November 10, 2022
Highlights
- Sustained financial performance in a
complex macroeconomic environment
- 2022 Directional1 EBITDA guidance
increased to around US$1 billion
- 2022 Directional revenue guidance
increased to above US$3.2 billion
- Memorandum of Understanding signed for
exclusivity of seventh MPF hull with ExxonMobil Guyana
Bruno Chabas, CEO
of SBM Offshore, commented:
We have delivered solid results this quarter
driven by the reliable and sustainable financial performance of our
fleet and the resilience of our turnkey division which, despite a
number of continuing challenges, is expected to deliver robust
margins at portfolio level this year. This performance is only
possible thanks to the hard work and dedication of our teams.
Based on our outlook for the remainder of the
year we have revised our EBITDA and Revenue guidance upwards.
The challenges of the macroeconomic context and
Covid-19 pandemic related restrictions have not abated: incremental
impacts continue to be experienced within the project portfolio. We
are progressing the financing of the FPSOs Almirante Tamandaré and
Alexandre de Gusmão projects in preparation for a year of large
investment in the construction portfolio in 2023.
The underlying fleet uptime stood at 99.6% for
the third quarter, excluding the impact of the shutdown of the FPSO
Cidade de Anchieta. The restart of the unit at full production is
planned by year end. Following the restart, repairs on a
substantial remaining scope will continue at least until the end of
next year.
We also advanced a number of important elements
of our strategy as an energy transition company:
- First through the Memorandum of
Understanding (MoU) signed with ExxonMobil Guyana granting
exclusivity for our seventh Fast4Ward®
Multi-Purpose Floater (MPF) Hull for use on a future cost and
CO2e-intensity competitive FPSO project;
- Second, the construction of the
Provence Grand Large floating foundations has reached a major
milestone with the successful installation of the transition pieces
linking floater to turbine mast;
- Finally, we are pleased to see our
efforts once again recognized by third-party experts in their
assessment of the Company’s sustainability performance: SBM
Offshore was cited by S&P Global for very high disclosure rates
and as industry best on Climate Strategy.
Financial Overview
|
|
YTD Directional |
|
|
|
|
|
in US$ million |
|
3Q 2022 |
3Q 2021 |
% Change |
Revenue |
|
2,522 |
1,654 |
52% |
Lease and Operate |
|
1,290 |
1,134 |
14% |
Turnkey |
|
1,233 |
519 |
138% |
Underlying Revenue |
|
2,522 |
1,729 |
46% |
Lease and Operate |
|
1,290 |
1,209 |
7% |
Turnkey |
|
1,233 |
519 |
138% |
|
|
|
|
|
in US$ million |
|
3Q 2022 |
3Q 2021 |
|
Non-recurring items impacting Revenue |
|
|
|
|
Deep Panuke termination fee |
|
- |
(75) |
|
|
|
|
|
|
in US$ billion |
|
Sep-30-22 |
Dec-31-21 |
% Change |
Net Debt |
|
5.6 |
5.4 |
4% |
Underlying Directional revenue increased to
US$2,522 million compared with US$1,729 million for the same period
in 2021. The US$793 million or 46% growth is driven by Turnkey
revenue which increased to US$1,233 million compared with US$519
million in the year-ago period.
This resulted from the same factors described in
Half Year results: the ramp-up of Turnkey activities with five
FPSOs under construction and the completion of FPSO Liza Unity in
the first half of 2022. Furthermore, the earlier announced partial
divestment on FPSOs Almirante Tamandaré and Alexandre de Gusmão at
the beginning of 2022 allowed the Company to recognize revenue for
all the EPCI related work performed to date on these projects to
the extent of the partners’ ownership in lessor related
companies.
Year-to-date, Underlying Directional Lease and
Operate revenue stands at US$1,290 million, an increase of around
US$80 million compared with the same period in the prior year. This
mainly reflects FPSO Liza Unity successfully joining the fleet,
partially offset by the end of the Deep Panuke MOPU and FPSO
Capixaba lease contracts and the FPSO Kikeh Lease and Operate
contract extension which lowered the average straight-lined day
rate.
The increase in net debt reflects the
investments in growth.
Project Review
Construction activities continued to experience
impacts from the combined effects of the Covid-19 pandemic and the
indirect impacts from the war between Russia and Ukraine. The
impacts vary from project to project reflecting global logistic
issues as well as ongoing quarantine measures on personnel and
material especially in China. Project teams are working closely
with client teams and contractors in seeking to mitigate the
impacts on projects’ execution. An update on individual project
schedules is provided below considering latest known
circumstances.
FPSO Sepetiba – Despite COVID-19 which is still
impacting the pace of progress, the integration and commissioning
activities are progressing and the project targets first oil in
2023.
FPSO Prosperity – In August, a section of the
yard’s quayside alongside the vessel gave way as a result of which
a contractor was fatally injured. The Company regrets this tragic
incident and is continuing to work together with the yard to ensure
safety of personnel. Integration and commissioning activities have
restarted at an alternative location. The damage assessment from
the incident has been completed and the effect on the schedule is
limited. First oil is still likely to occur before year-end
2023.
FPSO Almirante Tamandaré – The topsides
fabrication and the Fast4Ward® hull construction are progressing in
line with plan. First oil is expected in 2024.
FPSO Alexandre de Gusmão – The topsides
fabrication is progressing in line with plan and the Fast4Ward®
hull was successfully launched out of drydock as scheduled. First
oil is expected in 2025.
FPSO ONE GUYANA – The topsides construction
started in the yards in China and Singapore and is progressing as
planned. First oil is expected in 2025.
Fast4Ward® MPF hulls – The Company recently
placed an order for a seventh Fast4Ward® MPF hull. The construction
of this hull is expected to start in the first quarter of 2023. An
MoU was signed with ExxonMobil Guyana granting exclusivity over the
hull.
Fleet Operational Update
FPSO Cidade de Anchieta
The unit remains in shutdown since January 2022
and tank inspection and repair work is progressing. The Company’s
priority is the safe restart of the vessel at full production which
is expected by the year-end. The focus of activities to date has
been on the repair of the 4 tanks required for the safe restart of
the vessel. The Company is in the process of finalizing the scope
of repairs required for the other tanks together with the estimated
associated costs and schedule. Following the restart, repair works
will continue at least until the end of next year. An update on
this will be provided with the year-end results, however it is
anticipated that the finalized estimate for the total future cost
of repairs will necessitate a one-off impairment charge in the
range of US$75 to US$100 million impacting the net profit for the
year.
Fleet Uptime
Year-to-date fleet uptime was 91% reflecting the
current shutdown of FPSO Cidade de Anchieta and excluding this
unit, the fleet underlying performance was around 98%.
Contract extension - The Company has signed a
3-year contract extension related to the operation of FPSO
Serpentina up to November 2025.
Environment, Social and Governance
Safety
The Company’s Total Recordable Injury Frequency
Rate year to date was 0.12, compared with the full year 2022 target
of below 0.152.
The learnings from the collapse of the pier
alongside the FPSO Prosperity in August which resulted in the fatal
accident reported in the Project Review have been applied to ensure
the safety of our worksites across the portfolio.
Emissions
In the third quarter of the year, the Company
was on track to meet the target set on Gas flared with a maximum
fleet average target of 1.7 mmscf/d3.
Guidance
The Company’s 2022 Directional revenue guidance
is revised from around US$3.2 billion to above US$3.2 billion, with
guidance for the Lease and Operate segment revised from around
US$1.7 billion to above US$1.7 billion and guidance for the Turnkey
segment maintained at above US$1.5 billion.
2022 Directional EBITDA guidance is also revised
from above US$950 million to around US$1 billion.
This guidance considers the currently foreseen
impacts from both the pandemic and the war between Russia and
Ukraine on projects and fleet operations. The Company highlights
that the direct and indirect effects of these events could continue
to have a material impact on the Company’s business and results and
the realization of the guidance for 2022.
Conference Call
SBM Offshore has scheduled a conference call,
which will be followed by a Q&A session, to discuss the Third
Quarter 2022 Trading Update.
The event is scheduled for Thursday, November
10, 2022 at 10.00 AM (CET) and will be hosted by Bruno Chabas
(CEO), Øivind Tangen (COO) and Douglas Wood (CFO).
Interested parties are invited to register prior
to the call using the link: Third Quarter 2022 Trading Update
Conference Call
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 renewable energy sources.
More than 5,000 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 |
Full Year 2022 Earnings |
February 23 |
2023 |
Annual General Meeting |
April 13 |
2023 |
First Quarter 2023 Trading Update |
May 11 |
2023 |
Half Year 2023 Earnings |
August 10 |
2023 |
Third Quarter 2023 Trading Update |
November 9 |
2023 |
For further information, please contact:
Investor RelationsLudovic
RobinoInvestor Relations Manager
Mobile: |
+31 (0) 6 15 16 50 35 |
E-mail: |
ludovic.robino@sbmoffshore.com |
Website: |
www.sbmoffshore.com |
Media RelationsVincent
KempkesGroup Communications Director
Mobile: |
+377 (0) 6 40 62 87 35 |
E-mail: |
vincent.kempkes@sbmoffshore.com |
Website: |
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 ‘Risk Management’ section of the
2021 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 “Float4WindTM” are proprietary marks owned by
SBM Offshore.
1 Directional reporting, presented in the
Financial Statements under 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 Measured
per 200,000 manhours.3 Average per operational unit including FPSO
Liza Unity from July 2022 onwards.
- SBM Offshore Third Quarter 2022 Trading Update
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