SBM OFFSHORE FIRST QUARTER TRADING UPDATE
(Thomson Reuters ONE) -
May 7, 2015
LOW ORDER INTAKE; REVENUE AND DEBT ON TRACK WITH OUTLOOK
Highlights
* Year-to-date 2015 Directional[1] revenue in line with expectations at US$601
million
* Directional([1]) Backlog as of March 31, 2015 stood at US$21.4 billion
including US$200 million of order intake
* N'Goma FPSO formal Production Readiness Notice (PRN) received from client
Eni
* Memorandum of Understanding (MoU) signed with Brazilian authorities,
discussions are ongoing
* FSO Yetagun brownfield project awarded and three-year extension exercised
* Workforce reduction changed from 1,200 to at least 1,500 positions worldwide
* 2015 guidance reiterated; Directional[1] revenue of US$2.2 billion and net
debt below US$3.5 billion
Bruno Chabas, CEO of SBM Offshore commented:
"A continuously challenging macro environment has impacted the turnkey segment
as clients postpone investment decisions. The Lease and Operate segment
continues to perform, as it is unaffected by oil price fluctuations and
generates healthy and growing cash flows. The Company continues to work closely
with Brazilian authorities with the objective to close out the compliance case."
Financial Highlights
Year-to-date 2015 Directional[1] revenue came in lower at US$601 million versus
US$782 million in the year-ago period. This was driven by a decrease in turnkey
activity primarily as a result of the delivery of Cidade de Ilhabela and N'Goma
FPSO and lack of order intake in 2014. Directional(1) Turnkey segment revenue
came in at US$326 million, down 40%, while Lease and Operate segment revenue
increased 16% year-on-year to US$274 million. The growth in Lease and Operate
revenue is attributable to the start-up of FPSOs Cidade de Ilhabela and N'Goma
FPSO despite the decommissioning of FPSOs Marlim Sul, Brasil, and Kuito.
Year-to-date 2015 IFRS revenue decreased 41% to US$742 million versus US$1,251
million in the year-ago period. The year-over-year decrease is primarily
attributable to the completion of construction activities under the finance
leases for FPSOs Cidade de Ilhabela and N'Goma FPSO and lack of order intake in
2014. IFRS Lease and Operate and Turnkey segment revenue came in at US$243
million and US$499 million, respectively.
Directional[1] Backlog as of March 31, 2015 stood at US$21.4 billion. The
Company added approximately US$200 million in new orders related to contract
extensions, brownfield work, variation orders and offshore installation
contracts.
Proportional net debt as of March 31, 2015 amounted to US$3.4 billion compared
to US$3.3 billion at the end of December 2014 reflecting continued investments
in the ongoing construction projects. IFRS net debt increased to US$5.0
billion. The Company ended the quarter with cash and cash equivalent balance of
US$394 million versus US$452 million at the end of December 2014, and had
US$1,239 million of undrawn credit facilities as of March 31, 2015.
Directional([1]) capital expenditure through the first three months of 2015
amounted to a combined total of US$112 million, reflecting the advanced
construction progress of the Company's main projects nearing completion in late
2015 / early 2016. These amounts correspond to the SBM Offshore share in SBM
Offshore Inc. (the Company's construction subsidiary) costs as well as costs
directly incurred at the joint venture level.
Project Review
FPSOs Cidade de Maricá & Saquarema (Brazil)
Construction is ongoing for the two finance leased vessels. Construction work
progressed during the first quarter of 2015 at Chinese yards and the Company's
joint venture integration yard in Rio de Janeiro. The charter contract for both
vessels includes an initial period of 20 years. Delivery of the vessels to
client Petrobras is scheduled for the end of 2015 and early 2016.
FPSO Turritella (US Gulf of Mexico)
Construction continued for the finance leased vessel in the first quarter of the
year with construction work continuing in Singapore. The charter contract
includes an initial period of 10 years with extension options up to a total of
20 years. Start-up of the facility is expected in the first half of 2016.
FPSO N'Goma (Angola)
The Company received formal Production Readiness Notice (PRN) for N'Goma FPSO
from client Eni, operator of Block 15/06 on behalf of the Block Joint Venture in
January 2015. Following successful first oil in November 2014 and completion of
the 72 hour continuous production test in early December 2014, PRN went into
effect retroactively to November 28, 2014 and the vessel is on hire from that
date onwards. The FPSO is operating under a twelve year lease and operate
contract with Eni Angola S.p.A on Block 15/06, West Hub, offshore Angola.
FPSO Marlim Sul (Brazil)
Upon completion of its contract, after over ten years of operations for
Petrobras in Brazil, decommissioning activities continue and are expected to be
completed during the second quarter of 2015.
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 the Prelude
FLNG turret is ongoing with expected delivery in the first half of 2015.
Integration of the Quad 204 turret with the vessel continues in South Korea,
with expected delivery adjusted due to overall client delivery dates.
Engineering, procurement and construction of the Ichthys turret continues to
progress. Its gantry and manifold sailed away from the yard in Singapore in
March 2015 and delivery to the client is expected in the first half of 2015.
Compliance
On March 16, 2015 SBM Offshore announced the signing of a Memorandum of
Understanding (MoU) with the Brazilian Comptroller General's Office
(Controladoria-Geral da União - "CGU") and the Attorney General's Office
(Advocacia-Geral da União - "AGU"). This MoU sets a framework between the
Company, the CGU and the AGU for discussions on a potential mutually acceptable
settlement and for the disclosure by SBM Offshore of information relevant to the
CGU's investigations.
Discussions with these authorities are ongoing, and the Company continues to
cooperate with all requests for information.
Restructuring
On December 11, 2014 Management stated that due to market conditions and in
order to optimize the Company's cost base, capacity requirements were reviewed
and that a total of 1,200 positions were being eliminated worldwide. The
workforce reduction over the period of 2014 and 2015 is now expected to be at
least 1,500 positions as a result of a further review of the cost structure and
a continued market downturn.
Post-Period Events
FPSO Cidade de Maricá (Brazil)
Upon completion of sea trials and commissioning activities the vessel left the
yard in China on April 18, 2015 and set sail for Brazil where conversion work
and integration of the topsides will be completed at the Company's joint venture
Brasa integration yard outside of Rio de Janeiro.
FSO Yetagun (Myanmar)
Following fifteen years of operation with no lost time incident, the client has
notified the Company of its intention to exercise an additional three-year
extension option. Additionally, a brownfield life extension award totalling
approximately US$30 million has been agreed upon. The Yetagun Life Extension
project is expected to take 18 months and be completed in July 2016.
Divestment Update
The Company completed the disposal of FPSO Brasil and VLCC Alba in the first
quarter of 2015.
Outlook and Guidance
The market outlook remains challenging as the Company continues to see delays in
final investment decisions, and ultimately awards, by clients. The Company
maintains its positive medium to long-term outlook as deepwater development
remains a secular growth story.
The Company reiterates 2015 Directional[1] revenue guidance of at least US$2.2
billion, of which US$1.0 billion is expected in the Turnkey segment and US$1.2
billion in the Lease and Operate segment. The Company continues to expect to
end the year with proportional net debt below US$3.5 billion, which is based on
Management's conservative award assumptions in light of the current macro
environment.
Conference Call
SBM Offshore has scheduled a conference call followed by a Q&A session at 18:30
Central European Summer Time on Thursday, May 7, 2015.
The call will be hosted by Bruno Chabas (CEO), Peter van Rossum (CFO), Philippe
Barril (COO) and Erik Lagendijk (CGCO). Interested parties are invited to
listen to the call by dialling +31 20 716 8256 in the Netherlands,
+44 203 427 1905 in the UK or +1 646 254 3365 in the US and using access ID
1592376.
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 1592376 until May 14, 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 10,200 people worldwide. Full time company employees
totalling 6,400 are spread over five regional centres, eleven operational shore
bases and the offshore fleet of vessels. A further 3,800 are working for the
joint ventures with several construction yards. 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, May 7, 2015
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.
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[1] Directional view is a non-IFRS disclosure, which treats all lease contracts
as operating leases and consolidates all vessel joint ventures are
proportionally consolidated.
To see the complete version of this Press Release, please click on the link
below
SBM Offshore Press Release:
http://hugin.info/130754/R/1919903/687658.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#1919903]
Unternehmensinformation / Kurzprofil:
Datum: 07.05.2015 - 18:00 Uhr
Sprache: Deutsch
News-ID 391712
Anzahl Zeichen: 15514
contact information:
Town:
Schiedam
Kategorie:
Business News
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"SBM OFFSHORE FIRST QUARTER TRADING UPDATE"
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