SBM Offshore (SBMO) H2 2024 earnings summary

Executive summary

• Achieved record revenue of $6.1 billion (+35% YoY) and EBITDA of $1.9 billion (+44% YoY), with a record $35.1 billion backlog and $9.5 billion net cash backlog as of December 31, 2024.

• Net profit rose 73% year-over-year to $907 million ($5.08/share), driven by strong Turnkey and Lease & Operate performance.

• Shareholder returns increased 30% to $1.59/share, with $155 million dividend and $150 million share buyback, totaling $1.7 billion planned through 2030.

• Three new FPSO start-ups contributed to a total installed fleet capacity of 2.7 million barrels per day by 2025.

• Strategic focus on decarbonization, innovation, and expansion into new markets and technologies.

Financial highlights

• Revenue reached $6,111 million in 2024, up from $4,532 million in 2023 (+35% YoY), mainly from the Turnkey segment.

• EBITDA rose to $1,896 million from $1,319 million (+44% YoY), with significant contributions from FPSO sales and project services.

• Net income attributable to shareholders increased to $907 million from $524 million; EPS $5.08 (+74% YoY).

• Net debt reduced by nearly $1 billion to $5.7 billion, with a net leverage ratio of 3x EBITDA.

• Lease & Operate revenue grew to $2,369 million, reflecting new startups and acquisitions.

Outlook and guidance

• 2025 revenue guidance above $4.9 billion, with $2.2 billion from Lease & Operate and $2.7 billion from Turnkey.

• 2025 EBITDA guidance around $1.55 billion.

• Minimum $1.7 billion cash return to shareholders planned over the next 6 years.

• Strong market outlook with 40 FPSO prospects in the next three years, 16 in the core large/complex segment.

• Three major project startups expected in 2025, boosting installed capacity to 2.7 million barrels/day.