SBM Offshore N.V. : SBM OFFSHORE FULL-YEAR RESULTS 2012
RESULTS IMPACTED BY LEGACY ISSUES; GOOD UNDERLYING PERFORMANCE & PROGRESS
14 February 2013
As in 2011, the 2012 results are overshadowed by the impact of impairments and
provisions for two legacy projects, which hide the good underlying performance
in the core FPSO business. Despite falling short of expectations, revenues
were up 17.1% on 2011 at a record $3.7 billion, while underlying EBIT margins
were in line with or above expectations. Consistent with the core FPSO
strategy announced in 2012, GustoMSC was divested in the fourth quarter.
Record financing levels were achieved, notably with the $1.1 billion project
loan for Ilhabela, and the $ 500 million US Private Placement for Anchieta. In
December, the Company moved further towards a solution of the Yme MOPUstor^TM
legacy project and restored the balance sheet through an equity injection by
cornerstone investor HAL. Order intake was slow, in line with the industry, as
a consequence of delays in contract awards.
Commenting on the results, Bruno Chabas, CEO of SBM Offshore, said:
"For SBM Offshore, 2012 was tougher than we had expected. Even so, we made
significant progress toward unlocking the outstanding potential of our
Company. In vital respects, such as strategy, structure, ways of working,
increased compliance focus and a renewed management team, SBM is being
transformed. As we move towards closure of our legacy projects, I am convinced
that the quality of performance being delivered by so many colleagues across
the Company will begin to manifest itself in our financial results."
· Turnover increased by 17.1 % to US$ 3,695 million in 2012, and underlying
EBIT by 6.4% to US$ 550 million.
· Exceptional items:
§ book gains of US$ 128 million following the sale of Gusto MSC and the
§ US$ 200 million settlement costs provision for YME
§ full impairment of US$ 398 million on the Yme MOPUstor(TM)
§ additional impairment of US$ 29 million for the Deep Panuke platform
· The Company ended the year with US$ 748 million in cash, an additional US$
750 million undrawn credit facility and a resulting net debt position of US$
1,783 million, reflecting strong liquidity.
US$ million FY 2012 FY 2011 Change
Turnover 3,695 3,157 17%
EBIT before impairments,
provisions and divestments 550 516 6%
EBIT after impairments,
provisions and divestments 51 (341) n.m.
Net Profit / (Loss) (75) (441) n.m.
Investments in fixed assets
and finance leases 1,235 1,413 -13%
Operating cashflow 1,144 1,158 -1%
FY 2012 FY 2011 Change
Order Portfolio 14,538 16,910 -14%
Cash 748 165 n.m.
Net Debt 1,783 1,959 -9%
Solvency ratio 27.1% 30.0% -10%
Further financial information is provided in the Financial Review section and
the Consolidated Financial Statements as included in this press release
Despite the remaining uncertainty over the financial impact of the legacy
projects, the Company is confident in the continued growth of its core FPSO
business, and expects to achieve revenue of approximately $4 billion in 2013.
For further information, please contact:
Sebastiaan de Ronde Bresser
Investor Relations Officer
Telephone: (+377) 92 05 85 15
Mobile: (+33) 643 919 312
Group Communications Director
Telephone: (+377) 92 05 30 83
Mobile: (+377) 680 863 691
To see the full version of this press release please click on the link below:
SBM Offshore press release
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Source: SBM Offshore N.V. via Thomson Reuters ONE
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