SBM Offshore NV (SBMO), the world’s largest maker of floating oil and gas output platforms, rose the most in nine months after seeking to settle a dispute with Talisman Energy Inc. and writing off the value of a related operation.
SBM rose as much as 17 percent to 10.795 euros, the biggest gain since March 2. It will book a net loss of $100 million for this year, after a charge of $600 million for the Yme platform and $29 million for Deep Panuke, the Schiedam, Netherlands-based company said in a statement. It will sell shares to raise funds.
“SBM finally bit the bullet,” Andre Mulder, an Amsterdam- based analyst at Kepler Capital Markets who has a hold rating on the stock, said in a note today. “The Yme decision will be applauded, but the capital injection is fairly large.”
The company rose 15 percent to 10.625 euros by 10:17 a.m. in Amsterdam, valuing it at 1.82 billion euros ($2.4 billion).
SBM will sell a 9.95 percent stake to HAL Investments BV for 8.50 euros a share, raising $193 million to improve its finances and meet creditors’ conditions on its loans. HAL will underwrite a rights offer of about 10 percent should SBM reach an agreement with Talisman Energy Inc. (TLM) on the Yme platform.
SBM said it plans no dividend for 2012 and 2013, while it maintained this year’s sales guidance at about $3.6 billion.
Talisman has 60 percent of the Yme field, and Wintershall AG and American Energy Development Corp. (EDC) both have 10 percent.
Talisman, based in Calgary, Canada, booked a $248 million after-tax charge in May on a lack of clarity over the field’s production start. It evacuated all 140 workers on the platform in July after cracks were found in the structure.
“Defining the way forward for Yme has been lengthy and arduous,” Chief Executive Officer Bruno Chabas said in the statement. “We have made significant progress and are now able to take the tough decision to fully impair the full book value of the platform and provide for settlement costs.”
The parties made progress toward a settlement, he said.
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