Subsea 7 SA: Recent Developments and Forward‑Looking Outlook

Subsea 7 SA (Oslo Børs: SUBC, ADR: SUBCY) has announced a series of corporate actions that underscore its strategic focus on offshore construction and the broader integration of its business within the global energy services ecosystem. The company’s board decisions and market commentary from late December 2025 illustrate both ongoing operational momentum and a clear path toward the long‑term merger with Saipem S.p.A.

On 12 December 2025, Subsea 7’s Board approved the reimbursement of legal expenses incurred by Siem Industries S.A. in connection with the proposed merger between Subsea 7 and Saipem. The total reimbursement, valued at under US$ 1 million, covers legal work associated with the Shareholders’ Agreement dated 23 July 2025. This agreement, signed by Eni S.p.A., CDP Equity S.p.A., and Siem Industries, authorises the parties to vote in favour of the merger and establishes a balanced leadership framework. The reimbursement is a routine related‑party transaction, compliant with Luxembourg’s 2011 shareholders’ rights legislation and SRD II EU directives. By absorbing these costs, Subsea 7 reinforces its commitment to a seamless transition and to safeguarding shareholder interests.

Contract Award to Seaway7

Earlier in the month, Subsea 7 announced that its subsidiary Seaway7 had secured a substantial contract from Ocean Winds for the BC‑Wind project. This award, announced on 8 December 2025, highlights Subsea 7’s continued expansion into the offshore wind sector and its capability to deliver integrated solutions across the Atlantic basin. The BC‑Wind project will further diversify the company’s revenue streams beyond conventional oilfield services and strengthens its position in the emerging low‑carbon offshore market.

JP Morgan Target‑Price Revision

Financial analyst coverage from JP Morgan has recently been updated. The investment bank lifted its target price for Subsea 7 to 218 NOK (previously 208 NOK) while maintaining a neutral recommendation. The upward revision reflects optimism regarding the company’s projected cash flows from the new wind contract, the anticipated benefits of the Saipem merger, and the firm’s ability to generate sustainable earnings growth in a market that is progressively shifting toward renewable energy solutions.

Market Context and Forward‑Look

  • Current trading level: 197.3 NOK (as of 10 December 2025).
  • 52‑week range: 130.9 NOK – 215.2 NOK.
  • Price‑earnings ratio: 20.31.
  • Market cap: 58 bn NOK.

The board’s actions demonstrate a strategic alignment with industry trends: a pivot toward offshore wind, consolidation to achieve scale, and proactive risk management. The merger with Saipem is expected to generate significant synergies—particularly in procurement, engineering, and project execution—that will drive cost efficiencies and broaden service offerings. Concurrently, the new BC‑Wind contract signals tangible progress in the renewable division, providing an additional revenue stream that is likely to offset any short‑term volatility in oil and gas markets.

In summary, Subsea 7’s recent corporate decisions position the company to capture growth across both traditional and renewable offshore sectors. The board’s stewardship, combined with external analyst support, indicates a firm trajectory that should yield value for shareholders in the medium to long term.