SBM Offshore Third Quarter Trading Update
November 11, 2021
- Strong performance despite ongoing COVID-19 challenges
- Financial results in line with management expectations and the same period last year
- 2021 Directional1 EBITDA guidance maintained at around US$900 million
- 2021 Directional revenue guidance revised from around US$2.6 billion to above US$2.3 billion mainly driven by a deferral in the expected timing of partner entry into an FPSO joint venture
- Year to date US$4.12 billion project related financings arranged to fund record-breaking order book
- Liza Unity, first Fast4Ward® FPSO, safely arrived in Guyana, 1 of 5 major projects under construction
Bruno Chabas, CEO of SBM Offshore, commented:
“I am proud to report that we have delivered another set of solid results this quarter, in line with the comparable period last year. The pandemic has significant impact across all our activities and continues to test our staff’s resilience. It is through their experience and dedication that we were able to progress on projects and have excellent results in our operations.
Under Lease and Operate, through our Ocean Infrastructure platform, our teams are successfully ensuring business continuity by applying the protocols limiting COVID-19 impacts and maintaining our assets’ availability. Year to date operational uptime stands at an outstanding level of 99.2%.
Under Turnkey, through our Growing the Core platform, there are five projects in execution. FPSO Liza Unity has safely arrived in Guyana in line with client planning, following a successful construction and pre-commissioning campaign in Singapore. Although the pandemic continues to create challenges which make cost increases unavoidable, our teams are doing an excellent job in mitigating and minimizing impacts. At project portfolio level, SBM Offshore has been able to maintain a competitive level of performance.
Through our New Energies platform, our teams continue to pave the way for the Company’s transition through technology development and strategic partnerships to capture new energy market opportunities. An extensive study is underway to drive cost out of the next generation of our Floating Offshore Wind solution.
Year to date, we have closed a record-breaking $4.1 billion of project financings. This demonstrates not only SBM Offshore’s financial strength but also evidences the confidence that our financial stakeholders have in the role that SBM Offshore will continue to play as leader in the energy transition for its clients.
We also successfully completed our fourth share repurchase program in six years. More than US$1.2 billion has now been returned to shareholders during this period in dividends and share buybacks.”
|in US$ million||3Q 2021||3Q 2020||% Change|
|Lease and Operate||1,134||1,334||-15%|
|Lease and Operate||1,209||1,234||-2%|
|in US$ million||3Q 2021||3Q 2020|
|Non-recurring items impacting Revenue|
|Deep Panuke termination fee||(75)||100|
|in US$ billion||3Q 2021||Dec-31-20||% Change|
Backlog calculation will be provided in FY21 Earnings Update
Year to date, Underlying Directional revenues came in at US$1,729 million compared with US$1,706 million in the same period of 2020. Turnkey revenues increased by 10% or US$47 million compared with the same period last year reflecting the higher level of activity. Lease and Operate was nearly constant with a decrease of 2% or US$25 million compared with the same period last year.
Underlying Directional revenues include US$75 million related to cash received during the first half of 2021 under the final settlement signed with the client following the redelivery of the Deep Panuke facility in July 2020. This amount was excluded from the Underlying 2020 Revenues as reported in the 2020 Annual Report given the expected receipt of the associated cash in 2021.
Year to date, net debt increased to US$5.1 billion driven by investments in growth as the Company is progressing with the construction of its five major projects (FPSOs Liza Unity, Sepetiba, Prosperity, Almirante Tamandaré and Alexandre de Gusmão). Nearly all of the Company’s debt is project related and as such becomes non-recourse following project execution finalization and release of the Parent Company Guarantee.
Framework Agreement between Sinosure and SBM Offshore
On October 20, 2021, China Export and Credit Insurance Corporation (Sinosure) and SBM Offshore signed a Framework Agreement. This Agreement follows the successful cooperation between Sinosure and SBM Offshore on the closing of the Project Finance of Sepetiba, which includes a significant tranche benefiting from Sinosure insurance cover which will be funded by three relationship banks. The Agreement aims to build on this cooperation for future projects, optimizing both growth in trade and economic development in China as well as obtaining Sinosure insurance cover and support in closing future financings.
Around 18 months into the global pandemic, the Company continues to face COVID-19 challenges. These include travel and logistical restrictions, price inflation of materials and services, yard closures and yard and supplier capacity constraints. Project teams continue to work closely with client teams and contractors to mitigate the impacts on projects’ execution. The degree to which these challenges can be mitigated going forward varies from project to project. Despite this, the profitability of SBM Offshore’s overall project portfolio remains robust and competitive. An update on the status of individual projects is provided below.
Liza Unity (FPSO) left Singapore early September and arrived in Guyana on October 25. The project continues to target first oil in 2022 in line with client schedule.
FPSO Sepetiba - the topsides’ modules lifting campaign has started at the yard in China and the project targets first oil in 2023. The project has been impacted both by the supply chain environment and challenges at the yard. A specific mitigation plan has been implemented and its effectiveness is to be tested in the coming quarters.
Prosperity (FPSO) - the Fast4Ward® MPF hull entered dry dock in Singapore and the topsides' fabrication is progressing in line with project schedule.
FPSO Almirante Tamandaré - the topsides' fabrication is progressing as planned with the commencement of topside construction activities in Brazil. The keel laying milestone has been achieved for the Fast4Ward® MPF hull. The project continues to target first oil in the second half of 2024.
FPSO Alexandre de Gusmão - the Fast4Ward® MPF hull construction achieved the first steel cutting milestone in the third quarter 2021. The FPSO construction is progressing as per plan with the expected first oil in 2025.
Fast4Ward® MPF hulls
Under the Company’s Fast4Ward® program, the total number of MPF hulls ordered to date stands at six. Three have been delivered to on-going projects and three are under construction of which two have been allocated to FPSO projects and one is supporting the Company’s tendering activities.
Liza Destiny (FPSO) - The flash gas compression system on the unit is stable and continues to operate. The construction of the redesigned third stage flash gas compression system is progressing.
Fleet Operational Update
Despite the continuing challenging circumstances due to the COVID-19 pandemic, the Company is witnessing some improvements in the general operating environment, especially in countries where vaccination campaigns are progressing. Although business continuity protocols remain in place, some countries’ entry restrictions and quarantine periods are being gradually reduced with a positive impact on fatigue management and associated operational risk. The priority of the Company remains to minimize the potential exposure to COVID-19, to protect the health of our employees and to minimize the impact on SBM Offshore operations.
The fleet uptime continues to demonstrate the depth of the experience and success of the SBM Offshore Operations team in mitigating the impact of the pandemic. Year to date, the Lease and Operate fleet uptime was 99.2%, in line with the fleet’s lifetime historical average.
The Company’s Total Recordable Injury Frequency Rate stands at 0.08 as of September 30, 2021.
Joint Venture Equity Partnering Update
As previously announced, SBM Offshore is negotiating a 45% equity divestment in the special purpose companies that are owning and operating the FPSOs Almirante Tamandaré and Alexandre de Gusmão. The divestment of equity in the FPSO Almirante Tamandaré is expected to be concluded around the year end and the divestment of the FPSO Alexandre de Gusmão in the course of 2022. For the purposes of the guidance, it is assumed that the divestment of the FPSO Almirante Tamandaré is closed after the year end resulting in a shift in recognition of the associated revenues from 2021 to 2022. There is no impact on anticipated EBITDA for 2021 as the project is not forecast to meet the requisite completion stage gate allowing margin recognition in 2021.
Outlook and Guidance
The Company’s 2021 Directional EBITDA guidance is maintained at around US$900 million. 2021 Directional revenue guidance has been revised from around US$2.6 billion to above US$2.3 billion with around US$1.6 billion coming from Lease and Operate and above US$0.7 billion coming from the Turnkey segment. As described above, this revision is mainly driven by an assumed shift in the expected timing of partner entry into FPSO Almirante Tamandaré joint venture from late 2021 to early 2022.
This guidance includes Directional revenues and EBITDA of US$75 million related to the cash receipts in 2021 from the Deep Panuke contract, which were both excluded from the 2020 outlook and underlying results. It also considers the currently foreseen COVID-19 impacts on projects and fleet operations. The Company highlights that the direct and indirect impact of the pandemic could continue to have a material impact on the Company’s business and results and the realization of the guidance for 2021.
SBM Offshore has scheduled a conference call, which will be followed by a Q&A session, to discuss the Third Quarter 2021 Trading Update.
The event is scheduled for Thursday, November 11, 2021 at 10.00 AM (CET) and will be hosted by Bruno Chabas (CEO), Douglas Wood (CFO), Philippe Barril (COO) and Erik Lagendijk (CGCO).
Interested parties are invited to register prior the call using the link:
Please note that the conference call can only be accessed with a personal identification code, which is sent to you by email after completion of the registration.
A replay will be available. Interested parties can listen to the replay by dialing +31 (0) 20 785 1180 and using access code 120362# until December 11, 2021.
The Company’s main activities are the design, supply, installation, operation and the life extension of floating production solutions for the offshore energy industry over the full lifecycle. The Company is market leading in leased floating production systems, with multiple units currently in operation.
As of December 31, 2020, the Company employed approximately 4,570 people worldwide spread over offices in our key markets, operational shore bases and the offshore fleet of vessels.
SBM Offshore N.V. is a listed holding company headquartered in Amsterdam, the Netherlands. It holds direct and indirect interests in other companies.
Where references are made to SBM Offshore N.V. and /or its subsidiaries in general, or where no useful purpose is served by identifying the particular company or companies “SBM Offshore” or “the Company” are sometimes used for convenience.
For further information, please visit our website at www.sbmoffshore.com.
The Management Board
Amsterdam, the Netherlands, November 11, 2021
|Full Year 2021 Earnings||February 10||2022|
|Annual General Meeting||April 6||2022|
|First Quarter 2022 Trading Update||May 12||2022|
|Half Year 2022 Earnings||August 4||2022|
|Third Quarter 2022 Trading Update||November 10||2022|
For further information, please contact:
Group Treasurer and IR
|Mobile:||+31 (0) 6 21 14 10 17|
Group Communications Director
|Mobile:||+377 (0) 6 40 62 87 35|
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. This press release contains regulated information within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht). 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 Directional view, presented in the Financial Statements under Operating segments and Directional reporting, represents a pro-forma accounting policy, which assumes all lease contracts are classified as operating leases and all vessel investees are proportionally consolidated. This explanatory note relates to all Directional reporting in this document.
2 Financing closed at SPV levels with varying SBM Offshore equity ownership; 100% of the financing amount is disclosed.
AttachmentTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Bavarian Nordic Reports Positive Topline Phase 2 Results for its COVID-19 Vaccine Candidate5.12.2021 18:21:41 CET | Press release
Bavarian Nordic’s non-adjuvanted COVID-19 vaccine candidate, ABNCoV2 (100μg), demonstrated a strong boosting effect, increasing the existing levels of SARS-CoV-2 neutralizing antibodies against the Wuhan variant by 2-40-fold depending on the initial levels of antibodiesThe large boosting effect of ABNCoV2 elevated the neutralizing antibodies to levels reported to be highly efficacious (>90%) against SARS-CoV-21A similar fold increase was observed for all SARS-CoV-2 variants tested (Wuhan, Alpha, Beta and Delta) following the booster vaccination with ABNCoV2The vaccine was well-tolerated, with no serious adverse events reportedThese initial results confirm the potential of ABNCoV2 to function as a universal COVID-19 booster vaccineThe Company’s management will host a conference call tomorrow at 2 pm CET (8 am EST) to discuss the results COPENHAGEN, Denmark, December 5, 2021 – Bavarian Nordic A/S (OMX: BAVA), a fully integrated vaccines company, announced today positive topline results f
Bavarian Nordic rapporterer positive toplinjeresultater fra fase 2-forsøg med sin COVID-19 vaccinekandidat5.12.2021 18:21:41 CET | pressemeddelelse
Bavarian Nordics COVID-19 vaccinekandidat uden hjælpestof (adjuvant), ABNCoV2 (100μg), demonstrerede i et fase 2 forsøg en solid boostereffekt, ved at forhøje de eksisterende niveauer af SARS-CoV-2 neutraliserende antistoffer mod Wuhan varianten 2-40 gange afhængigt af de initiale antistofniveauerDen høje boostereffekt af ABNCoV2 forhøjede niveauet af neutraliserende antistoffer til niveauer som er blevet rapporterede som værende yderst effektive (>90%) mod SARS-CoV-21En lignende forhøjelse blev observeret for alle testede SARS-CoV-2 varianter (Wuhan, Alpha, Beta og Delta) efter boostervaccination med ABNCoV2Vaccinen var veltolereret med ingen rapporterede alvorlige bivirkningerDisse toplinjeresultater bekræfter ABNCoV2’s potentiale til at fungere som en universel COVID-19 boostervaccineVirksomhedens ledelse vil afholde en telefonkonference i morgen kl. 14:00 CET for at diskutere resultaterne KØBENHAVN, Danmark, 5. december 2021 – Bavarian Nordic A/S (OMX: BAVA), et fuldt integreret va
Galapagos increases share capital through subscription right exercises3.12.2021 22:01:00 CET | Press release
Mechelen, Belgium; 3 December 2021, 22.01 CET; regulated information – Galapagos NV (Euronext & NASDAQ: GLPG) announces a share capital increase arising from subscription right exercises. Galapagos issued 22,600 new ordinary shares on 3 December 2021, for a total capital increase (including issuance premium) of €578,700.00. Pursuant to the subscription right exercise program of Galapagos’ management board, members of the management board automatically are committed to exercise a minimum number of subscription rights, subject to certain conditions. In accordance with the rules of this program, one management board member exercised 5,000 subscription rights. In accordance with Belgian transparency legislation1, Galapagos notes that its total share capital currently amounts to €354,582,005.11, the total number of securities conferring voting rights amounts to 65,552,721, which is also the total number of voting rights (the “denominator”), and all securities conferring voting rights and al
Sampo plc’s share buybacks 03/12/20213.12.2021 21:30:00 CET | Press release
SAMPO PLC STOCK EXCHANGE RELEASE 03/12/2021 at 10:30 pm Sampo plc’s share buybacks 03/12/2021 On 03/12/2021 Sampo plc (business code 0142213-3, LEI 743700UF3RL386WIDA22) has acquired its own A shares (ISIN code FI0009003305) as follows: Sampo plc’s share buybacksAggregated daily volume (in number of shares)Daily weighted average price of the purchased shares*Market (MIC Code)23,68743.29AQEU27,42643.28CEUX4,32043.37TQEX72,59243.31XHELTOTAL128,02543.30 *rounded to two decimals On 1 October 2021, Sampo announced a share buyback programme of up to a maximum of EUR 750 million in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. The programme, which started on 4 October 2021, is based on the authorization granted by Sampo's Annual General Meeting on 19 May 2021. After the disclosed transactions, the company owns in total 6,263,553 Sampo A shares representing 1.13 per cent of the total number of shares in Sampo plc. Detail
Projekt Öyfjellet försenat – beräknas färdigställas under första kvartalet 20223.12.2021 21:15:00 CET | Pressemelding
Hässleholm den 3 december 2021 I delårsrapporten för det tredje kvartalet, som offentliggjordes den 18 november 2021, kommunicerade Eolus att det finns risk för försening i färdigställandet av det norska 400 MW projektet Öyfjellet. Baserat på uppdaterad information om byggprocessen beräknar Eolus nu att vindparken färdigställs under det första kvartalet 2022. Per idag, den 3 december 2021, har samtliga 72 turbiner färdigmonterats. 34 turbiner har börjat generera el. Huvudskälen till förseningen är utmanande väderförhållanden, vilket har påverkat installationsarbetet, samt Covid-19 relaterade orsaker som begränsat både resemöjligheterna för personal och lett till leveransförseningar avseende komponenter. Förseningen kommer att ha en negativ påverkan på Eolus projektmarginal. För ytterligare information kontakta: Per Witalisson, VD, telefon +46 (0)70-265 16 15 Johan Hammarqvist, kommunikationschef, telefon +46 (0)720-50 59 11 Kort om Eolus Eolus Vind är en av Nordens ledande projektörer
Project Øyfjellet delayed - new estimated completion in the first quarter of 20223.12.2021 21:15:00 CET | Press release
Hässleholm, Sweden, December 3rd, 2021 In the interim report for the third quarter, released on November 18, 2021, Eolus communicated a risk of delay in the completion of the 400 MW Norwegian wind project Øyfjellet. Based on updated information of the construction progress, Eolus now estimates that the wind farm will be completed during the first quarter of 2022. As of today, December 3, 2021, construction of all 72 turbines have been completed. First electricity production has been achieved by 34 turbines. The main reasons for the delay are challenging weather conditions which has effected the progress of the installations and Covid-19 related issues which has restricted both travel possibilities for personnel and led to delays in delivery of components. The delay is expected to have a negative impact on Eolus’ profit margin for the construction of the project. For further information contact: Per Witalisson, CEO, +46 70-265 16 15 Johan Hammarqvist, Head of Communications, +46 720 50
ING reports outcome of 2021 EU-wide Transparency Exercise and Risk Assessment Report3.12.2021 18:12:26 CET | Press release
ING reports outcome of 2021 EU-wide Transparency Exercise and Risk Assessment Report ING notes the announcements made today by the European Banking Authority (EBA) and the European Central Bank (ECB) regarding the information of the 2021 EU-wide Transparency Exercise and Risk Assessment Report. Background EU‐wide Transparency Exercise The EBA Board of Supervisors approved the package for the EU‐wide Transparency Exercise, which since 2016 is performed on an annual basis and published along with the Risk Assessment Report (RAR). The annual transparency exercise is based solely on regulatory reporting data (COREP/FINREP) on the form and scope to assure a sufficient and appropriate level of information to market participants. The templates were centrally filled in by the EBA and sent afterwards for verification by banks and supervisors. The outcome of the exercise related to ING Group can be found in the annexes on the EBA website. Note for editors For further information on ING, please v