2024-05-27 13:00:34 ET
Summary
- The better quoting environment from after the Ukraine war started is now reflected in the backlog being liquidated, boosting EBITDA.
- The company continues its upcycle, but we are concerned about the economics even as it seeks structural changes.
- Growth is capital intensive, though outsourcing is reducing that, and on the flip side the business is also very cyclical.
- Risks in a high cost of capital environment with Subsea 7 carrying a lot of debt. At least there's a relative valuation case.
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Subsea 7: Better Quoting Environment Boosting EBITDA