SBM Offshore N.V.: SBM OFFSHORE FIRST QUARTER TRADING UPDATE May 9, 2014

   SBM Offshore N.V.: SBM OFFSHORE FIRST QUARTER TRADING UPDATE May 9, 2014  rt is amended1Q14 REVENUE IN LINE WITH EXPECTATIONS  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 and equipment                        2,055              (31)                    2,023 Intangible assets                                  30                 0                       30 Investment in associates                             242             (242)                      - Other financial assets                               2,394             (872)                    1,522 Deferred tax assets                                  25                 0                       25 Derivative fin instruments                             55               (0)                       54 Total non-current assets                               4,800           (1,145)                    3,654                                                            Inventories                             16                11                       27 Trade and other receivable                           1,152                67                    1,218 Income tax receivable                              10                 0                       10 Construction work-in-progress                     2,221             (488)                    1,733 Derivative financial instruments                            109              (11)                       98 Cash and cash equivalents                            208               (8)                      200 Assets held for sale                                   177                 0                      177 Total current assets                               3,892             (429)                    3,463 TOTAL ASSETS                         8,692           (1,574)                    7,118 EQUITY AND LIABILITIES                                                 Equity attributable to shareholders of the parent company                              2,039                25                    2,064 Non-controlling                          interests                              848             (777) 71 TOTAL EQUITY                         2,887             (752)                    2,135                                                            Loans and borrowings                           3,205             (691)                    2,514 Deferrals                              265             (120)                      145 Provisions                              84                 3                       87 Deferred tax liabilities                             11                23                       34 Derivative financial instruments                            134               (9)                      125 Total non-current liabilities                          3,698             (793)                    2,905 Loans and borrowings                             403              (27)                      376 Provisions                              59                 5                       64 Trade and other payables                             1,496                 5                    1,501 Corporate Income Tax                                     53                 1                       54 Derivative financial instruments                             96              (14)                       82 Liabilities held for sale                               -               -                      - Total current liabilities                          2,107              (29)                    2,078 TOTAL EQUITY AND LIABILITIES                          8,692           (1,574)                    7,118    Pro Forma FY 2013 Consolidated Income Statement  Consolidated income statement (1/2)                                                                             Proforma                                            IFRS 10 &11  IFRS 10&11  Audited Figures are expressed in millions of US$     restated       Impact      2013 and may not add up due to rounding             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                                            IFRS 10 &11  IFRS 10&11  Audited Figures are expressed in millions of US$     restated       Impact      2013 and may not add up due to rounding             2013 Attributable to shareholders of the        parent company                                      114         (3)      111 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 add up due to rounding        NewDirectional  NewDirectional                                                                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 impairment                              (441)             (21)        (463) EBITDA                                    237               48          285                                                            -   Turnkey Third parties revenues                  2,367                -        2,367 Gross Margin                              435                8          443 EBIT                                      288                8          296 Deprec., amort. and impairment                               (15)              (1)         (16) EBITDA                                    303               10          312                                                            -   Other Other operating income                     33                -           33 Selling & marketing expenses              (0)                -          (0) General & administrative expenses                                 (53)                -         (53) 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 companies                                  11             (10)            1 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                 Contract share  Directional^1                 New IFRS      Old IFRS Joint Ventures    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  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: SBM Offshore N.V. via Globenewswire HUG#1784048