SBM Offshore stands firm in challenging market

SBM Offshore has delivered a “very robust operating and financial performance against the backdrop of a gradually recovering offshore oil and gas market” in 2017.

Chief Executive Officer Bruno Chabas said revenues and EBITDA were in line with market expectations, as key contracts from Exxon Mobil (lease and operate the floating production, storage and offloading vessel Liza) and Statoil (turnkey for delivering the mooring system for Statoil’s Johan Castberg FPSO) boosted the bottom line.

In other highlights, safety and environmental performance again led to the company’s inclusion in the Dow Jones Sustainability Index for the eighth consecutive year.

It also concluded its discussions with the US Department of Justice (DoJ) and settled with a group of insurance companies on its Yme claim, and Shell exercised the purchase option on FPSO Turritella.

“Given the company’s stable backlog and cash and liquidity position, combined with a positive outlook for turnkey activity and future significant cash-flow generation from the fleet independent of oil price, a cash dividend of US$0.25 per share is proposed, circa nine per cent increase year on year,” said Mr Chabas.