Acergy comments on the subsea market outlook
The demand for subsea engineering and construction services is expected to remain strong for the foreseeable future. Today’s $670 million award of Block 15 work in Angola to Acergy signals the start of the long awaited contract awards for the large deepwater projects in West Africa, which we expect to see continuing in 2008. Demand in Brazil remains good, with significant developments improving the potential of this market. The deepwater markets in Asia and the Gulf of Mexico are expected to continue to grow in 2008 and beyond. While the SURF market in the North Sea remains stable, with further growth expected in 2009, there is currently no major trunkline work planned for2008.
Tendering for new work is expected to continue at the high levels that we have seen in previous years. Commenting on today’s statement, Tom Ehret, Chief Executive Officer, said “2007 has not been, as initially anticipated, a year of consolidation but one of further growth. We have focused on effective offshore execution and developing our key enabling assets: our people and our fleet, while delivering what we expect to be significantly higher revenue than originally anticipated and building up our order book. In view of the negative contribution from the Mexilhao project during the fourth quarter we believe that achieving our adjusted EBITDA (a) expectation will be dependant on the positive conclusion of the financial closure and settlement negotiations that characterise Acergy’s end of year period. In 2008, our focus remains on delivery and execution in a market in which the trends remain strong for 2009 and beyond.”
