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Image courtesy of Subsea 7.

Subsea 7 booked a 23 percent year-over-year revenue decline in the third quarter as the industry conditions remained challenging.

UK-based Subsea 7 reported $928 million in third quarter revenues, down from $1.2 billion in the year-ago quarter.

Basic earnings per share fell slightly to $0.46 per share from $0.49 per share in the third quarter of last year.

Diluted earnings per share ticked down to $0.44 per share compared to $0.46 per share in the year-ago quarter.

Adjusted EBITDA came in at $289 million in the third quarter compared to $351 million in the same quarter of 2015.

Net operating income declined to $195 million in the third quarter, down from $214 million in the year-ago quarter.

Net income climbed to $149 million in third quarter, up from $145 million in the same period of last year.

The company’s backlog declined to $6.18 billion as of the end of September compared to $7.05 billion at the end of June 2015.

Subsea 7 had cash and cash equivalents of $1.39 billion as of September 30, up from $1.18 billion at the end of June 2015.

The company’s Active Vessel Utilization rate was 91 percent during the third quarter and the company’s Total Vessel Utilization was 75 percent.

“This reflected the usual peak in seasonal activity in the North Sea and efficient vessel scheduling to maximize deployment of the active fleet,” Subsea 7 said.

Subsea 7 added that “industry conditions remained challenging” in the third quarter “with subdued market activity and low order intake.”

“We have delivered another quarter of strong performance despite the continued industry-wide downturn in activity, with good execution across all our market segments and high utilisation of our active vessels,” Subsea 7 CEO Jean Cahuzac said.

Subsea 7 said it still expects revenue to be “significantly lower” in 2016 compared to 2015.

However, the company said that cost discipline, operational performance and successful project completions will boost its adjusted EBITDA percentage margin above 2015 levels.

Subsea 7 said it expects 2017 revenue to be broadly in line with its 2016 forecast but it expects adjusted EBITDA percentage margin to be “significantly lower” next year.

The company said that “only a few projects have been sanctioned” in 2016.

“Assuming the oil price increase over the last nine months is sustained and the cost  reductions identified by the industry are consistently achieved, there is cause to believe that the number of SURF project awards to the  market could increase within the next 18 months,” Subsea 7 said.