SBM Offshore Q3 Trading Update

SBM Offshore Q3 Trading Update 
SCHIEDAM, NETHERLANDS -- (Marketwire) -- 11/15/12 --  Continued
revenue growth driven by turnkey systems 


 
+---------------------------------------------------------------+
 
| Turnover in US$ million    YTD Q3-2012   YTD Q3-2011   Change |
+---------------------------------------------------------------+
| Turnkey Systems                1,623.2       1,372.9   18.2%  |
+--------------------------                                     |
| Turnkey Services                 201.2         179.5   12.1%  |
+--------------------------                                     |
| Lease and Operate                661.6         648.6    2.0%  |
+--------------------------                                     |
| Total Turnover                 2,486.0       2,201.0   12.9%  |
+---------------------------------------------------------------+

 
SBM Offshore announces consolidated revenues up almost 13% for the
nine months
to 30 September 2012. Since the start of the third
quarter, the Company secured
financing for two large scale FPSOs for
a total of over US$ 1.5 billion. 
The Company is also pleased to announce the sale of GustoMSC, a
non-core design
and engineering subsidiary, as well as its support
vessel the Dynamic Installer
for a total consideration of some US$
200 million; important first steps in its
US$ 400 million non-core
asset divestment programme. 
Following record orders during 2011, the order intake during the
first nine months of 2012 has been lower than expected, which in
combination with slower
than planned progress on a number of key
projects implies that the Company will
not achieve its expected total
revenue of US$ 4 billion for 2012. As to the Yme
project, reference
is made to the Company's announcement of 26 October 2012
that
Talisman and the Company presented a plan for repair of the
grouting of the platform legs to the Norwegian Safety Authority. 
Bruno Chabas CEO of SBM Offshore said: "In Q3, we made a swift start
to our divestment programme and continued to drive forward the
transformation of the
Group. Despite the Group not expecting to
achieve its 2012 revenue target, revenues continue to grow and,
although they may fluctuate in the short term,
the oil & gas industry
has a critical need for increasingly large and sophisticated FPSOs.
This is 
an outstanding opportunity for SBM Offshore, the
world's
leading specialist provider of these facilities." 
Highlights 
For the first nine months of 2012, consolidated turnover totalled US$
2,486 million (12.9% above prior year of US$ 2,201 million). The Lease
and Operate
segment showed results in line with 2011, while the
Turnkey Systems segment showed strong growth in excess of 18%, mostly
driven by large scale FPSO projects such as OSX2, N'Goma, Cidade de
Paraty and Cidade de Ilhabela. 
Third  quarter order  intake continued  to reflect  the Company's
strategic FPSO
focus  with the cumulative order  intake for the first 
nine months amounting to US$  1,681 million  and  an  order 
portfolio at 30 September 2012 totalling US$ 16.1 billion.  Period 
highlights  included  the  8.5 years  lease, operate and maintain 
contract on FPSO Kikeh for a tie-back of the Siakap North-Petai
fields
offshore  Malaysia and  the BC-10 Rigless  Intervention Module
 with Shell, both
showing the continued demand for tie-in and subsea
support projects. 
Since the start of the second half year, the Group achieved a number
of successful financing agreements totaling US$ 1.55 billion. The
Company secured a loan facility for US$ 1.05 billion with its Joint
Venture partners, QGOG Constellation and Mitsubishi Corporation for
the construction of the FPSO Cidade
de Ilhabela for Petrobras,
followed by an inaugural US$ 500 million US Private
Placement project
bond with 16 Institutional Investors to fund the refurbishment
of the
FPSO Cidade de Anchieta, which started its service for Petrobras on
10
September this year under an 18 year lease and operate contract.
This facility
was fully paid up by the bond investors as of 1 November
2012. 
As part of previously announced plans to dispose of approximately US$
400 million of non-core assets, SBM Offshore has agreed to the sale of
GustoMSC, to Parcom Capital, a private equity group, for a
consideration of approximately US$ 185 million. The purchase is
subject to financing and will be paid in cash at
intended closing of
the transaction by 30 November 2012. The Company also signed
an
agreement with Dulam for the sale of the DSV Dynamic Installer at US$
14.8
million, with delivery scheduled for end November 2012. 
Net debt at 30 September 2012 amounted to US$ 2,107 million (30 June
2012: US$
1,964 million), with cash and cash equivalent balances of
US$ 318.1 million (30
June 2012: US$ 214.0 million) and committed,
undrawn bank facilities of US$ 1.4
billion (30 June 2012: US$ 1.0
billion). 
Net debt to total equity ratio is stable at 130% at 30 September 2012
compared
to 132% at 30 June 2012. The solvency ratio at 30 September
2012 stands at 30.4% compared to 31.5% at mid-year 2012. The sale of
GustoMSC will improve solvency by 2.5 percentage points. 
Capital expenditure and investments on finance lease contracts in the
first nine
months of 2012 amounted to a combined total of US$ 970.3
million. 
Operational Update 
Rigless Intervention System for Shell on FPSO Espirito Santo 
SBM Offshore was awarded a contract from Shell for the engineering,
procurement,
construction, installation and operation of a Rigless
Intervention System (RIS)
module on FPSO Espirito Santo, which is
owned and operated on joint venture basis with MISC Berhad, servicing
the BC-10 field, offshore Brazil. Rigless Intervention is being
developed to service subsea equipment on the FPSO as a
permanent part
of the system. The system is planned to be operational for a first
intervention in the second quarter of 2014. 
Yme 
Jointly with operator Talisman, a repair plan for the grouting of the
platform
legs was presented to the Petroleum Safety Authority in
Norway, on October 26.
The repairs follow the decision of last July
by the operator of the platform,
Talisman, to de-man the platform and
its assessment that grouting in the legs
needs repair. The repairs
are scheduled before the end of this year. After completion of
repairs, personnel will be allowed to return to the platform
to
assess any consequences of the facility having been unattended for
an extended
period. Subsequently, Talisman and SBM Offshore will be
able to agree the way
forward. 
Deep Panuke 
Finalisation and commissioning of this platform is progressing more
slowly than
planned and the platform is now expected to be on hire
during the first half of 2013. This delay is the result of recent
test findings related to process equipment with root causes dating
back to the time in the yard and during transit. 
FPSO Cidade de Anchieta 
Production on FPSO Cidade de Anchieta has commenced according to plan
and  the
unit was officially on hire as of 10 September 2012 under
the 18 years lease and operate contract with Petrobras. 
Compact GTL 
The Company also signed a commercial development agreement with
Compact GTL Ltd,
combining  expertise for the marketing and 
execution of FPSO projects involving
associated gas challenges for
oil fields offshore. 
Compliance 
The  investigation into potentially  improper sales practices  is
still ongoing.
Consequently, at this point it is not possible to
provide further information or an estimate of the financial effects,
if any. 
DJSI world 
The  compan
y received confirmation  of its inclusion  in the DJSI 
world for the second  year in  a row.  This is  a strong  sign that 
its corporate social and sustainable objectives are among the best in
class. 
Outlook and Guidance 2012 
Irrespective of global economic volatility, strong momentum in the
oil & gas
upstream market continues to drive demand for FPSOs and
related products. In the short term, the challenges of complexity and
scale, together with associated
costs and risks for project
developers are slowing certain contract awards or
attenuating the
start up phase of major projects. As a result, SBM Offshore
is
reducing turnover expectations for 2012 with other guidance
remaining unchanged.
This guidance is premised on no material change
in the performance, or delivery,
of the Group's projects. 
Conference Call 
Management of SBM Offshore will be available to discuss the contents
of this
press release in a conference call at 11:00 hrs (CET) on
Thursday 15
November
2012. 


 
Dial-in number:  (+65) 6723 9388
Conference ID Code:  64797494
 
Replay number: (+61) 2 8199 0299 (available for 48 hours)
Replay Conference ID Code: 64797494

 
The call will also be webcast via the SBM Offshore website:
www.sbmoffshore.com 
The call will be hosted by Bruno Chabas, CEO and Peter van Rossum,
CFO. 


 
Financial Calendar                                        |       Date|Year
----------------------------------------------------------+-----------+----
Full-year Results 2012 - Press Release (07:30 CET)        |    7 March|2013
----------------------------------------------------------+-----------+----
Full-year Results 2012 - Analysts Presentation (Amsterdam)|    7 March|2013
----------------------------------------------------------+-----------+----
Trading Update Q1 2013 - Press Release (07.30 CET)        |     23 May|2013
----------------------------------------------------------+-----------+----
Annual General Meeting of Shareholders (Rotterdam 14.30   |           |
CET)                                                      |     23 May|2013
----------------------------------------------------------+-----------+----
Half-year Results 2013 - Press Release (07.30 CET)        |   8 August|2013
----------------------------------------------------------+-----------+----
Half-year Results 2013 - Analysts Presentation (Amsterdam)|   8 August|2013
----------------------------------------------------------+-----------+----
Trading Update Q3 2013 - Press Release (07.30 CET)        |14 November|2013
----------------------------------------------------------+-----------+----

 
To  see the  complete version  of this  press release,  please click
on the link
below. 
SBM Offshore Press Release:
http://hugin.info/130754/R/1658231/536574.pdf 
This announcement is distributed by Thomson Reuters on behalf of
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that: 
(i) the releases contained herein are protected by copyright and
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein. 
Source: SBM Offshore N.V. via Thomson Reuters ONE 
[HUG#1658231] 
For further information, please contact: 
Investor Relations
Sebastiaan de Ronde Bresser
Investor Relations Officer
Telephone:   (+377) 92 05 85 15
Mobile:      (+33) 643 919 312
E-mail:      sebastiaan.derondebresser@sbmoffshore.com
Website:     www.sbmoffshore.com 
Media Relations
Anne Guerin-Moens
Group Communications Director
Telephone:   (+377) 92 05 30 83
Mobile:      (+377) 680 863 691
E-mail:      anne.guerin-moens@sbmoffshore.com
Website:     www.sbmoffshore.com
 
 
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