SBM Offshore posts higher revenue, boosted by turnkey unit

Dutch oil and gas services firm SBM Offshore reported a 27 per cent rise in its first-quarter revenue on Thursday, boosted by strong performance across all its segments, particularly in its turnkey unit.

The Amsterdam-listed firm, which provides floating production services to the offshore energy industry, posted a quarterly directional revenue of $1.10 billion.

SBM Offshore uses directional reporting, which recognises revenue from payments received during the construction phase before lease contracts commence.

The directional revenue for the turnkey segment, which builds and sells FPSO vessels, surged 98 per cent, driven by the FPSOs GranMorgu and Jaguar.

The increase was supported by the "sale and operate" model where clients make advance payments to accelerate construction before leasing the vessels.

Its directional lease and operate segment's quarterly revenue dropped 14 per cent to $476 million, reflecting the sale of two FPSOs in the fourth quarter.

SBM still expects to return $1.7 billion to shareholders by 2030, it said.

The company also maintained its full-year forecast.

(Reporting by Hugo Lhomedet and Michal Aleksandrowicz; Edited by Sonia Cheema)