SUBCY - Subsea 7 Is Spring-Loaded In The Current Environment

• Subsea 7 is an engineering company in oligopoly that partners with top tier oil companies in engineering offshore installations.
• They have positive exposure across the renewable transition, with offshore wind installations being in their market as well.
• Because of Russia causing tightness in gas production, they should see a volume of well priced contracts as countries ramp up gas production.
• Moreover, traditional oil markets are buoyed by the disintegration of Russia, and Subsea could benefit from the possible introduction of new, quite technologically backward players.
• Procurement cost increases are a headwind, but they should be able to overcome that with their favorable market position, and the favorable trends for their markets.

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