Following four difficult years, the subsea industry is finally trending upwards. The record growth of 10% year-on-year in 1Q 2019, the highest since 2014, was prolonged into 2Q with subsea recording another 10% increase in revenue. This strong upswing is mostly attributable to TechnipFMC which saw an increase of 24% in its Subsea segment, and Baker Hughes which increased revenues in its subsea-dominated Oilfield Equipment segment by 12%. The industry is experiencing increased activity levels in the first half of the year following a new wave in offshore project sanctioning. We expect that this activity level will continue and that subsea revenues will grow by 10% compared to last year. 2019 is set to be the first year with positive revenue growth since 2014.
– Aleksander Erstad, Analyst, Oilfield Service, Rystad Energy