$SUBC.OL (Subsea 7) is basically a company that builds and installs the heavy-duty infrastructure needed for offshore energy projects. When oil, gas, or offshore wind companies want to develop fields far out at sea, Subsea 7 helps design, transport, and install the pipelines, cables, and underwater systems that make those projects work. It also supports maintenance and repair of offshore equipment.
It is highly complex work and only a handful of companies have the capacity to fulfil the work that Subsea 7 are capable of doing.
Logically, the world today is re-evaluating choke points in the supply chain, this time as you're all aware, around the energy flow through the strait of Hormuz. The conclusion is that access to supply is a matter of national security over the price in a globalisation driven world and a consequence of that leads to more drilling in places like the North Sea, off the coast of places like Guyana, Brazil and Africa all of which is good for business at Subsea 7.
As oil prices are pushing higher we are seeing a highly short sighted view of Subsea 7s backlog that currently sits in the Gulf and accounts for roughly 14%, however, only 2% to 4% equivalent of one years revenue is contracted for 2026 while significant opportunities are opening medium and long term. There are few companies this environment suits better than Subsea 7.
For now, Subsea 7 has see some weakness on uncertainty, however, from the disclosures of the company that seems misplaced. The next earnings report is April 30th where we should hear more about the impact or opportunity from this situation.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Hi Robert! Do you mind to share the DCF model and that video where you explain them? I think you, in the past, shared it on your yt channel.
Looking forward to hear from you soon.
wish you the best... Show More
2 replies
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