Subsea7's Strategic Share Repurchases: Enhancing Value and Confidence

Subsea7, a global leader in offshore projects and services, has been actively repurchasing its own shares since July 2019, with an extension announced in April 2023. This strategic move reflects the company's commitment to maximizing shareholder value and maintaining a strong financial position. The most recent transactions, conducted during the week commencing 4 November 2024, saw Subsea7 repurchase a total of 118,500 shares, representing approximately 0.04% of its issued share capital.



Subsea7's share repurchase program, authorized in April 2023, allows for the repurchase of up to 30 million common shares, corresponding to approximately 10% of the issued common shares at the time. As of December 2024, the company has repurchased a total of 14,863,304 shares, representing approximately 2.07% of its issued share capital. This reduction in outstanding shares has a positive impact on earnings per share (EPS), as earnings are distributed among fewer shares.

To illustrate this effect, consider the following table, which demonstrates the impact of Subsea7's share repurchases on EPS, assuming constant earnings:



| Metric | Before Repurchases | After Repurchases |
| --- | --- | --- |
| Outstanding Shares (Million) | 302.2 | 302.1 |
| EPS (€/Share) | 2.03 | 2.08 |

As shown in the table, the reduction in outstanding shares leads to an increase in EPS, assuming constant earnings. This, in turn, can drive stock price momentum and enhance shareholder value.

Subsea7's share repurchase program also signals a high level of confidence in the company's future performance. The consistent buyback activity, totaling over 14.8 million shares since the program's initiation, underscores Subsea7's optimism in its financial prospects and commitment to returning capital to shareholders.



In conclusion, Subsea7's strategic share repurchases demonstrate the company's commitment to enhancing shareholder value and maintaining a strong financial position. The reduction in outstanding shares increases EPS and drives stock price momentum, while the consistent buyback activity signals a high level of confidence in the company's future performance. Investors should take note of Subsea7's proactive approach to capital allocation and consider the potential benefits of the share repurchase program on their investments.