August 8, 2024
Highlights
- 2024 Directional1 EBITDA guidance increased from around US$1.2
billion to around US$1.3 billion
- 2024 Directional revenue guidance increased from around US$3.5
billion to above US$3.8 billion
- US$3.4 billion net increase of pro-forma Directional backlog to
record-level US$33.7 billion
- EUR65 million (US$71 million equiv.2) additional share
repurchase
- Existing share repurchase program of EUR65 million on track, c.
58% completed3
- Award of 20-year lease & operate contract for an FSO to
support the Trion field development in Mexico
- Rationalization of business in Angola to focus on Lease and
Operate
- Ninth Fast4Ward® Multi-Purpose Floater (“MPF”) hull
ordered
The Half Year 2024 Earnings and Interim Financial
Statements are published on the Company’s website here.
Øivind Tangen, CEO of SBM Offshore,
commented:
“Our great teams continue to deliver strong
performance and we ended the period with a record backlog of
US$33.7 billion. As a result, we are increasing our Directional
EBITDA guidance to around US$1.3 billion from around US$1.2 billion
and will launch today an additional EUR65 million share
repurchase.
We saw very good progress in the construction
portfolio, bringing our three most mature projects to a very high
level of completion. The first of these, FPSO Almirante Tamandaré,
left the quayside as per schedule on August 1, and will benefit
from our Fast4Ward® program learnings as it transitions from
construction to operations. The next generation of projects like
FPSO Jaguar are already seeing the benefits from inception of a
full cycle of learnings.
The market outlook for cost and carbon efficient
FPSOs remains positive. Our eighth Fast4Ward® hull has been
reserved by TotalEnergies for the Block 58 development in Suriname.
In line with our strategy to have one hull built in anticipation,
we have proceeded to order the ninth hull to support our market
positioning. Together with further hull options, this will allow us
to de-risk future project schedules in a tight supply chain
market.
With our unique value proposition, we expect to
see more awards based on the “sale & operate” model like FPSO
Jaguar, with an accelerated cash flow profile versus the historical
“lease & operate” model.
Further, we are pleased to announce today the
signing of a 20-year lease & operate contract with Woodside for
an FSO to support the Trion field development in Mexico, marking an
entry into a promising new region.
Excellence in performance is created through
standardization and focus. Combined with the success in
standardized FPSOs, we have taken steps to rationalize our business
to focus on Lease and Operate in Angola: in June we completed the
acquisition of our partners’ shares in the lease and operating
entities of a number FPSOs (N’Goma, Saxi Batuque and Mondo) and
sold our shares in the Paenal shipyard.
Finally, we are applying our expertise in
floating solutions to position the Company for the long term in a
number of alternative energy markets: in July, our pure-play
Floating Offshore Wind (“FOW”) joint venture with Technip Energies,
Ekwil, was established. Later in the month, we signed a Memorandum
of Understanding (“MoU”) with Ocean-Power to jointly develop a
low-emission offshore floating power generation concept using
carbon capture, injection and storage.” Financial
Overview4
|
|
Directional |
|
IFRS |
|
|
|
|
|
|
|
|
|
in US$
million |
|
1H 2024 |
1H 2023 |
% Change |
|
1H 2024 |
1H 2023 |
% Change |
Revenue |
|
1,840 |
1,491 |
23% |
|
2,220 |
2,450 |
-9% |
Lease and Operate |
|
1,178 |
933 |
26% |
|
971 |
760 |
28% |
Turnkey |
|
662 |
558 |
19% |
|
1,249 |
1,689 |
-26% |
EBITDA |
|
620 |
457 |
36% |
|
533 |
595 |
-10% |
Lease and Operate |
|
679 |
546 |
24% |
|
454 |
355 |
28% |
Turnkey |
|
(12) |
(37) |
-69% |
|
127 |
292 |
-57% |
Other |
|
(47) |
(52) |
-8% |
|
(47) |
(52) |
-9% |
Profit attributable to
Shareholders |
|
128 |
36 |
258% |
|
116 |
179 |
-35% |
Earnings per share (US$ per
share) |
|
0.71 |
0.20 |
257% |
|
0.64 |
0.99 |
-35% |
|
|
|
|
|
|
|
|
|
in US$
billion |
|
1H 2024 |
FY 2023 |
% Change |
|
1H 2024 |
FY 2023 |
% Change |
Pro-forma Backlog |
|
33.7 |
30.3 |
11% |
|
- |
- |
- |
Net Debt |
|
7.1 |
6.7 |
6% |
|
9.3 |
8.7 |
6% |
Directional revenue for the first half of 2024
stood at US$1,840 million, a 23% increase compared with the same
period in 2023. The Directional Turnkey revenue rose to US$662
million compared with US$558 million in the year-ago period. This
19% increase reflects mainly (i) the FPSO Jaguar contract award,
and (ii) the increased support to the fleet through brownfield
activities, partially offset by (iii) the completion of FPSOs
Prosperity and Sepetiba in Q4 2023 and Q1 2024 respectively, and
(iv) the lower amount of revenue booked in the construction
portfolio as projects approach completion.
The year-to-date Directional Lease and Operate
revenue stood at US$1,178 million, up 26% compared with the same
period in the prior year. This increase is the result of (i) FPSOs
Prosperity and Sepetiba joining the fleet upon successful delivery
in Q4 2023 and Q1 2024 respectively, and (ii) an increase in
reimbursable scope of the fleet, partially offset by (iii) reduced
revenue on FPSO Liza Unity following purchase option exercised by
the client in Q4 2023, moving to an operating contract.
Directional EBITDA for the first half of 2024
came in at US$620 million, up 36% compared to US$457 million in the
year-ago period.
Directional Turnkey EBITDA contribution improved
to US$(12) million in the first half of 2024 compared with US$(37)
million in the same period last year. This result is driven by (i)
the increased support to the fleet through brownfield projects,
(ii) the lower number of projects in the construction portfolio
affected by the historical consequences of the pandemic and the
global supply chain pressures, and (iii) the reduced investment on
FOW projects following the implementation of the Ekwil Joint
Venture in partnership with Technip Energies. This was partially
offset by (i) the completion of FPSOs Prosperity and Sepetiba in Q4
2023 and Q1 2024 respectively, and (ii) lower construction activity
on FPSOs as projects approach completion.
Directional Lease and Operate EBITDA stood at
US$679 million in the first half of 2024, a 24% increase compared
with US$546 million in the year-ago period. This growth stems from
the same drivers as Directional Lease and Operate revenue as well
as the net gain arising from the acquisition of interests held by
Sonangol in FPSOs N’Goma, Saxi Batuque and Mondo and the divestment
in the parent company of the Paenal shipyard in Angola.
The Other non-allocated costs charged to
Directional EBITDA amounted to US$(47) million in the first half of
2024, a US$5 million improvement compared with the year-ago period
mainly due to the comparative impact of the US$11 million one-off
restructuring costs in 2023 related to optimization of the
Company's support functions' activities.
Directional net profit stood at US$128 million
for the first half of 2024, up from US$36 million in the year-ago
period. The increase is consistent with the Directional EBITDA
improvement.
Funding and Directional Net Debt
Directional net debt stood at US$7.1 billion in
the first half of 2024 versus US$6.7 billion as at December 31,
2023. While the Lease and Operate segment continues to generate
strong operating cash flow, the Company drew on (i) the project
finance facilities of FPSOs Almirante Tamandaré, Alexandre de
Gusmão and ONE GUYANA, and (ii) the new US$250 million short-term
corporate facility to fund continued investments in growth on FPSOs
under construction.
More than half of the Company’s debt as of June
30, 2024, consisted of non-recourse project financing (US$4
billion) in special purpose investees. The remainder (US$3.5
billion) mainly comprised (i) borrowings supporting the ongoing
construction of three FPSOs which will become non-recourse
following project execution finalization, (ii) the US$250 million
short-term corporate FPSO construction facility, (iii) the
Company’s US$1.0 billion revolving credit facility, which was drawn
for US$550 million at the end of the first half of 2024, and (iv)
the fully drawn US$210 million debt facility for MPF hull
financing.
As of June 30, 2024, the net cash balance stood
at US$495 million.
Pro-Forma Directional Backlog
Change in ownership scenarios and lease contract
durations 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 durations for the various
projects.
The pro-forma Directional backlog increased by
US$3.4 billion compared with the position at December 31, 2023 to a
total of US$33.7 billion. The increase was mainly attributable to
the award of FPSO Jaguar in April 2024, partially offset by
turnover for the period which consumed approximately US$1.8 billion
of the backlog. The Company’s backlog provides cash flow visibility
up to 2050.
in US$
billion |
|
Turnkey |
Lease & Operate |
Total |
2H 2024 |
|
0.8 |
1.3 |
2.1 |
2025 |
|
2.9 |
2.6 |
5.5 |
2026 |
|
1.2 |
2.7 |
3.9 |
Beyond
2026 |
|
2.3 |
19.9 |
22.2 |
Total pro-forma Directional
backlog |
|
7.2 |
26.5 |
33.7 |
The pro-forma Directional backlog at June 30,
2024 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 lease
period of 2 years, within which the ownership of the FPSOs will
transfer to the client.
-
The FPSO Jaguar contract awarded to the Company in April 2024
covers the construction period within which the FPSO ownership will
transfer to the client and is reported in the Turnkey backlog.
-
10 years of operations and maintenance are considered for FPSOs
Liza Destiny, Liza Unity, Prosperity and ONE GUYANA following
signature of the Operations & Maintenance Enabling Agreement in
2023. Regarding FPSO Jaguar, the pro-forma Directional backlog
includes the operating and maintenance scope for 10 years as it has
been agreed in principle, pending a final work order. This is
consistent with prior years.
-
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 lease period.
-
ExxonMobil Guyana has indicated that it is contemplating the
exercise of its contractual purchase option to acquire FPSOs
Prosperity and Liza Destiny in the second half of 2024, ahead of
the end of the maximum lease terms in November 2025 and December
2029 respectively.
-
With respect to the FPSO for the Block 58 development project, for
which the full construction, installation and operations contracts
award is subject to the final investment decision of the client,
the amount included corresponds to the initial limited release of
scope to the Company.
-
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.
Project Review and Fleet Operational
Update
Project |
Client/Country |
Contract |
SBM Share |
Capacity, Size |
Percentage of Completion |
Expected First Oil |
Almirante Tamandaré |
Petrobras Brazil |
26.25-year L&O |
55% |
225,000 bpd |
>75% |
2025 |
Alexandre de Gusmão |
Petrobras Brazil |
22.5-year L&O |
55% |
180,000 bpd |
>75% |
2025 |
ONE GUYANA |
ExxonMobil Guyana |
2-year
BOT |
100% |
250,000 bpd |
>75% |
2025 |
Jaguar |
ExxonMobil Guyana |
Sale
& Operate |
100% |
250,000 bpd |
<25% |
2027 |
Projects remain on track with three vessels
expected to commence operations next year. An update on individual
projects under construction is provided below considering latest
known circumstances.
FPSO Almirante Tamandaré – On August 1, 2024,
the vessel safely departed from the yard in China after successful
completion of the topsides’ integration phase and the onshore
commissioning campaign. 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 has been successfully completed. Integration and
commissioning activities continue to progress in line with plan.
First oil is expected in 2025.
FPSO ONE GUYANA – The topside modules lifting
campaign has been successfully completed. Integration and
commissioning activities are progressing in line with plan. First
oil is expected in the second half of 2025.
FPSO Jaguar – As planned, the Fast4Ward® MPF
hull was launched out of drydock in the second 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 the ninth hull ordered early July 2024. Three of
these hulls are in operation, four are allocated to projects under
construction, one hull has been reserved by TotalEnergies for the
Block 58 development and the last hull has been ordered to support
tendering activities.
Fleet Uptime – Year-to-date, the fleet’s uptime
was 96.4% reflecting the shutdown of two units in the second
quarter of 2024.
Share Purchase Agreements completed with
Sonangol EP (“Sonangol”) – In June, the Company completed the
acquisition of the shares in the lease and operating entities
related to FPSOs N’Goma, Saxi
Batuque and Mondo from Sonangol. Simultaneously, SBM
Offshore completed the sale of all its shares in the parent company
of the Paenal shipyard in Angola to a subsidiary of
Sonangol. In addition, SBM Offshore has signed a share
purchase agreement with its minority partner (Angola Offshore
Services Limited, “AOSL”) in the FPSO N’Goma concerning
the purchase by AOSL of 20% of SBM Offshore’s shareholding (80%) in
the entity owning the FPSO. The share purchase agreement is
conditional upon several conditions precedent, including consent
from clients, lenders, and approval by the various competent
authorities. Through this transaction, SBM Offshore is reorganizing
its business in Angola, focusing on core Lease and Operate
activities and divesting a non-core construction yard.
Contract extension – The Company has received a
notification letter for a 1-year contract extension related to the
lease and operations of FPSO Mondo to December 2025.
Handover of operations – In June, the Company
handed over the operations of the FPSO Serpentina to the national
oil company of Equatorial Guinea, GEPetrol. The FPSO Serpentina was
owned by the client and operated by Gepsing, a subsidiary between
SBM Offshore (60%) and GEPetrol (40%).
Safety and SustainabilitySafety – The
Company’s Total Recordable Injury Frequency Rate (“TRIFR”)
year-to-date was 0.09, in line with the full year 2024 target of
below 0.125.
Emissions – In the first half of the year, the
Company is on track to meet the target set on gas flared with a
maximum average fleet target of 1.57 mmscf/d of flaring for scope 3
downstream leased assets.
Responsible recycling – FPSO Capixaba safely
arrived in Frederikshavn, Denmark on May 5, 2024 and the
ownership was transferred to the ship recycling yard on the same
day. The safe and environmentally sound recycling is currently
under execution in accordance with SBM Offshore’s responsible
recycling policy.
Transition
The Company continues to seek to leverage its
expertise in ocean infrastructure solutions to position itself for
the long term through the energy transition and beyond.
In July 2024, SBM Offshore and Technip Energies
launched Ekwil, a 50/50 joint venture designed to enhance the
product offering in FOW by promoting the innovative solutions
developed by both companies: SBM Offshore’s Tension Leg Platform
Float4WindTM and Technip Energies’ Semi-submersible INO15 by
T.ENTM.
Outside of the Ekwil joint venture, the Company
continues to apply its unique FOW expertise to its portfolio of
high-value development projects in the key FOW geographies of the
UK and Canada; all projects remain on track, in line with their
respective plans.
Further, in July 2024, SBM Offshore and
Ocean-Power signed an MoU to collaborate on a floating power
generation hub concept with CO2 capture and storage in the areas of
the Norwegian and United Kingdom Continental Shelves. The objective
is to generate electricity offshore using gas turbines in
association with carbon capture and storage, resulting in
significantly lower CO2 emissions. The hub can be used to power
offshore assets via submarine cables and electrify the continental
shelf with minimal impact on the national grid, as well as
balancing wind power capacity in a bi-directional transmission
structure.
Cash Return
The EUR65 million (c. US$70 million equivalent6)
share repurchase program effective from March 1, 2024 (the
“Structural Buyback”) is progressing and was c. 58% complete on
August 7, 2024 after market close. The objective of the Structural
Buyback is to reduce the Company’s share capital; all shares
purchased will therefore be cancelled.
The share repurchase program will be increased
by an additional amount of EUR65 million (c. US$71 million
equivalent7) effective from August 8, 2024 (the “Incremental
Buyback”). The objective of the Incremental Buyback 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
The Company’s 2024 Directional revenue guidance
is increased to above US$3.8 billion of which around US$2.4 billion
is expected from the Lease and Operate segment and above US$1.4
billion from the Turnkey segment.
2024 Directional EBITDA guidance is increased to
around US$1.3 billion for the Company.
Should the purchase of FPSOs Prosperity and Liza
Destiny occur in 2024, the guidance will be revised accordingly
once the final details of the purchase are confirmed.
Conference Call
SBM Offshore has scheduled a conference call
together with a webcast, which will be followed by a Q&A
session, to discuss the Half Year 2024 Earnings release.
The event is scheduled for Thursday August 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
the call using the link: Half Year 2024 Earnings 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.
The live webcast will be available
at: Half Year 2024 Earnings Webcast
A replay of the webcast, which is available
shortly after the call, can be accessed using the same link.
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 |
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 |
Half
Year 2025 Earnings |
|
August 7 |
2025 |
For further information, please contact:
Investor RelationsWouter
HoltiesCorporate Finance & Investor Relations Manager
Phone: |
+31 (0)20 236 32 36 |
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.
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 the foreign exchange rate on August 5,
2024. 3 Based on cumulative repurchased amount of c. EUR38
million on August 7, 2024.
4 Numbers may not add up due to rounding.5
Measured per 200,000 work hours. 6 Based on the foreign
exchange rate on February 22, 2024. 7 Based on the foreign
exchange rate on August 5, 2024.
- SBM Offshore Half Year 2024 Earnings
SBM Offshore NV (EU:SBMO)
過去 株価チャート
から 9 2024 まで 10 2024
SBM Offshore NV (EU:SBMO)
過去 株価チャート
から 10 2023 まで 10 2024