Merger: Sub­sea 7 shares rise on ru­mours.

Oil and gas: Firm won’t com­ment

The Press and Journal (North-East) - - BUSINESS - BY ALAN SHIELDS

Sub­sea 7 shares spiked amid ru­mours of a merger with US ser­vice giant Baker Hughes.

Me­dia spec­u­la­tion has claimed that talks broke down over a price for the re­ported takeover.

Sub­sea 7 said it was aware of the ru­mours and share price move­ment but had a pol­icy of not com­ment­ing on spec­u­la­tion.

The share price spiked yes­ter­day around 10am at $17.43 and by mar­ket close it had lev­elled off at $17.07, up 0.06%.

In a state­ment the firm said the com­pany was “aware” of press spec­u­la­tion and “sub­se­quent share price move­ment”.

The state­ment went on: “The com­pany has a pol­icy not to com­ment on spec­u­la­tion or ru­mours.”

Baker Hughes share price has been steadily fall­ing since Oc­to­ber 6.

As of 4.40pm yes­ter­day the NYSE listed share price was at $34.05, down 0.99%.

Work on the Beatrice wind­farm project in the outer Mo­ray Firth helped Sub­sea 7 to a small up­turn in prof­its in the sec­ond quar­ter of 2017.

Sub­sea 7 posted sec­ond quar­ter pre-tax prof­its of $206.2mil­lion (£158mil­lion), up 0.34% year-onyear.

Rev­enues jumped 6% year-on-year to £780mil­lion. Mean­while Sub­sea 7, which in the north and north-east em­ploys about 1,000 peo­ple across op­er­a­tions in Westhill, near Aberdeen, and Wick, said it ex­pected full-year 2017 rev­enues to be higher than last year’s to­tal.

The Lux­em­bourg-domi­ciled firm said that if crude prices hold at cur­rent lev­els and costs con­tinue to come down, the num­ber of con­tract awards could in­crease by the first half of 2018.

In the sec­ond quar­ter, rev­enues for the firm’s re­new­ables and heavy lift­ing di­vi­sion soared to £250mil­lion from £1.5mil­lion a year ear­lier thanks mainly to its in­volve­ment in Beatrice.

Baker Hughes, which be­came part of the GE fam­ily ear­lier this year, did not re­spond to re­quests for com­ment.

TIGHT-LIPPED: Sub­sea 7 re­fused to com­ment on Baker Hughes merger ru­mours

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