Guyana FPSO contributes to 16% revenue increase for SBM Offshore

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Dutch floater specialist SBM Offshore is reporting a 16 percent increase in revenues for Q3 2020 when compared to the same period last year and this is being attributed in part to higher Lease and Operate earnings from the Liza Destiny FPSO which is producing oil for ExxonMobil offshore Guyana.

The company said on Thursday that year-to-date, underlying directional revenues were US$1,706 million compared with US$1,470 million in the third quarter of 2019.

“This 16% increase resulted from higher revenues in Lease and Operate, which were the result of FPSO Liza Destiny joining the fleet at the end of 2019, together with last year’s acquisition of a minority partner’s ownership in five Brazilian FPSOs,” SBM Offshore said.

SBM Offshore’s net debt increased by $0.5billion to $4billion in the third quarter mainly due to financing projects under construction, while the company has been using its loan facilities for growth investment. The company said EBITDA (earnings before interest tax, interest, depreciation and amortisation) stands at “around” $950m despite the current challenging market environment.

SBM Offshore is currently progressing the Liza Unity and Prosperity FPSOs for ExxonMobil’s 2nd and 3rd developments in Guyana, as well as Sepetiba, which is destined for the Santos Basin off Brazil.

The Liza Unity and Sepetiba are due for completion in 2022. The Prosperity team is preparing for the start of fabrication in Singapore. The project is progressing on schedule with completion set for 2024. Meanwhile the main gas compressors for FPSO Liza Destiny natural gas injection system has been commissioned, the company said.

“SBM Offshore teams are succeeding in maintaining our focus on project delivery and safe operations, while working together virtually, across time zones, with clients, suppliers and all our other global stakeholders with the aim of limiting delivery delays and interruptions to operations,” CEO, Bruno Chabas said.

The FPSOs the company is currently building for Guyana that will join the Liza Destiny are part of a fleet that will be operating off the country’s coast where ExxonMobil has made 18 discoveries since 2015.

“Deepwater projects in quality basins continue to rank favorably in client portfolios,” Chabas said.

ExxonMobil recently updated its estimated recoverable resources for the deepwater Stabroek block to approximately 9 billion barrels of oil equivalent.

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