May 8, 2024
Highlights
* Year-to-date Directional(1) revenue of US$871 million, in line with
expectation
* Full year 2024 Directional revenue and Directional EBITDA guidance
maintained
* Cash dividend of US$150 million (equivalent to EUR0.7651 per ordinary share)
approved
* Share repurchase program of EUR65 million on track 20.7% completed(2)
* FPSO Sepetiba producing and on hire; FPSO Prosperity at full production
capacity
* FPSO Jaguar contract award confirmed in April 2024, growing the backlog
* MoU with Technip Energies to create Floating Offshore Wind JV, EkWiL
Øivind Tangen, CEO of SBM Offshore, commented:
"We have delivered good results this quarter in line with expectations and we
maintain our full year guidance.
We are pleased to have been awarded contracts in April for the construction and
installation of ExxonMobil Guyana's FPSO Jaguar as part of the Whiptail
development. This significant award is the fifth FPSO project for SBM Offshore
in Guyana. It will be our first based on a sale and operate model, adding an
accelerated cashflow profile for the project to our backlog. Following transfer
of ownership to the client at the end of the construction period, we expect to
operate the FPSO under our 10-year Operations and Maintenance Enabling
Agreement.
FPSO Jaguar will utilize our seventh Fast4Ward(®) MPF hull. We anticipate that
our eighth hull, currently under construction, and the optionality that we have
for a series of further hulls in a tight supply chain environment will position
us favorably for tendering in a market with a positive outlook for cost and
carbon efficient FPSOs.
On the operational front, FPSO Prosperity has been producing at capacity since
January 2024 and FPSO Sepetiba achieved flare out in April 2024. Together, these
FPSOs have a joint production capacity of more than 400,000 barrels of oil per
day. The delivery of these vessels is testament to SBM Offshore's capability in
delivering large and complex FPSO projects.
We continue to seek to apply our expertise in floating solutions across a number
of alternative energy markets. Through our Memorandum of Understanding ("MoU")
with Technip Energies to create a joint venture pure-play Floating Offshore Wind
company, EkWiL, we are enhancing the sustainability of our ambitions to capture
the potential of this emerging market."
Financial Overview(3)
YTD Directional
in US$ million 1Q 2024 1Q 2023 % Change
--------------------------------------- -----------------------------------
Directional Revenue 871 742 17%
Directional Lease & Operate revenue 554 453 22%
Directional Turnkey revenue 316 290 9%
in US$ billion Mar-31-24 Dec-31-23 % Change
--------------------------------------- -----------------------------------
Directional net debt 6.8 6.7 3%
Directional revenue stood at US$871 million, a 17% increase compared with US$742
million for the same period in 2023. This 17% increase is mainly attributable to
the Lease and Operate segment.
Directional Turnkey revenue increased by 9% to US$316 million compared with the
same period in 2023. The increase was mainly driven by the FEED contract for
FPSO Jaguar and support to the fleet through brownfield activities, partly
offset by the fact that a comparatively lower amount of revenue was booked in
the construction portfolio as the projects approach completion.
The year-to-date Directional Lease and Operate revenue increased to US$554
million, a 22% increase compared with 1Q 2023. This increase was mainly the
result of (i) FPSO Prosperity and FPSO Sepetiba joining the fleet upon
successful delivery in respectively 4Q 2023 and 1Q 2024, and (ii) an increase in
reimbursable scope on the fleet. This was partially offset by the fact that we
have moved to an operating contract for FPSO Liza Unity following the purchase
by the client in 4Q 2023.
Directional net debt increased by US$187 million to US$6,842 million for the
period ending 1Q 2024. The increase was driven by drawings under the project
finance facilities, which reflects the continued investment in the construction
program of 3 FPSOs(4). The Company uses interest rate swaps to hedge interest
rate risk. The hedge ratio of the floating-rate debt and the associated interest
rate swaps is above 90%.
Project Review and Fleet Operational Update
FPSO Almirante Tamandaré - The topside modules lifting campaign has been
completed. Integration and commissioning activities are progressing in line with
plan. The FPSO delivery continues to be on track for 2024 and the client is
expecting first oil from the field in early 2025.
FPSO Alexandre de Gusmão - The topside modules lifting campaign is reaching
completion. Integration and commissioning activities are progressing in line
with the plan. First oil is expected in 2025.
FPSO ONE GUYANA - The topside fabrication and module lifting campaign are
progressing in line with plan. Integration and commissioning activities have
started. The project has achieved 20 million work hours without an LTI(5) at the
end of 1Q 2024. First oil is expected in 2025.
FPSO Jaguar - The construction of the Fast4Ward(®) MPF hull is progressing as
per plan. The FPSO engineering and procurement activities are well under way.
First oil is expected in 2027.
Fast4Ward(®) MPF hulls - The total number of MPF hulls ordered to date under the
Company's Fast4Ward(®) program stands at eight, with 3 Fast4Ward(® )based
vessels now in operation, 4 hulls allocated to projects in construction and one
reserved as part of tendering activities.
Fleet Uptime - Year-to-date, the fleet's uptime was 97.6%, in line with
historical performance.
Safety and Sustainability
Safety - The Company's Total Recordable Injury Frequency Rate (TRIFR) year-to-
date was 0.07, in line with the full year 2024 target of below 0.12(6).
Responsible recycling - On April 1, 2024, the FPSO Capixaba successfully
departed from the Jubarte field in Brazil, and began the transit journey towards
the responsible recycling yard in Denmark.
Alternative Energies
EkWiL - SBM Offshore and Technip Energies have announced the signing of a MoU
for the creation of a joint venture entity, EkWiL. The new company will be a
Floating Offshore Wind pure player, capable of proposing a wide range of
solutions to clients. The joint venture is expected to be launched in the second
half of 2024. EkWiL will combine the people expertise, engineering and delivery
capabilities, and complementary technologies of Technip Energies and SBM
Offshore, creating integrated floating solutions and leading delivery offerings
for the Floating Offshore Wind market. This unique positioning will enhance
execution certainty and cost competitiveness for these innovative projects.
Cash Return
On April 12, 2024 shareholders of the Company voted in favor of the proposed
US$150 million cash dividend component of our aggregate US$220 million cash
return. This results in a dividend distribution of EUR0.7651 per ordinary share.
The dividend payment is scheduled for May 10, 2024 to all shareholders of record
as at April 17, 2024.
The EUR65 million share buyback component of our aggregate cash return is
progressing and was 20.7% complete on April 30, 2024.
Guidance
The Company's 2024 Directional revenue guidance is maintained at around US$3.5
billion of which around US$2.2 billion is expected from the Lease and Operate
segment and around US$1.3 billion from the Turnkey segment.
2024 Directional EBITDA guidance is maintained around US$1.2 billion for the
Company.
Conference Call
SBM Offshore has scheduled a conference call, which will be followed by a Q&A
session, to discuss the First Quarter 2024 Trading Update.
The event is scheduled for Wednesday May 8, 2024, at 10.00 AM (CEST) and will be
hosted by Øivind Tangen (CEO) and Douglas Wood (CFO).
Interested parties are invited to register prior to the call using the link:
First Quarter 2024 Trading Update
(https://event.loopup.com/SelfRegistration/registration.aspx?booking=0NXjf1phVRG
XCuUidTziFhNxjePGTKIDBavqaCtLlJ8=&b=528f7d33-d6cf-439e-b143-56d7da6b8e57)
Please note that the conference call can only be accessed with a personal
identification code, which is sent to you by email after completion of the
registration.
Corporate Profile
SBM Offshore designs, builds, installs and operates offshore floating facilities
for the offshore energy industry. As a leading technology provider, we put our
marine expertise at the service of a responsible energy transition by reducing
emissions from fossil fuel production, while developing cleaner solutions for
alternative energy sources.
More than 7,400 SBMers worldwide are committed to sharing their experience to
deliver safe, sustainable and affordable energy from the oceans for generations
to come.
For further information, please visit our website at www.sbmoffshore.com
(http://www.sbmoffshore.com).
Financial Calendar Date Year
-------------------------------------------------------------
Half Year 2024 Earnings August 8 2024
Third Quarter 2024 Trading Update November 14 2024
Full Year 2024 Earnings February 20 2025
Annual General Meeting April 9 2025
First Quarter 2025 Trading Update May 15 2025
For further information, please contact:
Investor Relations
Wouter Holties
Corporate Finance & Investor Relations Manager
Mobile: +31 (0) 6 23 34 37 64
wouter.holties@sbmoffshore.com
E-mail: (mailto:wouter.holties@sbmoffshore.com)
Website: www.sbmoffshore.com (http://www.sbmoffshore.com)
Media Relations
Evelyn Tachau Brown
Group Communications & Change Director
Mobile: +377 (0) 6 40 62 30 34
evelyn.tachau-brown@sbmoffshore.com (mailto:evelyn.tachau-
E-mail: brown@sbmoffshore.com)
Website: www.sbmoffshore.com (http://www.sbmoffshore.com)
Market Abuse Regulation
This press release may contain inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
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. These statements may be
identified by words such as 'expect', 'should', 'could', 'shall' and similar
expressions. Such forward-looking statements are subject to various risks and
uncertainties. The principal risks which could affect the future operations of
SBM Offshore N.V. are described in the 'Impact, Risk and Opportunity Management'
section of the 2023 Annual Report.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results and performance of the
Company's business may vary materially and adversely from the forward-looking
statements described in this release. SBM Offshore 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 new information, subsequent
events or otherwise.
Nothing in this release shall be deemed an offer to sell, or a solicitation of
an offer to buy, any securities. The companies in which SBM Offshore N.V.
directly and indirectly owns investments are separate legal entities. In this
release "SBM Offshore" and "SBM" are sometimes used for convenience where
references are made to SBM Offshore N.V. and its subsidiaries in general. These
expressions are also used where no useful purpose is served by identifying the
particular company or companies.
"SBM Offshore(®)", the SBM logomark, "Fast4Ward(®)", "emissionZERO(®)" and
"Float4Wind(®)" are proprietary marks owned by SBM Offshore.
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(1) Directional reporting, presented in the Financial Statements under section
Operating Segments and Directional Reporting, represents a pro-forma accounting
policy, which treats all lease contracts as operating leases and consolidates
all co-owned investees related to lease contracts on a proportional basis based
on percentage of ownership. This explanatory note relates to all Directional
reporting in this document.
(2) Based on cumulative repurchase amount of EUR13.4 million on April 30, 2024.
(3) Numbers may not add up due to rounding.
(4) Excluding FPSO Jaguar, which was awarded on April 12, 2024.
(5) Lost Time Incident.
(6) Measured per 200,000 work hours.
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