Tuesday, December 6, 2022

SBM Offshore moving forward with record-breaking project financing, delivers second floater to Guyana

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Dutch floater specialist SBM Offshore said Thursday it has been able to arrange, year to date, US$4.1 billion project related financings to fund a record-breaking order book, demonstrating the financial strength of the company and the confidence which its financial stakeholders have in its operations. Among the milestones noted was the delivery of its first Fast4Ward® FPSO – the Liza Unity, to Guyana last month for oil production activities at the ExxonMobil-operated Stabroek Block. This represents one of five major projects which the company has under construction, including yet another FPSO for Guyana.

“I am proud to report that we have delivered another set of solid results this quarter, in line with the comparable period last year,” Bruno Chabas, CEO of SBM Offshore said. “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.”

The CEO said under Lease and Operate, through the company’s Ocean Infrastructure platform, teams are successfully ensuring business continuity by applying the protocols limiting COVID-19 impacts and maintaining the company’s assets’ availability.

“Year to date operational uptime stands at an outstanding level of 99.2%,” Chabas noted.

Underlying Directional revenues came in at US$1,729 million year to date, 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.

Despite facing challenges 18 months into the global pandemic, the company said project teams continue to work closely with client teams and contractors to mitigate the impacts on the execution of projects.

The Prosperity FPSO Fast4Ward® MPF hull, targeting Guyana’s third oil production project, entered dry dock in Singapore and the topsides’ fabrication is progressing in line with project schedule.

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.

SBM Offshore said also that the flash gas compression system on the Liza Destiny FPSO is stable and continues to operate.

“The construction of the redesigned third stage flash gas compression system is progressing,” the company added.

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.

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