SBM Offshore N.V. : SBM OFFSHORE HALF-YEAR RESULTS 2013
Good core performance; record backlog; outlook improved
August 7, 2013
SBM Offshore has made good operational progress, with underlying financial
results ahead of our expectations. The Company continues to be on track in
resolving its legacy issues. Directional^1 Backlog reached a record level of
US$22.4 billion including contracts for FPSOs Cidade de Maricá and Cidade de
Saquarema for Petrobras, the Company's largest orders to-date. Oil production
commenced on FPSO Cidade de Paraty in Brazil, and a US$600 million project
loan was secured for FPSO N'Goma. Post-period, the Company announced it had
been awarded the FPSO Stones by Shell for delivery to the Gulf of Mexico in
Bruno Chabas, CEO of SBM Offshore commented:
"I am strongly encouraged by the headway we have made in the first half. We
have secured several outstanding contract awards and are on a much stronger
footing, having both remedied a significant legacy issue and strengthened our
balance sheet. Our management team can now concentrate on running the business
and progressing our strategic transformation. Our focus on FPSOs is at the
heart of this and our prospects give me confidence in our performance for the
SBM Offshore is seeking to provide its shareholders and other stakeholders
with clarity on business performance above and beyond the regular IFRS based
disclosures. One complexity is that the Group's business model combines
turnkey sales with construction projects for its own lease and operate
portfolio. SBM Offshore's FPSO construction and lease and operate contracts
are increasingly classified as 'finance leases' which adds further complexity
by accelerating revenue recognition into the construction phase, well before
rents are invoiced to and paid by the client. In this context, the Company is
introducing 'Directional^1' reporting alongside IFRS. Directional^1 reporting
seeks to present revenue and results in line with operating cash flows. This
extended reporting includes a Directional^1 Income Statement and Directional^1
Backlog as part of the Financial Review.
*On a Directional^1 basis, revenues were up 24% to US$1,669 million in
H1'13, and underlying EBIT increased by 69% to US$297 million
*Letters of Intent for lease and operate contracts for two FPSOs from
Petrobras (contracts executed post-period)
*Directional^1 Backlog up by 36% to a record level of US$22.4 billion
*Cash at the end of the period was US$253 million; undrawn credit
facilities of US$857 million
*Net debt at the end of June was US$2,300 million
*Agreement to decommission the Yme platform and settle outstanding issues
with Talisman for US$470 million
*Successful 10% Rights Issue at €10.07 per share raised US$247 million
In light of recent operational progress, management is raising 2013 IFRS
revenue guidance from US$4 billion to US$4.3 billion.
^1Directional view is a non-IFRS disclosure, which corrects the non-cash
effects on revenue and earnings introduced by IFRS finance lease accounting.
SBM Offshore has scheduled a webcast of its Analyst Presentation and a
conference call followed by a Q&A session at 19:00 Central European Time on
Wednesday, August 7, 2013.
The presentation will be hosted by Bruno Chabas (CEO), Peter van Rossum (CFO)
and Sietze Hepkema (CGCO).
Interested parties are invited to listen to the call by dialing +31 20 794
8484 in the Netherlands or +44 207 190 1590 in the UK. Interested parties may
also listen to the presentation via webcast through a link posted on the
Investor Relations section of the Company's website.
A replay of the conference call will be available on Wednesday, August 7,
2013, beginning at 22:30 Central European Time for one week. The phone number
for the conference call replay is +31 45 799 0028, using access code 4630686#.
The webcast replay will also be available on the Company's website.
SBM Offshore N.V. is a listed holding company that is headquartered in
Schiedam. It holds direct and indirect interests in other companies that
collectively with SBM Offshore N.V. form the SBM Offshore group ("the
SBM Offshore provides floating production solutions to the offshore energy
industry, over the full product life-cycle. The Company is market leading in
leased floating production systems with multiple units currently in operation,
and has unrivalled operational experience in this field. The Company's main
activities are the design, supply, installation and operation of Floating
Production, Storage and Offloading (FPSO) vessels. These are either owned and
operated by SBM Offshore and leased to its clients or supplied on a turnkey
Group companies employ over 7,400 people worldwide, who are spread over five
execution centers, eleven operational shore bases, several construction yards
and the offshore fleet of vessels. Please visit our website at
The companies in which SBM Offshore N.V. directly and indirectly owns
investments are separate entities. In this communication "SBM Offshore" is
sometimes used for convenience where references are made to SBM Offshore N.V.
and its subsidiaries in general, or where no useful purpose is served by
identifying the particular company or companies.
The Board of
Schiedam, August 7, 2013
For further information, please contact:
Nicolas D. Robert
Head of Investor Relations
Telephone: +377 92 05 18 98
Mobile: +33 (0) 6 40 62 44 79
Group Communications Director
Telephone: +377 92 05 30 83
Mobile: +33 (0) 6 80 86 36 91
'To see the complete version of this press release, please click on the link
SBM Offshore Press Release
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Source: SBM Offshore N.V. via Thomson Reuters ONE
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