SCHIEDAM, Netherlands, Aug. 29, 2005 (PRIMEZONE) -- SBM Offshore (Other OTC:SBMVF):
Highlights
-- Half-year profit of US$ 73.5 million, 46% ahead of prior year
(US$ 50.3 million) in spite of no contribution from shipbuilding
(US$ 4.5 million H1 2004).
-- New orders US$ 902 million in the first six months and additional
awards since 30 June 2005 of over US$ 275 million.
-- Revised 2005 year-end forecast increases from US$ 125 million to
US$ 140 million.
-- Strong market ahead, particularly in the demand for floating
facilities.
1. Half-year results 2005
Financial information in this document has been prepared based on the IFRS standards, including re-statement of 2004 information previously disclosed under Dutch GAAP. Mid-year comparative data also includes the former shipbuilding division for which the decision to divest was taken in August 2004. In the 2005 figures, there is no impact from the (now sold) shipbuilding activities.
The net profit after tax for SBM Offshore N.V. (the Company, formerly IHC Caland N.V.) for the first six months of 2005 was US$ 73.5 million (US$ 2.17 per share) compared with US$ 50.3 million (US$ 1.54 per share) at mid-year 2004, and US$ 100.4 million (US$ 3.04 per share) before exceptional shipbuilding-related charges for the whole of 2004.
Turnover for the 6 months was US$ 607.1 million compared with US$ 655.4 million for mid year 2004, which included US$ 196.9 million for the former shipbuilding division.
EBITDA for the half-year was US$ 205.2 million (US$ 6.07 per share) compared with US$ 181.2 million (US$ 5.56 per share) at mid-year 2004, and US$ 386.4 million (US$ 11.69 per share) before exceptional shipbuilding-related charges for the whole of 2004.
2. Expectations for the full year 2005
Based upon the result of the first six months and potential developments over the remainder of the year, the Company expects that 2005 will generate:
-- Net income of around US$ 140 million (US$ 4.11 per share), of
which roughly 75% will be derived from the lease fleet
operations.
-- EBITDA of around US$ 420 million (US$ 12.35 per share).
-- Capital expenditure of around US$ 450 million compared with US$
235 million in 2004.
3. IFRS
The attached Notes to the condensed consolidated interim financial statements include a statement of compliance with the newly applied IFRS accounting standards, and refer to the separate IFRS Conversion Document which provides details of the impact of IFRS on previously reported results and equity. The principal impacts are:
-- Net income for the 6 months to 30 June 2004 is reduced by US$ 4.3
million.
-- Net income for the full year 2004 is reduced by US$ 18.0 million.
-- Shareholders' equity as at 1 January 2005 is reduced by US$ 35.8
million.
These adjustments result principally from:
-- Depreciation method of tangible fixed assets (straight line
method replaces interest equalisation).
-- Stricter capitalisation criteria for overheads.
-- Using the percentage of completion method for contract work in
progress recognition instead of the completed contract method.
-- Valuation at market value of financial instruments.
For the first two items above, the impact on net profit during construction and the early years of an FPSO lease is negative, with a corresponding positive impact as the lease duration advances.
The IFRS Conversion Document is published on the Company's website: www.sbmoffshore.com (Investor Relations / Financial Reports).
4. New booked orders
New booked orders for the first half-year of 2005 totalled US$ 902 million, compared with US$ 415 million for the first half of 2004, and US$ 1,890 million for the whole year 2004 (including shipbuilding). Order portfolio at 30 June stood at US$ 4,364 million (year-end 2004 - US$ 4,070 million excluding shipbuilding).
The major new orders include:
-- An eight-year lease contract for an FPSO for the development of
the Kikeh field offshore Malaysia, operated by Murphy Sabah Oil
Co Ltd, executed in Joint Venture with Malaysia International
Shipping Corporation Berhad (MISC).
-- A contract from Stolt Offshore for a deepwater oil export system
for BP's Greater Plutonio field offshore Angola.
-- A contract with Daewoo for the supply and installation of the
spread mooring system for Chevron's FPSO for the Agbami field
offshore Nigeria.
-- A contract for the basic design package and the supply of special
components for four jack-up and two semi-submersible drilling
units to be built by Keppel FELS in Singapore for Maersk
Contractors.
-- The confirmation by Enterprise Products of the full scope for the
design and supply of the deep-draft Semi-Submersible platform for
Independence Hub in the Gulf of Mexico.
-- A Purchase Order from BP Trinidad and Tobago LLC for the supply
of an SBM-Imodco built "stock buoy" to replace one of BP's
terminals at the Galeota Point refinery, supplied by the SBM
group in the seventies.
-- A contract from Soilmare S.r.L., for the design and supply of a
complete CALM terminal for the Mellitah Upgrading Project of Agip
Oil Co. Ltd Libya.
-- A contract from Waha Oil Company for the supply of a CALM buoy
for the terminal in Ras El Sider, Libya.
-- Through Delcom Services Sdn Bhd a contract from Murphy Sabah Oil
Co Ltd for the engineering, procurement, construction and
installation of a Gravity Actuated Pipe (GAPTM) system for the
transfer of multiple live produced fluids between a Dry Tree Unit
and the FPSO on the Kikeh Field offshore Malaysia.
-- The order for a very large internal Turret Mooring System for the
Floating Production Unit (FPU) P-53 which will operate Petrobras'
Marlim Leste Field in the Campos Basin, Brazil.
-- A contract from Fred Olsen for the supply of a CALM system to be
installed in the Addax operated Antan field offshore Nigeria.
The following major awards were received since 1 July 2005:
-- A contract from BHP Billiton and its partners for Atlantia
Offshore Limited for the turnkey design and supply of a SeaStar(R)
Tension Leg Platform for the Neptune field, Gulf of Mexico.
-- In consortium with Stolt a contract from Star Deep Water
Petroleum Limited, Nigeria (a Chevron subsidiary) for the design,
supply and offshore installation of a Deepwater Offloading Export
System for the Agbami development offshore Nigeria
The total value of these orders amounts to about US$ 275 million.
5. Market Developments
The increase in contracting activity in the offshore oil and gas industry, which resulted in a satisfactory order intake in the second half of 2004, continued in 2005. The Company has been successful in securing in the first half of the year the lease contract from Murphy Oil for an FPSO for the Kikeh Field offshore Malaysia and a series of medium size turnkey supply orders for a variety of systems out of the product range of the Company.
The order from Murphy for the Gravity Actuated Pipe (GAPTM) fluid transfer system for the Kikeh field will be a first application of this long distance high pressure fluid transfer system, developed and patented by SBM. It is to be expected that the GAPTM will in future facilitate the tie-back of TLP wellhead platforms or other satellite facilities to a central processing FPSO, a trend in many deepwater field development scenarios.
The order from BHP Billiton for the design and supply of a SeaStar(R) TLP for the Neptune field in the Gulf of Mexico, received shortly after midyear, was a welcome addition to the order book of Atlantia. Other prospects have been identified in the Gulf of Mexico for possible further orders for Atlantia later in the year.
Most of the large contracts received during the year 2005 are for facilities producing in deep water and are based on technology recently developed in-house. This is a confirmation of the definite trend in the Oil and Gas Offshore industry and the important role that the Company will continue to play in this market.
The FPSO lease market has seen in the first half of 2005 the entry of new contenders but with the number of identified FPSO prospects on lease as well as sale basis the Company maintains its expectation of award of two FPSO contracts in the remainder of 2005 and a sustained demand for the following years.
6. Financial Agenda
Preliminary Results 2005 30 January 2006 Final Results 2005 - Press Release 29 March 2006 Final Results 2005 - Analysts Presentations (Amsterdam and London) 30 March 2006 Annual Report 2005 Early May 2006 Annual General Meeting of Shareholders 2006 19 May 2006 Half-year Results 2006 - Press Release 28 August 2006 Half-year Results 2006 - Analysts Presentations (Amsterdam and London) 29 August 2006
7. Corporate Profile
The Dutch public company SBM Offshore N.V. is the holding company of a group of international, marine technology orientated companies. Its business is to serve on a global basis the offshore oil and gas industry by supplying engineered products, vessels and systems, and offshore oil and gas production services.
The product line comprises:
-- Offshore import/export terminals for crude oil, refined products,
LPG and LNG, mostly based on the single point mooring principle,
Floating Production and/or Storage and Offloading systems (FSOs
and FPSOs) and other floating production facilities based on ship
hulls, semi-submersibles and Tension Leg Platforms (TLPs).
-- Offshore oil and gas production services through FSOs and FPSOs,
owned and operated by the Company.
-- Offshore construction and installation contracting services.
-- Special designs and engineering services and delivery of specific
hardware components for dynamically positioned drillships,
semi-submersible drilling platforms, jack-up drilling platforms,
jack-up platforms for civil construction, large capacity offshore
cranes, elevating and lifting systems, crane vessels and other
specialised work vessels.
The Board of Management Schiedam, 29 August 2005
For further information: SBM Offshore N.V. Karel Doormanweg 66 3115 JD Schiedam Post address: P.O. Box 31 3100 AA Schiedam The Netherlands
Contact person: Mr. Hans Peereboom, V.P. Investor Relations
Telephone: (+377) 92051434 Fax: (+377) 92058940 E-mail: hans.peereboom@sbmoffshore.com Website: www.sbmoffshore.com
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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