February 29, 2024
Record-level Revenue and EBITDA, increasing total shareholder returns
Highlights
* Record-level Directional(1) Revenue of US$4.5 billion (+38%), above guidance

  * Record-level Directional EBITDA of US$1.3 billion (+31%), in line with
    guidance
  * US$30.3 billion Directional backlog; US$9.3 billion or EUR46.6/share(2)
    Directional net cash from L&O and BOT(3) backlog(4)

* Evolving shareholder return policy: flexibility to pay committed annual cash

    return via dividend and share repurchase
  * 12% increase in annual cash return to shareholders of US$220 million
  * Cash return composed of US$150 million proposed dividend and EUR65 million
    (US$70 million equiv.(5)) share repurchase
  * 2024 Directional Revenue guidance of around US$3.5 billion
  * 2024 Directional EBITDA guidance of around US$1.2 billion
  * Successful sale of FPSO Liza Unity, Whiptail FEED award, 10-year OMEA for
    Guyana FPSO fleet, and FPSOs Prosperity & Sepetiba 1(st) oil
  * 70% FPSO CO(2 )emissions reduction potential from CO(2) capture solution
    offered in partnership with MHI

SBM Offshore's 2023 Annual Report can be found on its website under: https://2023.annualreport.sbmoffshore.com/
Bruno Chabas, CEO of SBM Offshore, commented:
"In 2023, we delivered record level financial performance and maintained our future backlog at more than US$30 billion. We expect to generate US$9.3 billion net cash from the Lease and Operate ("L&O") and Build-Operate-Transfer ("BOT") sales components of this backlog, equivalent to EUR46.6/share(6). Over the past 5 years we have grown this backlog of future net cash by US$2.9 billion whilst at the same time returning US$1.3 billion to shareholders.
This performance reflects the uniquely recognized competitive positioning of SBM
Offshore, the resilience of our business model and strong organizational capability to execute our strategy. In 2023, we delivered and commissioned two large FPSOs in industry-leading timeframes, adding significant value for our clients. The gross margin for our portfolio of construction projects remained robust. The 10-year Operations and Maintenance Enabling Agreement ("OMEA") in Guyana establishes a new benchmark which can be applied to other clients, demonstrating our ability to develop new models and respond to the dynamics of an evolving financing market. On the financing front, we raised US$3.2 billion for two FPSO projects, securing the financing of the entire construction portfolio.
We have a positive outlook on the market given the economics and low emission qualities of deepwater resources. We have secured the FEED award and reserved an
MPF hull for FPSO Jaguar for the Whiptail project in Guyana. The carbon capture solution developed in partnership with Mitsubishi Heavy Industries, Ltd. ("MHI")
aims to reduce FPSO emissions by up to 70%. As a result, we are on target to offer a near zero emission FPSO to the market in 2025, a key enabler of our 2050 net zero ambition.
Our expertise in traditional oil and gas deepwater floating systems can be applied to alternative energies such as floating offshore wind, hydrogen and ammonia. The Provence Grand Large windfarm, where three 8.4 MW floating wind units were successfully installed in October, is a testament to our capacity to make innovative ideas come true and contribute to the energy transition. We will
pace our activities in alternative energies in line with market developments, remaining selective and disciplined.
Our strong financial and operational performance and the positive outlook for our business through the energy transition and beyond seem to be under- appreciated by the market. This is the catalyst for the evolution of our shareholder returns policy: we are introducing flexibility to pay our annual committed fixed cash return via share repurchase in combination with dividend. Based on this we are increasing our fixed cash return by 12% to US$1.22 per share to be paid US$0.83 per share in dividend(7) and US$0.39 per share via share repurchase(8).
It has been a huge privilege to serve the Company as CEO for the last 12 years. I have had the honor of leading a team of talented, dedicated and passionate people in transforming SBM Offshore. Today, the Group has a well-established vision, purpose, and structure with a recognized leading market position and strong growth prospects in the industry. I am especially proud that SBM Offshore
has a leadership team which makes an internal succession possible and am extremely pleased to hand over my responsibilities to Øivind Tangen and a talented team of SBMers. Øivind will successfully guide the Company to achieve its ambitious energy transition targets by focusing on the Company strengths."
Financial Overview(9)

                                  Directional                    IFRS
 in US$ million             FY 2023 FY 2022 % Change   FY 2023 FY 2022 % Change

-------------------------- -------------------------- -------------------------

 Revenue                    4,532    3,288    38%       4,963   4,913     1%
 Lease and Operate           1,954   1,763    11%       1,563   1,414    11%
 Turnkey                     2,578   1,525    69%       3,400   3,499    -3%
 EBITDA                      1,319   1,010    31%       1,239   1,209     3%
 Lease and Operate           1,124   1,080     4%        695     719     -3%
 Turnkey                      296      7     >500%       646     569     14%
 Other                       (101)   (77)     -31%      (101)   (80)     -26%

Profit attributable to
Shareholders 524 115 354% 491 450 9%
Earnings per share (US$

 per share)                  2.92    0.65     350%      2.74    2.53      8%
                           ---------
 in US$ billion             FY 2023 FY 2022 % Change   FY 2023 FY 2022 % Change

-------------------------- -------------------------- -------------------------

 Pro-forma Backlog           30.3    30.5     -1%         -       -       -
 Net Debt                     6.7     6.1     10%        8.7     7.9     10%

Directional revenue for 2023 stood at US$4,532 million, a 38% increase when compared with 2022, primarily attributable to the Turnkey segment.
Directional Turnkey revenue increased by 69% to US$2,578 million compared with 2022. The strong increase was mainly driven by the sale of FPSO Liza Unity completed in November 2023. Turnkey revenue was additionally positively impacted
by (i) the start of FEED work for FPSO Jaguar, and (ii) additional variation orders on FPSO Prosperity. The increase in turnkey revenue was partially offset by (i) the comparative impact from the partial divestment of FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão at the beginning of 2022, (ii) the completion of the FPSO Liza Unity project in February 2022 and (iii) a reduced level of progress during the period compared with the year-ago period on FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão consistent with the commencement of topsides' integration.
Directional Lease and Operate revenue was US$1,954 million, an increase versus US$1,763 million in the prior period. This mainly reflects (i) FPSO Prosperity joining the fleet upon successful delivery of the EPCI project during the last quarter of 2023, and (ii) an increase in reimbursable scopes and an improved performance of the fleet, partially offset by (iii) FPSO Capixaba moving to the decommissioning phase after finishing production in 2022 (no contribution to revenue in 2023).
Directional EBITDA was US$1,319 million, representing a 31% increase compared with US$1,010 million in 2022. This was mostly attributable to the Turnkey segment which increased from US$7 million in 2022 to US$296 million in 2023. The
increase was driven by the sale of FPSO Liza Unity which was partly offset by (i) some prior period positive one-off impacts including a US$9 million gain recognized in the year-ago period from the disposal of the SBM Installer, (ii) the completion of FPSO Liza Unity project in February 2022, (iii) the reduced level of progress on FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão during the current year consistent with the commencement of topsides' integration, and (iv) impacts linked to pressure on the global supply chain and the consequences of the pandemic.
Directional Lease and Operate EBITDA was US$1,124 million an increase versus US$1,080 million in the year-ago period. This increase resulted from the same drivers as for the Lease and Operate revenue partially offset by additional non-
recurring maintenance costs on the fleet under operation and some prior period positive one-off impacts.
The other non-allocated costs charged to EBITDA amounted to US$(101) million in 2023, a US$(24) million increase compared with the US$(77) million in the year- ago period which is mainly explained by the implementation of an optimization plan related to the Company's support functions' activities (including US$11 million of restructuring costs), and continuing investment in the Company's digital initiatives.
Directional net profit increased to US$524 million in 2023, or US$2.92 per share, compared with US$115 million in the year-ago period. The increase was mainly the result of the increase in Directional EBITDA in 2023.
Liquidity, Funding and Directional Net Debt
The Company's financial position has remained strong as a result of the cash flow generated by the fleet, as well as the positive contribution of the Turnkey
activities.
Directional Net debt increased by US$572 million to US$6,654 million at year-end
2023. While the Lease and Operate segment continues to generate strong operating
cash flow together with the net cash proceeds from the sale of FPSO Liza Unity, the Company drew on the project finance facilities for FPSO Prosperity, FPSO ONE
GUYANA, FPSO Almirante Tamandaré, FPSO Alexandre de Gusmão, the Revolving Credit
Facility and the new Revolving Credit Facility for MPF hull financing.
To diversify its sources of debt and equity funding and to accelerate equity cash flow from the backlog, the Company finalized the funding loan agreement with CMFL and received US$125 million in relation to FPSO Cidade de Ilhabela.
Almost half of the Company's debt at year-end 2023 consisted of non-recourse project financing (US$3.3 billion) in special purpose investees. The remainder (US$3.8 billion) consisted mainly of borrowings to support the ongoing construction of 3 FPSOs which will become non-recourse following completion of construction, the project loan for FPSO Sepetiba (following start up, this has recently become non-recourse), the new US$210 million RCF for MPF hull financing
fully drawn to fund MPF capital expenditure, and US$550 million drawn under the RCF as at December 31, 2023.
Directional cash and cash equivalents amounted to US$563 million and lease liabilities totaled US$85 million at December 31, 2023.
Cash and undrawn committed credit facilities amount to US$2,276 million at December 31, 2023.
Directional Pro-Forma Backlog
Change in ownership scenarios and lease contract duration have the potential to significantly impact the Company's future cash flows, net debt balance as well as the profit and loss statement. The Company therefore provides a pro-forma Directional backlog based on the best available information regarding ownership scenarios and lease contract duration for the various projects.
The pro-forma Directional backlog at the end of December 2023 slightly decreased
by US$0.2 billion to a total of US$30.3 billion. This was mainly the result of (i) the signed 10-year OMEA for the Guyana FPSO fleet and (ii) the awarded initial scope to begin FEED activities and secure a Fast4Ward® hull for FPSO Jaguar, offset by turnover for the period which consumed approximately US$4.5 billion of backlog (including the sale of FPSO Liza Unity completed in November 2023 a few months ahead of the end of the maximum lease term in February 2024).
The Company's backlog provides cash flow visibility up to 2050.
in US$ billion Turnkey Lease & Operate Total
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  2024                              0.5           2.2          2.7
  2025                              1.3           2.5          3.8
  2026                              0.1           2.6          2.7
  Beyond 2026                       2.1          19.0         21.1

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Total Directional Backlog 30.3
The pro-forma Directional backlog at the end of 2023 reflects the following key assumptions:
* The FPSO Liza Destiny contract covers the basic contractual term of 10 years

    of lease.
  * The FPSOs Prosperity and ONE GUYANA contracts cover a maximum period of
    lease of two years, within which the FPSOs ownership will transfer to the
    client.

* 10 years of operations and maintenance is considered for FPSOs Liza Destiny,

    Liza Unity, Prosperity and ONE GUYANA following signature of the OMEA in
    2023.
  * The impact of the subsequent sale of FPSOs Prosperity and ONE GUYANA is
    reflected in the Turnkey backlog at the end of the maximum two-year period.
  * With respect to FPSO Jaguar, for which the full construction, installation
    and operations contracts award is subject to necessary government approvals
    and final work order to be received from the client, the amount included in

the pro-forma backlog is limited to the value of the initial limited release

    of funds to the Company to begin FEED activities and secure a Fast4Ward®
    hull.
  * The 13.5% equity divestment in FPSO Sepetiba to CMFL has not yet been
    reflected in the backlog as the transaction remains subject to various
    approvals, which include the consent from co-owners, lenders and export
    credit agencies.

For further details of the overall assumptions applicable to the backlog, please
refer to the 2023 Annual Report.
Project Review

                                                          Percentage
 Project                                 SBM   Capacity,      of      Expected
             Client/country  Contract   Share     Size    Completion  First Oil

-------------------------------------------------------------------------------

 Almirante     Petrobras    26.25-year          225,000
 Tamandaré       Brazil        L&O       55%      bpd        >75%       2025
 Alexandre     Petrobras    22.5-year           180,000
 de Gusmão       Brazil        L&O       55%      bpd        >75%       2025
 ONE GUYANA    ExxonMobil                       250,000

Guyana 2-year BOT 100% bpd >50% Â