SBM OFFSHORE THIRD QUARTER TRADING UPDATE
(Thomson Reuters ONE) -
STEADY PERFORMANCE IN AN OTHERWISE BLEAK SECTOR
Highlights
* Year-to-date 2015 Directional[1] revenue in line with expectations at
US$2,059 million
* Directional(1) Backlog as of September 30, 2015 of US$19.5 billion including
US$245 million of order intake
* Project financing completed for FPSO Cidade de Saquarema totaling US$1.55
billion
* Return to Petrobras' tender list; awaiting receipt of tender documents
* Awarded Browse FLNG turret FEED
* 2015 Directional(1) revenue guidance of at least US$2.6 billion and
proportional net debt reduced to approximately US$3.3 billion
Bruno Chabas, CEO of SBM Offshore commented:
"Recent months have seen a further deterioration in our industry with continued
project deferrals. SBM Offshore is confident in its ability to further adapt
and adjust in this ongoing downturn. Given that background, we are pleased to
have been awarded the Browse FLNG turret FEED study and we look forward to
delivering strong Lease and Operate segment cash flow upon completion of the
last three FPSO projects under construction."
Financial Highlights
Year-to-date 2015 Directional(1) revenue came in lower at US$2.1 billion versus
US$2.5 billion 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 in 2014, lower activity on remaining projects under construction, and
reduced order intake in 2015, partially offset by the divestment of a stake in
the Turritella project at the end of the second quarter of 2015. Directional(1)
Turnkey segment revenue came in at US$1.3 billion, down 29%, while Lease and
Operate segment revenue increased 7% year-on-year to US$807 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 49% to US$2.1 billion versus US$4.0
billion 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
2015. IFRS Lease and Operate and Turnkey segment revenue came in at US$735
million and US$1,320 million, respectively.
Directional[1] Backlog as of September 30, 2015 stood at US$19.5 billion. The
Company added approximately US$245 million in new orders related to contract
extensions, brownfield work and offshore installation contracts.
Proportional net debt as of September 30, 2015 amounted to US$3.1 billion
compared to US$3.3 billion at the end of December 2014 as investments in new
projects are offset by cash generation of the Lease and Operate portfolio and
cash received from joint venture partners for the Turritella project. IFRS net
debt increased to US$5.1 billion. The Company ended the quarter with
Proportional cash and cash equivalent balance of US$598 million versus US$389
million at the end of December 2014, and had US$1,278 million of undrawn credit
facilities.
Directional(1) capital expenditure through the first nine months of 2015
amounted to a combined total of US$378 million, reflecting the advanced
construction progress of the Company's main projects nearing completion in the
first half of 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. Cidade de Maricá is
undergoing topside pre-commissioning by the joint venture Brasa yard outside of
Rio de Janeiro. Cidade de Saquarema left the yard in China and has arrived in
Brazilian waters near the Brasa yard, where she will undergo integration of
topside modules. The charter contract for both vessels includes an initial
period of 20 years. Delivery of the vessels to client Petrobras is scheduled
for first quarter and second quarter 2016, respectively.
FPSO Turritella (US Gulf of Mexico)
During the quarter, construction continued on the finance leased vessel at the
yard in Singapore. The vessel recently left the quayside and began its transit
to the U.S. Gulf of Mexico. 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 Marlim Sul (Brazil)
Previously announced decommissioning activities, that were expected to be
completed during the second quarter of 2015, have been suspended as the client
reviews continued production alternatives for the Marlim Sul field. The vessel
received a decommissioning dayrate through the end of the third quarter while
awaiting client confirmation to complete decommissioning activities.
Turrets & Mooring Systems
The two large, complex turrets for Prelude FLNG and Ichthys are progressing
according to clients' schedule. The fabrication work on Prelude FLNG has been
completed in Dubai with final integration in Korea. The last elements of the
Ichthys turret have been delivered for final integration in Korea, expected to
be completed in early 2016.
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, which also include the Public Prosecutor's
Office (Ministério Público Federal - "MPF") and Petrobras, are ongoing.
On September 28, 2015, Petrobras announced that, after analysis of the Company's
compliance program and enquiry with the MPF and CGU, the Company is eligible to
participate in Petrobras tenders. Additionally, effective contracting for
projects as a result of the bidding process are conditioned upon the conclusion
of the settlement agreement under discussion.
Concurrently, the Company announced that it had received written notification
from Petrobras of its ability to participate in the recently issued Libra and
Sépia FPSO tenders in Brazil and that a definitive invitation to bid on the
Libra FPSO tender required approval by the partners in the Libra field.
In spite of repeated assurances that the relevant tender documents may be
forthcoming, they have yet to be received from Petrobras. Once received, the
Company will update the market accordingly.
Project Financing
Cidade de Saquarema
On July 27, 2015 the Company secured project financing for FPSO Cidade de
Saquarema totalling US$1.55 billion, at a weighted average cost of debt of
5.1%, from a consortium of sixteen international banks with insurance cover from
four Export Credit Agencies (ECA). The financing consists of three tranches,
two with ECA insurance cover and one commercial, with fourteen year post-
completion maturities. This is the largest project financing in the Company's
history.
Post-Period Events
Browse FLNG FEED
On October 19, the Company was awarded the Front-End Engineering and Design
(FEED) contract by Technip SA for three, large-scale turret mooring systems
associated with the proposed Browse Floating Liquefied Natural Gas (FLNG)
Development in Australia.
The project's reference case is based on three FLNG facilities to develop the
Brecknock, Calliance and Torosa fields in the Browse Basin and is subject to
final investment decision targeted for the end of the FEED in the second half of
2016.
Thunder Hawk DeepDraft(TM) Semi
On October 26, Noble Energy started producing from the Big Bend field via a
tieback of one well to the Company's Thunder Hawk DeepDraft(TM) Semi. The Big
Bend field is 18 miles from the Thunder Hawk platform in 7,200 feet of water in
Mississippi Canyon Block 698.
Noble Energy recently commenced production from its Dantzler field, also tied
back to the platform, which is anticipated to produce at a maximum rate of over
25 MBoe/d.
As stated in the September 16, 2014 press release announcing the Thunder Hawk
tiebacks, SBM Offshore receives a production fee associated with produced
volumes.
Management Board Reappointment
On November 4, during the Extraordinary General Meeting of Shareholders, Bruno
Chabas was re-elected with 99.75% of the votes and reappointed as a member of
the Management Board for a second term of four years up to the Annual General
Meeting of Shareholders in 2020. Mr. Chabas has been designated by the
Supervisory Board to continue his role as Chief Executive Officer of the
Company.
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[3] revenue guidance of at least US$2.6
billion, of which US$1.4 billion is expected in the Turnkey segment and US$1.2
billion in the Lease and Operate segment. Furthermore, the Company revises
year-end 2015 proportional net debt guidance of below US$3.5 billion to
approximately US$3.3 billion.
Conference Call
SBM Offshore has scheduled a conference call followed by a Q&A session at 18:30
Central European Time on Wednesday, November 11, 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 20 717 6868 in the Netherlands,
+44 20 304 32442 in the UK or +1 914 885 0780 in the US and using access ID
85357891#.
A replay will be available shortly after the end of the conference call.
Interested parties can listen to the replay by dialling +31 20 713 3487 and
using access code 513286# until December 11, 2015.
Corporate Profile
SBM Offshore N.V. (the "Company") is a listed holding company that is
headquartered in Amsterdam. It holds direct and indirect interests in other
companies that collectively with SBM Offshore N.V. form the SBM Offshore group
(the "Group").
SBM Offshore provides floating production solutions to the offshore energy
industry, over the full product life-cycle. SBM Offshore is market leading in
leased floating production systems with multiple units currently in operation
and has unrivalled operational experience in this field. The Group'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.
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 concerned. Please visit our
website at www.sbmoffshore.com.
The Management Board
Amsterdam, The Netherlands, November 11, 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.
SBM OFFSHORE THIRD QUARTER TRADING UPDATE:
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Source: SBM Offshore N.V. via GlobeNewswire
[HUG#1966090]
Unternehmensinformation / Kurzprofil:
Datum: 11.11.2015 - 18:02 Uhr
Sprache: Deutsch
News-ID 433867
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