SBM OFFSHORE Q3 TRADING UPDATE
SCHIEDAM, Netherlands, Nov. 14, 2013 (GLOBE NEWSWIRE) --
STRONG REVENUE GROWTH AND RECORD BACKLOG
* Year-to-date 2013 Directional(1) revenues up 25% to US$2.6 billion, IFRS
revenues up 40% to US$3.4 billion
* FPSO Stones adds US$2.1 billion to Directional(1) Backlog which at US$24.4
billion is highest in company history
* FPSO OSX 2 delivered and paid as per contract
* FPSO Cidade de Paraty successfully achieved contract milestone for start-up
of gas compression and processing
* Deep Panuke MOPU in production since August although Production Acceptance
Notice (PAN) delayed
Bruno Chabas, CEO of SBM Offshore commented: "This has been a period of
encouragingly strong growth. The benefits of strategic focus and cultural change
are beginning to emerge, recognizing we are still in a transformation phase. We
are working as a team, staying close to our clients and bringing our project
skills and technology leadership to bear in meeting their challenges
Year-to-date 2013 Directional(1) revenue totalled US$2,573 million versus
US$2,062 million in the year-ago period. Directional(1 )Lease & Operate and
Turnkey segment revenues came in at US$814 million and US$1,759 million, up 17%
and 29% respectively.
Year-to-date 2013 IFRS revenue totalled US$3,428 million versus US$2,442 million
in the year-ago period. Showing strong year-over-year improvements, IFRS Lease &
Operate and Turnkey segment revenues came in at US$770 million and US$2,658
million, up 16% and 49% respectively.
The substantial difference between IFRS and Directional(1) revenue is largely
attributable to the elimination of the revenue recognized under IFRS on the
finance lease projects Cidade de Ilhabela, Cidade de Paraty, N'Goma and Cidade
de Maricá & Saquarema. All of these lease contracts are treated under IAS 17 as
outright sales projects with deferred payments.
Net debt as of September 30, 2013 amounted to US$2,516 million compared to
US$1,816 million at the end of 2012 reflecting significant investments in the
ongoing lease and operate projects. The Company ended the quarter with cash and
cash equivalent balances of US$276 million versus US$715 million at the end of
2012. Committed, undrawn credit facilities stood at US$820 million, which
compares to US$1,300 million as of December 31, 2012.
Capital expenditure and investments on finance lease contracts through the third
quarter of 2013 amounted to a combined total of US$719 million.
During the third quarter a project loan of US$600 million for FPSO N'Goma was
secured from a consortium of international banks at a weighted average cost of
debt of 4.7%.
FPSO Cidade de Ilhabela (Brazil)
Construction of FPSO Cidade de Ilhabela progressed, with refurbishment and
conversion at the Chinese shipyard completed. The vessel set sail for Brazil in
early November where construction of the process modules at the Brasa yard
continues in anticipation of the arrival of the FPSO and start-up of the
facility expected in the second half of 2014.
FPSO Cidade de Paraty (Brazil)
FPSO Cidade de Paraty has been formally on hire since June 7, 2013.
Subsequently, the unit has successfully achieved the contract milestone for
start-up of gas compression and gas processing.
FPSO Stones (US Gulf of Mexico)
As announced on July 23, 2013, SBM Offshore signed a contract with Shell
Offshore Inc. to supply and lease a Floating Production Storage and Offloading
facility (FPSO) for the Stones development project in the Gulf of Mexico. The
charter contract includes an initial period of 10 years with future extension
options up to a total of 20 years. When installed at almost 3 kilometers of
water depth, the FPSO Stones will be the deepest offshore production facility of
any type in the world.
FPSO OSX-2 (Brazil)
The Company announced the successful delivery as per contract in early
September. SBM Offshore has no further financial exposure to the client.
Deep Panuke (Canada)
The Deep Panuke platform has been producing sales gas since early August.
Production levels of around 200 MMcf/d have been achieved, however this is below
full production capacity of 300 MMcf/d. The team is currently debottlenecking
the system with the intention of bringing the platform to full production
capacity safely. In the meantime, a partial day rate arrangement applies. A
further update will be provided once full production acceptance has been
Further to our announcement of November 7, 2013, Bruno Chabas, CEO, has
temporarily taken over the role of COO. The Company is addressing the way the
role is structured in the future.In the interim, the Company is fortunate to
have an excellent group of senior managers who are taking on various aspects of
In November the Company agreed to the sale of the DSCV SBM Installer, a newbuild
Diving Support and Construction Vessel (DSCV), to Daya Vessels Limited for
US$180 million in cash. The transaction will close in Q1 2014.
The sale and lease back of real estate in Monaco remains on track with
completion expected by year end.
Orders & Backlog
Directional(1) order intake stood at US$10,479 million as of September
30, 2013. Directional(1 )Backlog as of September 30, 2013 was $US24.4 billion,
the highest in company history (IFRS Backlog US$21.6 billion).
The internal investigation into potentially improper sales practices is ongoing.
The Company is in active dialogue with the relevant authorities. The Company
does not expect there will be a final outcome by the end of the year.
Following a thorough selection process the company will propose to the Annual
General Meeting of shareholders in April 2014 the appointment of
PricewaterhouseCoopers as the new statutory auditors. PricewaterhouseCoopers
will replace KPMG effective in the 2014 reporting year, as part of the Dutch
compulsory external auditor rotation rules.
2013 Outlook and Guidance
The Company is confident it will accomplish IFRS revenue of at least US$4.3
billion, of which US$3.3 billion for Turnkey and US$1 billion for Lease and
Operate segments respectively.
SBM Offshore has scheduled a conference call followed by a Q&A session at 8:30
Central European Time on Thursday, November 14, 2013.
The call will be hosted by Bruno Chabas (CEO), Peter van Rossum (CFO) and Sietze
Interested parties are invited to listen to the call by dialling
+31 20 794 8484 in the Netherlands, +44 207 190 1590 in the UK or
+1 480 629 9761 in the US.
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 Company").
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, operation and the life
extension 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 sale basis.
Group companies employ over 9,600 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 Management Board
Schiedam, November 14, 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
Some of the statements contained in this release that are not historical facts
are statements of future expectations and other forward-looking statements based
on management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance, or events
to differ materially from those in such statements. Such forward-looking
statements are subject to various risks and uncertainties, which may cause
actual results and performance of the Company's business to differ materially
and adversely from the forward-looking statements. Certain such forward-looking
statements can be identified by the use of forward-looking terminology such as
"believes", "may", "will", "should", "would be", "expects" or "anticipates" or
similar expressions, or the negative thereof, or other variations thereof, or
comparable terminology, or by discussions of strategy, plans, or intentions.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described in this release as anticipated, believed, or expected. SBM
Offshore NV does not intend, and does not assume any obligation, to update any
industry information or forward-looking statements set forth in this release to
reflect subsequent events or circumstances.
SBM Offshore Press Release: http://hugin.info/130754/R/1743125/586240.pdf
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