SBM OFFSHORE 2016 YEAR END UPDATE
08 December 2016 - 4:03AM
December 7, 2016
As the Company nears its year end, and ahead of
the scheduled FY2016 earnings announcement, the Management Board
announces the following non-cash adjustments to its accounts, which
are the result of its regular year-end review taking into account
uncertainties in outlook for certain areas of its operations
reflected in its updated business planning assumptions1:
Summary
- Impairment of net investment in construction yard Paenal in
Angola of approximately US$60 million
- Recognition of DSCV SBM Installer long term charter as onerous
contract at a cost of approximately US$30 million
Investment in JV holding Construction Yard
Paenal
The activity outlook for SBM Offshore's
investment (30% ownership) in the Joint Venture owning the Paenal
construction yard operating in Angola has deteriorated. As a
result, the Company's carrying amount for the net investment in
this entity is to be impaired by approximately US$60 million.
Because this investment is consolidated using the equity method,
this non-cash impairment is recognized in the Company's
Consolidated Income Statement on the line item share of profit of
equity-accounted investees.
DSCV SBM Installer Charter Contract
SBM Offshore has a long-term charter contract
with the Diving Support and Construction Vessel (DSCV) SBM
Installer. Due to the ongoing industry downturn, which has
created significant over-supply in offshore markets, the vessel's
projected utilisation has decreased. As a result, the contract is
classified as onerous and a non-cash provision of approximately
US$30 million is to be recognized in the Gross Margin of the
Turnkey segment. SBM Offshore's investment (25% ownership) in the
Joint Venture which owns the vessel is consolidated using equity
accounting.
Outlook and Guidance
The Company confirms its FY2016 Directional2
revenue guidance of at least US$2.0 billion. Including the above
charter contract provision of approximately US$30 million
Directional2 FY2016 EBITDA guidance is around US$720 mln, compared
to the previous guidance of around US$750 million. However on an
underlying basis, adjusting for the aforementioned provision and
the increase in compliance related settlement provision of US$22
million reported in the 2016 Half Year Earnings, underlying
Directional2 FY2016 EBITDA guidance is around US$ 770 million.
Corporate Profile
SBM Offshore N.V. is a listed holding company
that is headquartered in Amsterdam. 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.
As of December 31, 2015, Group companies employ
approximately 7,000 people worldwide. Full time company
employees totaling 4,900 are spread over five regional centres,
eleven operational shore bases and the offshore fleet of
vessels. A further 2,100 are working for the joint ventures
with several construction yards. 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 BoardAmsterdam, the Netherlands,
December 7, 2016
Financial Calendar |
Date |
Year |
Full-Year 2016 Earnings - Press Release |
February 8 |
2017 |
Annual General Meeting of Shareholders |
April 13 |
2017 |
Trading Update 1Q 2017 - Press Release |
May 10 |
2017 |
Half-Year 2017 Earnings - Press Release |
August 8 |
2017 |
Trading Update 3Q 2017 - Press Release |
November 7 |
2017 |
For further information, please
contact:
Investor RelationsBert-Jaap
DijkstraInvestor Relations Director
Telephone: |
+31 (0)
20 236 3222 |
Mobile
NL:Mobile MC: |
+31 6
2114 1017+33 6 4391 9302 |
E-mail: |
bertjaap.dijkstra@sbmoffshore.com |
Website: |
www.sbmoffshore.com |
Media RelationsVincent KempkesHead of
Communications
Telephone: |
+31 (0)
20 2363 170 |
Mobile: |
+31 (0)
6 25 68 71 67 |
E-mail: |
vincent.kempkes@sbmoffshore.com |
Website: |
www.sbmoffshore.com |
Disclaimer
This press release contains inside information
within the meaning of Article 7(1) of the EU Market Abuse
Regulation. 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. . Nothing in this press release shall
be deemed an offer to sell, or a solicitation of an offer to buy,
any securities.
1 Updates reflect recent events and insights acquired since the
publication of the 1H16 results and 3Q16 Trading Update
2 Directional view is a non-IFRS disclosure, which treats all
leases as operating leases and consolidates the vessel joint
ventures proportionally
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