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

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Source: SBM Offshore N.V. via Globenewswire
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