Page 12: of Offshore Engineer Magazine (Nov/Dec 2025)

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MARKETS SUBSEA VESSELS vanced vessels, supported by a strong pipeline of projects

Short-Term Sofening Amid Dayrate Volatility expected to drive demand through 2026 and beyond. As and Supply Growth

Another signifcant development in the industry is the a result, close to all job types typically associated with proposed merger between Subsea 7 and Saipem to form subsea construction assets are expected to continue posi- tive momentum next year. This is especially true for the

Saipem7, a move designed to achieve substantial cost syn- ergies to the tune of $350 million per year, and increase installation of new subsea trees and other subsea produc- market dominance, though it will also present integration tion infrastructure installations, which we expect will see challenges. Expected to be fnalized in the second half of the largest growth in 2026.

2026, the combined company will see its combined rev-

Newbuild Supply, Consolidation and the Path to enue, EBITDA, and backlog all reach new heights, posi-

Rebalancing tioning itself and its capacities as the clear market leading

On the supply side, there is a signifcant increase in new-

EPC contractor.

Contracting activity remained strong throughout build orders since our forward-looking article at the same 2025, with the Tier1 EPCs, Subsea 7, TechnipFMC, time last year. This is especially true for 150- and 250-ton

SWL AHC crane vessels, with around 30 frm units cur- and Saipem, securing signifcant projects across Eu- rope, South America, West Africa, and the Middle East. rently in the orderbook for these asset types.

Furthermore, when we look at the orderbook compared

South America, particularly Brazil, stands out as a key growth region, with Petrobras beyond likely to drive to the current active feet, these fgures constitute in excess of 20% orderbook ratio, which, in comparison, is roughly long-term demand.

the same relative volume of newbuilds seen between 2008

In light of this, the market is also shifting more to- and 2015. A notable shift since the previous market cycle ward deep- and ultradeep-water projects and more ad- 12 OFFSHORE ENGINEER OEDIGITAL.COM