BackAs in 2011, the 2012 results are overshadowed by the impact of impairments and provisions for two legacy projects, which hide the good underlying performance in the core FPSO business. Despite falling short of expectations, revenues were up 17.1% on 2011 at a record $3.7 billion, while underlying EBIT margins were in line with or above expectations. Consistent with the core FPSO strategy announced in 2012, GustoMSC was divested in the fourth quarter. Record financing levels were achieved, notably with the $1.1 billion project loan for Ilhabela, and the $ 500 million US Private Placement for Anchieta. In December, the Company moved further towards a solution of the Yme MOPUstorTM legacy project and restored the balance sheet through an equity injection by cornerstone investor HAL. Order intake was slow, in line with the industry, as a consequence of delays in contract awards.
Commenting on the results, Bruno Chabas, CEO of SBM Offshore, said:
“For SBM Offshore, 2012 was tougher than we had expected. Even so, we made significant progress toward unlocking the outstanding potential of our Company. In vital respects, such as strategy, structure, ways of working, increased compliance focus and a renewed management team, SBM is being transformed. As we move towards closure of our legacy projects, I am convinced that the quality of performance being delivered by so many colleagues across the
Company will begin to manifest itself in our financial results.”
Financial highlights
- Turnover increased by 17.1 % to US$ 3,695 million in 2012, and underlying EBIT by 6.4% to US$ 550 million.
Exceptional items:
- book gains of US$ 128 million following the sale of Gusto MSC and the Dynamic Installer
- US$ 200 million settlement costs provision for YME
- full impairment of US$ 398 million on the Yme MOPUstor™
- additional impairment of US$ 29 million for the Deep Panuke platform
- The Company ended the year with US$ 748 million in cash, an additional US$ 750 million undrawn credit facility and a resulting net debt position of US$ 1,783 million, reflecting strong liquidity.
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