SBM OFFSHORE PROVIDES YEAR END UPDATE
SCHIEDAM, Netherlands, Dec. 17, 2013 (GLOBE NEWSWIRE) -- Ahead of the
scheduled FY2013 earnings announcement^1, SBM Offshore announces^2:
oProduction Acceptance Notice of Deep Panuke following debottlenecking
oCompany-wide review of decommissioning provisions and vessel values
leading to non-cash charges of US$160 million
oSale and lease back transactions for two of three Monaco offices agreed
with proceeds exceeding US$100 million
oAnticipation of FY2013 IFRS revenue of approximately US$4.6 billion,
compared to guidance of US$4.3 billion
Bruno Chabas, CEO of SBM Offshore commented: "From a difficult start, 2013 has
been a year of achievements. As we close, we are updating the market on
further steps that mark SBM Offshore's progress and our determination to
manage our business rigorously and efficiently.
We are pleased to announce that the Deep Panuke facility has received
Production Acceptance Notice and is formally on hire. This has been a tough
project, but its delivery reflects the advances we have made. Today, SBM
Offshore focuses on what the client wants and delivers it. This is a
significant factor in the progress being made across our project portfolio, as
reflected by today's increased 2013 IFRS revenue guidance.
We have recently concluded a Company-wide review of decommissioning provisions
and vessel values.As a matter of prudent accounting, this will result in
certain non-cash charges. Even so, the Company will return a positive IFRS net
income for 2013 and remains firmly within its covenants."
With the upcoming expiration of contracts for FPSO Kuito and FPSO Brasil, the
Company has undertaken the reassessment of decommissioning costs for both
vessels. The expected costs associated with removing the vessels from service
have proven higher than earlier estimates. As a consequence, a Company-wide
review was conducted in Q4 to reassess decommissioning expenses of all other
vessels, resulting in a charge to income of approximately US$40 million.
Residual Value of Laid-Up Vessels
Within SBM Offshore's fleet, the FPSO Falcon and VLCC Alba have been laid up
since 2009, and 2011, respectively. Due to more stringent requirements
regarding the use of single hull vessels with limited storage capacity, the
estimated recoverable amount under current market conditions is considerably
lower than the carrying value. This will result in non-cash charges of
approximately US$55 million in the second half of 2013.
Thunderhawk, a semisubmersible production facility in the US Gulf of Mexico,
is the only facility in SBM Offshore's Lease fleet portfolio which bears
exposure to reservoir risk. It started operations in 2009. On production
trends from current reserves, and projections from planned new fields, total
deliverable volumes will be insufficient to sustain the asset's current book
value. As a result, the carrying value of the facility has been written down
by approximately US$65 million.
The Company is pleased to announce that the team has completed the
debottlenecking process, brought the platform to full production capacity
safely and has received Production Acceptance Notice (PAN) from the client.
The platform is currently on hire and generating full day rate as per
contractual commitments. A charge of approximately US$5 million in connection
with the final commissioning will be taken in the second half of 2013.
The sale and lease back of real estate in Monaco continues to progress well.
The Company is pleased to report sale and lease back transactions for two of
three buildings. The remaining building is now expected to be sold in 2014.
Sales proceeds thus far exceed US$100 million, resulting in a book profit of
approximately US$30 million.
FY2013 IFRS Revenue Guidance
As the Company nears its fiscal year end, management anticipates FY2013 IFRS
revenue of approximately US$4.6 billion. This represents an increase to prior
IFRS revenue guidance of US$300 million, driven by the Turnkey segment.
Today's announced write-downs and charges are predominantly non-cash items.
Despite all the provisions and impairments taken throughout the year, the
Company continues to anticipate positive IFRS net income in FY2013 and to
remain securely within its covenants.
SBM Offshore's management will host a conference call followed by a Q&A
session at 7:30AM Central European Time on Wednesday, December 18, 2013 to
further discuss today's announcement. 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 9856 in the US, using access code: 4657361.
Financial Calendar Date Year
Full-Year 2013 Results - Press Release (07.30 CET) February 6 2014
Publication of AGM Agenda March 11 2014
Annual General Meeting of Shareholders April 17 2014
Trading Update Q1 2014 - Press Release May 9 2014
Half-Year 2014 Results - Press Release August 7 2014
Trading Update Q3 2014 - Press Release November 13 2014
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, 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 centres, 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, December 17, 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
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.
To see the complete version of this press release, please click on the link
SBM Offshore Press Release http://hugin.info/130754/R/1750654/589981.pdf
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