SBM OFFSHORE HALF-YEAR RESULTS 2014 Revenue up 6%; Outlook confirmed August 6, 2014

SBM OFFSHORE HALF-YEAR RESULTS 2014 Revenue up 6%; Outlook confirmed August 6, 2014  SCHIEDAM, Netherlands,  Aug.  6,  2014  (GLOBE  NEWSWIRE)  --  SBM  Offshore's  execution of projects  on hand  in the  first six months  of the  year led  to  better than expected revenue  growth. The Company  is making progress  towards  resolving its compliance issue, as evidenced by the US$240 million  provision,  secured US$1.45  billion of  financing for  Cidade de  Maricá and  signed  the  Operations & Maintenance contract  for FPSO Turritella. Directional^1  Backlog  stands at US$21.5 billion. SBM Offshore continued to achieve over 99%  uptime  across the  fleet.  The  Company delivered  the  Kikeh  brownfield  extension  project on  time and  on budget  while also  reaching a  settlement of  claims  arising from the Deep Panuke project.  Bruno Chabas, CEO of SBM Offshore commented:  "In financial and operational terms, the first half of 2014 has been a  period  of solid performance. We have also  made progress towards the closure of  our  final legacy issue with a provision against a potential settlement.  The period also  presented a  significant challenge: our  withdrawal from  two  current  tenders   in   Brazil  pending   the   outcome  of   the   compliance  investigation. Nevertheless,  the  Company  has built  a  decades-long  track  record of close cooperation  with Petrobras. We believe  this will provide  a  basis to resume a successful  working relationship, once the investigation  is  properly completed.  Tendering activity  remains  high,  and  there  is  industry  consensus  on  a  substantial number  of new  FPSOs and  turrets  due for  award in  the  coming  years. Thus, while we remain cautious  on the timing of individual awards  in  the short term, we have  a sound basis for confidence  in our medium and  long  term prospects."  Financial Highlights    *Directional^1 revenue ahead of expectations at US$1,729 million   *Underlying Directional^1 EBIT decreased by 37% to US$184 million, compared     to a strong 1H 2013   *Directional^1 Backlog stands at US$21.5 billion, including the O&M     contract for the Shell FPSO Turritella   *Cash at the end of the period stood at US$154 million; undrawn credit     facilities of US$939 million   *Net debt at the end of June stood at US$4,302 million, under new IFRS     reporting standards   *Project financing secured for Cidade de Maricá totaling US$1.45 billion at     an average cost of debt of 5.3% with 12 and 14 year maturity tranches   *US$240 million provision related to the compliance investigation                                                                                                 Directional^1                        IFRS                                                                                   in US$        1H 2014       1H 2013*      %       1H 2014          1H 2013*         %   million                                     Change                                     Change  Revenue                  6%       2,797   2,164  29%                  1,729         1,634  Turnkey                  5%       2,275   1,744  30%                  1,208         1,146  Lease and          7%       522  419 25%   Operate        521           488  EBIT                      NM       201    NM                  (41)          (8)                           74  Underlying         -37%     426  374 14%   EBIT           184           292   Profit   (Loss)                                        attributable  (98)          (44)           NM       137 12               NM   to   Shareholders   Underlying   Profit  (Loss)             -49%     362  307 18%   attributable   127           252   to   Shareholders                                                                                   in US$        30. Jun 14    31-Dec-13*     %       30. Jun 14       31-Dec-13*       %   billion                                     Change                                     Change  Backlog              -3%       NM                  21.5          22.2                    -               -  Net Debt         25%             27%                  3.0           2.4                     4.3              3.4   *Restated  for                                                                                comparison   purposes  Guidance  Management is confidently reiterating  2014 Directional^1 revenue guidance  of  US$3.3 billion, of which US$2.3 billion is expected in the Turnkey segment and US$1.0 billion in the Lease & Operate segment.  First Half 2014 Results  Project Review  FPSO N'Goma (Angola)  The construction,  refurbishment,  and module  work  at Keppel  Singapore  was  completed in early May 2014. A successful lifting campaign at the Paenal yard in Port Amboim, Angola, was completed in  July and the vessel set sail to  the  offshore site  where mooring  has been  completed and  hook-up operations  and  acceptance testing is to follow. The scheduled start of production is in 3Q14 at a design capacity of 100,000 bpd.  FPSO Cidade de Ilhabela (Brazil)  Following completion of refurbishment  and conversion at  the Chinese yard  at  the end of 2013, construction continued  for the finance leased vessel  during  the first half of 2014 in  Brazil where the process modules were  successfully  installed at the  Brasa yard. The  FPSO includes topside  facilities able  to  process 150,000 bpd of production fluids for export, including the substantial volumes of associated gas from the  pre-salt field. Start-up of the  facility  is expected in the second half of 2014.  FPSO Cidade de Maricá and Cidade de Saquarema (Brazil)  Construction is ongoing for the two finance leased vessels. Refurbishment and conversion work progressed during the first  half of 2014 at a Chinese  yard.  The charter contract for both vessels  includes an initial period of 20  years  with extension options. The two double-hull sister vessels will be moored  in  approximately 2,300 meters of  water depth and possess  a storage capacity  of  1.6  million  barrels  each.  The  topside  facilities  of  each  FPSO  weigh  approximately 22,000 tons, will be able to produce 150,000 bpd of well  fluids  and have  associated gas  treatment capacity  of 6,000,000  Sm3/d. The  water  injection capacity of the FPSOs will be 200,000 bpd each.  FPSO Turritella (US Gulf of Mexico)  Construction on the FPSO previously known as Stones continued for the  finance  leased vessel in the first half of the year, with refurbishment and conversion work continuing at Keppel Singapore. The charter contract includes an initial period of 10  years with  extension options  up to  a total  of 20  additional  years. In May  2014, the Operations  & Maintenance contract  was signed  with  Shell Offshore Inc. When installed at almost 3 kilometers of water depth, the FPSO Turritella will be the deepest  offshore production facility of any  type  in  the  world.  The  vessel  is  a  typical  Generation  2  design,  with  a  disconnectable internal  turret and  processing  facility capacity  of  60,000  barrels of oil per day (bpd) and 15 mmscfd of gas treatment and export.  FPSO Marlim Sul (Brazil)  An extension of six  months through the  end of 2014 has  been agreed to  with  Petrobras.  Negotiations  for  further  extension  opportunities  beyond  2014  continue.  FPSO Kikeh (Malaysia)  SBM Offshore and its joint venture  partner MISC Bhd achieved a key  milestone  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.  Turret Mooring Systems  The three large, complex  turrets for Prelude FLNG,  Quad 204 and Ichthys  are  progressing, in close  consultation with the  respective clients, on  schedule  according to their respective stages of project completion. Fabrication  work  on Prelude FLNG is underway  in Dubai, while the  integration of the Quad  204  Turret with the vessel continues in South Korea, with expected delivery in the second half of 2014. Engineering and  procurement for the Ichthys turret  has  been completed  while  construction  continues  to progress  at  the  yard  in  Singapore, with expected delivery in the first half of 2015.  Main Projects Overview  Main Projects Overview: Project      Contract SBM    Capacity, Size POC Expected Notes                       Share                     Delivery                                                                                                              Construction,                                                          refurbishment and                                                          module work at Keppel                                                          shipyard in Singapore                                                          completed in early                                                          May. Lifting of                                                          remaining modules at              12 year                                     the Paenal yard in N'Goma, FPSO finance  50%    100,000 bpd       2014     Angola completed, and              lease                                       vessel has set sail                                                          to the offshore site.                                                          Mooring completed,                                                          hook-up operations                                                          and acceptance                                                          testing to follow                                                          with delivery                                                          expected 3Q14.                                                          Integration and                                                          commissioning of the Ilhabela,    20 year                                     process modules at FPSO         finance  62.25% 150,000 bpd       2014     our Brasa yard in              lease                                       Brazil progressing                                                          well. Delivery                                                          expected 2H14.                                                          Integration with the Quad 204,    Turnkey  100%   320,000 bpd,      2014     vessel in Korea is Turret       sale            28 risers                   ongoing. Delivery                                                          expected in 2H14.                                                          Fabrication in Dubai Prelude,     Turnkey         95m height,                 nearing completion. Turret       sale     100%   11,000 tons       2015     Integration with the                                                          vessel to commence                                                          1Q15 in Korea.                                                          Engineering and                                                          procurement Ichthys,     Turnkey  100%   60m height,       2015     completed. Turret       sale            7,000 tons                  Construction                                                          progressing in                                                          Singapore.                                                          Vessel in the              20 year                                     shipyard in China, Maricá, FPSO finance  56%    150,000 bpd       2015     refurbishment and              lease                                       conversion                                                          progressing.                                                          Vessel in the Saquarema,   20 year                                     shipyard in China, FPSO         finance  56%    150,000 bpd       2016     refurbishment and              lease                                       conversion                                                          progressing.                                                          Refurbishment and Turritella,  10 year         60,000 bpd,                 conversion FPSO         finance  100%   disconnectable    2016     progressing at Keppel              lease                                       shipyard in                                                          Singapore.  Legend, Percentage of Completion (POC)  < 25%  25% < 50%  50% < 75%  > 75%  100%  HSSE  During the  period,  SBM  Offshore  deeply  regrets  to  have  to  report  two  fatalities of contractor staff at  the relevant yard on construction  projects  in Singapore.  Root  cause analysis  has  been carried  out  and  appropriate  measures have been put into effect at contractor facilities.  These fatalities are all  the more regrettable, since  over the course of  the  first six months of 2014 the  Company achieved an improved safety  performance  in a  range  of  its  business activities,  with  a  Total  Recordable  Injury  Frequency Rate (TRIFR) of 0.26 for the first half of 2014 compared to 0.40  at  the end of 2013. The Lost Time Injury Frequency Rate (LTIFR) also improved to 0.06 in the first half of 2014 from 0.15 at the end of 2013.  Compliance  As previously disclosed  in various press  releases, SBM Offshore  voluntarily  reported in April  2012 an  internal investigation  into potentially  improper  sales practices involving third parties  to the relevant authorities, and  has  since been in dialogue with these authorities.  SBM Offshore is discussing a potential  settlement of the issues arising  from  the investigation. While  these discussions are  ongoing, it is  sufficiently  clear that a  resolution of the  issues will have  a financial component,  and  consequently SBM  Offshore  has  recorded a  non-recurring  charge  of  US$240  million in  the  first half  of  2014, reflecting  the  information  currently  available to the Company.  Until the matter  is concluded,  SBM Offshore cannot  provide further  details  regarding a possible resolution of the issues arising from the  investigation,  and no assurance can be given that a settlement will actually be reached.  As  always, the Company will inform the market as soon as further information  can  be provided.  Overheads & Operating Costs  As announced with the Full Year 2013 results on February 6, 2014, SBM Offshore has embarked  on  a  two  year programme  focused  on  business  improvements,  increased fleet maintenance and Research and Development.  The business  improvement project  Odyssey  24 is  aiming to  achieve  several  objectives. It will optimize and consolidate the ways of working of a Company that has  quickly grown  from  a mid-sized  centrally  managed business  to  a  multi-national, organized  in accountable  business  units. It  will  improve  project management  and controls  of projects  that have  grown in  size  from  around US$500 million a  few years ago,  to close to  US$2 billion today.  It  aims to reduce project costs by at least 5% for each project through  improved  project, supply chain and  materials management, improving both  profitability  and competitive edge. These financial benefits will accrue to the bottom line increasingly over  the next  few  years. Increased  investments in  R&D  will  ensure SBM Offshore stays at  the forefront of floating solutions  technology,  such as  complex large  turret  and swivel  systems,  thereby opening  up  new  deepwater frontiers  for  the  industry.  Finally,  a  focused  increased  in  offshore maintenance will ensure that the Company is better prepared for  long  duration lease contracts and contract extensions.  The  Company  expects  incremental  annual  costs  equivalent  to  2.5%-3%  of  Directional^1 revenue in 2014 and 2015. These incremental costs have an impact on the  1H'14 Gross  Margin  and Overheads,  as  the investments  precede  the  expected benefits.  Orders  Directional^1 order intake  during the  first half of  2014 totalled  US$1,034  million,  driven  primarily  by  the  finalization  of  the  FPSO   Turritella  Operations & Maintenance contract  with Shell and the  payment of agreed  upon  variation orders by clients.  Post-Period Events  The Company  secured project  financing for  FPSO Cidade  de Maricá  totalling  US$1.45 billion from a consortium of international banks at a weighted average cost of debt of  5.3%. The financing consists  of two tranches, $1.0  billion  with a  12  year  post-completion  maturity and  $450  million  with  14  year  maturity.  Divestment Update  Marketing of the newbuild DSCV SBM  Installer continues. The FPSO Falcon  and  VLCC Alba remain held for  sale and the disposal of  the last of three  Monaco  office buildings is nearing completion.  Outlook and Guidance 2014  Management is confidently reiterating  2014 Directional^1 revenue guidance  of  US$3.3 billion, of which US$2.3 billion is expected in the Turnkey segment and US$1.0 billion in the Lease & Operate segment.  In terms of new FPSOs, SBM Offshore anticipates total industry-wide awards  in  double digits over the next few  years, and the Company is well-positioned  to  take an  appropriate share  of the  projects which  it is  targeting. On  the  timing of individual  awards, SBM Offshore  is cautious, noting  the trend  in  recent years for tendering processes  to lengthen. Nevertheless, it is  clear  that a substantial body of FPSOs must be commissioned over the next two  years  for oil & gas companies to maintain production levels.  FINANCIAL REVIEW  IFRS 10, 11 & 12  New consolidation standards for joint  ventures (JVs) 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.  On balance, this implementation  has a limited impact  on SBM Offshore's  IFRS  revenue as the additionally reported  partner share in the fully  consolidated  ventures is  offset  by the  exclusion  of  revenue in  the  equity  accounted  ventures and almost nil to net income attributable to shareholders.  However,  the Company's  reported  total asset  value  at year-end  2013  has  increased  significantly by approximately US$1.6 billion,  as the now fully  consolidated  Brazilian assets  are younger  and  represent a  larger  part of  the  balance  sheet. A similar effect is visible  at the gross debt level, increasing  from  US$2.9 billion  to US$3.6  billion. The  Company's 2013  pro-forma  financial  statements were disclosed in SBM Offshore's Q1 trading update.  As this  change of  consolidation  rules under  IFRS further  complicates  the  understanding of  the  Company's  performance  and  as  previously  announced,  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 (60%  owned)  and  Capixaba  (80%  owned)  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$35 million  and US$5 million in first half  2013  Directional¹ Revenue  and EBIT  respectively (no  impact on  Directional¹  net  income attributable to shareholders) and restated figures for first half 2013.  Effective January 1, 2014 SBM Offshore's Directional¹ reporting principles are as follows:    *Directional¹ reporting represents an additional non-GAAP disclosure to     IFRS reporting   *Directional¹ reporting assumes all lease contracts are classified as     operating leases   *Directional¹ reporting assumes all JVs related to lease contracts are     consolidated on a proportional basis   *Directional¹ reporting is limited to restating the consolidated income     statement however no restatement of the statement of financial position is     made                                                                                    New           Directional^1  New IFRS                   IFRS                  Directional^1                                                                      in US$        2013          2013           2013                       2013   million  Revenue       3,373         3,445           4,584  4,803  EBIT          63           98             188 293   Profit   (Loss)  attributable  58            58              114 111   to   Shareholders                                                                      in US$        31-Dec-13     31-Dec-13      31-Dec-13                  31-Dec-13   million  Backlog       22,198        23,025          -                                                -  Gross Debt    -            -              3,608  2,890  Total Assets  -            -              8,692  7,118  Total Equity  -             -             2,887  2,135  Directional^1 Performance  In  2013,  SBM  Offshore  decided  to  extend  its  reporting  with   non-IFRS  disclosures showing revenue  and results ("Directional^1")  more in line  with  operating cash  flows  to  increase  transparency  and  understanding  of  the  Company's performance and provide unaudited disclosures of Backlog and  Income  Statement based on Directional^1 principles.  For more information,  a copy of  the Directional^1 presentation  made to  the  financial community  in June  2013  can be  found  in the  Investor  Relations  section of the Company website.                                                                         1H 2014                    1H 2014          1H 2013                       in US$ million             Directional     Directional       Variance                                 ^(1)              pro-forma ^(2)                                                                        Total Revenue              1,729            1,634            6%          Lease and Operate                                                      Third party revenue        521              488               7%          Gross Margin               152              (153)             NM          Operating profit/(loss)    139              (164)            NM           (EBIT)  Underlying EBIT Margin     23.8%            27.9%             -410bps     Depreciation, amort.       129              140               NM           and impairment  EBITDA                     268               (24)            NM                                                                                Turnkey                                                                Third party revenue        1,208            1,146             5%          Gross Margin               199              245               -19%        Operating profit/(loss)    107              177               -40%         (EBIT)  Underlying EBIT Margin     8.9%             15.5%             -660bps     Depreciation, amort.       7                 7               0%           and impairment  EBITDA                     114              184              -38%                                                                              Other                                                                  Other operating            (240)            -                 NM           income/(expense)   Selling,  administrative,            (47)             (22)            119%         research & development   expenses  Operating profit/(loss)    (288)            (22)              NM           (EBIT)                                                                        Total Operating            (41)            (8)              NM           profit/(loss) (EBIT)  Total EBITDA               98               139              -29%        Net financing costs        (47)            (42)              11%          Share of profit of  equity-accounted           (16)             (6)              155%         investees  Income tax expense         6               12                -49%        Profit/(Loss)              (98)            (44)             121%        ^(1) Directional view is a non-IFRS disclosure, which treats all leases as    operating leases and consolidates the vessel joint ventures proportionally   ^(2) Restated for all  vessels proportionnally                                                 consolidated  Directional^1 revenue for the first half  of 2014 was up by 6%  year-over-year  to US$1,729  million  versus US$1,634  million  in  the first  half  of  2013.  Directional^1 revenue by segment was as follows:    *Directional^1 Turnkey revenue increased by 5% from the year-ago period     reflecting the strong activity on the construction of FPSOs Cidade de     Maricá and Saquarema during the first half of 2014.   *Directional^1 Lease and Operate revenue increased by 7% versus the first     half of 2013 mainly due to FPSO Cidade de Paraty and the Deep Panuke     platform commencing production in June 2013 and August 2013, respectively.  Directional^1 Earnings Before Interest and Taxes (EBIT) for the first half  of  2014 represented a loss of US$41 million compared with a loss of US$8  million  in the year-ago  period. Underlying Directional^1  EBIT excluding the  US$270  million charge recorded  on Yme and  the impairment variances  on Deep  Panuke  along with the  US$240 million  provision in 2014  for the  settlement of  the  investigation of improper sales practices, decreased by 37% to US$184  million  compared to the first half of 2013. This was primarily attributable to:    *Directional^1 Turnkey EBIT decreased by 40% due to the exceptional     performance of various projects during the last year period (OSX-2, Fram,     Skarv and construction of Cidade de Paraty). Underlying Directional^1     Turnkey EBIT Margin in the first half of 2014 came in at 8.9% compared to     9.6% in the second half of 2013.   *Underlying Directional^1 Lease and Operate EBIT remained stable compared     with the year-ago period but includes the impact of increased costs     associated with the start-up of the two-year focused fleet maintenance     programme. Underlying Directional^1 Lease & Operate EBIT Margin remained     stable at 23.8% in the first half of 2014 compared to the second half of     2013.  Directional^1 Overheads expenses  reported in the  Other segment increased  to  US$47 million in the  first half of  2014 from US$22  million in the  year-ago  period. The strong year-on-year increase was mainly due to the launch of  our  two year  transformation programme,  named Odyssey  24, aiming  at laying  the  foundation to  deliver consistent  and outstanding  performance. In  general,  Overheads expenses increased also  due to additional  efforts to maintain  our  leading technological position, as well as one-off items such as the  expenses  in relation  to our  internal investigation  and the  absence of  depreciation  during the past period for offices held for sale.  For the first half of 2014, Directional^1 EBITDA decreased to US$98  million.  Adjusted for non-recurring events,  underlying Directional^1 EBITDA  decreased  by 19%  to  US$338  million  due  to the  positive  effects  of  the  projects  closed-out in 2013 impacting the Turnkey segment.  Directional^1 net financing costs totalled US$47 million in the first half  of  2014, up  from  US$42  million  in the  year-ago  period.  The  increase  was  primarily due  to the  interest costs  related to  the FPSO  Cidade de  Paraty  project loan as the  unit commenced production in  June 2013 and mitigated  by  the decrease of the overall cost of debt during the period.  SBM Offshore recorded a Directional^1 net loss of US$98 million for the  first  half of 2014  or US$0.47  per share,  compared with  a US$44  million loss  or  US$0.22 per share for the first half of 2013. Adjusted for the US$270 million charge recorded on Yme and the impairment variances on Deep Panuke along  with  the US$240 million provision in 2014  for the settlement of the  investigation  of potentially improper sales  practices, underlying Directional^1 net  income  decreased by 49% year-on-year to US$127 million or US$0.61 per share, compared to US$252 million or US$1.26 in the first half of 2013 for the reasons  stated  above.  IFRS Performance  IFRS revenue  for the  first half  of 2014  amounted to  US$2,797 million,  an  increase of 29% compared to US$2,164 million in the year-ago period, mainly as a consequence of significant investments in finance lease contracts.  IFRS EBIT  for the  first  half of  2014  increased significantly  from  US$74  million to US$201 million despite the US$240 million provision in 2014 for the settlement of the investigation of potentially improper sales practices.  IFRS net  income  attributable  to  shareholders came  in  at  US$137  million  compared to US$12 million a year ago.  Directional^1 Backlog  Directional^1 Backlog as of  June 30, 2014 totalled  US$21.5 billion of  which  approximately US$1.7 billion is expected to be executed over the remainder  of  2014. The Backlog at the end of June 2014 includes the Shell Turritella  FPSO  Operations & Maintenance contract signed in May 2014.  Directional^1 Backlog at the end of June 2014 is as follow:                                                           (in billion US$)  Turnkey Systems  Lease & Operate  Total                                                           2H14              1.2              0.6              1.7     2015              0.9             1.0              1.9     2016              0.1              1.4              1.5     Beyond 2016        0.0            16.4             16.4                                                            Total Backlog     2.1              19.4             21.5                                                            Statement of Financial Position  The Company has  adopted IFRS 10,  11 and  12 in 2014,  which had  significant  consequences for the reported financial statements.  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 June 30, 2014 net  debt  under new IFRS standards increased to US$4,302 million reflecting  significant  investments in the ongoing Lease  and Operate projects under construction  for  Brazil and Turritella. Cash  and cash equivalent balances  came in at  US$154  million and  committed, undrawn,  long-term bank  facilities stood  at  US$939  million. The average cost of debt is 4.2% compared to 5.3% at the end of 2013 driven by lower cost of debt on  recent bridge loans and projects loans,  such  as Cidade de Paraty.  Total equity as of June 30, 2014 remained stable at US$2,917 million  compared  to December 31, 2013. The Company's  net debt to total equity increased  from  118% at year-end 2013 to 147% at the end of the first half of 2014. This  was  primarily due  to the  strong growth  of project  debt funding  finance  lease  projects under construction for Brazil as well as the Deep Panuke bridge  loan  set up in May 2014.  As a result of the significant impacts on the Company's consolidated statement of financial position relating to the new IFRS 10 and 11 standards  instituted  in January 2014, the  key financial covenants applying  to current bank  loans  had to be recalculated with the view  to place the Company and lenders in  the  same position as they would have been if the change of IFRS standards had  not  occurred. Restated for the  implementation of IFRS 10  and 11, the  Company's  solvency ratio stood at 27.5%, firmly within its covenants.  Including cash  outflows  for  finance leases  under  construction  previously  reported as investing activities, cash from operating activities was  negative  US$817 million for the period compared  to negative US$420 million during  the  first half of 2013.  Cash outflows in finance  leases under construction  for  the first half of 2014 increased significantly to US$1,370 million compared to US$541 million in the year-ago period taking into consideration the increasing investments in the fully  consolidated FPSOs Cidade  de Maricá, Saquarema  and  Turritella.  Following  the  decision  to  focus  the  Company's   activities  exclusively on  FPSOs  and  FPSO-related products,  the  disposal  process  of  non-core assets has continued. As of the end of June 2014, the total carrying value of assets presently held for sale amounts to US$177 million.  Further  financial  information  is  provided  in  the  consolidated   interim  financial statements included in this press release. ^2  Analyst Presentation & Conference Call  SBM Offshore has  scheduled a  webcast of  its presentation  to the  financial  community and a  conference call followed  by a Q&A  session at 19:30  Central  European Summer Time on Wednesday, August 6, 2014.  The presentation will be hosted by Bruno Chabas (CEO), Peter van Rossum  (CFO)  and Sietze Hepkema  (CGCO). Interested parties  are invited to  listen to  the  call by dialling +31 20 794 8484 in  the Netherlands, +44 207 190 1595 in  the  UK or +1 480 629  9822 in the US.  Conference ID: 4690978. Interested  parties  may also listen to the presentation via  webcast through a link posted on  the  Investor Relations section of the Company's website.  A replay of  the conference  call will be  available on  Wednesday, August  6,  2014, beginning at 22:00 Central European  Summer Time until August 20,  2014.  The phone number for the replay is +31 45 799 0028 in the Netherlands and  +44  207 959 6720 in  the UK using  access code 4690978#.  The webcast replay  will  also be available on the Company's website.  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 10,983 people worldwide, who are spread over  five  execution centres, eleven  operational shore  bases, the  joint ventures  with  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, August 6, 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.  ^1 Directional view is a non-IFRS disclosure, which assumes all lease contracts are classified as operating leases and all vessel joint ventures are proportionally consolidated.  ^2 Reflects SBM Offshore's proportional share in loan facilities.  SBM Offshore Press Release http://hugin.info/130754/R/1846951/644000.pdf  HUG#1846951  
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