Faster Forward
SBM Offshore continues to deliver solid results. Turnkey is ramping up on the back of recent order wins in a market where recovery is gaining momentum. Both major projects in Turnkey, the Castberg turret mooring system and FPSO Liza 1, are progressing according to client schedule. The Company was awarded the Front End Engineering and Design (FEED) study for FPSO Liza 2. The next phase for this major project will represent SBM Offshore’s first Fast4WardTM project, subject to final authorizations. FPSO Liza 2 will be the largest capacity FPSO the Company has ever delivered, at the same time following an accelerated time schedule.

Post period, SBM Offshore signed a Leniency Agreement with authorities in Brazil and Petrobras, with payment amounts in line with its provision. The agreement marks a key milestone towards a closure of the Company’s legacy issues in Brazil, allowing the pursuit of new Petrobras tenders.

The market outlook shows signs of a cycle turning following years-long under-investment in oil and gas production infrastructure. SBM Offshore has positioned itself over the last five years to benefit from this, retaining experience and investing in Fast4WardTM. This program enables the Company to deliver larger capacity FPSOs faster, on a de-risked schedule using a standard new-build hull with a number of standardized topsides’ modules.

Bruno Chabas, CEO of SBM Offshore, commented:

“Building on our long history and experience, we are entering a new phase. Our Lease and Operate business has helped stabilize the Company through one of the longest and deepest oil and gas services crises in living memory and is continuing its record of strong operational performance and cash flow delivery. During the downturn, we invested in the industry-changing Fast4WardTM concept, capitalizing on the Company’s unique experience in project delivery and offshore operations. Our first Fast4WardTM based contract and the level of client endorsement demonstrate that the concept is winning the confidence of the industry. We intend to apply the Fast4WardTM philosophy to our overall offering of products and services leveraging also the investments we are making in digitalization. Today, with full access to all markets, SBM Offshore is looking forward with confidence on the basis of increased demand, its strong strategic position and its uniquely experienced work force.”

Highlights
Underlying[1] year-to-date Directional[2] revenue of US$808 million and Directional EBITDA of US$414 million in line with the same period last year, with strong operational performance compensating for the impact from FPSO Turritella leaving the fleet
An additional US$233 million EBITDA realized from the sale of FPSO Turritella and the net impact of an additional settlement for the Yme insurance claim
Underlying Directional profit attributable to shareholders[3] increased by 17% to US$81 million compared with first half of 2017, resulting in Underlying Directional EPS of US$0.40 per share
Directional net debt[4] decreased by US$0.6 billion compared with year-end 2017 to a total of US$2.3 billion
Confirmed award for FPSO Liza 2 contracts by ExxonMobil, representing SBM Offshore’s largest and first Fast4WardTM FPSO, next phase contracts (construction and installation) subject to authorizations
Leniency Agreement signed with authorities in Brazil (CGU, AGU)[5] and Petrobras on July 26, 2018; enabling SBM Offshore to compete in new tenders for Petrobras in Brazil
2018 Directional revenue guidance adjusted to around US$1.7 billion with US$1.3 billion from Lease and Operate and around US$400 million from Turnkey due to a revised assumption of FPSO Liza 1 remaining fully Company-owned
Underlying 2018 Directional EBITDA guidance maintained at around US$750 million, excluding positive effects from the sale of FPSO Turritella and an additional Yme settlement but including the effect of early adoption of IFRS 16


The 2018 Half Year Results and Interim Financial Statements are published on the Company’s website under https://www.sbmoffshore.com/investor-relations-centre/financial-information/financial-results/half-year-results/.

or
https://www.sbmoffshore.com/?press-release=sbm-offshore-2018-half-year-earnings

tijd 11/07
SBM EUR 13.765 +63ct vol. 880.775