UK-based engineering, construction and services company Subsea 7 has announced its fourth quarter (Q4) and full-year results for 2018, reporting a year-on-year decrease in net income over both periods.

Subsea 7 reported a net income of $32m in Q4 2018, a decrease from 2017’s Q4 net income of $51m. The company’s revenue in Q4 2018 was $1.023bn, an increase from Q4 2017’s revenue of $1.003bn.

The company’s full-year net income in 2018 was $165m, a decrease from 2017’s full-year net income of $455m. Full-year revenue in 2018 was $4.074bn, an increase from 2017’s full-year revenue of $3.986bn.

Subsea 7 attributed this drop in net income to “challenging market conditions” and claimed that “increased operations offshore Africa, Norway and in the Gulf of Mexico were partially offset by lower activity levels in the Renewables and Heavy Lifting business unit.”

Total vessel utilisation increased in 2018 to 70% for both Q4 and the full year, compared with 2017’s vessel utilisation of 55% in Q4 and 61% for the full year. According to Subsea 7, this increased utilisation represents “increased offshore activity on SURF [subsea umbilicals, risers and flowlines] projects”.

Subsea 7 CEO Jean Cahuzac said: “Subsea 7 delivered good operational and financial results in 2018, despite the challenge of delivering projects awarded at lower prices during the downturn.

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“The number of deepwater oil and gas projects awarded by our clients started to increase as industry-wide cost reductions and higher oil and gas prices supported better economic returns. We received a good share of new awards reflecting our enabling technology, early engagement and integrated solutions.

“In 2019 we expect continued pressure on our financial performance from the projects awarded at lower prices during the downturn and from a reduction in our offshore wind farm installation activity. However, offshore activity levels are improving and the projects we are now tendering and winning give us confidence that the expected market recovery will translate into better performance for Subsea 7 in the future.”

Subsea 7 also announced the award of a contract by BP Exploration on Thursday. This contract covers subsea construction, inspection, repair and maintenance services for BP’s Northern North Sea and West of Shetland assets in its North Sea portfolio.