SBM Offshore First Quarter 2023 Trading Update
May 11, 2023
Highlights
- Year-to-date Directional1 revenue of US$742 million, in line
with expectation
- Full year 2023 revenue and EBITDA guidance on track
- ~US$3 billion revenue backlog increase following 10-year
Operations and Maintenance Enabling Agreement signed with
ExxonMobil Guyana
- 8th Fast4Ward® Multi-Purpose Floater (MPF) hull ordered
- Cash dividend of US$1.10 per ordinary share approved, 10%
year-on-year increase and representing c. 7% yield2
Bruno Chabas, CEO of SBM Offshore, commented:
“Our performance in the first quarter has been
good and our full year guidance is on track.
Several key milestones have been achieved since
the beginning of the year including the safe arrival of FPSO
Prosperity in Guyanese waters as scheduled and the closing of the
major project financing of US$1.63 billion for FPSO Almirante
Tamandaré. Despite the various remaining challenges related to the
COVID-19 pandemic, supply chain constraints and general inflation,
the overall margin on FPSO projects under construction remains
robust at portfolio level.
On the operational front, we achieved a solid
performance and the fleet uptime stood at 99.2%3 for the first
quarter. We recently signed a 10-year agreement for the operations
and maintenance of our FPSO fleet in Guyana through an Integrated
Operation Model with ExxonMobil Guyana, leveraging the combined
operational excellence of both parties. This model is the first of
its kind in the industry, and we believe it will set a new
performance benchmark for the industry.
Finally, the market outlook for new cost and
carbon efficient FPSOs remains positive, and we therefore ordered
an 8th MPF hull under our Fast4Ward® program.”
Financial Overview4
|
|
YTD Directional |
|
|
|
|
|
in US$ million |
|
1Q 2023 |
1Q 2022 |
% Change5 |
Revenue |
|
742 |
970 |
-24% |
Lease and Operate |
|
453 |
405 |
12% |
Turnkey |
|
290 |
565 |
-49% |
|
|
|
|
|
in US$ billion |
|
Mar-31-23 |
Dec-31-22 |
% Change5 |
Net Debt |
|
6.4 |
6.1 |
5% |
Directional revenue for the first quarter of the
year came in at US$742 million compared with US$970 million in the
same period of 2022. This decrease is driven by the one-off
divestment of a 45% interest in FPSOs Alexandre de Gusmão and
Almirante Tamandaré which took place over the first quarter of 2022
positively impacting the Turnkey segment.
Lease and Operate revenue increased by 12%
year-on-year mainly driven by FPSO Liza Unity operating over the
full quarter compared with a partial contribution over the first
quarter last year.
Year-to-date, net debt stood at US$6.4 billion
supporting ongoing investments in growth. Nearly all the Company’s
debt is project related and as such becomes non-recourse following
project execution finalization and the release of the Parent
Company Guarantee.
Project Review
The relaxation of COVID-19 restrictions in China
at the end of last year has improved the mobility of personnel
after a temporary increase of positive cases in the country.
Notwithstanding this improvement, project teams continue to monitor
impacts related to the ongoing global inflationary pressures and
supply chain constraints on projects execution. An update on
individual project schedules is provided below considering latest
known circumstances.
FPSO Sepetiba – The topsides integration
phase is nearing completion and the onshore commissioning campaign
continues to progress. The project targets first oil in the second
half of 2023.
FPSO Prosperity – The vessel arrived safely in
Guyana in April 2023 and project teams are completing commissioning
activities. The project targets first oil in 2023.
FPSO Almirante Tamandaré – The Fast4Ward® MPF
hull has been safely delivered to the integration yard allowing the
commencement of topsides' integration. The FPSO delivery continues
to be on track for 2024. The client is now expecting
first oil from the field in early 2025.
FPSO Alexandre de Gusmão – The Fast4Ward® MPF
hull has been safely delivered to the integration yard and topsides
fabrication continues to progress. First oil is expected in
2025.
FPSO ONE GUYANA – The Fast4Ward® MPF hull
entered drydock in Singapore and the topsides fabrication is
progressing in line with plan. Start-up is expected by year-end
2025.
Fast4Ward® MPF hulls – The Company has ordered a
new MPF hull with CMHI (China Merchants Heavy Industry Co. Ltd.)
under its Fast4Ward® program bringing the total number of hulls to
eight. Six have been delivered to projects while exclusivity for
the seventh has been granted to ExxonMobil Guyana.
Fleet Operational Update
FPSO Mondo was granted last year a 1-year
contract extension to December 2023. Maintenance activities have
been carried out on the FPSO leading to a temporary halt in
production during the first quarter of the year. The FPSO is
scheduled to resume operations in the second quarter of 2023.
The fleet’s uptime excluding the planned
maintenance on FPSO Mondo was 99.2% over the first quarter of 2023,
in line with historical performance.
Environment, Social and Governance
The Company’s Total Recordable Injury Frequency
Rate year-to-date was 0.07, compared with the full year 2023 target
of below 0.146.
New Energies
Provence Grand Large – Construction of the three
floating foundations was completed. Preparation is ongoing for the
load out operations to allow subsequently for the integration of
the three turbines with a capacity of 8.4 MW each by
Siemens-Gamesa. Upon completion of the turbine integration and
pre-commissioning phase, SBM Offshore will perform the offshore
installation of the floaters and the anchoring systems. The
Floating Offshore Wind pilot farm targets electricity generation
before the end of the year.
Post-Period Events
Dividends
On April 13, 2023 shareholders of the Company
voted in favor of the proposed dividend of US$1.10 per ordinary
share, which represents an increase of 10% compared with last year.
It results in a dividend distribution of €0.9959 per ordinary
share. The dividend payment is scheduled for May 11, 2023 to all
shareholders of record as at April 18, 2023.
Guidance
The Company’s 2023 Directional revenue guidance
is maintained at above US$2.9 billion of which around US$1.9
billion is expected from the Lease and Operate segment and above
US$1 billion from the Turnkey segment.
2023 Directional EBITDA guidance is maintained
above US$1 billion for the Company.
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 2023.
Conference Call
SBM Offshore has scheduled a conference call,
which will be followed by a Q&A session, to discuss the First
Quarter 2023 Trading Update.
The event is scheduled for Thursday, May 11,
2023 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: First Quarter 2023 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 7,000 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 |
Half Year 2023 Earnings |
August 10 |
2023 |
Third Quarter 2023 Trading Update |
November 9 |
2023 |
Full Year 2023 Earnings |
February 29 |
2024 |
Annual General Meeting |
April 12 |
2024 |
First Quarter 2024 Trading Update |
May 8 |
2024 |
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 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 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
2022 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 Yield based on May 10, 2023 closing share
price. 3 Excluding the planned shutdown of FPSO Mondo.4
Numbers may not add up due to rounding.5 Percentage of change
computation based on absolute figures.6 Measured per 200,000
manhours.
- SBM Offshore 1Q23 Trading Update
SBM Offshore NV (EU:SBMO)
Historical Stock Chart
From Oct 2024 to Nov 2024
SBM Offshore NV (EU:SBMO)
Historical Stock Chart
From Nov 2023 to Nov 2024