Discontinuation of SapuraAcergy joint venture
Luxembourg – 17 October 2017 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced an agreement with Sapura Energy Berhad to discontinue the SapuraAcergy joint venture. SapuraAcergy’s heavy-lift and pipelay vessel, Sapura 3000, has been sold to a subsidiary of Sapura Energy Berhad.
The decision by Subsea 7 and Sapura Energy Berhad to discontinue the joint venture reflects the evolution of both companies’ long-term strategic priorities. Subsea 7 remains committed to the Asia Pacific region, with offices located in Malaysia, Australia, Indonesia and Singapore.
- SapuraAcergy comprises two jointly owned entities, SapuraAcergy Assets Pte Ltd and SapuraAcergy Sdn Bhd.
- All SapuraAcergy’s projects have been completed and its entities will be liquidated in due course.
- SapuraAcergy is an equity accounted joint venture in which Subsea 7 holds a 50% interest.
- Subsea 7’s share of net income of SapuraAcergy is reported within Subsea 7’s SURF and Conventional Business Unit and is included in Adjusted EBITDA.
- In 2016 Subsea 7’s share of net income from SapuraAcergy was USD 6 million and at 31 December 2016 the carrying amount of the investment was USD 129 million.
- As a result of the discontinuation of the joint venture and the sale of Sapura 3000, Subsea 7 expects to receive approximately USD 100 million in cash dividends, and recognise a loss of approximately USD 10 million in the third quarter.
Subsea 7 S.A. is a leading global contractor in seabed-to-surface engineering, construction and services to the offshore energy industry. We provide technical solutions to enable the delivery of complex projects in all water depths and challenging environments.
Subsea 7 is listed on the Oslo Bors (SUBC), ISIN LU0075646355.