SBM Offshore Third Quarter 2021 Trading Update

Highlights

• Strong performance despite ongoing COVID-19 challenges
• Financial results in line with management expectations and the same period last year
• 2021 Directional [1] EBITDA guidance maintained at around US$900 million
• 2021 Directional revenue guidance revised from around US$2.6 billion to above US$2.3 billion mainly driven by a deferral in the expected timing of partner entry into an FPSO joint venture 
• Year to date US$4.1 [2] billion project related financings arranged to fund record-breaking order book
• Liza Unity, first Fast4Ward® FPSO, safely arrived in Guyana, 1 of 5 major projects under construction

Bruno Chabas, CEO of SBM Offshore, commented:

“I am proud to report that we have delivered another set of solid results this quarter, in line with the comparable period last year. The pandemic has significant impact across all our activities and continues to test our staff’s resilience. It is through their experience and dedication that we were able to progress on projects and have excellent results in our operations.

Under Lease and Operate, through our Ocean Infrastructure platform, our teams are successfully ensuring business continuity by applying the protocols limiting COVID-19 impacts and maintaining our assets’ availability. Year to date operational uptime stands at an outstanding level of 99.2%.

Under Turnkey, through our Growing the Core platform, there are five projects in execution. FPSO Liza Unity has safely arrived in Guyana in line with client planning, following a successful construction and pre-commissioning campaign in Singapore. Although the pandemic continues to create challenges which make cost increases unavoidable, our teams are doing an excellent job in mitigating and minimizing impacts. At project portfolio level, SBM Offshore has been able to maintain a competitive level of performance.

Through our New Energies platform, our teams continue to pave the way for the Company’s transition through technology development and strategic partnerships to capture new energy market opportunities. An extensive study is underway to drive cost out of the next generation of our Floating Offshore Wind solution.

Year to date, we have closed a record-breaking $4.1 billion of project financings. This demonstrates not only SBM Offshore’s financial strength but also evidences the confidence that our financial stakeholders have in the role that SBM Offshore will continue to play as leader in the energy transition for its clients. 

We also successfully completed our fourth share repurchase program in six years. More than US$1.2 billion has now been returned to shareholders during this period in dividends and share buybacks.”

[1] Directional view, presented in the Financial Statements under Operating segments and Directional reporting, represents a pro-forma accounting policy, which assumes all lease contracts are classified as operating leases and all vessel investees are proportionally consolidated. This explanatory note relates to all Directional reporting in this document.

[2] Financing closed at SPV levels with varying SBM Offshore equity ownership; 100% of the financing amount is disclosed.