SBM Offshore is pleased to report revenues and EBITDA in line with expectations, concluding a year of many achievements notwithstanding the backdrop of the prolonged market downturn. After adjusting to the new market circumstances, the offshore industry shows early signs of stabilization but with a slow recovery. SBM Offshore has continued to transform itself to address this change, safeguarding experience to reinforce a strategic position underpinned by strong cash flow from the Lease & Operate portfolio. At the end of the year the Company was awarded contracts by ExxonMobil for a Floating Production, Storage and Offloading vessel (FPSO) for development and production in Guyana, subject to Final Investment Decision; the only major new FPSO-related contracts awarded in the industry as a whole in 2016. During the year three FPSOs were delivered to clients, which were successfully integrated into the fleet. These new vessels further strengthened cash flow allowing the company to re-initiate the dividend and complete a significant EUR 150 million share repurchase program during 2016. Given its continued positive outlook for underlying cash flow generation, the Company proposes a cash dividend of US$0.23 per share, an increase of c. 10% year-on-year. In addition the Company will be updating and reinforcing its dividend policy.

Bruno Chabas, CEO of SBM Offshore, commented:

“Experience matters. This was demonstrated by SBM Offshore teams once more this year. Three technologically complex FPSOs were delivered, on time, in line with clients’ expectations, using teams across the globe. SBM Offshore is approaching 300 years of cumulative operating experience and has now delivered 118 Turnkey projects, including 34 FPSOs. And since 1959 the Company has delivered more than 450 offshore terminals. Lease and Operate continues to show solid performance with a fleet that has a production capacity of 1.6 million barrels per day.

To firmly position the Company for the future and align its business with today’s reality in the oil services industry which is characterized by “lower for longer” activity, SBM Offshore initiated a strategic improvement program. This program leverages our experience and is structured around the pillars “Optimize”, “Transform” and “Innovate”. The importance of working closely with client teams to optimize developments combined with the ability to deliver projects on time and on budget has become crucial. As such, with its balance sheet and experienced staff, SBM Offshore is uniquely positioned to create value for customers and investors in today’s oil price environment and thereby utilize its solid foundation for future growth.”

Financial Highlights
Underlying[1] Directional[2] EBITDA of US$778 million and Underlying Directional EPS of US$0.71 per share
Directional revenue of US$2,013 million
Restructuring cost savings of US$260 million, including foreign exchange rate impact; ahead of plan to date
Cash return to shareholders totaling US$211 million for the year in the form of dividend and share repurchases
Cash dividend of US$0.23 per share for 2016, a c.10% increase compared to 2015
Proportional net debt at year-end unchanged at US$3.1 billion, and cash/undrawn credit facilities of US$1.9 billion
2017 Guidance: Directional revenue around US$1.7 billion, Directional EBITDA around US$ 750 million
Recorded adjustments to accounts in-line with 2016 Year-end Update



As reported in the 2016 Year-End Update in December, the 2016 results include a number of non-cash adjustments as a result of its regular year-end review taking into account uncertainties in its outlook for some areas of its operations reflected in its updated business planning assumptions. These adjustments comprise US$90 million in total for the impairment of the Company’s net investment in the Angolan construction yard Paenal and the recognition of an onerous contract for the DSCV SBM Installer. During 2016, the compliance related Brazilian settlement provision was increased by US$36 million, consisting of US$22 million plus a time value of money adjustment[3] of US$14 million. All these amounts have been used to adjust the results for 2016, to arrive at the underlying figures as reported above and throughout this document. 2015 underlying results reflect an adjustment for compliance related items amounting to US$157 million.


Project Review

FPSO
The Company delivered three complex FPSOs to clients during the year. First, FPSO Cidade de Maricá (Brazil) was formally on hire as of February 7, 2016 with an initial charter contract of 20 years. Second, FPSO Cidade de Saquarema (Brazil) was on hire as of July 8, 2016 with an initial charter contract of 20 years. Third, FPSO Turritella (US Gulf of Mexico) was on hire as of September 2, 2016 with an initial lease and operate contract for 10 years with future extension options up to a total of 20 years.

The FPSO Marlim Sul received a decommissioning day rate through the end of the first quarter 2016, and was subsequently formally decommissioned in April 2016 and is currently laid-up in Malaysia.


Turrets & Mooring Systems

Commissioning continues in accordance with clients’ schedules and contractual planning, for the two large, complex turrets for Prelude FLNG and FPSO Ichthys.

Front-End Engineering and Design (FEED) contracts
On December 20, 2016 the Company announced the award by ExxonMobil of FPSO contracts for the Liza development in Guyana, subject to final investment decision. The Company is progressing with the scope for this FEED study.

zie grafieken en lees meer op
http://www.sbmoffshore.com/?press-release=sbm-offshore-2016-full-year-earningse Grafieken en lees meer op

tijd 09.36
De AEX 486.03 +2,52 +0,52% SBM EUR 13,985 -32,5 ct vol. 235.000