Highlights

Turnover up to US$ 3.06 billion (2007: US$ 2.87 billion);
Net profit US$ 228 million (2007: US$ 267 million);
Results affected by budget & schedule overruns in first half year;
Year-end order portfolio up to US$ 9.25 billion (2007: US$ 7.95 billion) and new orders totalled US$ 4,365 million (US$ 3,822 million in 2007);
Excellent performance of the FPSO fleet generated substantial bonus revenues, three new FPSOs joined the lease and operate fleet;
All banking covenants comfortably met; Net Debt: EBITDA 2.76 (covenant 3.75);
Dividend maintained at US$ 0.93 per share; payable 50% in cash, 50% in shares (US$ 0.93 in 2007).

Outlook
EBIT margin Turnkey expected to return to 5-10% range;
EBIT contribution Lease & Operate close to 2008 level.

Key figures
US$ million 2008 2007 Change
Turnover 3,060 2,871 + 6.6 %
EBITDA 530.1 548.3 - 3.3 %
EBIT 275.1 302.0 - 8.9 %
Net profit 227.9 266.8 - 14.6 %
EBIT margin 9.0% 10.5% - 1.5%
Investment in fixed assets 1,000 551 + 81.5 %

Tony Mace, CEO of SBM Offshore: "Looking back, 2008 has been a year with both positives and negatives. We have seen record turnover and our order backlog reached a new high. However, our net result was disappointing as two of our major FPSO projects faced significant cost overruns during their finalisation phase. Much focus has been placed on implementing enhanced procedures and controls to ensure that project execution performance returns to the level that the Company has traditionally achieved. The lease fleet and our services business continued to provide excellent results. The increase in our business over the last years, with the associated build-up of our execution capability, has established SBM Offshore as one of the major contractors in the offshore oil and gas sector. Our strong order book puts us in a relatively secure position going forward, with several important project deliveries planned in 2009. The recent oil price collapse and the subsequent expected slow down in the award of new contracts, makes it however difficult at this time to provide a full year profit expectation for 2009."