SBM Offshore First Quarter 2024 Trading Update
May 8, 2024
Highlights
- Year-to-date Directional1 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%
completed2
- 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 Overview3
|
|
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
FPSOs4. 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 LTI5 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 0.126.
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
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.
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 RelationsWouter
HoltiesCorporate Finance & Investor Relations Manager
Mobile: |
+31 (0) 6 23 34 37 64 |
E-mail: |
wouter.holties@sbmoffshore.com |
Website: |
www.sbmoffshore.com |
Media RelationsEvelyn Tachau
BrownGroup Communications & Change Director
Mobile: |
+377 (0) 6 40 62 30 34 |
E-mail: |
evelyn.tachau-brown@sbmoffshore.com |
Website: |
www.sbmoffshore.com |
Market Abuse RegulationThis press release may
contain inside information within the meaning of Article 7(1) of
the EU Market Abuse Regulation.
DisclaimerSome 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.
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.
- SBM Offshore First Quarter 2024 Trading Update
SBM Offshore NV (EU:SBMO)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
SBM Offshore NV (EU:SBMO)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024