Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) has announced that due to the general uncertainty in the world and for the industry caused by the coronavirus and the collapse in commodity prices, it is withdrawing the guidance and outlook statements issued on 27 February 2020.

The Company’s first priority is to protect the health and safety of its 12,000 employees, while it continues to deliver projects to its clients.

While the current year’s results are underpinned by a backlog at year-end 2019 of $5.2 billion, including $3.3 billion for execution in 2020, the dual impacts of the coronavirus and sharply lower commodity prices represent a significant headwind to the pace of the new awards required to meet prior guidance. In addition, it is possible that measures taken around the world to contain the virus may impact the Company’s ability to execute existing contracts and recognise revenue in 2020.

The Company has significant liquidity available to weather these challenges, with $398 million cash and equivalents, as well as undrawn banking facilities of $656 million. The Company is currently scheduled to update investors with its first quarter 2020 results and an updated market view on 30 April 2020.