SBM Offshore Full-Year Results 2012

SBM Offshore Full-Year Results 2012

SCHIEDAM, THE NETHERLANDS -- (Marketwire) -- 02/14/13 --

Press release

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." 

Financial highlights

- Turnover increased by 17.1 % to US$ 3,695 million in 2012, and underlying EBIT by 6.4% to US$ 550 million.

- Exceptional items:

Section book gains of US$ 128 million following the sale of Gusto MSC and the Dynamic Installer

Section US$ 200 million settlement costs provision for YME

Section full impairment of US$ 398 million on the Yme MOPUstor(TM)

Section 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 o f 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

Financial outlook

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.

To see the full version of this press release please click on the link below:

SBM Offshore press release: http://hugin.info/130754/R/1678108/547576.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants 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#1678108]

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