* Q3 adjusted EBITDA $289 million (232 million pounds)(Reuters poll $210 million) vs $351 million in Q3 2015 * Adjusted EBITDA margin of 31 pct due to cost discipline,operational performance, and project completions * Backlog $6.18 billion at end Q3 (Reuters poll $6.39billion) * Q3 net profit $149 million (Reuters poll $70 million) vs$145 million in Q3 2015 * Q3 operating revenue $928 million (Reuters poll $1.03billion) vs $1.2 billion in Q3 2015 * Says for 2017, revenue is expected to be broadly in linewith the group’s forecast for 2016 and adjusted EBITDApercentage margin is expected to be significantly lower * Says assuming oil price increase over the last 9 monthsis sustained and the cost reductions by the industry areconsistently achieved, there is cause to believe that number ofSURF project awards could increase within the next 18 months * Broker Pareto says expects to increase 2017 revenues 3-5pct and 2017 EBITDA 5-7 pct on the back of the 2017 guidance,with consensus also to see positive estimate revisions * Pareto says: "Overall another solid report, and althoughthe EBITDA margins should normalise going forward, the companyshows good project execution. BUY, target price NOK 100" * Subsea 7 share price rises 5 pct to 95.25 crowns at GMT0826 vs a rise in Oslo Bourse main share index<.OSEBX> of 1.4pct * Subsea 7 says industry conditions remained challenging inQ3 and there were few awards made to market * Subsea 7 says 2016 revenue is still expected to besignificantly lower in 2016 versus 2015, but due to costdiscipline, operational performance and project completionsadjusted EBITDA percentage margin is now expected to be above2015 levels * Says 2016 guidance raised to reflect strong year-to-dateperformance

(Reporting By Ole Petter Skonnord)