Subsea 7’s renewables business has reported a net operating loss of $12m in the fourth quarter (Q4) of 2021 compared with a net operating loss of $2m in the same period of 2020.
The increase in net operating loss was driven by an increase in forecast costs related to the local Taiwanese supply chain, despite reaching an agreement with its client on the Formosa 2 offshore wind farm, off Taiwan, during the quarter, which defined Subsea 7’s remaining scope, revised schedule and remuneration.
Barring any further impact of Covid-19, it is expected that the project will be substantially completed by mid-2022, Subsea 7 said.
Renewables revenue was $326m in Q4 2021 compared with $234m in Q4 2020, due to increased activity, particularly on the Seagreen wind farm, in the UK, the Yunlin project in Taiwan and the Hollandse Kust Zuid project, in the Netherlands.
Active vessel utilisation for the year was 83% compared with 77% for 2020.
Total vessel utilisation was 77% compared to 69% in 2020.
Vessel utilisation was favourable impacted by the addition of the heavy transportation vessels in the renewables business unit which were fully utilised during the quarter.
Subsea 7 chief executive John Evans said: “Our Renewables business, which proved somewhat more resilient during the global economic downturn of 2020, continued to make progress although issues largely related to Covid-19 delayed certain projects in Taiwan.
“During the year, a new challenge emerged as global supply chains tightened across many industries. Subsea 7 continued to mitigate the majority of its exposure through a variety of mechanisms including back-to-back supplier contracts and index-linked pricing.”