first half of 2025, the subsea and conventional segment generated $2.7 billion in revenue, representing the majority of Subsea 7's overall income and driven by high-utilization contracts in key regions including the North Sea, Gulf of Mexico, and Middle East. Notable contributors included EPCI projects in Norway's North Sea (such as Yggdrasil and IRPA), installation works in the U.S. Gulf of Mexico (including Shenandoah and Sunspear), and completion-phase contracts in Saudi Arabia (like Marjan 2). This performance underscores the segment's resilience amid sustained demand for subsea infrastructure in mature and emerging oil and gas fields.[42] Technological advancements in the segment emphasize the development and deployment of remote-operated vehicles (ROVs) and autonomous underwater systems to enhance subsea interventions. Subsea 7 has pioneered remote ROV piloting, allowing operations from onshore control centers, as demonstrated in trials connecting Scotland-based pilots to offshore assets for reduced crew exposure and cost efficiency. Furthermore, collaborations on autonomous inspection vehicles (AIVs) integrate AI-driven visual recognition and shared control systems, enabling multiple units to perform tasks like pipeline surveys and maintenance independently or semi-autonomously, thereby improving operational versatility in deepwater environments.[43][44]Renewables and emerging energies segment
Subsea 7's Renewables and Emerging Energies segment focuses on delivering engineering, procurement, construction, installation, and commissioning (EPCIC) services for sustainable energy projects, particularly in offshore wind and carbon capture and storage (CCS). The segment provides comprehensive solutions for fixed and floating offshore wind farms, including the design, fabrication, and installation of foundations, inter-array cables, export cables, and offshore substations. Through its integrated entity Seaway 7, Subsea 7 conducts heavy-lift operations essential for transporting and installing wind turbine components and floating structures, leveraging a specialized fleet adapted for deeper waters and harsher conditions.[45][46] In addition to wind projects, the segment supports CCS initiatives by engineering subsea infrastructure for CO2 transportation, injection, and permanent storage. A prominent example is Subsea 7's involvement in Norway's Northern Lights project, the world's first open-source CO2 storage facility, where the company was awarded a contract in 2021 to fabricate and install a 100 km pipeline for CO2 transport from an onshore terminal to a subsea reservoir in the northern North Sea. This project, operated by Equinor in partnership with Shell and TotalEnergies, began injecting CO2 in 2025, with Subsea 7 contributing to phase two through its joint venture OneSubsea for expanded EPC services. The segment also extends to emerging areas such as hydrogen production and transport, developing subsea pipelines, storage systems, and power integration for offshore green hydrogen generated from wind farms; recent collaborations include a 2025 feasibility study with HydePoint and EnBW for modular hydrogen production in the Dutch North Sea, and a 2023-funded project with the Port of Aberdeen to explore subsea hydrogen storage in Scotland.[47][48][49] To align with decarbonization goals, Subsea 7 has adapted its fleet for renewables, incorporating vessels capable of handling monopile foundations, jacket structures, and high-voltage array cables, while integrating digital tools for efficient project execution. The company has conducted biofuel trials on vessels like the Seven Oceanic, completing a successful test in 2022 that demonstrated significant CO2 emission reductions and ongoing assessments for broader adoption. Since 2018, the segment has expanded rapidly, securing increasing contract awards in Europe—such as contributions to 11.9 GW of renewable capacity by 2023—and Asia, including a major 2025 contract for cable installation at Taiwan's offshore wind farms. This growth underscores Subsea 7's transition toward low-carbon solutions, building on its conventional subsea expertise to support the global energy transition.[50][51][52]Global presence
Headquarters and regional offices
Subsea 7's principal executive office is located at 40 Brighton Road, Sutton, London SM2 5BN, United Kingdom, serving as the central hub for corporate governance and strategic decision-making.[53] The company is publicly listed on the Oslo Børs and registered in Luxembourg, with its official registered office at 412F Route d’Esch, L-1471 Luxembourg.[54] To support its worldwide operations, Subsea 7 operates a distributed network of regional offices across 36 countries.[55] In Europe, the key hub in Oslo, Norway, focuses on North Sea activities, leveraging proximity to major offshore energy projects.[53] For the Americas, offices in Houston and Katy, Texas, United States— including at 17220 Katy Freeway Suite 100, Houston—provide essential support for Gulf of Mexico and broader regional engagements.[55] In Africa, the office in Luanda, Angola, acts as a primary base for West African operations, handling project management and engineering for local offshore developments.[56] The Asia-Pacific region is served by offices in Singapore, at 150 Beach Road #27-01 Gateway West, and Perth, Australia, at Westralia Square, Level 15, 141 St Georges Terrace, which coordinate activities in key basins like the North West Shelf and Southeast Asia.[57] Additional offices are maintained in more than 30 countries worldwide, with operational presence supporting projects in regions such as South America, the Middle East, and North Africa.[9] These locations primarily function as engineering centers, project management hubs, and client-facing facilities, each adapted to the specific requirements of surrounding offshore basins to ensure efficient execution of subsea engineering, construction, and services.[9]Workforce and facilities
Subsea 7 employs approximately 15,000 people worldwide, representing over 80 nationalities, which fosters a diverse and inclusive work environment essential for its global offshore operations.[35][58][55] The company's workforce includes specialized offshore roles such as remotely operated vehicle (ROV) technicians and subsea engineers, who undergo rigorous safety training through Subsea 7's Business Management System to ensure high standards in hazardous environments.[59][60] This emphasis on safety has contributed to targets like maintaining a lost-time injury frequency below 0.03 per 200,000 hours worked.[61][62] The company's physical infrastructure supports its project execution through a network of spoolbases, fabrication yards, and maintenance bases strategically positioned near key offshore regions. Spoolbases, such as the Leith facility in Scotland and the Vigra site in Norway, enable efficient pipeline manufacturing and assembly, including capabilities for pipe-in-pipe and electrically heat-traced flowlines. Fabrication yards, including Wick in Scotland and Warri in Nigeria, are equipped for constructing subsea structures like manifolds and protection covers, featuring advanced welding, rolling, and lifting equipment. Maintenance bases, such as Dusavik in Norway, provide dedicated support for vessel fleets, handling mobilization, equipment storage, and repairs to ensure operational readiness. In alignment with the energy transition, Subsea 7 invests in upskilling its workforce to develop competencies in renewables and low-carbon technologies, enabling employees to transition from traditional oil and gas roles to emerging areas like offshore wind installation.[59] This focus on talent development underpins the company's high-quality backlog of $11.8 billion as of Q2 2025, providing over 90% visibility on 2025 revenue through effective deployment of skilled labor across projects.[11] As of September 2025, the merger with Saipem has been approved by shareholders and is expected to complete in the second half of 2026, potentially expanding the global presence and integrating additional workforce and facilities from Saipem's operations in Italy and other regions.[63]Leadership and governance
Executive management team
The Executive Management Team at Subsea 7 oversees the company's operational execution, strategic initiatives, and global project delivery across its subsea engineering, construction, and renewables segments. Comprising experienced professionals with deep expertise in the energy sector, the team drives the firm's focus on sustainable energy transitions and complex offshore projects.[4] John Evans has served as Chief Executive Officer since January 2020, having previously held the role of Chief Operating Officer at Subsea 7. With over 35 years in the oil and gas services industry, primarily in subsea umbilicals, risers, and flowlines (SURF) and offshore engineering and construction, Evans leads the company's overarching strategy, including its push toward energy transition initiatives such as offshore wind and low-carbon solutions.[4][5][64] Mark Foley is the Chief Financial Officer, a position he has held since January 2022. Foley manages Subsea 7's financial planning, risk management, and investor relations, drawing on his extensive background in energy sector finance; he began his career in the UK's Government Economic Service in 1996, joined Royal Dutch Shell in 2000 for various finance roles, and previously served as Subsea 7's group controller from 2012 to 2017 before a stint at Petrofac.[4][5][65] Olivier Blaringhem serves as Executive Vice President – Subsea and Conventional, a role he assumed in January 2020. With expertise in engineering, procurement, construction, and installation (EPCI) projects, Blaringhem joined Subsea 7 in 2009 after seven years at Entrepose Contracting in oil and gas engineering; he previously held positions as Vice President for Asia Pacific and Middle East and Senior Vice President for SURF and Conventional.[4][66][64] Among other key members, Phil Simons is Executive Vice President – Projects and Operations, appointed in January 2020, where he focuses on cross-segment project execution and operational efficiency. Simons joined Subsea 7 in 2004 as a senior project manager in Aberdeen, later serving as Vice President for Canada, Mediterranean, and Russia regions, building on over 20 years in subsea pipelines and installation.[4][67][64]Board of directors
The Board of Directors of Subsea 7 S.A. provides non-executive oversight, focusing on long-term governance and strategic direction separate from day-to-day executive operations. As of November 2025, the board comprises seven members, including a mix of non-independent and independent directors, reflecting the company's Luxembourg-based structure and compliance with relevant corporate laws.[68] Kristian Siem serves as Chairman, bringing extensive experience in the offshore oil and gas sector from prior executive and non-executive roles; he has held the position since 2011 and maintains strong ties to the company's founding through Siem Industries S.A., which holds approximately 23.6% of Subsea 7's shares as a major long-term investor. Siem serves as the permanent representative of the non-independent corporate director Treveri S.à r.l.[68][69][70] The non-independent directors also include Louisa Siem. The independent directors include Lucia de Andrade, Niels Kirk, David Mullen (Senior Independent Director), Eldar Sætre, and Elisabeth Proust van Heeswijk. These members contribute diverse expertise and serve on key committees: for instance, de Andrade and Proust van Heeswijk sit on the Audit and Sustainability Committee alongside Sætre (its Chairman), while Mullen chairs the Corporate Governance, Nominations and Risk Committee, and Kirk serves on the Compensation Committee to ensure objective oversight of executive compensation and board succession.[71][72] The board's primary responsibilities encompass approving overall corporate strategy, overseeing risk management and compliance, reviewing financial statements, and authorizing major transactions such as acquisitions and disposals; it convenes at least four times annually, with additional meetings as needed, including to guide significant initiatives like the 2025 merger agreement with Saipem, which received board endorsement ahead of shareholder approval in September 2025.[73][74] In line with its adopted Board Diversity Policy, the composition emphasizes balanced gender representation—with three female directors (de Andrade, Proust van Heeswijk, and Louisa Siem)—and a breadth of professional expertise in energy transition, finance, sustainability, and engineering to support Subsea 7's global operations.[75][76]Financial performance
Revenue and profitability trends
Following the 2011 merger forming Subsea 7, the company's revenue grew from $5.5 billion in 2011 to a peak of $6.9 billion in 2014, driven by strong demand for subsea engineering and construction services amid favorable oil and gas market conditions.[77] This expansion reflected robust order backlogs, which reached $11.8 billion by the end of 2013, supporting sustained project execution. However, the 2015–2016 oil price crash led to significant declines, with revenue dropping to $4.8 billion in 2015 and further to $3.6 billion in 2016, as clients deferred or canceled offshore projects amid reduced capital expenditures.[77] Backlogs contracted accordingly, falling to $6.1 billion by end-2015 and $5.7 billion by end-2016.[78] Despite lower revenues, adjusted EBITDA margins expanded to 25–32% in 2015–2016 due to operational leverage, cost-control measures, including workforce reductions of over 3,600 positions and vessel idling.[79][78][80] Recovery began in 2017, with revenue stabilizing around $4 billion annually through 2020 before accelerating to $6.8 billion by 2024, fueled by renewed subsea activity in deepwater developments and improved vessel utilization rates exceeding 80% in recent years.[77][27] Order backlogs rebounded progressively, growing from $5.2 billion at end-2017 to $10.6 billion by end-2023, providing visibility into multi-year revenue streams.[81] Expansion into renewables has been a key driver, contributing approximately 18% of total revenue in 2024 ($1.2 billion), up from negligible levels in the early 2010s, through projects in offshore wind foundation installation and cable laying.[10] Profitability trends mirror this revenue trajectory, with adjusted EBITDA margins averaging around 10% in the early 2010s, peaking at 19% in 2014 due to high project margins and operational leverage.[79] The oil downturn saw margins expand as noted, though further cost controls mitigated losses. Post-2020 recovery saw margins stabilize at 10–12% amid pandemic disruptions but improve to 16% by 2024, supported by pricing discipline, supply chain efficiencies, and a shift toward higher-margin renewables work.[27] Overall, adjusted EBITDA rose from $537 million in 2011 to $1.1 billion in 2024, underscoring enhanced financial resilience.[79]| Year | Revenue ($B) | Adjusted EBITDA ($M) | EBITDA Margin (%) | Year-End Backlog ($B) |
|---|---|---|---|---|
| 2011 | 5.5 | 537 | 9.8 | ~8.6 |
| 2014 | 6.9 | 1,333 | 19.4 | 8.2 |
| 2016 | 3.6 | 1,142 | 32.0 | 5.7 |
| 2020 | 3.5 | 3 | 0.1 | ~6.2 |
| 2023 | 6.0 | 714 | 12 | 10.6 |
| 2024 | 6.8 | 1,090 | 16.0 | 11.2 |
Key financial metrics in 2025
In the first quarter of 2025, Subsea 7 reported revenue of $1.5 billion, marking a 10% increase year-over-year from $1.366 billion in Q1 2024.[83] Adjusted EBITDA for the quarter reached $236 million, a 46% rise from $162 million in the prior year, achieving a margin of 15%.[83] This performance reflected strong execution in subsea projects and improved operational efficiency. For the second quarter of 2025, revenue grew to $1.756 billion, up slightly from $1.739 billion in Q2 2024.[42] Adjusted EBITDA increased 23% year-over-year to $360 million, with a margin expansion to 21% from 17% in the comparable period.[42] The quarter's net income stood at $131 million, contributing to a diluted earnings per share (EPS) of $0.45.[42] Over the first half of 2025, total revenue amounted to $3.285 billion, combining the quarterly figures.[42] Half-year Adjusted EBITDA was $596 million, yielding an 18% margin, while net income reached $148 million and diluted EPS was $0.51.[42] The company's backlog for the remainder of 2025 stood at $3.6 billion, providing over 90% visibility into full-year revenue expectations.[84] The announced merger with Saipem, signed on July 24, 2025, underscored Subsea 7's robust cash position, which supports estimated one-off integration costs of approximately €270 million (about $295 million).[31] As of November 2025, the merger received UK CMA clearance on 4 November, following Italian conditional approval in September, with completion anticipated in the second half of 2026.[12]| Metric | Q1 2025 | Q2 2025 | Half-Year 2025 |
|---|---|---|---|
| Revenue | $1.5 billion | $1.756 billion | $3.285 billion |
| Adjusted EBITDA | $236 million (15% margin) | $360 million (21% margin) | $596 million (18% margin) |
| Net Income | N/A | $131 million | $148 million |
| Diluted EPS | N/A | $0.45 | $0.51 |