SBM Offshore announced on Feb. 29 that it delivered record level financial performance in 2023 with Directional Revenue of US$4.5 billion, over 38% above guidance. The company also maintained its future backlog at more than US$30 billion.
“Over the past 5 years we have grown this backlog of future net cash by US$2.9 billion whilst at the same time returning US$1.3 billion to shareholders,” its CEO, Bruno Chabas said.
This performance, he pointed out, reflects the uniquely recognized competitive positioning of SBM Offshore, the resilience of its business model and strong organizational capability to execute its strategy.
In 2023, the company delivered and commissioned two large FPSOs in industry-leading timeframes, adding significant value for clients. The gross margin for its portfolio of construction projects remained robust.
“The 10-year Operations and Maintenance Enabling Agreement (OMEA) in Guyana establishes a new benchmark which can be applied to other clients, demonstrating our ability to develop new models and respond to the dynamics of an evolving financing market,” Chabas said. “On the financing front, we raised US$3.2 billion for two FPSO projects, securing the financing of the entire construction portfolio.”
The OMEA has set new terms for the operations of the Guyana FPSO fleet up to 2033. The lease terms and durations remain the same for all units, with 10 years lease for FPSO Liza Destiny and up to 2 years lease for FPSOs Liza Unity, Prosperity and ONE GUYANA after which the FPSOs’ ownership will transfer to the client. The FPSO fleet will support ExxonMobil’s exploration and production activities in the Stabroek Block, offshore Guyana. Additionally, as a result of this agreement, an integrated operating model has been established with ExxonMobil Guyana, leveraging the combined operational excellence of both parties.
SBM Offshore’s footprint in Guyana growing larger; 51 new vendors added in 2023
“We have a positive outlook on the market given the economics and low emission qualities of deepwater resources. We have secured the FEED award and reserved an MPF hull for FPSO Jaguar for the Whiptail project in Guyana,” Chabas further outlined.
He said the carbon capture solution developed in partnership with Mitsubishi Heavy Industries, Ltd. aims to reduce FPSO emissions by up to 70%. “As a result, we are on target to offer a near zero emission FPSO to the market in 2025, a key enabler of our 2050 net zero ambition.”
For 2023, the company targeted an absolute volume of gas flared below 1.48 mmscft/d as an overall FPSO fleet average during the year. As of December 31, 2023, SBM Offshore outperformed with the actual being 1.18 mmscft/d, which is 17% lower compared with 2022.
The company was also successful in delivering background flare for the newly commissioned Prosperity FPSO in a record 39 days.
Exxon awards SBM Offshore for supplier excellence in support of Guyana operations
In support of its 2050 net zero ambition, SBM Offshore has created intermediate targets. By 2030, the Company aims for net-zero on scope 1 and 2 emissions and a 50% reduction of GHG intensity on scope 3 as well as zero routine flaring. The company said it is on track to meet these targets.
