Subsea 7 SA
SUBC: XOSL (NOR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
NOK 225.00 | Yrkcx | Kpmhycwz |
Subsea 7 Earnings: Backlog Exceeds 2013 Levels as Offshore Contracting Drives Record Order Intake
Subsea 7 delivered a solid second quarter as elevated contracting activity for offshore oil and gas projects persists worldwide. Management raised full-year guidance for revenue and adjusted EBITDA (about 5% at the midpoint for each), and we expect the firm is well-positioned to reach the new targets. We’re slightly raising our fair value estimate to NOK 206 from NOK 196, which coincides with the updated performance targets. Our no-moat rating is unchanged following the results.