SBM OFFSHORE PROVIDES 2014 YEAR END UPDATE

December 17, 2014

As the Company nears its fiscal year end, the Management Board confidently confirms its FY2014 Directional^[1] revenue guidance of at least US$3.3 billion. 

Bruno Chabas, CEO of SBM Offshore, commented:

"Management recognizes the anxiety caused in the markets by the sharp decline in the price of oil.  At the same time Management would like to emphasize that 90% of the Company's US$21.8 billion backlog, as of the end of September 2014, consists of future lease and operate income with dayrates that are not dependent on oil prices or on production levels, which will continue to generate income and liquidity for many years to come."

Ahead of the scheduled FY2014 earnings announcement^[2], SBM Offshore further announces^[3]:

HIGHLIGHTS

• Revolving Credit Facility renewal completed increasing facility to US$1 billion
• Reversal of US$109 million impairment charge on Thunder Hawk platform
• Non-cash charge of US$56 million related to Deep Panuke production facility
• Impairment of approximately US$50 million related to contractual dispute
• DSCV SBM Installer  sale and leaseback transaction closed and US$150 million received
• One-off extra US$40 million provision for the Warranty Fund

Revolving Credit Facility

SBM Offshore is pleased to announce that on December 16, 2014 it signed the renewal of its Revolving Credit Facility (RCF) which will mature January 30, 2020 with two additional one year extension options.  The new US$1 billion facility has been secured with a select group of 12 core relationship banks and replaces the existing facility of US$750 million that was due to expire in mid-2015.

Under the new facility, the terms and conditions have been significantly improved.  This should allow the Company to stay firmly within its financial covenants in the coming years despite the ongoing investments in 3^rd generation projects under construction.

The following financial institutions are syndicate participants:

Bookrunning Mandated Lead Arrangers: Rabobank (Documentation Agent), ING Bank N.V. (Facility Agent), ABN AMRO Bank N.V., The Bank of Tokyo-Mitsubishi UFJ N.V., Mizuho Bank N.V., Natixis S.A. and Societe Generale CIB.

Mandated Lead Arrangers: DNB Bank ASA, Citibank N.A., Credit Agricole CIB, The Royal Bank of Scotland PLC, and Barclays Bank PLC.

^[3] Updates reflect recent events and insights acquired since the publication of the 1H14 results

Thunder Hawk

Following the September 16, 2014 announced signing of a Production Handling Agreement with Noble Energy, SBM Offshore has reversed the previously taken US$109 million write downs incurred on the semisubmersible facility in the US Gulf of Mexico.

Deep Panuke

SBM Offshore has reduced the useful life of the Deep Panuke Production Field Centre to eight years in line with the fixed contract period.  This adjustment results in a non-cash impairment charge of approximately US$56 million.  The eight year firm contract revenue will not be affected by today's announcement.

Financial Asset Impairment

The Company is taking a one-off impairment charge (non-cash) of approximately US$50 million related to a financial asset following a dispute with a US-based client.

Warranty Fund

SBM Offshore has taken the decision to make an additional provision for warranties at year-end of US$40 million.

SBM Installer

On December 1, 2014 SBM Offshore announced the US$150 million all cash sale of the Diving Support and Construction Vessel (DSCV) SBM Installer to OS Installer AS.  The Company is pleased to confirm that OS Installer AS, a new established Joint Venture between Ocean Yield (75%) and SBM Offshore (25%), has secured bank financing and the transaction has closed.  Net of the retained equity interest in the Joint Venture, the Company has received US$140 million in proceeds.

Cidade de Ilhabela

On November 24, 2014 SBM Offshore announced that FPSO Cidade de Ilhabela was officially on hire after achieving first oil and completing a 72 hour continuous production test leading to Production Acceptance Notice.  Following the notification of our Joint Venture partner, Queiroz Galvão Óleo e Gás S.A (QGOG), not to exercise a call option on a further 12.75% equity participation stake in the project, SBM Offshore is pleased to retain a 62.25% share in the Joint Venture.  

SBM Offshore N.V. is a listed holding company that is headquartered in Schiedam. It holds direct and indirect interests in other companies that collectively with SBM Offshore N.V. form the SBM Offshore group ("the Company").

SBM Offshore provides floating production solutions to the offshore energy industry, over the full product life-cycle.  The Company is market leading in leased floating production systems with multiple units currently in operation, and has unrivalled operational experience in this field.  The Company's main activities are the design, supply, installation, operation and the life extension of Floating Production, Storage and Offloading (FPSO) vessels.  These are either owned and operated by SBM Offshore and leased to its clients or supplied on a turnkey sale basis.

Group companies employ over 10,500 people worldwide, who are spread over five execution centres, eleven operational shore bases, the joint ventures with several construction yards and the offshore fleet of vessels.  Please visit our website at www.sbmoffshore.com.

The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate entities.  In this communication "SBM Offshore" is sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general, or where no useful purpose is served by identifying the particular company or companies.

The Management Board

Schiedam, The Netherlands, December 17, 2014

For further information, please contact:

Investor Relations

Nicolas D. Robert

Head of Investor Relations

Media Relations

Anne Guerin-Moens

Group Communications Director

Disclaimer

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company's business to differ materially and adversely from the forward-looking statements. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "may", "will", "should", "would be", "expects" or "anticipates" or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans, or intentions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

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