SBM Offshore Revenues Up, The Netherlands

SBM Offshore announced consolidated revenues up almost 13% for the nine months to 30 September. Since the start of the third quarter, the Company secured financing for two large scale FPSOs for a total of over US$ 1.5 billion.

The Company also announced the sale of GustoMSC, a non-core design and engineering subsidiary, as well as its support vessel the Dynamic Installer for a total consideration of some US$ 200 million; important first steps in its US$ 400 million non-core asset divestment programme.

Following record orders during 2011, the order intake during the first nine months of 2012 has been lower than expected, which in combination with slower than planned progress on a number of key projects implies that the Company will not achieve its expected total revenue of US$ 4 billion for 2012. As to the Yme project, reference is made to the Company’s announcement of 26 October 2012 that Talisman and the Company presented a plan for repair of the grouting of the platform legs to the Norwegian Safety Authority.

Bruno Chabas CEO of SBM Offshore said: “In Q3, we made a swift start to our divestment programme and continued to drive forward the transformation of the Group.

“Despite the Group not expecting to achieve its 2012 revenue target, revenues continue to grow and, although they may fluctuate in the short term, the oil & gas industry has a critical need for increasingly large and sophisticated FPSOs. This is an outstanding opportunity for SBM Offshore, the world’s leading specialist provider of these facilities.”

Highlights

For the first nine months of 2012, consolidated turnover totalled US$ 2,486 million (12.9% above prior year of US$ 2,201 million). The Lease and Operate segment showed results in line with 2011, while the Turnkey Systems segment showed strong growth in excess of 18%, mostly driven by large scale FPSO projects such as OSX2, N’Goma, Cidade de Paraty and Cidade de Ilhabela.

Third quarter order intake continued to reflect the Company’s strategic FPSO focus with the cumulative order intake for the first nine months amounting to US$ 1,681 million and an order portfolio at 30 September 2012 totalling US$ 16.1 billion. Period highlights included the 8.5 years lease, operate and maintain contract on FPSO Kikeh for a tie-back of the Siakap North-Petai fields offshore Malaysia and the BC-10 Rigless Intervention Module with Shell, both showing the continued demand for tie-in and subsea support projects.

Since the start of the second half year, the Group achieved a number of successful financing agreements totaling US$ 1.55 billion. The Company secured a loan facility for US$ 1.05 billion with its Joint Venture partners, QGOG Constellation and Mitsubishi Corporation for the construction of the FPSO Cidade de Ilhabela for Petrobras, followed by an inaugural US$ 500 million US Private Placement project bond with 16 Institutional Investors to fund the refurbishment of the FPSO Cidade de Anchieta, which started its service for Petrobras on 10 September this year under an 18 year lease and operate contract. This facility was fully paid up by the bond investors as of 1 November 2012.

As part of previously announced plans to dispose of approximately US$ 400 million of non-core assets, SBM Offshore has agreed to the sale of GustoMSC, to Parcom Capital, a private equity group, for a consideration of approximately US$ 185 million. The purchase is subject to financing and will be paid in cash at intended closing of the transaction by 30 November 2012. The Company also signed an agreement with Dulam for the sale of the DSV Dynamic Installer at US$ 14.8 million, with delivery scheduled for end November 2012.

Net debt at 30 September 2012 amounted to US$ 2,107 million (30 June 2012: US$ 1,964 million), with cash and cash equivalent balances of US$ 318.1 million (30 June 2012: US$ 214.0 million) and committed, undrawn bank facilities of US$ 1.4 billion (30 June 2012: US$ 1.0 billion).

Net debt to total equity ratio is stable at 130% at 30 September 2012 compared to 132% at 30 June 2012. The solvency ratio at 30 September 2012 stands at 30.4% compared to 31.5% at mid-year 2012. The sale of GustoMSC will improve solvency by 2.5 percentage points.

Capital expenditure and investments on finance lease contracts in the first nine months of 2012 amounted to a combined total of US$ 970.3 million.

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LNG World News Staff, November 15, 2012; Image: SBM Offshore