SBM Offshore (SBMO) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results with EBITDA up 36% to $620 million and revenue rising 23% to $1.84 billion, driven by project execution and new contract awards.

• Backlog reached a record $33.7 billion, up $3.4 billion from year-end 2023, supported by FPSO Jaguar and FSO Trion awards, and new contracts in Mexico and Suriname.

• Launched an additional €65 million share buyback, doubling the program to €130 million, now 58% complete, reflecting confidence in cash flow and liquidity.

• Maintained strong safety performance with TRIFR at 0.09 and fleet uptime at 96.4% despite some unit shutdowns.

• Launched Ekwil JV for floating offshore wind and signed MoU for low-emission floating power generation.

Financial highlights

• EBITDA increased to $620 million from $457 million year-over-year; revenue rose to $1.84 billion from $1.5 billion.

• Lease and Operate revenue rose 26% to $1.178 billion, EBITDA up 24% to $679 million; Turnkey revenue up 19% to $662 million, EBITDA loss narrowed to $(12) million.

• Directional net debt increased to $7.1 billion as of June 2024, with net cash balance at $495 million.

• Net cash backlog now includes turnkey, BOT, and lease and operate segments, providing a more comprehensive view.

• Directional net profit rose to $128 million from $36 million year-over-year; EPS up 257% to $0.71.

Outlook and guidance

• 2024 Directional EBITDA guidance raised to around $1.3 billion; revenue guidance increased to above $3.8 billion, with Lease and Operate expected at $2.4 billion and Turnkey above $1.4 billion.

• At least 50% of new awards expected to use the sale and operate model, accelerating cash flow and reducing leverage.

• Near zero emission FPSO expected to be market-ready in 2025.

• Guidance may be revised if FPSOs Prosperity and Liza Destiny are purchased in 2024.

• Increased $1.4 billion cash return commitment to shareholders through 2030.