Merger: Subsea 7 shares rise on rumours.
Oil and gas: Firm won’t comment
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