Sbm Offshore Stock Price, News & Analysis

SBM Offshore announced a 13% increase in dividend to US$1 per share following a strong performance in 2021, with Directional EBITDA of US$931 million and total cash returns of US$343 million to shareholders. The company reported a record backlog of US$29.5 billion, ensuring cashflow visibility until 2050. The 2022 revenue guidance is projected to exceed US$3.1 billion. CEO Bruno Chabas emphasized the company's commitment to the energy transition and ongoing investment in floating offshore wind technologies.

SBM Offshore has signed a shareholder agreement with Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha, acquiring respective 25% and 20% stakes in the FPSO Almirante Tamandaré operation. SBM retains a 55% majority interest. The FPSO, currently under construction, is set to operate at Brazil's Búzios field under a 26.25 year lease with Petrobras, expected to produce first oil in the second half of 2024. As of December 31, 2020, SBM Offshore had approximately 4,570 employees worldwide.

SBM Offshore announces the proposed appointment of Øivind Tangen as Chief Operating Officer and member of its Management Board, effective April 6, 2022. Tangen, with 19 years at the company, is currently the Managing Director overseeing the Lease and Operate segment. His expertise in engineering and project execution aligns with SBM Offshore's commitment to operational excellence and energy transition strategy. Philippe Barril will transition to Chief Transition Officer, enhancing the team's focus on new energies while Douglas Wood remains CFO, adding Communications to his responsibilities.

SBM Offshore has secured a US$620 million bridge loan to finance the construction of the FPSO Alexandre de Gusmão, which will operate in Brazil's Mero field. The facility, arranged by a special purpose company, will be fully drawn shortly and has a 12-month term with a potential 6-month extension. SBM Offshore currently owns the entire company and is negotiating a 45% equity divestment to partners. The loan's repayment will occur upon project loan closure and initial drawdown.

SBM Offshore has signed a 22.5-year contract with Petrobras for the lease and operation of the FPSO Alexandre de Gusmão. This contract follows a binding Letter of Intent announced on August 3, 2021. The FPSO will be deployed in the Mero field, located 160 km offshore Brazil, under the Libra Consortium, where Petrobras holds a 40% stake. The company is utilizing its Fast4Ward® program for construction, with first oil anticipated in 2025.

On November 23, 2021, SBM Offshore reported the termination of a criminal investigation by the Swiss Public Prosecutor, concluding a six-year inquiry into bribery allegations involving its subsidiaries. The Company agreed to pay a total of 7.0 million CHF (approximately USD 7.6 million) as part of a penalty. Chief Governance and Compliance Officer Erik Lagendijk emphasized the Company’s commitment to compliance and integrity following this resolution, which parallels previous resolutions in the Netherlands, the U.S., and Brazil. SBM Offshore operates in the offshore energy sector, employing around 4,570 individuals globally.

SBM Offshore has secured contracts to execute Front End Engineering and Design (FEED) for a Floating Production, Storage and Offloading vessel (FPSO) for the Yellowtail project in Guyana. The contract initiates funding from ExxonMobil's subsidiary, allowing for FEED activities. The FPSO will produce 250,000 barrels of oil per day and is expected to begin operations in 2025, following government approvals. Notably, SBM has partnered with McDermott, holding 70% ownership in a special purpose company to enhance project execution.

SBM Offshore has announced the proposal to appoint Hilary Mercer as a member of the Supervisory Board during the Annual General Meeting on April 6, 2022. Mercer, a Senior Vice President at Shell Chemicals with over 34 years of experience, will initially serve as an advisor to the board. This leadership change may bring fresh perspectives to the company, which specializes in the design and operation of floating production systems for the offshore energy sector. The AGM will provide further details on this appointment.

On November 11, 2021, SBM Offshore reported a solid financial performance for Q3 2021, despite ongoing COVID-19 challenges. Directional EBITDA guidance for 2021 remains at approximately US$900 million, while revenue guidance was revised down from US$2.6 billion to above US$2.3 billion due to delayed partner entry into a joint venture. Year-to-date, US$4.1 billion in project financings has been arranged, supporting a strong order book. Operational uptime stands at 99.2%, reflecting effective management amidst pandemic restrictions.