Oil services company Subsea 7 SA posted below-forecast third-quarter earnings on Nov. 9 and predicted flat year-on-year revenues for 2018 with a second consecutive year of lower profit margins.

Analysts in a Reuters poll had on average expected a 10% decline in 2018 revenues and a lower earnings margin.

Subsea 7, a major supplier to energy companies seeking to develop offshore oil and gas fields, reiterated its expectations for revenue growth in 2017 from 2016 and a decline in margins.

Subsea 7's contract backlog fell to $5.3 billion in the third-quarter from $5.7 billion in the second, but was still ahead of the $5.19 billion predicted by analysts in a Reuters poll.

“Assuming that global energy prices sustain current levels and cost reductions identified by the industry are consistently delivered, there is reason to believe that the number of awards to the market could increase in the first half of 2018,” it said.

The company’s adjusted earnings before interest, tax, depreciation and amortization declined by 13% year-on-year in the quarter to $250 million, below a $280 million forecast in the Reuters poll.

Offshore