Half Year 2024 SBM Offshore NV Earnings Call Transcript
Key Points
- SBM Offshore NV (SBFFF) reported a significant increase in EBITDA, up nearly 40% to $620 million, prompting an upward revision of the full-year guidance to around $1.3 billion.
- The company's backlog reached a record level of $33.7 billion, driven by the award of the Jaguar FPSO contract, translating into $9.6 billion of net cash.
- A new share buyback program of EUR65 million was announced, in addition to the previously announced EUR65 million buyback, reflecting strong financial performance.
- SBM Offshore NV (SBFFF) successfully launched its eighth Fast4Ward MPF hull, reserved by TotalEnergies for the Block 58 development in Suriname, and ordered a ninth hull to maintain market positioning.
- The company is expanding into new strategic regions, securing a 20-year lease and operate contract for the FSO supporting Woodside's Trion field development project in Mexico.
- The company's uptime for the first half of 2024 was slightly lower than usual at 96.4%, due to shutdowns in two units, impacting operational performance.
- Net debt increased by $455 million, reflecting drawdowns to support the current construction portfolio, which could affect financial flexibility.
- The Angola business rationalization resulted in a negative impact on EBITDA, although it was partially offset by other factors.
- Despite strong performance, the company faces challenges in maintaining its competitive edge in a tight supply chain market, necessitating strategic planning.
- The transition to new business models, such as sale and operate, introduces variability in cash flow and margin, requiring careful management.
Ladies and gentlemen, thank you for holding, and welcome to the SBM Offshore half year 2024 earnings. (Operator Instructions). And just to remind you, this conference is being recorded.
I'd like to hand over the conference to Mr. Oivind Tangen. Please, go ahead.
Welcome, everybody, to the SBM Offshore half year 2024 earnings call, and thank you for joining us. I'm Oivind Tangen, CEO of SBM Offshore; and I'm joined today by Douglas Wood, our CFO. I will start with our main achievements for the half year, after which, Douglas will go through our financials before I conclude. As always, we welcome your questions after the prepared section of this call.
Thanks to our great teams, we have delivered an excellent performance over the first half. Under our Ocean Infrastructure platform, which covers our existing business under Turnkey and lease and operate, we delivered a strong set of financial results, with EBITDA increasing versus the same period last year
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