SBM OFFSHORE THIRD QUARTER TRADING UPDATE November 13, 2014
(Thomson Reuters ONE) -
SOLID REVENUE PERFORMANCE IN LINE WITH EXPECTATIONS
Highlights
* Year-to-date 2014 Directional(1) revenues in line with expectations at
US$2.5 billion
* Directional(1) Backlog as of September 30, 2014 stands at US$21.8 billion
* Management Board intends to pursue the development of a master limited
partnership (MLP)
* Settlement over alleged improper payments achieved with Dutch Public
Prosecutor's Office
* FPSO Cidade de Maricá project financing of US$1.45 billion secured
* FPSO Cidade de Ilhabela undergoing final acceptance testing offshore Brazil
* FPSO N'Goma successfully installed on field, awaiting final hook-up and
commissioning
* Thunder Hawk Production Handling Agreement (PHA) signed with Noble Energy
* Real estate sale and leaseback concluded raising total proceeds in excess
of US$162 million
* US Private Placement of US$450 million concluded for the Deep Panuke
platform
Bruno Chabas, CEO of SBM Offshore commented:
"Subsequent to yesterday's announced settlement with the Dutch Public
Prosecutor's Office, I am pleased to report that we are well underway to
delivering 2014 revenue as we guided to at the beginning of this year. At the
same time, we cannot ignore the slowdown visible in the entire oil and gas
sector, which has affected order intake in the short term. Based on the ongoing
high tendering activities, I see exciting new deepwater opportunities being
realized over time. The Company's lease and operate backlog remains near
historical highs and provides excellent long-term visibility for many years to
come."
Financial Highlights
+-----------------------------+ +-----------------------------+
| Directional(1 ) | | IFRS |
+-----------------------------+ +-----------------------------+
+--------------+ +-----------------------------+ +-----------------------------+
|in US$ million| | Q3 2014 Q3 2013* % Change| | Q3 2014 Q3 2013* % Change|
+--------------+ +-----------------------------+ +-----------------------------+
|Revenue | | 2,521 2,518 0%| | 4,045 3,301 23%|
| | | | | |
|Turnkey | | 1,766 1,759 0%| | 3,289 2,614 26%|
| | | | | |
|Lease and | | 755 759 -1%| | 756 687 10%|
|Operate | | | | |
| | | | | |
|Total Order | | 2,108 10,390 -80%| | n.a n.a NM|
|Intake | | | | |
+--------------+ +-----------------------------+ +-----------------------------+
+--------------+ +-----------------------------+ +---------+-------------------+
|in US$ billion| |30-Sep-14 31-Dec-13* % Change| |30-Sep-14|31-Dec-13* % Change|
+--------------+ +-----------------------------+ +---------+-------------------+
|Backlog | | 21.8 22.2 -2%| | - - NM|
| | | | | |
|Net Debt | | 3.3 2.4 36%| | 4.7 3.4 39%|
+--------------+ +-----------------------------+ +-----------------------------+
*Restated for the introduction of IFRS 10 and
11
Year-to-date 2014 Directional(1) revenue came in flat at US$2,521 million versus
US$2,518 million in the year-ago period. This was primarily driven by the
ongoing investments in Cidade de Maricá and Saquarema and offset by the
completion of Cidade de Paraty and OSX 2 in the third quarter of 2013.
Directional(1 )Lease & Operate and Turnkey segment revenue came in at US$755
million and US$1,766 million respectively, essentially flat year-over-year.
Year-to-date 2014 IFRS revenue increased 23% to US$4,045 million versus US$3,301
million in the year-ago period. The year-over-year improvements are primarily
attributable to the construction activities under the finance leases for FPSOs
Turritella, Cidade de Maricá and Saquarema. IFRS Turnkey segment revenue came
in at US$3,289 million, up 26%, while Lease & Operate segment revenue increased
10% year-on-year to US$756 million. The growth in Lease & Operate revenue is
attributable to the start in late 2013 of FPSO Cidade de Paraty and Deep Panuke
despite the decommissioning of FPSO Brasil and the end of the operating
contracts for FPSOs Frade and P-57.
Proportional net debt as of September 30, 2014 amounted to US$3.3 billion
compared to US$2.4 billion at the end of December 2013 reflecting significant
investments in the ongoing construction projects. IFRS net debt increased to
US$4.7 billion. The Company ended the quarter with cash and cash equivalent
balances of US$227 million versus US$154 million at the end of June 2014.
IFRS capital expenditure and investments in finance lease contracts through the
first nine months of 2014 amounted to a combined total of US$2,038 million.
In August 2014 the Company secured project financing for FPSO Cidade de Maricá
totaling US$1.45 billion, of which SBM Offshore's proportional share is 56%,
from a consortium of international banks at a weighted average cost of debt of
5.3%. The financing consists of two tranches, US$1.0 billion with a 12 year
post-completion maturity and US$450 million with a 14 year maturity.
SBM Offshore presented a claim to its construction all risks insurers, in early
September 2014, in relation to the YME platform which the Company constructed
for Talisman Energy. The claim is in its early stages and SBM Offshore is in
the process of engaging with its insurers. The details of the claim are
confidential.
Strategic Alternatives
As announced during the Capital Markets Day on September 14, 2014, SBM Offshore
began a review of strategic alternatives regarding balance sheet optimization.
The Management Board, with the endorsement of the Supervisory Board, intends to
pursue the development of a master limited partnership (MLP). The MLP would
initially be comprised of interests in select FPSOs chosen from SBM Offshore's
existing fleet.
Following the required regulatory approvals, the Company would expect to file a
registration statement with the Securities and Exchange Commission relating to
the initial public offering of common units in the MLP during the third quarter
of 2015. The anticipated offering would be subject to market conditions.
Project Review
FPSO Cidade de Ilhabela (Brazil)
Integration of the process modules for FPSO Cidade de Ilhabela has been
completed at the Brasa yard in Brazil. The vessel is on location and completing
commissioning activities with start-up of the facility expected before the end
of 2014.
FPSOs Cidade de Maricá & Saquarema (Brazil)
Construction is ongoing for the two finance leased facilities. Refurbishment
and conversion work continued to progress during the third quarter at the
shipyard in China. Fabrication of several modules is concurrently taking place
at the Brasa yard in Brazil. Start-up of the facilities is expected at the end
of 2015 and early 2016 respectively.
FPSO Turritella (US Gulf of Mexico)
Construction of the FPSO previously known as Stones continued in the third
quarter of the year with refurbishment and conversion continuing at Keppel
Singapore. Start-up of the facility is expected in the first half of 2016.
FPSO N'Goma (Angola)
Following final module installation and integration at the Paenal yard in
Angola, the vessel arrived on location for hook-up and commissioning activities
by the client. Start-up of the facility is expected in the fourth quarter of
2014.
Thunder Hawk (US Gulf of Mexico)
The signing of a Production Handling Agreement (PHA) with Noble Energy to
produce the Big Bend and Dantzler fields in the Gulf of Mexico was announced on
September 16, 2014.
Production fees associated with produced volumes are estimated to be delivered
over the ten year primary contract period. First oil from Big Bend and Dantzler
is expected in late 2015 and first quarter 2016 respectively. Brownfield
construction to upgrade the facility will be handled by Noble Energy.
Turrets & Mooring Systems
The three large complex turrets for Prelude FLNG, Quad 204 and Ichthys are
progressing, in close consultation with the clients, on schedule according to
their respective stages of project completion. Fabrication work on Prelude FLNG
has been completed in Dubai and the turret has arrived in South Korea. Expected
delivery is in the first half of 2015. Integration of Quad 204 with the vessel
continues in South Korea, with expected delivery early 2015. Engineering,
procurement and construction of the Ichthys turret continue to progress. The
lower turret cylinder has arrived in South Korea, while the gantry and manifold
are expected to sail away from the yard in Singapore in early 2015. Delivery to
the client is expected in the first half of 2015.
Compliance
On November 12, 2014 SBM Offshore announced that it reached an out-of-court
settlement with the Dutch Public Prosecutor's Office (Openbaar Ministerie) over
the investigation into potentially improper sales payments. Furthermore, the US
Department of Justice (DoJ) has informed SBM Offshore that it is not prosecuting
the Company and has closed its inquiry into the matter.
The out-of-court settlement consists of a payment by the Company to the Openbaar
Ministerie of US$240 million. Payments will be in made in three instalments,
the first of which (US$100 million) has been paid. The two further instalments
of US$70 million each will be due on December 1, 2015 and 2016 respectively.
Post-Period Events
Deep Panuke (Canada)
On November 4, 2014 SBM Offshore announced the successful completion of a US$450
million US Private Placement (USPP) for the Deep Panuke Production Field Centre
(PFC) at a 3.5% fixed coupon with 7 year maturity.
Divestment Update
On August 29, 2014 the Company announced the completion of the sale and
leaseback of its Monaco real estate portfolio. The last of three buildings was
sold for approximately US$62 million net of expenses, resulting in a book profit
of approximately US$58 million. This was in addition to the December 17, 2013
announced sale and leaseback transactions for two of the three buildings with
sales proceeds exceeding US$100 million and resulting in a book profit of
approximately US$30 million. Total proceeds, net of expenses, resulting from
the transactions are in excess of US$162 million with a total book profit of
approximately US$88 million.
The Company continues to market the DSCV SBM Installer, a newbuild Diving
Support and Construction Vessel (DSCV), while the FPSO Falcon and VLCC Alba
remain held for sale.
Directional(1) Backlog
Directional(1 )Backlog as of September 30, 2014 stood at US$21.8 billion.
Outlook and Guidance
The short term market outlook remains challenging as we continue to see delays
in final investment decisions and ultimately awards. The Company maintains its
positive medium to long term outlook as deepwater development remains a secular
growth story and tendering activity continues to be at all-time highs.
Management confidently reiterates 2014 Directional(1) revenue guidance of US$3.3
billion, of which US$2.3 billion is expected in the Turnkey segment and US$1.0
billion in the Lease & Operate segment.
Conference Call
SBM Offshore has scheduled a conference call followed by a Q&A session at 9:00
Central European Time on Thursday, November 13, 2014.
The call will be hosted by Bruno Chabas (CEO), Peter van Rossum (CFO) and Sietze
Hepkema (CGCO). Interested parties are invited to listen to the call by
dialling +31 20 716 8295 in the Netherlands, +44 203 427 1906 in the UK or
+1 212 444 0481 in the US and using access ID 7802231.
A replay will be available shortly after the end of the conference call.
Interested parties can listen to the replay by dialling +44 203 427 0598 and
using access code 7802231 for up to 30 days.
| Financial Calendar | Date | Year |
+----------------------------------------+-------------+------+
| Full-Year 2014 Results - Press Release | February 5 | 2015 |
+----------------------------------------+-------------+------+
| Publication of AGM Agenda | March 3 | 2015 |
+----------------------------------------+-------------+------+
| Annual General Meeting of Shareholders | April 15 | 2015 |
+----------------------------------------+-------------+------+
| Trading Update Q1 2015 - Press Release | May 8 | 2015 |
+----------------------------------------+-------------+------+
| Half-Year 2015 Results - Press Release | August 6 | 2015 |
+----------------------------------------+-------------+------+
| Trading Update Q3 2015 - Press Release | November 12 | 2015 |
+----------------------------------------+-------------+------+
Corporate Profile
SBM Offshore N.V. is a listed holding company that is headquartered in Schiedam.
It holds direct and indirect interests in other companies that collectively with
SBM Offshore N.V. form the SBM Offshore group ("the Company").
SBM Offshore provides floating production solutions to the offshore energy
industry, over the full product life-cycle. The Company is market leading in
leased floating production systems with multiple units currently in operation,
and has unrivalled operational experience in this field. The Company's main
activities are the design, supply, installation, operation and the life
extension of Floating Production, Storage and Offloading (FPSO) vessels. These
are either owned and operated by SBM Offshore and leased to its clients or
supplied on a turnkey sale basis.
Group companies employ over 10,500 people worldwide, who are spread over five
execution centres, eleven operational shore bases, the joint ventures with
several construction yards and the offshore fleet of vessels. Please visit our
website at www.sbmoffshore.com.
The companies in which SBM Offshore N.V. directly and indirectly owns
investments are separate entities. In this communication "SBM Offshore" is
sometimes used for convenience where references are made to SBM Offshore N.V.
and its subsidiaries in general, or where no useful purpose is served by
identifying the particular company or companies.
The Management Board
Schiedam, The Netherlands, November 13, 2014
For further information, please contact:
Investor Relations
Nicolas D. Robert
Head of Investor Relations
Telephone: +377 92 05 18 98
Mobile: +33 (0) 6 40 62 44 79
E-mail: nicolas.robert(at)sbmoffshore.com
Website: www.sbmoffshore.com
Media Relations
Anne Guerin-Moens
Group Communications Director
Telephone: +377 92 05 30 83
Mobile: +33 (0) 6 80 86 36 91
E-mail: anne.guerin-moens(at)sbmoffshore.com
Website: www.sbmoffshore.com
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. Such forward-looking
statements are subject to various risks and uncertainties, which may cause
actual results and performance of the Company's business to differ materially
and adversely from the forward-looking statements. Certain such forward-looking
statements can be identified by the use of forward-looking terminology such as
"believes", "may", "will", "should", "would be", "expects" or "anticipates" or
similar expressions, or the negative thereof, or other variations thereof, or
comparable terminology, or by discussions of strategy, plans, or intentions.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described in this release as anticipated, believed, or expected. SBM
Offshore NV 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 subsequent events or circumstances.
To see the complete version of this Press Release, please click on the link
below
SBM Offshore Press Release:
http://hugin.info/130754/R/1871003/658141.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SBM Offshore N.V. via GlobeNewswire
[HUG#1871003]
Unternehmensinformation / Kurzprofil:
Datum: 13.11.2014 - 07:00 Uhr
Sprache: Deutsch
News-ID 352151
Anzahl Zeichen: 19607
contact information:
Town:
Schiedam
Kategorie:
Business News
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