SBM Offshore Reports 27% Revenue Rise, Driven by FPSO Unit

SBM Offshore Reports 27% Revenue Rise Driven by FPSO Unit.jpg

Dutch oil and gas services firm SBM Offshore reported a 27% 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 recognizes revenue from payments received during the construction phase before lease contracts commence.

The directional revenue for the turnkey segment, which builds and sells floating production, storage and offloading (FPSO) vessels, surged 98%, driven by the FPSO GranMorgu and Jaguar vessels.

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% to $476 million, reflecting the sale of two FPSO vessels 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.


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

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