SBM Offshore Gains After Raising Sales Forecast: Amsterdam Mover
SBM Offshore NV (SBMO) gained the most in five months after the Dutch supplier of floating oil-production platforms raised its full-year revenue forecast to $4.3 billion from $4 billion.
SBM climbed as much as 6.9 percent to 15.19 euros, the biggest intraday advance since March 12. The stock was up 6.6 percent at 15.15 euros as of 10:51 a.m. in Amsterdam, valuing the company at 3.15 billion euros ($4.2 billion).
First-half earnings before interest and taxes, excluding the Yme and Deep Panuke projects, rose by 71 percent to $371 million, the Schiedam, Netherlands-based company said in a statement yesterday after the markets closed. Order intake rose to $7.5 billion after SBM won contracts from Petroleo Brasileiro SA (PETR3) worth $3.5 billion for two floating production and storage units. Sales increased 35 percent to $2.22 billion, beating the $2 billion average estimate of analysts surveyed by Bloomberg.
The company is starting to deliver “better focused results” and the “order book of $22 billion is clearly supportive for further growth,” Quirijn Mulder, an Amsterdam-based analyst at ING Groep NV (INGA), said in a note to investors today. ING has a buy recommendation on the stock.
To contact the reporter on this story: Fred Pals in Amsterdam at firstname.lastname@example.org