Dec. 20 (Bloomberg) -- SBM Offshore NV, the largest maker of floating oil and gas platforms, rose the most in nine months in Amsterdam after seeking to settle a dispute with Talisman Energy Inc. and writing off the value of a related operation.
SBM jumped as much as 17 percent, the biggest intraday gain since March 2, and traded up 16 percent at 10.775 euros at 4:11 p.m. local time, paring its decline this year to 32 percent.
The company will write off the book value of its Yme platform off Norway, which was evacuated in July after cracks were found. Talisman, operator of the Yme field, had threatened to replace the platform if SBM failed to come up with a plan to repair it. Talisman said in May it would remove the field from its production projections and take a $248 million after-tax writedown because of uncertainty regarding the start of output.
“Defining the way forward for Yme has been lengthy and arduous,” Bruno Chabas, chief executive officer of SBM, said today in a 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.”
SBM will take a charge of $600 million for the platform and $29 million for the Deep Panuke project off Nova Scotia, resulting in a 2012 net loss of about $100 million, the Schiedam, Netherlands-based company said. It will sell shares to raise $193 million.
“SBM finally bit the bullet,” Andre Mulder, an Amsterdam-based analyst at Kepler Capital Markets who recommends holding the stock, said today in a note. “The Yme decision will be applauded, but the capital injection is fairly large.”
SBM will sell a 9.95 percent stake to HAL Investments BV for 8.50 euros a share to bolster finances and meet creditors’ conditions on its loans. It is said to name Morgan Stanley and ING Groep NV to manage the sale, according to two people with knowledge of the plans, who asked not to be identified as the matter is confidential.
HAL will also underwrite a rights offer of about 10 percent should SBM reach an agreement with Talisman over Yme, according to the statement.
While SBM plans no dividend for 2012 or 2013, it maintained this year’s sales guidance at about $3.6 billion.
Talisman, based in Calgary, holds 60 percent of the Yme field, while Wintershall AG and American Energy Development Corp. both have 10 percent.
The Yme platform is expected to be removed after stability problems, Teknisk Ukeblad reported, citing people it didn’t identify. The platform may be scrapped, while other options are being considered, TU said, citing SBM spokeswoman Anne Guerin-Moens.
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