November 12 - Subsea 7 has disclosed a bigger fleet reduction plan with six of its ships being laid up in order to reduce the fleet in "subdued markets".
After both net profit and revenue dropped significantly in 2014, the company announced recently that its reduction plan, announced in May 2015, is on track to deliver approximately USD550 million of savings.
The fleet reduction has progressed as planned. 12 vessels are scheduled to leave the fleet by early 2016, six vessels have been laid up and one chartered vessel has been returned. The 16,500 dwt pipe-laying vessel Seven Polaris will also be scrapped, in spite of an impairment charge of USD36 million.
Subsea 7 ceo Jean Cahuzac said: "Subsea 7 has delivered another quarter of good results in the three months to September 30, 2015, despite the continuation of difficult industry conditions and resultant decline in market activity, with strong operational performance in both business units driven by consistently good project execution."
Subsea 7's Luanda spoolbase.