Oil Services Subsea Deep Dive: More Runway Below the Surface

Research evidence excerpt

Oil Services Subsea Deep Dive: More Runway Below the Surface

J P M O R G A N Europe Equity Research

15 May 2026

Oil Services

Subsea Deep Dive: More Runway Below the Surface

After several years as a preferred structural growth theme within OFS, the subsea European Oil & Gas

ACdebate is entering a new phase – one defined less by cycle confirmation and more Alejandra Magana

by duration, margin conversion, and valuation support. The attraction of offshore (44-20) 3493-8031

developments has been straightforward: project economics have improved alejandra.x.magana@jpmchase.com

through standardization, supporting industry-leading breakevens and allowing J.P. Morgan Securities plc

offshore to regain favor within E&P portfolios and capture a larger share of US Oil & Gas Exploration &

Productionupstream budgets. Subsea companies sit at the center of this capital allocation reset

across equipment, SURF, and integrated offerings, providing one of the clearest Arun Jayaram AC

earnings and sentiment narratives for Saipem, Subsea 7, and TechnipFMC. (1-212) 622-8541

arun.jayaram@jpmchase.com

J.P. Morgan Securities LLC

The natural question from here is whether the offshore upcycle has further runway

Riddhi Agarwal

and whether stock prices already reflect this outlook. Robust order intake has (91-22) 6157-5048

already driven record or near-record backlogs across several subsea names, while riddhi.x.agarwal@jpmorgan.com

stock outperformance has reflected strong investor preference for the theme. J.P. Morgan India Private Limited

Despite this strength, industry data point to a durable and still-growing Jason Kim

opportunity set, supported by demand that is expected to peak in 2027–28 and (1-212) 622-1408

stabilize near these levels through the end of the decade.