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    SBMO   NL0000360618

SBM OFFSHORE N.V

(SBMO)
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SBM Offshore N : Q1 2021 Trading Update

05/12/2021 | 01:26am EDT

Press Release

SBM Offshore First Quarter Trading Update

May 12, 2021

Highlights

  • Year-to-dateUnderlying1 Directional2 revenue of US$536 million, in line with expectation
  • Full year 2021 Revenues and EBITDA guidance maintained
  • Awarded LOI for FPSO Almirante Tamandaré; fourth Fast4Ward® hull allocated to project
  • Pro-formabacklog and cashflow visibility extended until 2050
  • Cash dividend of US$165 million paid, representing 10% year-on-year increase

Bruno Chabas, CEO of SBM Offshore, commented:

"SBM Offshore's results over the first quarter of 2021 are in line with our expectation and we maintain our guidance for the full year. Despite the continuing challenging environment due to the pandemic, our operating performance was strong and our major projects under construction are progressing as expected.

Our increased dividend represents a cash yield of more than 5%. This dividend is underpinned by the infrastructure platform of our Lease and Operate backlog which now brings cash flow visibility up to 2050.

Our core business is going through a significant growth phase with four major FPSO projects under construction. World- class deep water projects continue to rank among the most attractive investments available to our clients. Our Fast4Ward® and emissionZEROTM FPSO programs provide industry-leading cost and carbon efficient solutions to help clients maximize value from these investments.

We believe that SBM Offshore has a significant role to play in satisfying the world's future energy demand using our experience and technology both to offer low emission production solutions and new solutions for the energy transition. Our New Energies business is making good progress in maturing our innovative technology as well as strategically positioning the Company to benefit from expected growth in market demand."

  1. Underlying 2021 revenue and EBITDA exclude one-off effects to enable comparison of like-for-like underlying performance with 2020.
  2. Directional view, presented in the Financial Statements under Operating segments and Directional Reporting, represents a pro-forma accounting policy, which assumes all lease contracts are classified as operating leases and all vessel investees are proportionally consolidated. This explanatory note relates to all Directional reporting in this document.

SBM OFFSHORE N.V. Press Release - May 12, 2021

1

Press Release

Financial Highlights

in US$ million

Revenue

Lease and Operate

Turnkey

Underlying Revenue

Lease and Operate

Turnkey

in US$ million

Item impacting Underlying Revenue

Deep Panuke redelivery - 2021 cash receipts

in US$ billion

Net Debt

Backlog calculation will be provided in HY21 Earnings Update

YTD Directional

1Q 2021

1Q 2020

% Change

513

607

-15%

360

407

-12%

153

200

-24%

536

607

-12%

383

407

-6%

153

200

-24%

1Q 2021

1Q 2020

23

-

Mar-31-21

Dec-31-20 % Change

4.3

4.1

5%

Underlying Directional revenues for the first quarter of the year came in at US$536 million compared with US$607 million in the first quarter of 2020. This decrease mainly resulted from a lower contribution from the Turnkey segment, where the first quarter in 2020 benefited from the Johan Castberg turret project delivery.

SBM Offshore's Turnkey division currently has four major projects under construction. Generally, SBM Offshore does not

report Turnkey revenues on Lease and Operate projects that are 100% owned, such as the FPSOs Liza Unity, Prosperity and currently the FPSO Almirante Tamandaré. Contribution of these projects to Turnkey revenue is limited to upfront payments and variation orders directly paid by the clients before the start of the lease. Turnkey revenue is recognized on the 35% partners share in construction work for FPSO Sepetiba. The results of these projects will appear in future years as the vessels commence production.

First quarter Underlying revenue in Lease and Operate decreased by 6% compared with the same period last year. This decrease was mostly due to additional scope related to the decommissioning of Deep Panuke platform in the first quarter of 2020.

Underlying Directional revenue includes US$23 million related to cash received from the client during the first quarter of 2021 from the Deep Panuke contract. The expected cash receipts in 2021 from this contract were excluded from the Underlying 2020 Revenues as reported in the Full Year 2020 Earnings Update. Please refer to Post-Period Events section for an update on the Deep Panuke contract.

Compared with year-end 2020, net debt as at the end of the first quarter increased by c. US$200 million to US$4.3 billion. While Lease and Operate continues to generate strong operating cash flow, with four major projects under construction, SBM Offshore continues to invest in growth.

Project Review

Construction activities for SBM Offshore's major projects continue to face challenges related to the pandemic. The teams continue to overcome the difficulties posed by remote working, travel restrictions and protocols with compulsory quarantine. The ultimate delivery of major projects is not considered at risk, based on currently known circumstances.

FPSO Liza Destiny

On FPSO Liza Destiny, further work is being done on elements of the flash gas compression system which is expected to be delivered during the month of July 2021. Additionally, plans initiated in 2020 are progressing to install a redesigned third stage flash gas compression system at the end of this year. SBM Offshore is continuing to work closely with the client and with the equipment manufacturer in order to expedite resolution of the situation.

SBM OFFSHORE N.V. Press Release - May 12, 2021

2

Press Release

FPSO Liza Unity

Following the completion of the topside lifting campaign during Q1 2021, work is further progressing on integration and commissioning stages. The project continues to target first oil in 2022 in line with client planning.

FPSO Sepetiba

The Fast4Ward® hull was successfully launched out of drydock during Q1 2021. Module fabrication is further progressing in China and Brazil. The planned completion of the FPSO project is at the end of 2022.

FPSO Prosperity

The topsides fabrication started in the yards in Singapore. The project is progressing according to schedule with a planned completion in 2024. To further develop local capabilities, Guyanese companies were awarded contracts and started the fabrication of FPSO components in Guyana. In addition, Guyanese engineers have been hired and integrated into the project execution team.

FPSO Almirante Tamandaré

The Letter of Intent for FPSO Almirante Tamandaré was signed during Q1 2021. The Fast4Ward® multipurpose floater (MPF) hull construction as well as engineering and procurement activities are progressing in line with project schedule. Delivery of the FPSO is expected in the second half of 2024.

Fast4Ward® MPF hulls

Under the Company's Fast4Ward® program, the total number of MPF hulls ordered to date stands at six. Four MPF hulls are allocated to FPSOs Liza Unity, Sepetiba, Prosperity and Almirante Tamandaré. Two MPF hulls are supporting ongoing tendering activity.

Operational Update

Fleet uptime during the first quarter of 2021 was 98.6% despite continued challenges brought by the COVID-19 pandemic.

The health of our staff and safe operations remain the Company's priority. Preventive and reactive measures implemented

offshore and onshore last year have been successful to date and remain in place. After working for more than a year under these special conditions, attention is given to fatigue management with additional personnel mobilized for critical positions. The Company will continue to focus on protecting its personnel while minimizing impact on operations.

Energy Transition and ESG

SBM Offshore is playing an active role in developing technology to support the energy transition. This is demonstrated by the progress of the Floating Offshore Wind project and Wave Energy Convertor S3® prototype.

The Company measures performance against the United Nations' Sustainable Development Goals related targets and seeks improvement opportunities. This program includes emission reduction from the fleet. SBM Offshore is also investing in emissionZERO™ which aims to bring to market an FPSO with near zero emissions.

SBM Offshore's sustainability performance continues to be recognized by external rating agencies with inclusion in the S&P Global Sustainability Yearbook 2021 and the award of "Industry Mover" distinction demonstrating continuous commitment to sustainability and related performance improvement.

The Total Recordable Injury Frequency Rate was 0.13 over the first quarter of 2021, compared with the 2021 target of 0.18.

SBM OFFSHORE N.V. Press Release - May 12, 2021

3

Press Release

Post-Period Events

Deep Panuke

During the first quarter of 2021, SBM Offshore received notification, effective as of April 1, 2021, from the client of Deep Panuke project who elected to pay the contractually agreed lump sum amount replacing the initial contractual charter payments up to Q4 2021. The lump-sum payment (c. US$55 million) was received in April. The cash balance in the debt service account combined with part of the lump-sum payment was used to redeem the outstanding debt held by the noteholders who opted for early repayment, for an amount of c. US$50 million. The noteholders owning the remainder of the debt (c. US$20 million) opted to retain the notes until expiry in December 2021.

Dividends

On April 7, 2021, shareholders of the Company voted in favor of the proposed dividend of US$165 million, which represents an increase of 10% compared to last year. It resulted in a dividend distribution of US$0.8854 or €0.7439 per ordinary share. The dividend was paid on May 6, 2021 to all shareholders of record as at April 12, 2021.

Guidance

The Company's 2021 Directional revenue guidance is maintained at around US$2.6 billion, of which around US$1.6 billion is expected from the Lease and Operate segment and around US$1 billion from the Turnkey segment. 2021 Directional EBITDA guidance is maintained at around US$900 million for the Company.

This guidance includes Directional revenues and EBITDA of US$75 million related to the cash received in 2021 from the Deep Panuke contract, which was recognized in 2020 and excluded from the 2020 underlying results. It also considers the currently foreseen COVID-19 impacts on projects and fleet operations. The Company highlights that the direct and indirect impact of the pandemic could continue to have a material impact on the Company's business and results and the realization of the guidance for 2021.

Conference Call

SBM Offshore has scheduled a conference call, which will be followed by a Q&A session, to discuss the First Quarter 2021 Trading Update.

The event is scheduled for Wednesday, May 12, 2021 at 10.00 AM (CEST) and will be hosted by Bruno Chabas (CEO), Douglas Wood (CFO), Philippe Barril (COO) and Erik Lagendijk (CGCO).

Interested parties are invited to register prior to the call using the link: https://www.kpneventcall.nl/EventRegistration/6e5808a0-6b80-4b69-be24-ed0872382e3b

Please note that the conference call can only be accessed with a personal identification code, which is sent to you by email after completion of the registration.

A replay will be available shortly after the end of the conference call. Interested parties can listen to the replay by dialing +31 (0) 20 785 1180 and using access code 244995# until June 12, 2021.

SBM OFFSHORE N.V. Press Release - May 12, 2021

4

Press Release

Corporate Profile

The Company's main activities are the design, supply, installation, operation and the life extension of floating production solutions for the offshore energy industry over the full lifecycle. The Company is market leading in leased floating production systems, with multiple units currently in operation.

As of December 31, 2020, the Company employed approximately 4,570 people worldwide spread over offices in our key markets, operational shore bases and the offshore fleet of vessels.

SBM Offshore N.V. is a listed holding company headquartered in Amsterdam, the Netherlands. It holds direct and indirect interests in other companies.

Where references are made to SBM Offshore N.V. and /or its subsidiaries in general, or where no useful purpose is served by identifying the particular company or companies "SBM Offshore" or "the Company" are sometimes used for convenience.

For further information, please visit our website at www.sbmoffshore.com.

The Management Board

Amsterdam, the Netherlands, May 12, 2021

Financial Calendar

Date

Year

Half Year 2021 Earnings - Press Release

August 5

2021

Trading Update 3Q 2021 - Press Release

November 11

2021

Full Year 2021 Earnings - Press Release

February 10

2022

Annual General Meeting

April 6

2022

Trading Update 1Q 2022 - Press Release

May 12

2022

SBM OFFSHORE N.V. Press Release - May 12, 2021

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

SBM Offshore NV published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 05:25:02 UTC.


© Publicnow 2021
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Financials (USD)
Sales 2021 2 431 M - -
Net income 2021 111 M - -
Net Debt 2021 5 652 M - -
P/E ratio 2021 21,9x
Yield 2021 7,94%
Capitalization 2 227 M 2 619 M -
EV / Sales 2021 3,24x
EV / Sales 2022 3,57x
Nbr of Employees 4 506
Free-Float 74,3%
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Technical analysis trends SBM OFFSHORE N.V
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Income Statement Evolution
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Mean consensus BUY
Number of Analysts 9
Last Close Price 12,02 $
Average target price 23,25 $
Spread / Average Target 93,5%
EPS Revisions
Managers and Directors
Bruno Yves Raymond Chabas Chief Executive Officer
Douglas H. M. Wood Chief Financial Officer
Roeland Ijsbrand Baan Chairman-Supervisory Board
Philippe Barril Chief Operating Officer
Erik Lagendijk Chief Governance & Compliance Officer
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