SCHIEDAM, NETHERLANDS--(Marketwire - Nov 15, 2012) - Continued revenue growth driven by
turnkey systems
+---------------------------------------------------------------+
| Turnover in US$ million YTD Q3-2012 YTD Q3-2011 Change |
+---------------------------------------------------------------+
| Turnkey Systems 1,623.2 1,372.9 18.2% |
+-------------------------- |
| Turnkey Services 201.2 179.5 12.1% |
+-------------------------- |
| Lease and Operate 661.6 648.6 2.0% |
+-------------------------- |
| Total Turnover 2,486.0 2,201.0 12.9% |
+---------------------------------------------------------------+
SBM Offshore announces consolidated revenues up almost 13% for the nine
months
to 30 September 2012. Since the start of the third quarter, the Company
secured
financing for two large scale FPSOs for a total of over US$ 1.5 billion.
The Company is also pleased to announce the sale of GustoMSC, a non-core
design
and engineering subsidiary, as well as its support vessel the Dynamic
Installer
for a total consideration of some US$ 200 million; important first steps in
its
US$ 400 million non-core asset divestment programme.
Following record orders during 2011, the order intake during the first nine
months of 2012 has been lower than expected, which in combination with
slower
than planned progress on a number of key projects implies that the Company
will
not achieve its expected total revenue of US$ 4 billion for 2012. As to the
Yme
project, reference is made to the Company's announcement of 26 October 2012
that
Talisman and the Company presented a plan for repair of the grouting of the
platform legs to the Norwegian Safety Authority.
Bruno Chabas CEO of SBM Offshore said: "In Q3, we made a swift start to our
divestment programme and continued to drive forward the transformation of
the
Group. Despite the Group not expecting to achieve its 2012 revenue target,
revenues continue to grow and, although they may fluctuate in the short
term,
the oil & gas industry has a critical need for increasingly large and
sophisticated FPSOs. This is an outstanding opportunity for SBM Offshore,
the
world's leading specialist provider of these facilities."
Highlights
For the first nine months of 2012, consolidated turnover totalled US$ 2,486
million (12.9% above prior year of US$ 2,201 million). The Lease and
Operate
segment showed results in line with 2011, while the Turnkey Systems segment
showed strong growth in excess of 18%, mostly driven by large scale FPSO
projects such as OSX2, N'Goma, Cidade de Paraty and Cidade de Ilhabela.
Third quarter order intake continued to reflect the Company's strategic
FPSO
focus with the cumulative order intake for the first nine months
amounting to
US$ 1,681 million and an order portfolio at 30 September 2012
totalling US$
16.1 billion. Period highlights included the 8.5 years lease,
operate and
maintain contract on FPSO Kikeh for a tie-back of the Siakap North-Petai
fields
offshore Malaysia and the BC-10 Rigless Intervention Module with Shell,
both
showing the continued demand for tie-in and subsea support projects.
Since the start of the second half year, the Group achieved a number of
successful financing agreements totaling US$ 1.55 billion. The Company
secured a
loan facility for US$ 1.05 billion with its Joint Venture partners, QGOG
Constellation and Mitsubishi Corporation for the construction of the FPSO
Cidade
de Ilhabela for Petrobras, followed by an inaugural US$ 500 million US
Private
Placement project bond with 16 Institutional Investors to fund the
refurbishment
of the FPSO Cidade de Anchieta, which started its service for Petrobras on
10
September this year under an 18 year lease and operate contract. This
facility
was fully paid up by the bond investors as of 1 November 2012.
As part of previously announced plans to dispose of approximately US$ 400
million of non-core assets, SBM Offshore has agreed to the sale of
GustoMSC, to
Parcom Capital, a private equity group, for a consideration of
approximately US$
185 million. The purchase is subject to financing and will be paid in cash
at
intended closing of the transaction by 30 November 2012. The Company also
signed
an agreement with Dulam for the sale of the DSV Dynamic Installer at US$
14.8
million, with delivery scheduled for end November 2012.
Net debt at 30 September 2012 amounted to US$ 2,107 million (30 June 2012:
US$
1,964 million), with cash and cash equivalent balances of US$ 318.1 million
(30
June 2012: US$ 214.0 million) and committed, undrawn bank facilities of US$
1.4
billion (30 June 2012: US$ 1.0 billion).
Net debt to total equity ratio is stable at 130% at 30 September 2012
compared
to 132% at 30 June 2012. The solvency ratio at 30 September 2012 stands at
30.4% compared to 31.5% at mid-year 2012. The sale of GustoMSC will improve
solvency by 2.5 percentage points.
Capital expenditure and investments on finance lease contracts in the first
nine
months of 2012 amounted to a combined total of US$ 970.3 million.
Operational Update
Rigless Intervention System for Shell on FPSO Espirito Santo
SBM Offshore was awarded a contract from Shell for the engineering,
procurement,
construction, installation and operation of a Rigless Intervention System
(RIS)
module on FPSO Espirito Santo, which is owned and operated on joint venture
basis with MISC Berhad, servicing the BC-10 field, offshore Brazil. Rigless
Intervention is being developed to service subsea equipment on the FPSO as
a
permanent part of the system. The system is planned to be operational for a
first intervention in the second quarter of 2014.
Yme
Jointly with operator Talisman, a repair plan for the grouting of the
platform
legs was presented to the Petroleum Safety Authority in Norway, on October
26.
The repairs follow the decision of last July by the operator of the
platform,
Talisman, to de-man the platform and its assessment that grouting in the
legs
needs repair. The repairs are scheduled before the end of this year. After
completion of repairs, personnel will be allowed to return to the platform
to
assess any consequences of the facility having been unattended for an
extended
period. Subsequently, Talisman and SBM Offshore will be able to agree the
way
forward.
Deep Panuke
Finalisation and commissioning of this platform is progressing more slowly
than
planned and the platform is now expected to be on hire during the first
half of
2013. This delay is the result of recent test findings related to process
equipment with root causes dating back to the time in the yard and during
transit.
FPSO Cidade de Anchieta
Production on FPSO Cidade de Anchieta has commenced according to plan and
the
unit was officially on hire as of 10 September 2012 under the 18 years
lease and
operate contract with Petrobras.
Compact GTL
The Company also signed a commercial development agreement with Compact GTL
Ltd,
combining expertise for the marketing and execution of FPSO projects
involving
associated gas challenges for oil fields offshore.
Compliance
The investigation into potentially improper sales practices is still
ongoing.
Consequently, at this point it is not possible to provide further
information or
an estimate of the financial effects, if any.
DJSI world
The company received confirmation of its inclusion in the DJSI world
for the
second year in a row. This is a strong sign that its corporate
social and
sustainable objectives are among the best in class.
Outlook and Guidance 2012
Irrespective of global economic volatility, strong momentum in the oil &
gas
upstream market continues to drive demand for FPSOs and related products.
In the
short term, the challenges of complexity and scale, together with
associated
costs and risks for project developers are slowing certain contract awards
or
attenuating the start up phase of major projects. As a result, SBM Offshore
is
reducing turnover expectations for 2012 with other guidance remaining
unchanged.
This guidance is premised on no material change in the performance, or
delivery,
of the Group's projects.
Conference Call
Management of SBM Offshore will be available to discuss the contents of
this
press release in a conference call at 11:00 hrs (CET) on Thursday 15
November
2012.
Dial-in number: (+65) 6723 9388
Conference ID Code: 64797494
Replay number: (+61) 2 8199 0299 (available for 48 hours)
Replay Conference ID Code: 64797494
The call will also be webcast via the SBM Offshore website:
www.sbmoffshore.com
The call will be hosted by Bruno Chabas, CEO and Peter van Rossum, CFO.
Financial Calendar | Date|Year
----------------------------------------------------------+-----------+----
Full-year Results 2012 - Press Release (07:30 CET) | 7 March|2013
----------------------------------------------------------+-----------+----
Full-year Results 2012 - Analysts Presentation (Amsterdam)| 7 March|2013
----------------------------------------------------------+-----------+----
Trading Update Q1 2013 - Press Release (07.30 CET) | 23 May|2013
----------------------------------------------------------+-----------+----
Annual General Meeting of Shareholders (Rotterdam 14.30 | |
CET) | 23 May|2013
----------------------------------------------------------+-----------+----
Half-year Results 2013 - Press Release (07.30 CET) | 8 August|2013
----------------------------------------------------------+-----------+----
Half-year Results 2013 - Analysts Presentation (Amsterdam)| 8 August|2013
----------------------------------------------------------+-----------+----
Trading Update Q3 2013 - Press Release (07.30 CET) |14 November|2013
----------------------------------------------------------+-----------+----
To see the complete version of this press release, please click on the
link
below.
SBM Offshore Press Release:
http://hugin.info/130754/R/1658231/536574.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SBM Offshore N.V. via Thomson Reuters ONE
[HUG#1658231]