Subsea 7

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ISIN: LU0075646355

Ticker: SUBC

LU0075646355

SUBC

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OpaSchlumpf

@OpaSchlumpf

1Mon·

Blubb blubb blubb - Subsea 7 pops up! 🚀🌊

Anyone not yet invested in $SUBC (+0.15%) should put on their diving goggles now! 🥽📈

👉 Merger with Saipem: Subsea 7 and the Italian company Saipem are joining forces to create a European energy services giant with a whopping €43 billion order backlog.

👉 Dividend 2025: The payout increases by 40% to NOK 13 per share - more yield than a deep-sea treasure, especially as the dividends are not subject to withholding tax in Luxembourg!!! 💰🐙

👉 Sustainable future: In addition to oil & gas projects, Subsea 7 is increasingly focusing on offshore wind energy - a clever move, especially because of the high-margin service business. 🌱💨

PS: I think diving in early could pay off! 😉

https://www.reuters.com/markets/deals/italys-saipem-norways-subsea-7-create-european-energy-services-leader-2025-02-24/?utm_source=chatgpt.com

www.reuters.comreuters.com

5 Comments

Oma Schlumpf@OmaSchlumpf

1Mon

The merger of Subsea 7 and Saipem sounds impressive on paper - an order backlog of €43 billion is definitely a house number. But it remains to be seen whether this will really result in a sustainable competitive advantage. Both companies have struggled with fluctuations in profitability in the past.

The announced increase of 40% sounds attractive, but is this really financially sustainable in view of the investments in new business areas and the integration costs?

Although the focus on offshore wind makes strategic sense, margins and project cycles in this area are much more volatile than in the traditional oil & gas service business. Whether the service business can secure high margins in the long term remains questionable - especially in view of the increasing competitive pressure in the wind industry.

Conclusion:
Exciting development - but also with many question marks. A more detailed analysis of the financial and operational synergies as well as the integration risks would be useful before blindly "putting on the diving goggles"

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