Responding to COVID-19 challenges to safeguard health and safety of staff and protect our assets
Ensuring continuous operation of projects and fleet (uptime of 99.3%) in the current environment
Cost reduction to mitigate COVID-19 impacts and adapt to market circumstances
Year-to-date Directional revenue of US$607 million, in line with expectation
2020 Directional revenue guidance adjusted from “above” to “around” US$2.3 billion
2020 Directional EBITDA guidance maintained at around US$900 million
Final modules for the Johan Castberg Turret Mooring System shipped
US$150 million dividend paid and EUR150 million 2020 share repurchase program completed
Bruno Chabas, CEO of SBM Offshore, commented:
“SBM Offshore delivered a good set of results during the first quarter of 2020, in line with expectations. The Company’s results, the dividend track record and completed share repurchase exemplify SBM Offshore’s robust business model. At the same time, SBM Offshore is also impacted by the combined demand and supply crises in the oil and gas market and is taking measures to evolve and adapt with the uncertain dynamic market conditions.
Our teams are doing a fantastic job managing the current situation. We prioritize the health, safety and wellbeing of our staff, clients and contractors. In our Lease and Operate division, our global task force implemented protocols covering all relevant scenarios to manage business continuity through an extended period of COVID-19 impact. Uptime was maintained at 99.3%, in line with our historical track record. In Turnkey, SBM Offshore continues to execute the projects for its clients. The on-schedule sailaway of the last two modules of the Johan Castberg turret is a good example thereof.
Oil and gas companies have responded to the low oil price environment by delaying and reducing investments. Although the market conditions have worsened across the board, large capacity offshore developments will attract funding in the future. These projects have very competitive break-even prices and will be prioritized in clients’ selection of investment opportunities. SBM Offshore targets this niche with Fast4Ward® and will strengthen its position through this program. Fast4Ward® enhances client development plans through more economical production, safer operations and reliable delivery. Although the number of projects coming to the market will decrease in the short to medium term, SBM Offshore remains disciplined in selecting opportunities and in accepting only that level of risk appropriate to deliver value to all its stakeholders.
SBM Offshore is uniquely positioned not only to weather this crisis but to come out stronger at the end of it.”
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