SBM Offshore revenue up 6% in H1 2014
SBM Offshore’s execution of projects on hand in the first six months of the year led to better than expected revenue growth, the company said in its press release. The Company is making progress towards resolving its compliance issue, as evidenced by the US$240 million provision, secured US$1.45 billion of financing for Cidade de Maricá and signed the Operations & Maintenance contract for FPSO Turritella. Directional¹ Backlog stands at US$21.5 billion. SBM Offshore continued to achieve over 99% uptime across the fleet. The Company delivered the Kikeh brownfield extension project on time and on budget while also reaching a settlement of claims arising from the Deep Panuke project.
Bruno Chabas, CEO of SBM Offshore commented:
“In financial and operational terms, the first half of 2014 has been a period of solid performance. We have also made progress towards the closure of our final legacy issue with a provision against a potential settlement.
The period also presented a significant challenge: our withdrawal from two current tenders in Brazil pending the outcome of the compliance investigation. Nevertheless, the Company has built a decades-long track record of close cooperation with Petrobras. We believe this will provide a basis to resume a successful working relationship, once the investigation is properly completed.
Tendering activity remains high, and there is industry consensus on a substantial number of new FPSOs and turrets due for award in the coming years. Thus, while we remain cautious on the timing of individual awards in the short term, we have a sound basis for confidence in our medium and long term prospects.”
Financial Highlights
Directional¹ revenue ahead of expectations at US$1,729 million
Underlying Directional¹ EBIT decreased by 37% to US$184 million, compared to a strong 1H 2013
Directional¹ Backlog stands at US$21.5 billion, including the O&M contract for the Shell FPSO Turritella
Cash at the end of the period stood at US$154 million; undrawn credit facilities of US$939 million
Net debt at the end of June stood at US$4,302 million, under new IFRS reporting standards
Project financing secured for Cidade de Maricá totaling US$1.45 billion at an average cost of debt of 5.3% with 12 and 14 year maturity tranches
US$240 million provision related to the compliance investigation