SBM OFFSHORE FIRST QUARTER TRADING UPDATE May 9, 2014

SBM OFFSHORE FIRST QUARTER TRADING UPDATE May 9, 2014

rt is amended1Q14 REVENUE IN LINE WITH EXPECTATIONS

Schiedam, Netherlands, May 9, 2014 (GLOBE NEWSWIRE) --

Highlights

  oYear-to-date 2014 Directional^1 revenues in line with expectations at
    US$782 million 
  oDirectional^1 Backlog as of March 31, 2014 stands at US$21.7 billion
  oFPSO Cidade de Ilhabela module integration well underway at the Brasa yard
    outside Rio de Janeiro
  oFPSO Stones Operations & Maintenance contract signed post-period
  oUS$400 million financing for the Deep Panuke platform was secured from
    international banks
  oDeep Panuke MOPU legal proceedings brought to a successful conclusion



Bruno Chabas, CEO of SBM Offshore commented:

"We have delivered a steady performance in the first quarter, with revenues in
line with  expectations. Tendering  activity has  accelerated, but  we  remain 
conservative in our  view of  the speed of  project awards.  The first  module 
integration on Cidade de Illhabela at Brasa was a major milestone for the yard
and testament to  SBM's commitment  to the facility  and to  local content  in 
Brazil.Additionally, we are pleased with the delivery of the brownfield Kikeh
extension project,  the  outcome  of  the  Deep  Panuke  settlement,  and  the 
additional US$400 million in new financing.

The publication of the findings of our internal investigation into potentially
improper sales practices was  a significant step forward,  and we now look  to 
the public  authorities to  complete their  work.SBM has  striven to  address 
compliance and ethical conduct, and I am proud of the way everyone at SBM  has 
embraced this program.We recognize that  our clients value our approach,  and 
we look to the future with confidence."

Financial Highlights

                Directional^1                  IFRS
                                                              
in US$ million   1Q 2014    1Q 2013*   % Change  1Q 2014 1Q 2013*  % Change
Revenue          782        814        -4%       1,251   972        29%
Turnkey          545        582        -6%       1,017   774        31%
Lease and        237        232        2%        234     198        18%
Operate
Total Order      244        8,055      NM        264     9,827      NM
Intake
                                                              
in US$ million   31. Mar 14 31-Dec-13* % Change  31. Mar 31-Dec-13* % Change
                                                   14
Backlog          21,660     22,198     -2%                      
Net Debt                                     3,811   3,400      12%
                                                              
*Restated for the introduction of IFRS 10 and 11                   

Year-to-date 2014 Directional^1 revenue came  to US$782 million versus  US$814 
million in  the year-ago  period  due to  strong  performance in  the  Turnkey 
segment in the first half of 2013 and a different mix of Turnkey sales and  JV 
interests in  projects. Specifically,  the first  quarter of  2013 saw  strong 
revenue contributions from the  now completed OSX 2  (turnkey sale), Fram  and 
Cidade de Paraty projects,  while in the  first quarter of  2014 the new  FPSO 
Stones project in the absence of a  JV partner is not generating income  under 
Directional^1 rules. Directional^1 Lease & Operate and Turnkey segment revenue
came in at US$237 million and US$545  million respectively, up 2% and down  6% 
year-over-year.

Year-to-date 2014 IFRS revenue totalled US$1,251 million versus US$972 million
in the year-ago period. Showing year-over-year improvements due to the  effect 
of finance leases  on FPSOs  Stones, and Cidade  de Maricá  & Saquarema,  IFRS 
Turnkey segment revenue came in at  US$1,017 million, up 31%. Following  first 
oil of the FPSO Cidade de Paraty, Production Acceptance Notice of Deep Panuke,
and despite the decommissioning of FPSOs Brasil and Kuito IFRS Lease & Operate
segment revenue  came  in  at US$234  million,  up  18%. All  of  these  lease 
contracts are treated under  IAS 17 as outright  sales projects with  deferred 
payments.

Under new IFRS 10, 11 &  12 consolidation standards for joint ventures  (JVs), 
reported net debt as of December  31, 2013 was restated from US$2,691  million 
(previous IFRS) to US$3,400 million (new IFRS). As of March 31, 2014 net  debt 
under new IFRS standards increased to US$3,811 million reflecting  significant 
investments in the ongoing lease  and operate projects under construction.  It 
is worth noting that  bank covenants will continue  to be calculated based  on 
prior IFRS  standards, therefore  the impact  to SBM  Offshore's covenants  is 
neutral. The Company ended the quarter with cash and cash equivalent  balances 
of US$195 million versus US$208 million at the end of 2013. Committed, undrawn
credit facilities stood at US$971 million, which compares to US$1,142  million 
as of December 31, 2013.

Capital expenditure and  investments on  finance lease  contracts through  the 
first quarter of 2014 amounted to a combined total of US$599 million.

On 2 May  2014, a US$400  million loan for  the financing of  the Deep  Panuke 
platform was  secured from  three international  banks with  the intention  to 
launch a US Private Placement (USPP) in the second half of 2014.

IFRS 10, 11 & 12

New consolidation  standards for  joint ventures  have been  introduced as  of 
January 1, 2014 ending proportional consolidation of JVs for SBM Offshore.  As 
disclosed in its 2013  Annual Report, the Company  is now required to  account 
for its fully controlled JVs on  a fully consolidated basis (mostly  impacting 
all Brazilian  FPSOs) and  apply equity  accounting to  the Company's  jointly 
controlled JVs (mostly Angolan FPSOs). These new standards (IFRS 10, 11 &  12) 
apply to the income statement, statement  of financial position and cash  flow 
statement.

This implementation has a limited impact  on SBM Offshore's IFRS revenues  and 
almost nil to net income attributable to shareholders. The Company's  reported 
total asset value has increased significantly by approximately US$1.6 billion.
Included in today's press release  are the Company's 2013 pro-forma  financial 
statements.

To ensure that this change of  consolidation rules under IFRS does not  affect 
the understanding of the  Company's performance, Directional^1 reporting  will 
be based  on proportional  consolidation for  all Lease  & Operate  contracts. 
Compared to previous Directional^1  reporting the change  is limited to  FPSOs 
Aseng and  Capixaba  previously  fully  consolidated  and  now  proportionally 
consolidated  as  all  other  Lease  &  Operate  contracts.  This  change   to 
Directional^1 reporting led to a limited negative impact of US$72 million  and 
US$35 million on FY13 Directional^1  Revenue and EBIT respectively (no  impact 
on Directional^1 net income attributable to shareholders).

Effective January 1, 2014 SBM Directional^1 reporting principles are as
follows:

  oDirectional^1 reporting represents an additional non-GAAP disclosure to
    IFRS reporting
  oDirectional^1 reporting assumes all lease contracts are classified as
    operating leases
  oDirectional^1 reporting assumes all JVs related to lease contracts are
    consolidated on a proportional basis
  oDirectional^1 reporting is limited to restating the consolidated income
    statement however no restatement of the statement of financial position is
    made

A summary of the main effects of IFRS 10, 11 & 12 for 2013 are as follows:

                      New Directional^1 Directional^1  New IFRS   IFRS
                                                               
in US$ million         2013              2013           2013       2013
Revenue                3,373             3,445          4,584      4,803
EBIT                   63                98             188        293
Net Income
attributable to        (58)             (58)          114        111
shareholders
                                                            
                                                               
in US$ million         31. Dec 13        31-Dec-13      31. Dec 13 31-Dec-13
Backlog                22,198            23,025                   
Gross Debt                                            3,608      2,890
Total Assets                                          8,692      7,118
Total Equity                                          2,887      2,135

Project Review

FPSO Cidade de Ilhabela (Brazil)

Integration of the process modules for FPSO Cidade de Ilhabela has  progressed 
at the  Brasa yard  in Brazil  with  the successful  completion of  the  first 
lifting campaign  achieved using  the Pelicano  1 heavy  lift floating  crane. 
Start-up of the facility continues to be expected in the second half of 2014.

FPSOs Cidade de Maricá & Saquarema (Brazil)

Construction of Cidade de Maricá & Saquarema has progressed with refurbishment
and conversion continuing at the shipyard in China. Fabrication of the modules
is concurrently taking place in  Brazil. Start-up of the facilities  continues 
to be expected at the end of 2015 and early 2016 respectively.

FPSO Stones (US Gulf of Mexico)

Construction of  FPSO Stones  progressed,  with refurbishment  and  conversion 
continuing at the shipyard in Singapore. The Operations & Maintenance contract
was signed  between SBM  Offshore and  Shell Offshore  Inc. post-period.  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. Start-up of the
facility continues to be expected in the first half of 2016.



FPSO N'Goma (Angola)

Construction of FPSO N'Goma progressed,  with refurbishment and conversion  at 
the shipyard in Singapore completed. The vessel left the quayside in Singapore
in early May and set sail for Angola where conversion will be completed at the
company's JV  Paenal yard  and start-up  of the  facility is  expected in  the 
second half of 2014.

FPSO Kikeh (Malaysia)

SBM Offshore and its joint venture  partner MISC Bhd achieved a key  milestone 
recently with the  start-up of the  Siakap North-Petai (SNP)  field through  a 
tie-back to the Kikeh FPSO.

The SNP field,  a unitized development  operated by Murphy  Sabah Oil  Co.,Ltd 
(Murphy), is located offshore Malaysia  in water depth of approximately  1,300 
metres. Murphy announced first oil production  from the SNP field on  February 
27, 2014.

The event is an  important milestone for a  project that commenced in  January 
2012 at SBM Offshore's  Kuala Lumpur office and  involved the fabrication  and 
offshore lifting of four  new modules and  approximately 340,000 man-hours  of 
offshore construction and commissioning work done on a live FPSO.

Turrets Mooring Systems

The three large  complex turrets for  Prelude FLNG, Quad  204 and Ichthys  are 
progressing well and  on schedule  at their respective  stages of  completion. 
Fabrication work  on  Prelude FLNG  is  progressing in  Dubai,  with  expected 
delivery at the end of 2014. Integration of Quad 204 with the vessel continues
in South Korea, with expected delivery in the first half of 2014. Engineering,
procurement and construction of the Ichthys turret continue to progress at the
yard in Singapore, with expected delivery in the first half of 2015.



Decommissioning



FPSO Brasil

Successful end of  production of  the vessel  was completed  during the  first 
quarter after  over  eleven  years  of operations  for  Petrobras  in  Brazil. 
Decommissioning activities have  commenced and  are expected  to be  completed 
during the  third quarter  of 2014.  Future conversion  opportunities for  the 
vessel are limited and she will be considered for scrapping.

FPSO Kuito

Decommissioning of the vessel is in progress and expected to be completed
during the third quarter of 2014 after over fourteen years of operations for
Chevron in Angola. Future conversion opportunities for the vessel are limited
and she will be considered for scrapping.



Post-Period Events

Deep Panuke (Canada)

SBM Offshore and  Encana have amicably  settled claims arising  from the  Deep 
Panuke project offshore  Nova Scotia.  Under the  pertinent arrangements,  SBM 
Offshore will receive an increased lease rate. The legal proceedings commenced
will be dismissed.



SBM Offshore do Brasil Advisory Board

Eduardo Eugenio Gouvêa Vieira has been appointed as President of the Company's
Advisory Board in Brazil. The Gouvêa Vieira family is one of the pioneers of
the oil industry in Brazil and Mr. Gouvêa Vieira currently serves as President
of the Federation of Industries of the State of Rio de Janeiro (FIRJAN).



Divestment Update

The Company continues  to market  the DSCV  SBM Installer,  a newbuild  Diving 
Support and Construction Vessel (DSCV). The  FPSO Falcon and VLCC Alba  remain 
held for sale and the disposal of the last of three Monaco office buildings is
progressing.

Directional^1 Backlog

Directional^1 Backlog as of March 31, 2014 was US$21.7 billion.



Compliance

The internal investigation into potentially improper sales practices has  been 
concluded, and on  April 2, 2014  SBM Offshore published  the findings of  its 
internal investigation.  The  Company  remains in  active  dialogue  with  the 
relevant authorities and more information  on the progress of our  discussions 
with them will be reported in due course.

Outlook and Guidance

Following the implementation of IFRS 10, 11 & 12 in early 2014,  Directional^1 
reporting has  been  adjusted  by approximately  US$100  million  of  reported 
revenue to reflect all vessel JVs on a proportionally consolidated basis.  The 
adjustment relates exclusively  to FPSOs  Aseng (60% SBM  share) and  Capixaba 
(80% SBM share),  which previously were  fully consolidated and  are now  only 
proportionally consolidated.  This  results  in an  otherwise  unchanged  2014 
Directional^1 revenue outlook of  US$3.3 billion, of  which US$2.3 billion  is 
expected in the Turnkey and US$1.0 billion in the Lease & Operate segments.

Conference Call

SBM Offshore has scheduled a conference call followed by a Q&A session at 9:00
Central European Time on Friday, May 9, 2014.

The call will  be hosted by  Bruno Chabas  (CEO) and Peter  van Rossum  (CFO). 
Interested parties are invited to  listen to the call  by dialling +31 20  794 
8485 in the Netherlands, +44 207 190 1595 in the UK or +1 480 629 9822 in  the 
US and using access ID 4680542.

A replay  will be  available shortly  after the  end of  the conference  call. 
Interested parties can listen to the replay  by dialling +44 207 959 6720  and 
using access code 4680542 for up to 10 days.

Financial Calendar                     Date        Year
Half-Year 2014 Results - Press Release August 7    2014
Trading Update Q3 2014 - Press Release November 13 2014
Full-Year 2014 Results - Press Release February 5  2015
Publication of AGM Agenda              March 3     2015
Annual General Meeting of Shareholders April 15    2015
Trading Update Q1 2015 - Press Release May 8       2015
Half-Year 2015 Results - Press Release August 6    2015
Trading Update Q3 2015 - Press Release November 12 2015

Corporate Profile

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 
www.sbmoffshore.com.

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, May 9, 2014

For further information, please contact:

Investor Relations

Nicolas D. Robert

Head of Investor Relations

Telephone: +377 92 05 18 98
Mobile:    +33 (0) 6 40 62 44 79
E-mail:    nicolas.robert@sbmoffshore.com
Website:   www.sbmoffshore.com

Media Relations

Anne Guerin-Moens

Group Communications Director

Telephone: +377 92 05 30 83
Mobile:    +33 (0) 6 80 86 36 91
E-mail:    anne.guerin-moens@sbmoffshore.com
Website:   www.sbmoffshore.com

Disclaimer

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.

Pro Forma FY 2013 Consolidated Statement of Financial Position

Figures are
expressed in       Proforma
millions of US$   IFRS 10 &11 restated     IFRS 10&11 Impact Audited
and may not add    2013                                      2013
up due to
rounding
                                                          
ASSETS                                                     
Property, plant   2,055                    (31)              2,023
and equipment
Intangible        30                       0                 30
assets
Investment in     242                      (242)             -
associates
Other financial   2,394                    (872)             1,522
assets
Deferred tax      25                       0                 25
assets
Derivative fin    55                       (0)               54
instruments
Total
non-current       4,800                    (1,145)           3,654
assets
                                                          
Inventories       16                       11                27
Trade and other   1,152                    67                1,218
receivable
Income tax        10                       0                 10
receivable
Construction      2,221                    (488)             1,733
work-in-progress
Derivative
financial         109                      (11)              98
instruments
Cash and cash     208                      (8)               200
equivalents
Assets held for   177                      0                 177
sale
Total current     3,892                    (429)             3,463
assets
TOTAL ASSETS      8,692                    (1,574)           7,118
EQUITY AND                                                 
LIABILITIES
Equity
attributable to
shareholders of   2,039                    25                2,064
the parent
company
Non-controlling     
interests          848                      (777)             71
TOTAL EQUITY      2,887                    (752)             2,135
                                                          
Loans and         3,205                    (691)             2,514
borrowings
Deferrals         265                      (120)             145
Provisions        84                       3                 87
Deferred tax      11                       23                34
liabilities
Derivative
financial         134                      (9)               125
instruments
Total
non-current       3,698                    (793)             2,905
liabilities
Loans and         403                      (27)              376
borrowings
Provisions        59                       5                 64
Trade and other   1,496                    5                 1,501
payables
Corporate Income  53                       1                 54
Tax
Derivative
financial         96                       (14)              82
instruments
Liabilities held  -                      -               -
for sale
Total current     2,107                    (29)              2,078
liabilities
TOTAL EQUITY AND  8,692                    (1,574)           7,118
LIABILITIES

Pro Forma FY 2013 Consolidated Income Statement

Consolidated income statement (1/2)                               
                                            Proforma
Figures are expressed in millions of US$   IFRS 10 &11  IFRS 10&11  Audited
and may not add up due to rounding          restated      Impact       2013
                                            2013
                                                                 
Revenue                                    4,584        218         4,803
Cost of Sales                              (4,206)      (113)       (4,319)
Gross Margin                               379          105         484
                                                                 
Other operating income                     27           0           28
Selling and marketing expenses             (34)         (0)         (34)
General and administrative expenses        (160)        (0)         (161)
Research & development expenses            (23)         0           (23)
Operating Profit (EBIT)                    188          105         293
                                                                 
Financial income                                                  26
Financial expenses                                                (126)
Net financing costs                        (112)        11          (100)
                                                                 
Share of profit in associates              153          (151)       1
Profit Before Tax                          229          (35)        194
                                                                 
Income tax expenses                        (54)         (26)        (80)
Profit                                     175          (61)        114
                                                                 
Consolidated income statement (2/2)                               
                                            Proforma
Figures are expressed in millions of US$   IFRS 10 &11  IFRS 10&11  Audited
and may not add up due to rounding          restated      Impact       2013
                                            2013
Attributable to shareholders of the        114          (3)         111
parent company
Attributable to minority interests         61           (58)        3
PROFIT                                     175          (61)        114

Pro Forma FY 2013 Directional^1 Income Statement

FY2013                        Proforma         Impact          
Figures are expressed in                                           Directional
millions of US$ and may not   NewDirectional  NewDirectional 
add up due to rounding
                                                             
Total Revenues                3,373            72               3,445
Lease and Operate                                             
Third parties revenues        1,006            72               1,078
Gross Margin                  (181)            27               (154)
EBIT                          (204)            27               (177)
Deprec., amort. and           (441)            (21)             (463)
impairment
EBITDA                        237              48               285
                                             -                
Turnkey                                                       
Third parties revenues        2,367            -                2,367
Gross Margin                  435              8                443
EBIT                          288              8                296
Deprec., amort. and           (15)             (1)              (16)
impairment
EBITDA                        303              10               312
                                             -                
Other                                                         
Other operating income        33               -                33
Selling & marketing expenses  (0)              -                (0)
General & administrative      (53)             -                (53)
expenses
Research & development        -                -                -
expenses
EBIT                          (21)             -                (21)
                                                             
                                             -                
Total EBIT                    63               35               98
Total EBITDA                  520              58               577
Net financing costs           (80)             (20)             (100)
Income from associated        11               (10)             1
companies
Income tax expense            (52)             (2)              (54)
Profit/(Loss)                 (58)             3                (55)
                                                             
Non controling interests     (0)              3                3

Detailed Impact Analysis of IFRS 10 and 11

                Lease    SBM    New           Old
Joint Ventures  Contract share  Directional^1               New IFRS      Old IFRS
                Type     %                    Directional^1
FPSO N'Goma     FL       50%    Proportional  Proportional  Equity        Proportional
FPSO Saxi       FL       50%    Proportional  Proportional  Equity        Proportional
FPSO Mondo      FL       50%    Proportional  Proportional  Equity        Proportional
FPSO Cdde de    FL       62,25% Proportional  Proportional  Full          Proportional
Ilhabela                                                    consolidation
FPSO Cdde de    FL       56%    Proportional  Proportional  Full          Proportional
Maricá                                                      consolidation
FPSO Aseng      FL       60%    Proportional  Full          Full          Full
                                              consolidation consolidation consolidation
FPSO Cdde de    FL       50,50% Proportional  Proportional  Full          Proportional
Paraty                                                      consolidation
FPSO Cdde de    FL       56%    Proportional  Proportional  Full          Proportional
Saquarema                                                   consolidation
FPSO Kikeh^2    FL       49%    Proportional  Proportional  Equity        Proportional
FPSO Capixaba   OL       80%    Proportional  Full          Full          Full
                                              consolidation consolidation consolidation
FPSO Espirito   OL       51%    Proportional  Proportional  Full          Proportional
Santo                                                       consolidation
FPSO Brasil     OL       51%    Proportional  Proportional  Full          Proportional
                                                            consolidation
Yetagun         OL       75%    Proportional  Proportional  Full          Proportional
                                                            consolidation
Nkossa II       OL       50%    Proportional  Proportional  Equity        Proportional
                                                                    
^1Directional
view is a
non-IFRS
disclosure,
which treats
all leases as                                                        
operating
leases and
consolidates
the vessel
joint ventures
proportionally.
^2Kikeh lease classification changed from OL to FL effective 1Q14
                                                                    
NOTE: Deep Panuke, Thunderhawk and FPSOs Stones, Cidade de Anchieta, Marlim Sul are
fully
owned by SBM, thus not considered as JV and fully consolidated.

To see the complete version of this press release, please click on the link
below



SBM Offshore Press Release http://hugin.info/130754/R/1784048/611216.pdf

HUG#1784048
 
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