SBM Offshore NV (STU:IHCB)

Half Year 2026 SBM Offshore NV Earnings Call Transcript

Aug 6, 2026 / 08:00 AM GMT

Release Date Price: €35 (+12.83%)

Transcript

Key Points

Positve

SBM Offshore NV (SBFFF) delivered a strong first half of 2026, with directional revenue increasing to $4.9 billion and directional EBITDA reaching $1.3 billion, nearly doubling year-over-year.
The company secured significant new contracts, including the FPSO SEAP 1 and SEAP 2 awards from Petrobras and a feed contract for ExxonMobil Guyana's long-tail development, boosting its record backlog to $35.6 billion.
SBM Offshore NV (SBFFF) raised its full-year 2026 guidance, increasing directional revenue to around $7.6 billion and directional EBITDA to around $1.9 billion, reflecting strong execution and commercial momentum.
The company's fleet continues to perform exceptionally well, with uptime around 99% across 16 operating units, and it has successfully delivered around 140,000 barrels of additional oil production above initial nameplate capacity through debottlenecking.
SBM Offshore NV (SBFFF) is on track to deliver a minimum of $2.1 billion in shareholder returns for 2026-2031, with a 7.2% cash yield based on the end-June share price, and has a strong pipeline of over 40 potential FPSO awards globally.
The company is scaling its execution capacity beyond its stated in-house limit of six FPSOs through standardization, replication, and strategic partnerships, allowing for further growth without compromising discipline.
SBM Offshore NV (SBFFF) completed the sale of FPSO One Guyana and finalized the divestment of a minority interest in FPSO Dalji, significantly reducing net debt to $3.7 billion and lowering pro forma leverage to around 1.6 times EBITDA.

Negative

SBM Offshore NV (SBFFF) reported a fatality at one of its subcontractor's yards in China, which, while not impacting schedules, is a serious incident requiring thorough investigation and could affect future operations in the region.
The company's net cash backlog decreased slightly from year-end due to the deconsolidation of FSO Chaoqi's cash flow and the sale of One Guyana, highlighting the volatility of the sale-and-operate model.
SBM Offshore NV (SBFFF) faces potential upward movement in leverage this year due to debt drawdowns on Jaguar and Chaoqi and timing differences in milestone payments, which could cause temporary fluctuations in net debt.
The company's turnkey overhead costs are around $100 million per year, which are not fully covered by the current net cash backlog, potentially diluting future margins if new awards are not secured.
SBM Offshore NV (SBFFF) noted an increasingly complex and volatile environment, which could pose risks to operational activities and commercial prospects, despite the company's resilient performance.
The company's working capital has been a significant drag, with around $450 million in the first half of 2026, and this is expected to continue as it invests in new hulls and takes on more sale-and-operate contracts.
SBM Offshore NV (SBFFF) is facing intense competition in the bidding process for the Venus project in Namibia, and while it maintains discipline on returns, losing this strategic opportunity could impact its positioning in the region.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SBMO.AS - SBM Offshore N.V.
Half Year 2026 SBM Offshore NV Earnings Call
Aug 06, 2026 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for holding and welcome to the SBM Offshore Half-Year 2026 earnings. At this moment, all participants are in a listen-only mode. After the presentation, there will be an opportunity to ask questions by pressing *11. Just to remind you, this conference is being recorded. I would now like to hand the conference over to Mr. Owen Tangen. Please go ahead.

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Unidentified_2 [2]
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Thank you, operator.

Good morning, everyone. And welcome to SBM Offshore's Half Year 2026 Earnings Call.

I am Ewien Tangen, CEO of SBM

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