Subsea 7 has revised its guidance for 2022 due to offshore wind project execution issues.
The Norwegian company did not give specific figures but said the problems will impact adjusted EBITDA for the year, which was previously estimated to be “in line or better” than the $521m notched in 2021.
Subsea 7 said the “provision against the results of project execution of offshore wind farm installations” are “due to increased costs relating to weather delays and mechanical breakdowns”.
“This, together with an increase in the existing provision on the Formosa 2 project, including the effects of Covid-19, will impact Subsea 7’s Adjusted EBITDA for 2022, which is still expected to be broadly in line with 2021,” added the company.
Subsea 7 retains the interest in the Taiwan offshore wind farm following the merger of its renewables arm Seaway 7 and OHT.
“The financial outcome of this project is therefore recognised in Subsea 7’s Renewables segment and not in the financial statements of Seaway 7 ASA,” said the company.