SBM Offshore posted strong financial performance in the first half of 2024, with directional revenue increasing to US$1,840 million – a 23% increase compared to the same period last year. Directional Turnkey revenue rose to US$662 million compared to US$558 million in 2024, at half-year.
The company said this 19% increase reflects mainly the Jaguar floating production storage and offloading (FPSO) contract award and the increased support to the fleet through brownfield activities. These were partially offset by the completion of FPSOs Prosperity and Sepetiba in Q4 2023 and Q1 2024 respectively, and the lower amount of revenue booked in the construction portfolio as projects approach completion.
The year-to-date Directional Lease and Operate revenue stood at US$1,178 million, up 26% compared with the same period in the prior year. This increase is the result of FPSOs Prosperity and Sepetiba joining the fleet upon successful delivery in Q4 2023 and Q1 2024 respectively. It is also a result of an increase in reimbursable scope of the fleet, partially offset by reduced revenue on FPSO Liza Unity following purchase option exercised by ExxonMobil Guyana in Q4 2023, moving to an operating contract.
Chief Executive Officer Øivind Tangen highlighted the company’s record backlog of US$33.7 billion, leading to upgraded directional EBITDA guidance of approximately US$1.3 billion, up from US$1.2 billion. This strong performance has also prompted the launch of an additional €65 million share repurchase.
“We saw very good progress in the construction portfolio, bringing our three most mature projects to a very high level of completion,” Tangen said.
He pointed out that the first of these, FPSO Almirante Tamandaré, left the quayside as per schedule on August 1, and will benefit from the company’s Fast4Ward® program learnings as it transitions from construction to operations.
“The next generation of projects like FPSO Jaguar are already seeing the benefits from inception, of a full cycle of learnings,” the CEO stated.
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SBM Offshore said its eighth Fast4Ward® hull has been reserved by TotalEnergies for Suriname’s Block 58 development, and a ninth hull has been ordered to mitigate supply chain risks.
SBM Offshore’s directional lease and operate revenue rose by 26% to US$1,178 million, largely due to the addition of Prosperity and Sepetiba FPSOs to the fleet. Directional EBITDA for the period was US$620 million, up 36% year-on-year.
SBM Offshore also signed a 20-year lease and operate contract with Woodside for a floating, storage and offloading vessel (FSO) supporting the Trion field development in Mexico. Additionally, the company expanded its presence in Angola by acquiring full ownership of several FPSOs while divesting its share in the Paenal shipyard.
Looking ahead, SBM Offshore said it is positioning itself in the alternative energy market, establishing the Ekwil joint venture for floating offshore wind (FOW) and signing an MoU with Ocean-Power to develop a low-emission offshore floating power generation concept.
