2012 Was a Tough Year for SBM Offshore, CEO Says

SBM Offshore today reported  a net loss for 2012 of US$ 74.9 million (2011 net loss of US$ 440.6 million). This  result  includes  divestment  profits,  impairment charges, and other non-recurring items relating to the Yme and Deep Panuke projects which generated a net loss of US$ 473.4 million in 2012 (US$ 857.0 million in 2011).

Turnover increased by 17.1% to US$ 3,695 million, in comparison with US$ 3,157 million in 2011, mainly as a result of higher Turnkey Systems revenues.

The company said its 2012 results were overshadowed by the impact of impairments and provisions for two legacy projects, Yme in Norway and Deep Panuke in Canada, which hide the good underlying performance in the core FPSO business.

Consistent with the core FPSO strategy announced in 2012, GustoMSC was divested in the fourth quarter. Record financing levels were achieved, notably with the $1.1 billion project loan for FPSO Ilhabela, and the $ 500 million US Private Placement for FPSO Anchieta. In December, the Company moved further towards a solution of the Yme MOPUstor TM legacy project and restored the balance sheet through an equity injection by cornerstone investor HAL. Order intake was slow, in line with the industry, as a consequence of delays in contract awards.

The company added that finalisation and commissioning of Deep Panuke platform is progressing well, with the platform expected to be on hire during the first half of 2013.

Commenting on the results, Bruno Chabas, CEO of SBM Offshore, said:

“For SBM Offshore, 2012 was tougher than we had expected. Even so, we made significant progress toward unlocking the outstanding potential of our Company. In vital respects, such as strategy, structure, ways of working, increased compliance focus and a renewed management team, SBM is being transformed. As we move towards closure of our legacy projects, I am convinced that the quality of performance being delivered by so  many colleagues across the Company will begin to manifest itself in our financial results.”

As for this year,  the company said it is confident in the continued growth of its core FPSO business, and expects to achieve revenue of approximately $4 billion in 2013.

No Dividend
In view of the reported loss for 2012 and  in order to preserve and improve the Group’s equity position, the Management  Board  proposed  not to distribute  a dividend over fiscal years 2012 and 2013.

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Offshore Energy Today Staff, February 14, 2013