Offshore contractor Subsea 7 saw earnings drop by $112m in 2017, representing a 6% decline in EBITDA on the previous year, despite increasing its presence in the renewables sector.
The company finished the year with an EBITDA percentage margin of 26% and said the drop was due to lower margin projects and less market activity.
Subsea's fleet saw an average utilisation rate of 61% for the year, the company said.
“We have taken advantage of the cyclical market conditions in 2017 to increase our presence in offshore renewable energy services,” said company chief executive Jean Cahuzac.
Last month, Subsea 7 acquired Siem's cable lay business and two vessels and took a 60% stake in UK offshore engineering and advisory consultancy Xodus Group.
The company said it was confident that the offshore renewables market remained “on a moderate growth trajectory,” but predicted a “significantly lower” EBITDA percentage margin for 2018.
Image: Subsea 7