Increased activity on Guyana FPSOs, rising variation orders counterbalance H1 revenue dip – SBM Offshore 

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SBM Offshore reported a 15% drop in directional revenue for the first half of 2023 amounting to US$1.4 billion. 

The company said the decline in revenue was largely driven by a decrease in directional turnkey revenue, which dropped to US$558 million from US$909 million over the same period the previous year. Several factors contributed to this decrease, including the comparative effect of the partial divestment of FPSOs Almirante Tamandaré and Alexandre de Gusmão at the beginning of 2022, the completion of the FPSO Liza Unity project in the first half of 2022, and a reduced level of progress in FPSO Almirante Tamandaré during the first half of 2023 due to topsides’ integration. However, SBM Offshore reported that the decrease was partially offset by additional variation orders and an increased level of activity on FPSOs Prosperity and ONE GUYANA – both for ExxonMobil’s Stabroek Block operations in Guyana. 

Its directional lease and operate revenue for the first half-year of 2023 increased by 9%, reaching US$933 million compared to the same period in 2022. This increase was primarily attributed to the full contribution of FPSO Liza Unity to revenue in the current year and an increase in reimbursable scopes. However, the end of the FPSO Capixaba lease during the first half of 2022 partly offset this increase.

The directional earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the first half-year of 2023 totaled US$457 million, showing a decrease from US$500 million in the year-ago period. Similarly, the directional turnkey EBITDA contribution dropped to US$37 million in the first half-year of 2023, down from US$16 million in the year-ago period. This decrease was attributed to challenges in fully mitigating impacts from global supply chain pressures and the pandemic, a lower contribution from FPSO Almirante Tamandaré due to topsides integration, and several prior period one-off impacts.

Commenting on the results, Bruno Chabas, Chief Executive Officer of SBM Offshore, highlighted the company’s progress in its strategic focus as an Energy Transition Company. Chabas emphasized the increase in the company’s order book to a new record level and the reiteration of the 2023 guidance. He noted that despite challenges such as the pandemic and supply chain constraints, SBM Offshore remains on track to achieve first oil on two major FPSO projects.

“FPSO Prosperity is already in Guyanese waters and FPSO Sepetiba has started her journey to Brazil from China,” he said. 

Chabas also highlighted the company’s successful financing endeavors, securing over US$3.2 billion for the construction portfolio, including the financing for FPSO Alexandre de Gusmão. He noted the strong operational performance in the lease and operate division and the company’s commitment to innovation, particularly in the field of floating energy solutions.

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