SBM OFFSHORE 2016 YEAR END UPDATE
(Thomson Reuters ONE) -
December 7, 2016
As the Company nears its year end, and ahead of the scheduled FY2016 earnings
announcement, the Management Board announces the following non-cash adjustments
to its accounts, which are the result of its regular year-end review taking into
account uncertainties in outlook for certain areas of its operations reflected
in its updated business planning assumptions(1):
Summary
* Impairment of net investment in construction yard Paenal in Angola of
approximately US$60 million
* Recognition of DSCV SBM Installer long term charter as onerous contract at a
cost of approximately US$30 million
Investment in JV holding Construction Yard Paenal
The activity outlook for SBM Offshore's investment (30% ownership) in the Joint
Venture owning the Paenal construction yard operating in Angola has
deteriorated. As a result, the Company's carrying amount for the net investment
in this entity is to be impaired by approximately US$60 million. Because this
investment is consolidated using the equity method, this non-cash impairment is
recognized in the Company's Consolidated Income Statement on the line item share
of profit of equity-accounted investees.
DSCV SBM Installer Charter Contract
SBM Offshore has a long-term charter contract with the Diving Support and
Construction Vessel (DSCV) SBM Installer. Due to the ongoing industry downturn,
which has created significant over-supply in offshore markets, the vessel's
projected utilisation has decreased. As a result, the contract is classified as
onerous and a non-cash provision of approximately US$30 million is to be
recognized in the Gross Margin of the Turnkey segment. SBM Offshore's investment
(25% ownership) in the Joint Venture which owns the vessel is consolidated using
equity accounting.
Outlook and Guidance
The Company confirms its FY2016 Directional(2) revenue guidance of at least
US$2.0 billion. Including the above charter contract provision of approximately
US$30 million Directional(2) FY2016 EBITDA guidance is around US$720 mln,
compared to the previous guidance of around US$750 million. However on an
underlying basis, adjusting for the aforementioned provision and the increase in
compliance related settlement provision of US$22 million reported in the 2016
Half Year Earnings, underlying Directional(2) FY2016 EBITDA guidance is around
US$ 770 million.
Corporate Profile
SBM Offshore N.V. 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 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.
As of December 31, 2015, Group companies employ approximately 7,000 people
worldwide. Full time company employees totaling 4,900 are spread over five
regional centres, eleven operational shore bases and the offshore fleet of
vessels. A further 2,100 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
Amsterdam, the Netherlands, December 7, 2016
+-----------------------------------------+------------+------+
| Financial Calendar | Date | Year |
+-----------------------------------------+------------+------+
| Full-Year 2016 Earnings - Press Release | February 8 | 2017 |
+-----------------------------------------+------------+------+
| Annual General Meeting of Shareholders | April 13 | 2017 |
+-----------------------------------------+------------+------+
| Trading Update 1Q 2017 - Press Release | May 10 | 2017 |
+-----------------------------------------+------------+------+
| Half-Year 2017 Earnings - Press Release | August 8 | 2017 |
+-----------------------------------------+------------+------+
| Trading Update 3Q 2017 - Press Release | November 7 | 2017 |
+-----------------------------------------+------------+------+
For further information, please contact:
Investor Relations
Bert-Jaap Dijkstra
Investor Relations Director
Telephone: +31 (0) 20 236 3222
Mobile NL: +31 6 2114 1017
Mobile MC: +33 6 4391 9302
E-mail: bertjaap.dijkstra(at)sbmoffshore.com
Website: www.sbmoffshore.com
Media Relations
Vincent Kempkes
Head of Communications
Telephone: +31 (0) 20 2363 170
Mobile: +31 (0) 6 25 68 71 67
E-mail: vincent.kempkes(at)sbmoffshore.com
Website: www.sbmoffshore.com
Disclaimer
This press release contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation. 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. . Nothing in this press release shall be deemed an offer to
sell, or a solicitation of an offer to buy, any securities.
--------------------------------------------------------------------------------
(1) Updates reflect recent events and insights acquired since the publication of
the 1H16 results and 3Q16 Trading Update
(2) Directional view is a non-IFRS disclosure, which treats all leases as
operating leases and consolidates the vessel joint ventures proportionally
SBM OFFSHORE 2016 YEAR END UPDATE:
http://hugin.info/130754/R/2062608/773818.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SBM Offshore N.V. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 07.12.2016 - 18:00 Uhr
Sprache: Deutsch
News-ID 511532
Anzahl Zeichen: 8931
contact information:
Town:
Schiedam
Kategorie:
Business News
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