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SBM Offshore Third Quarter 2024 Trading Update

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SBM Offshore has significantly increased its 2024 guidance following major developments. The company's Directional EBITDA guidance was raised by 46% to around US$1.9 billion, while revenue guidance increased by 58% to above US$6.0 billion. Key highlights include the sale of FPSO Prosperity to ExxonMobil Guyana, the expected sale of FPSO Liza Destiny by year-end, and TotalEnergies' contract award for an FPSO in Suriname. The company's YTD Directional revenue reached US$2,838 million, up 26% year-over-year, with both Lease and Operate and Turnkey segments showing strong growth.

SBM Offshore ha notevolmente aumentato le previsioni per il 2024 dopo importanti sviluppi. La previsione dell'EBITDA direzionale dell'azienda è stata elevata del 46% a circa 1,9 miliardi di dollari USA, mentre la previsione di fatturato è aumentata del 58% a oltre 6,0 miliardi di dollari USA. Tra i punti salienti ci sono la vendita di FPSO Prosperity a ExxonMobil Guyana, la prevista vendita di FPSO Liza Destiny entro la fine dell'anno e l'aggiudicazione di un contratto da parte di TotalEnergies per un FPSO in Suriname. Il fatturato direzionale dell'azienda da inizio anno ha raggiunto i 2.838 milioni di dollari USA, con un aumento del 26% rispetto all'anno precedente, con entrambi i segmenti Lease and Operate e Turnkey che mostrano una forte crescita.

SBM Offshore ha incrementado significativamente su guía para 2024 tras desarrollos importantes. La guía de EBITDA direccional de la empresa fue elevada en un 46% a alrededor de 1.9 mil millones de dólares estadounidenses, mientras que la guía de ingresos aumentó en un 58% a más de 6.0 mil millones de dólares estadounidenses. Entre los puntos destacados se incluyen la venta de FPSO Prosperity a ExxonMobil Guyana, la esperada venta de FPSO Liza Destiny para fin de año y la concesión de un contrato de TotalEnergies para un FPSO en Surinam. Los ingresos direccionales de la empresa hasta la fecha alcanzaron los 2,838 millones de dólares estadounidenses, un aumento del 26% interanual, con ambos segmentos Lease and Operate y Turnkey mostrando un fuerte crecimiento.

SBM Offshore는 주요 발전 이후 2024년 가이던스를 크게 증가시켰습니다. 이 회사의 방향 EBITDA 가이던스는 46% 증가하여 약 19억 달러에 달하며, 수익 가이던스는 58% 증가하여 60억 달러 이상으로 설정되었습니다. 주요 하이라이트에는 FPSO Prosperity를 ExxonMobil Guyana에 판매한 것, 연말까지 FPSO Liza Destiny의 예상 판매, 그리고 TotalEnergies의 수리남 내 FPSO 계약 수주가 포함됩니다. 회사의 연초부터 현재까지 방향 수익은 28억 3천8백만 달러에 달해 전년 대비 26% 증가했으며, Lease and Operate 및 Turnkey 부문 모두 강력한 성장을 보이고 있습니다.

SBM Offshore a considérablement augmenté ses prévisions pour 2024 suite à des développements majeurs. Les prévisions d'EBITDA directionnel de l'entreprise ont été relevées de 46 % à environ 1,9 milliard de dollars américains, tandis que les prévisions de revenus ont augmenté de 58 % pour dépasser 6,0 milliards de dollars américains. Les points saillants incluent la vente de FPSO Prosperity à ExxonMobil Guyana, la vente attendue de FPSO Liza Destiny d'ici la fin de l'année, et l'attribution d'un contrat à TotalEnergies pour un FPSO au Suriname. Les revenus directionnels de l'entreprise depuis le début de l'année ont atteint 2 838 millions de dollars américains, soit une augmentation de 26 % par rapport à l'année précédente, les segments Lease and Operate et Turnkey affichant tous deux une forte croissance.

SBM Offshore hat seine Prognose für 2024 aufgrund wichtiger Entwicklungen erheblich erhöht. Die Richtlinien-EBITDA-Prognose des Unternehmens wurde um 46% auf etwa 1,9 Milliarden US-Dollar angehoben, während die Umsatzerwartung um 58% auf über 6,0 Milliarden US-Dollar gestiegen ist. Zu den wichtigsten Punkten zählen der Verkauf der FPSO Prosperity an ExxonMobil Guyana, der voraussichtliche Verkauf der FPSO Liza Destiny bis zum Jahresende und der Vertragsauftrag von TotalEnergies für eine FPSO in Suriname. Die Directional-Umsätze des Unternehmens beliefen sich bisher auf 2.838 Millionen US-Dollar, was einem Anstieg von 26% im Jahresvergleich entspricht, wobei sowohl der Leasing- und Betriebs- als auch der Turnkey-Segment stark gewachsen sind.

Positive
  • EBITDA guidance increased 46% to US$1.9 billion
  • Revenue guidance raised 58% to above US$6.0 billion
  • YTD Directional revenue up 26% to US$2,838 million
  • Lease and Operate revenue increased 28% to US$1,801 million
  • Turnkey revenue improved 24% to US$1,036 million
  • New FPSO contract awarded by TotalEnergies for Suriname project
Negative
  • Net Debt increased by US$603 million to US$7.258 billion
  • Fleet uptime at 95% due to shutdown of 2 units

Amsterdam, November 14, 2024

Highlights

  • FPSO Prosperity sold to ExxonMobil Guyana Ltd; FPSO Liza Destiny on track for sale before year-end
  • TotalEnergies contract award for an FPSO as part of the GranMorgu field development project in Suriname
  • 2024 Directional1 EBITDA guidance increased from around US$1.3 billion to around US$1.9 billion (+46%)
  • 2024 Directional revenue guidance increased from above US$3.8 billion to above US$6.0 billion (+58%)
  • Completed sale of 13.5% interest in FPSO Sepetiba to China Merchants Financial Leasing (Hong-Kong) Holding Co., Limited (CMFL)
  • Share repurchase program of EUR130 million on track, c. 57% completed2

Øivind Tangen, CEO of SBM Offshore, commented:

“Our SBM teams continue to deliver a strong performance, driving improved results.

We have increased our EBITDA guidance for the year from around US$1.3 billion to around US$1.9 billion. This is mainly driven by the completion of the sale of FPSO Prosperity to ExxonMobil Guyana Ltd on November 7, and the expected sale of FPSO Liza Destiny towards the end of year.

The award by TotalEnergies of the FPSO contract for the GranMorgu project in Suriname demonstrates the value of our lifecycle offering and the advantaged positioning this can give us in the market. The c. 220 kboe/d capacity vessel, delivered in partnership with Technip Energies, will utilize all-electric drive to help optimize the emission intensity of the FPSO in line with our emission zero goal of delivering more carbon-efficient units.

Our project portfolio continues to progress as per plan, with three units expected to reach first oil in the course of next year. This convergence towards excellence across our lifecycle is greatly helped by the fast learning achieved through our Fast4Ward® program.

The first of these units, FPSO Almirante Tamandaré, arrived safely in Brazil and has entered the final offshore commissioning scope. Once in full production, this unit will be the largest producing FPSO in Brazil and is also the first in Brazil with a Sustainability-1 Notation3.

Reflecting our continuous attention to the health and wellbeing of our employees and all those working on our projects, we can report another quarter with an overall HSSE performance in line with our targets.

Finally, we completed the sale of 13.5% in FPSO Sepetiba to CMFL.”


Financial Overview4

  YTD Directional
     
in US$ million 3Q 20243Q 2023% Change
Directional Revenue 2,8382,24726%
Directional Lease and Operate 1,8011,41228%
Directional Turnkey 1,03683524%
     
in US$ billion 3Q 2024FY 2023% Change
Directional Net Debt  7.36.79%

Directional revenue for the third quarter of 2024 stood at US$2,838 million, a 26% increase compared with the same period in 2023 supported by both the Lease and Operate and Turnkey segments.

Year-to-date, Directional Lease and Operate revenue was US$1,801 million compared with US$1,412 million in the third quarter of 2023. This 28% increase mainly reflects (i) the contribution of FPSOs Prosperity and Sepetiba joining the fleet upon successful delivery in 4Q 2023 and 1Q 2024 respectively, (ii) an increase in the reimbursable scope of the fleet, and (iii) the additional contribution from Angolan entities following Sonangol transaction. This was partially offset by the lower revenue generation from FPSO Liza Unity following the sale of the vessel in 4Q 2023 with a contribution coming solely now under the Operations and Maintenance Enabling Agreement.

Directional Turnkey revenue improved by 24% to US$1,036 million compared with the same period last year. The US$200 million increase was mainly driven by the contract award for FPSO Jaguar and higher support to the fleet through brownfield activities, partly offset by a comparatively lower amount of revenue booked in the construction portfolio as projects approach completion.

Directional Net Debt increased by US$603 million to US$7,258 million for the period ending 3Q 2024. The increase was driven by drawings under the project finance facilities, which reflects the continued investment in the construction program of 4 FPSOs. The hedge ratio of the floating-rate debt is above 90%.

Project Review and Fleet Operational Update

FPSO Almirante Tamandaré – The unit has been delivered and arrived safely at its offshore destination in October 2024. The installation, hook-up and offshore commissioning activities are progressing in line with plan. The client is expecting first oil from the field in early 2025.

FPSO Alexandre de Gusmão – The integration phase has successfully been completed. The teams are focusing on commissioning activities until sail away, planned around year-end. First oil is expected in 2025.

FPSO ONE GUYANA – The integration and onshore commissioning activities are progressing in line with plan, including the successful completion of the power plant commissioning. First oil is expected in the second half of 2025.

FPSO Jaguar – As planned, the topsides’ fabrication has started in Singapore and the Fast4Ward® MPF hull’s delivery is expected in the last quarter of 2024. 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 nine, with 3 Fast4Ward® based vessels now in operation, 5 hulls allocated to projects in construction and 1 reserved as part of tendering activities.

Fleet Uptime – Year-to-date, the fleet’s uptime was 95%, mainly reflecting the shutdown of 2 units in the year-to-date period.

Safety and Sustainability

Safety – The Company’s Total Recordable Injury Frequency Rate year-to-date was 0.10, in line with the full year 2024 target of below 0.125.

Decarbonization – SBM Offshore’s mission to continue to advance the decarbonization of traditional energy production has been recognized by the American Bureau of Shipping for its Tower Loading Unit and Catenary Anchor Leg Mooring Soft Yoke systems designed for ammonia and CO2 injection, resulting in the receipt of the American Bureau of Shipping’s “Approval in Principle”.

Cash Return

The share repurchase program of EUR130 million (c. US$140 million) is progressing and was c. 57% completed on November 13, 2024 after market close. The repurchases were made under the EUR65 million share repurchase program announced on February 29, 2024, effective from March 1, 2024, and increased by EUR65 million as announced on August 8, 2024.

The objective of the share repurchase program is to reduce share capital and in addition to provide shares for regular management and employee share programs. The share repurchase program is expected to be completed by end of April 2025.

Guidance

Following the purchase of FPSO Prosperity, ExxonMobil Guyana Ltd has informed the Company that it will also exercise its right to purchase FPSO Liza Destiny by year-end 2024. This is ahead of the end of the maximum lease term which would have expired in December 2029. The purchase allows ExxonMobil Guyana Ltd to assume ownership of the unit while SBM Offshore will continue to operate and maintain the FPSO. The net cash proceeds will be applied to full repayment of the US$405 million outstanding project financing and as such together with the repayment of the US$979 million outstanding financing for FPSO Prosperity will decrease SBM Offshore’s net debt position.

The Company’s 2024 guidance has been updated to take into consideration the sale of both FPSOs Prosperity and Liza Destiny6.

The Company’s 2024 Directional revenue guidance is increased to above US$6.0 billion of which above US$2.3 billion is expected from the Lease and Operate segment and above US$3.7 billion from the Turnkey segment.

2024 Directional EBITDA guidance is increased to around US$1.9 billion for the Company.

Corporate Profile

SBM Offshore is the world’s deepwater ocean-infrastructure expert. Through the design, construction, installation, and operation of offshore floating facilities, we play a pivotal role in a just transition. By advancing our core, we deliver cleaner, more efficient energy production. By pioneering more, we unlock new markets within the blue economy.

More than 7,400 SBMers collaborate worldwide to deliver innovative solutions as a responsible partner towards a sustainable future, balancing ocean protection with progress.

For further information, please visit our website at www.sbmoffshore.com.

Financial Calendar  DateYear
Full Year 2024 Earnings February 202025
Annual General Meeting April 92025
First Quarter 2025 Trading Update May 152025
Half Year 2025 Earnings August 72025
Third Quarter 2025 Trading Update November 132025

For further information, please contact:

Investor Relations

Wouter Holties
Corporate Finance & Investor Relations Manager

Phone:+31 (0)20 236 32 36
E-mail:wouter.holties@sbmoffshore.com
Website:www.sbmoffshore.com

Media Relations

Giampaolo Arghittu
Head of External Relations

Phone:+31 (0)6 212 62 333 / +39 33 494 79 584
E-mail:giampaolo.arghittu@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 ‘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.

This release contains certain alternative performance measures (APMs) as defined by the ESMA guidelines which are not defined under IFRS. Further information on these APMs is included in the Half-Year Management Report accompanying the Half Year Earnings 2024 report, available on our website https://www.sbmoffshore.com/investors/financial-disclosures.

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 “F4W®” 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 c. EUR74 million on November 13, 2024.
3 This sustainability certificate from Bureau Veritas recognizes the Company’s efforts in minimizing environmental impacts over the lifecycle of the FPSO, from design to construction and operations.

4 Numbers may not add up due to rounding.
5 Measured per 200,000 work hours.
6 Note: The purchase option can be cancelled at any time up to completion of the transaction. Given the high likelihood the Company decided to include the transaction in the guidance for FY 2024.

Attachment


FAQ

What is SBM Offshore's (SBFFF) updated EBITDA guidance for 2024?

SBM Offshore increased its 2024 Directional EBITDA guidance from US$1.3 billion to US$1.9 billion, representing a 46% increase.

How much did SBM Offshore's (SBFFF) revenue grow in Q3 2024?

SBM Offshore's Directional revenue for Q3 2024 reached US$2,838 million, representing a 26% increase compared to the same period in 2023.

What major asset sales did SBM Offshore (SBFFF) announce in Q3 2024?

SBM Offshore sold FPSO Prosperity to ExxonMobil Guyana and expects to sell FPSO Liza Destiny by year-end 2024.

What is SBM Offshore's (SBFFF) current share repurchase program status?

The EUR130 million share repurchase program was approximately 57% completed as of November 13, 2024, and is expected to be completed by end of April 2025.

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