SBM OFFSHORE FULL-YEAR RESULTS 2013 Strong performance; robust foundation for growth February 6, 2014
SBM Offshore finished 2013 with a strong underlying financial performance, ahead
of expectations. The Company has now put most of its legacy projects to rest,
secured the balance sheet and refocused its activity around the FPSO-led
strategy. Directional(1 )revenue increased 13% to US$3,445 million, while
Directional(1) backlog reached US$23 billion. This was reinforced by strong
operational performance with consistently high uptime across the fleet of over
99%. Three prestigious FPSO awards were won during the year (Cidade de Maricá,
Cidade de Saquarema and FPSO Stones), two FPSOs (Cidade de Paraty and OSX-2)
were delivered on time and on budget and Deep Panuke platform reached full
production capacity and is now fully on hire.
Bruno Chabas, CEO of SBM Offshore commented:
"2013 was a year of progress on all fronts: strategic, operational and
financial. Our Company is now focused, without distraction, on its future. Our
outstanding project wins in Brazil and the US Gulf of Mexico sum-up what is best
about SBM Offshore: staying close to our clients, using our technological edge
to solve their problems and taking pride in our work. Our industry faces a
challenging period, but we believe SBM Offshore is strongly positioned. We
possess a balanced portfolio of projects, the ability to offer a choice of
financing options for clients and the leading position in a niche service which
the oil industry needs to sustain future production."
Financial Highlights
* Directional(1) revenues were up 13% to US$3,445 million in FY'13, and
underlying Directional(1 )EBIT increased by 28% to US$535 million
* Â Directional(1) Backlog up by 39% to a record level of US$23 billion
* Awarded three Lease & Operate FPSO contracts: Cidade de Maricá, Cidade de
Saquarema and FPSO Stones.
* FPSOs Cidade de Paraty and OSX-2 delivered on time and on budget
* Cash at the end of the period was US$200 million; undrawn credit facilities
of US $1,234 million
* Net debt at the end of December stood at US$2,691 million
* Agreement to decommission the Yme platform and settle outstanding issues
with Talisman for US$470 million
* Â Update to residual values and decommissioning costs resulted in one off
non-cash charges of US$158 million
* Successful 10% Rights Issue at €10.07 per share raised US$247 million in new
equity
+-----------------------------+ +-----------------------------+
  | Directional(1) | | IFRS |
+-----------------------------+ +-----------------------------+
+--------------+ +-----------------------------+ +-----------------------------+
|in US$ million|Â | FY 2013 Â FY 2012* % Change|Â | FY 2013 Â FY 2012* % Change|
+--------------+ +-----------------------------+ +-----------------------------+
|Revenue |Â | 3,445 3,059 13%|Â | 4,803 3,639 32%|
| | | | | |
|Turnkey |Â | 2,367 2,082 14%|Â | 3,784 2,706 40%|
| | | | | |
|Lease and |Â | 1,078 977 10%|Â | 1,018 932 9%|
|Operate | | | | |
| | | | | |
|EBIT |Â | 98 (79) NM|Â | 293 38 NM|
| | | | | |
|Underlying |Â | 535 420 28%|Â | 735 537 37%|
|EBIT | | | | |
| | | | | |
|Net Income |Â | (58) (175) NM|Â | 111 (79) NM|
|(Loss) | | | | |
| | | | | |
|Underlying Net|Â | 375 298 26%|Â | 545 394 38%|
|Income (Loss) | | | | |
| | | | | |
|Total Order |Â | 10,012 1,440 NM|Â | 10,081 1,440 NM|
|Intake | | | | |
+--------------+ +-----------------------------+ +-----------------------------+
+--------------+ +-----------------------------+ +---------+-------------------+
|in US$ billion|Â |31-Dec-13 31-Dec-12* % Change|Â |31-Dec-13|31-Dec-12* % Change|
+--------------+ +-----------------------------+ +---------+-------------------+
|Backlog |Â | 23.0 16.5 39%|Â | 19.7 14.5 36%|
| | | | | |
|Net Debt |Â | - - -|Â | 2.7 1.8 48%|
| | | | | |
|Solvency Ratio|Â | - - -|Â | 30% 27% Â |
+--------------+ +-----------------------------+-+-----------------------------+
*Restated for comparison purposes (Paenal)
Guidance
Management is issuing 2014 Directional(1) revenue guidance at similar levels to
2013, of approximately US$3.4 billion, which is based on conservative award
assumptions. Turnkey and Lease & Operate revenues are also expected to be
approximately in line with 2013 levels.
2013 Company Overview
Introduction
The Company began its transformation in 2012, re-focusing its strategy around
FPSOs and related products and services, followed by far reaching changes to the
organisational structure emphasising accountability, transparency and
compliance. The results, strong revenue growth, good core performance and record
backlog clearly began to emerge in 2013. The transformation continues as the
Company focuses on strengthening project controls, support functions and
operational disciplines across the business. This is being achieved through a
programme to improve ways of working for people, and through processes and
systems designed to increase effectiveness, deliver control and allow the
Company to "work as one."
Apart from the on-going internal investigation into potentially improper sales
practices, the Company has largely consigned its legacy issues to the past. The
Yme settlement was signed in March and the Deep Panuke platform achieved
Production Acceptance in December 2013. Asset values have been adjusted where
required. Through the corporate and project financing activities completed in
the year, the financial position of the Company is markedly strengthened
enabling it to competitively address the increasing demand for larger and more
complex projects from our clients.
The project award delays encountered in 2012, combined with a strong commercial
effort, resulted in record order levels in 2013 with Directional(1) Order Intake
of US$10.0 billion and Directional(1) Backlog of US$23.0 billion.
Consistent with the Company's strategy to focus on its core business and to
further strengthen the financial position, a number of non-core asset
divestments were made during the period, which include the sale and lease back
transactions of two out of three office properties in Monaco and the sale of its
non-core "COOL(TM) hose" technology.
In the first half of the year, the Company strengthened its financial position
through a 1 for 10 rights offering of new ordinary shares raising US$247 million
and, as a result of the settlement with Talisman, an additional US$27 million
top-up from HAL Investments B.V. (HAL) as a share premium contribution on the
new ordinary shares it acquired through a private placement in December 2012.
The Company secured a Project Loan facility for FPSO N'Goma for US$600 million
and bilateral credit facilities for FPSO Cidade de Maricá and Cidade de
Saquarema for US$600 million. The additional liquidity and greater financial
flexibility have further improved the Company's risk profile for securing
funding for future projects.
Directional(1) Reporting
In 2013, in order to provide its shareholders with clarity on business
performance above and beyond the regular IFRS-based disclosures, the Company
introduced Directional(1) reporting. Directional(1) reporting addresses the
complexity in the Group's business model whereby turnkey sales are combined with
construction projects for its own lease & operate portfolio. Furthermore, the
Company's FPSO lease & operate contracts are increasingly classified as 'finance
leases', which adds further complexity by accelerating revenue and profit
recognition into the construction phase, well before rents are invoiced to, and
paid by, the client. The Directional(1) view extends reporting with non-IFRS
disclosures showing revenues and results more in line with operating cash flows
to simplify some of these complexities. This is designed to increase
transparency and understanding of performance and provide disclosures of Backlog
and Income Statement based on Directional(1) principles.
Directional(1) reporting principles are:
* Directional(1) reporting is an additional disclosure to IFRS reporting
* Directional(1) reporting assumes all lease contracts are classified as
operating lease
* Directional(1) reporting is limited to restating revenue and operating
income; no balance sheet restatements are made
* Directional(1) reporting is included in the Financial Review
In order to introduce Directional(1) reporting, the Company achieved the
following steps:
* Disclosure of Directional(1) income statement and Backlog for H1 2013 and
the H1 2012 comparison was made in August with the Half-Year results
* 2013 transition period to promote Directional(1) reporting as the main
indicator for Company performance and variance analysis
* Full Year 2013 Directional(1) income statement disclosed with 2012
comparison
* 2014 guidance for Directional(1) revenue
The need for the introduction of Directional(1) reporting is acute and
significant: revenue reported under IFRS rules exceeds the Directional(1) view
by some US$1.4 billion in 2013. This represents the present value of future
income to be invoiced and realised over the next 20 years. Under IFRS the
Company reports a US$111 million positive net income attributable to
shareholders for 2013, while the Directional(1) view shows a loss of US$58
million. The Management Board highlights these fundamental and significant
differences to allow investors a balanced understanding of the results, giving
insight in both rules and reality.
+----------------------------------+ +----------------------------------+
 US$ mln*  | 2013 | | 2012 |
+------------+--------------+------+ +------------+--------------+------+
 |Directional¹| IFRS | IFRS | |Directional¹| IFRS | IFRS |
  | | Adjustment  | | | | Adjustment  | |
+------------+ +------+ +------------+ +------+
   |  |   |  | |  |   |  |
+--------------+ +------------+ +------+ +------------+ +------+
 |Total Revenues| | 3,445| 1,358  | 4,803| | 3,059| 580  | 3,639|
+-------+--------------+-+------------+ +------+ +------------+ +------+
| |Third parties | | | | | | | | |
| |revenues |Â | 1,078|Â Â (59) Â | 1,018|Â | 977|Â Â (45) Â | 932|
| | | | | | | | | | |
| |Gross Margin |Â | Â (154)|Â 13 Â |Â (141)|Â | Â (313)|Â 14 Â |Â (299)|
| Lease +--------------+ | | | | | | | |
| and |EBIT |Â | Â (177)|Â 13 Â |Â (164)|Â | Â (341)|Â 14 Â |Â (327)|
|Operate+--------------+-+------------+ +------+ +------------+ +------+
| |Deprec., | | | | | | | | |
| |amort. and | | | | | | | | |
| |impairment |Â | Â (463)|Â 73 Â |Â (390)|Â | Â (678)|Â 59 Â |Â (619)|
| +--------------+ +------------+ +------+ +------------+ +------+
| |EBITDA |Â | 285|Â Â (59) Â | 226|Â | 337|Â Â (45) Â | 292|
| +--------------+ +------------+ +------+ +------------+ +------+
+-------+--------------+ +------------+ +------+ +------------+ +------+
| |Third parties | | | | | | | | |
| |revenues |Â | 2,367|Â 1,418 Â | 3,784|Â | 2,082|Â 625 Â | 2,706|
| | | | | | | | | | |
| |Gross Margin |Â | 443|Â 182 Â | 625|Â | 307|Â 103 Â | 410|
| +--------------+ +------------+ +------+ +------------+ +------+
|Turnkey|EBIT |Â | 296|Â 182 Â | 478|Â | 311|Â 103 Â | 414|
| +--------------+-+------------+ +------+ +------------+ +------+
| |Deprec., | | | | | | | | |
| |amort. and | | | | | | | | |
| |impairment |Â | Â (15)|Â - Â | Â (15)|Â | Â (23)|Â - Â | Â (23)|
| +--------------+ +------------+ +------+ +------------+ +------+
| |EBITDA |Â | 311|Â 182 Â | 493|Â | 334|Â 103 Â | 437|
| +--------------+ +------------+ +------+ +------------+ +------+
|
+-------+--------------+ +------------+ +------+ +------------+ +------+
| |Other | | | | | | | | |
| |operating | | | | | | | | |
| |income |Â | 33|Â - Â | 33|Â | 0|Â - Â | 0|
| | | | | | | | | | |
| |Selling & | | | | | | | | |
| |marketing | | | | | | | | |
| Other |expenses |Â | Â (0)|Â - Â | Â (0)|Â | -|Â - Â | -|
| | | | | | | | | | |
| |General & | | | | | | | | |
| |administrative| | | | | | | | |
| |expenses |Â | Â (53)|Â - Â | Â (53)|Â | Â (49)|Â - Â | Â (49)|
| | | +------------+ +------+ +------------+ +------+
| |EBIT |Â | Â (21)|Â - Â | Â (21)|Â | Â (49)|Â - Â | Â (49)|
| +--------------+ +------------+ +------+ +------------+ +------+
+--------------+ +------------+ +------+ +------------+ +------+
 |Total EBIT | | 98| 195  | 293| |  (79)| 118  | 38|
+--------------+ +------------+ +------+ +------------+ +------+
 |Total EBITDA | | 577| 122  | 700| | 623| 59  | 681|
+--------------+ +------------+ +------+ +------------+ +------+
|Net financing | | | | | | | | |
 |costs | |  (100)| -  | (100)| |  (79)| -  |  (79)|
| | | | | | | | | |
|Income from | | | | | | | | |
|associated | | | | | | | | |
 |companies | | 1| -  | 1| | 4| -  | 4|
| | | | | | | | | |
|Income tax | | | | | | | | |
 |expense | |  (54)|  (26)  |  (80)| |  (22)|  (16)  |  (38)|
+--------------+ +------------+ +------+ +------------+ +------+
 |Profit/(Loss) | |  (55)| 169  | 114| |  (176)| 101  | (75)|
+--------------+ +------------+ +------+ +------------+ +------+
+--------------+ +------------+ +------+ +------------+ +------+
|Non controling| | | | | | | | |
 |interests | | 3|  (0)  | 3| |  (1)| 5  | 5|
+--------------+ +------------+ +------+ +------------+ +------+
+--------------+ +------------+ +------+ +------------+ +------+
|Net Profit | | | | | | | | |
|attributable | | | | | | | | |
|to | | | | | | | | |
 |shareholders | |  (58)| 169  | 111| |  (175)| 96  |  (79)|
+--------------+ +------------+ +------+ +------------+ +------+
* Figures are expressed in million $US and may not add up due to rounding.
HSSE
Over the course of 2013 the Company achieved a good safety performance in a
range of its business activities, and similar to that of 2012 with a Total
Recordable Injury Frequency Rate (TRIFR) of 0.40 in 2013 compared to 0.38 in
2012. However, the Lost Time Injury Frequency Rate (LTIFR) deteriorated to 0.15
in 2013 from 0.06 from 2012. A number of corrective actions have been taken to
help raise our standards.
Compliance
In 2012, the Company announced it had initiated an internal investigation,
conducted by outside counsel and forensic accountants, into potentially improper
sales practices. The Company has disclosed the results of the internal
investigation to the appropriate authorities and remains in active dialogue. As
the investigation is still in progress it is not possible to provide further
information or an estimate of the outcome, financial or otherwise. The Company
has continued and expanded its efforts, started in 2012, to enhance its
compliance program.
Yme
In March, the Company reached an agreement with Talisman to terminate the Yme
MOPU(stor) contract for a settlement of US$470 million. The settlement included
the termination of the existing agreements and arbitration procedures and the
decommissioning of the MOPU. As the Company had already made a provision of
US$200 million in 2012, the difference of US$270 million was recognised in the
2013 results.
Deep Panuke
The Company completed the debottlenecking process, and brought the Deep Panuke
platform to full production capacity safely and received a Production Acceptance
Notice (PAN) from the client in December 2013. The platform is currently on hire
and generating full day rate.
Strategy
Last year the Company re-focused its strategy on its core business of FPSOs and
associated products and services. Since the beginning of 2013, new award
announcements for two FPSOs for Petrobras in Brazil and one FPSO for Shell in
the Gulf of Mexico demonstrate progress is well underway. As the industry
leader, the Company continues to strive for an improved risk/reward balance for
its FPSO products and services and has identified an encouraging pipeline of
projects in the medium term.
Investing in our Future
Over the course of 2013, the Management Board focused its attention on three
core strands of activity to develop and improve SBM Offshore's future
performance. During 2014, these programmes will carry incremental costs
equivalent to 2.5%-3% of Directional(1) revenue.
With the lengthening life spans of FPSOs, there is an emerging need for a
defined fleet maintenance programme, over and above the standard operational
expenditure on individual vessels. This will be a focused two year investment
programme with clear operational and financial benefits.
Despite recent progress, there is a distinct need to permanently embed improved
efficiency and ways of working across multiple disciplines. A two year
transformation programme, named Odyssey 24, will create the foundation to
deliver consistently outstanding performance. The programme is led by SBM senior
staff members, dedicated for the project duration, and using external advisors.
Maintaining its technological lead position in complex floating production
systems, and associated mooring systems, is critical for SBM Offshore. The
company will continue to identify technology trends in the offshore oil & gas
market, prioritising development work to address key areas of demand.
Outlook and Guidance 2014
2013 has been a strong year for SBM Offshore. Revenue growth and underlying EBIT
margins were excellent as the Company successfully progressed its EPC and Lease
& Operate portfolio.
The Company is providing 2014 guidance on the basis of Directional(1) results.
Directional(1) revenue is expected to come in at similar levels as in 2013,
approximately US$3.4 billion, which is based on conservative award assumptions.
Turnkey and Lease & Operate revenues are also expected to be approximately in
line with 2013 levels.
The Company expects a level of capital investments higher than 2013 levels.
Furthermore, the Company will continue to attract necessary project financing
for the funding of new, or recently awarded, leased FPSOs under construction.
Dividend
The Management Board reiterates that the Company will not pay a dividend over
2013, in view of the losses incurred in 2011 and 2012 and the need to strengthen
the balance sheet. The Management Board intends to discuss at the Annual General
Meeting (AGM) in 2015 a change of dividend policy, making dividends dependent on
available free cash flow as opposed to the existing policy of paying out 50% of
IFRS net income. Given the on-going execution of the Group's record project
backlog, the Management Board does not expect positive free cash flow for 2014
or 2015. Following the 2015 Annual General Management meeting the Management
Board intends to propose a payout ratio of between 25% and 35% of Directional(1)
net income subject to the availability of free cash flow.
Financial Review
Highlights
The consolidated Directional(1) result for 2013 is a net loss of US$55 million
(2012 Directional(1) net loss of US$176 million). This result includes
divestment profits, impairment charges, and other non-recurring items which
generated a net loss of US$433 million in 2013 (US$473 million in 2012).
Directional(1) net loss attributable to shareholders amounts to US$58 million
(US$175 million loss in 2012). Excluding divestment profits, impairment charges,
and other non-recurring items, the underlying consolidated Directional(1) result
attributable to shareholders for 2013 improved by 26% to a net profit of US$375
million (2012 net profit of US$298 million).
Taking into account IFRS adjustments related to finance lease contracts
totalling US$169 million and representing mainly the deemed net profit on the
Company's share in the Joint Ventures (JV) acquiring the FPSOs under
construction, the consolidated IFRS result for 2013 is a net profit of US$114
million (2012 net loss of US$75 million). IFRS net income attributable to
shareholders amounts to US$111 million (US$79 million loss in 2012).
The Directional(1) loss per share amounted to US$0.28 (loss per share of US$1.00
in 2012). Adjusted for divestment profits, impairment charges, and other non-
recurring items underlying Directional(1) net income per share increased by 8%
for 2013 despite dilution to US$1.84 per share, compared with US$1.70 in 2012.
Net debt at the year-end amounted to US$2,691 million (US$1,816 million in
2012) with bank covenants met and available committed bank facilities of
US$1,234 million.
Total Directional(1) orders in the year came to US$10,012 million (split 43% /
57% between the Lease & Operate and the Turnkey segments respectively), compared
to US$1,440 million achieved in 2012.
Directional(1) turnover increased by 12.6% to US$3,445 million, in comparison
with US$3,059 million in 2012, mainly as a result of higher Turnkey revenues.
Taking into account IFRS adjustments related to finance lease contracts
representing mainly the deemed revenues on the Company's share in the JV
acquiring the FPSOs under construction, IFRS turnover increased by 32.0% to
US$4,803 million, in comparison with US$3,639 million in 2012, mainly as a
result of higher Turnkey revenues.
Total Directional(1) order portfolio at the end of the year was US$23,025
million compared to US$16,459 million at the end of 2012, an increase of 40%
reflecting the high level of orders in 2013. Of this, US$20,146 million relates
to the non-discounted value of the revenues from the Company's long-term lease
contracts in portfolio at year- end.
Directional(1) EBITDA amounted to US$577 million (including non-recurring items
of US$248 million), representing an approximately 7% decrease compared to US$623
million in 2012.
IFRS EBITDA amounted to US$700 million (including non-recurring items of US$252
million), representing an approximately 3% increase compared to US$681 million
in 2012.
Directional(1) operating result (EBIT) increased to US$98 million profit after
impairment charges, divestment profits and non-recurring items for US$437
million compared to US$79 million EBIT loss in 2012 which included US$499
million of non-recurring items related to the Yme and Deep Panuke projects.
IFRS operating result (EBIT) increased to US$293 million profit after impairment
charges, divestment profits and non-recurring items for US$442 million compared
to US$38 million EBIT profit in 2012 which included US$499 million of non-
recurring items related to the Yme and Deep Panuke projects.
The year was marked by the following financial highlights:
* Strong order intake of US$10.0 billion boosting Directional(1) backlog to a
record high level of US $23.0 billion.
* Talisman Yme MOPUstor project settlement of US$470 million (US$200 million
recognised in 2012, the difference of US$270 million recognised in 2013).
* The Deep Panuke platform went on hire following the receipt of Production
Acceptance Notice in December. Additional costs associated with the delay
and debottlenecking totaled US$37 million in the period.
* The carrying value of the ThunderHawk facility has been impaired by US$65
million. This was based on production trends from current reserves, and
projections from planned new fields. As such, total deliverable volumes were
determined to be insufficient to sustain the asset's book value. The
ThunderHawk semisubmersible production facility in the US Gulf of Mexico is
the only facility in SBM Offshore's Lease fleet portfolio which bears
exposure to reservoir risk.
* The FPSO Falcon and VLCC Alba, laid up since 2009 and 2011 respectively,
have been classified as held for sale and consequently have been impaired by
US$53 million to their estimated market value in the second half of 2013.
* With the upcoming expiration of contracts for FPSO Kuito and FPSO Brasil,
the Company has undertaken the reassessment of decommissioning costs. As a
consequence, a Company-wide review was conducted in Q4 to reassess
decommissioning expenses of all other vessels, resulting in a charge to
income of US$40 million.
* FPSO OSX-2 was successfully delivered as per contract in early September
with no further financial exposure to the client.
* FPSO Cidade de Paraty began oil production and went on hire in June 2013
following full systems acceptance by the client. The unit is owned and
operated by a consortium of affiliated companies of SBM Offshore (50.5%),
QCOG, Nippon Yusen Kabushiki Kaisha (NYK), and ITOCHU Corporation (ITOCHU).
* As part of the disposal program of non-core assets announced in 2012, the
Company completed sale and lease back transactions for two of three office
buildings in Monaco. The remaining building is now expected to be sold in
2014. Sales proceeds thus far exceed US$100 million, resulting in a book
profit of approximately US$27 million, including the sale of the "COOL(TM)
hose" technology.
* Capital expenditure and investments in finance leases in 2013 amounted to
US$1,423 million, exceeding 2012 level of US$1,217 million.
* New financing agreements totaling US$600 million for FPSO N'Goma and four
bilateral credit facilities for FPSO Cidade de Maricá and Cidade de
Saquarema for US $600 million arranged in December.
* Cash plus undrawn facilities amounted to US$1.4 billion at the end of
December 2013 compared to US$2.0 billion in 2012.
* The Company finalised in April a 1 for 10 rights offering of new ordinary
shares raising US$247 million and an additional US$27 million from HAL as a
top-up to the share premium contribution on the new ordinary shares it
acquired through a private placement in December 2012.
Segmental information in respect of the two core business segments of the
Company is provided in the detailed financial analysis.
Orders
Total Directional(1) orders for 2013 amounted to US$10.0 billion. This total
includes new orders signed for US$9,401 million and variation orders signed for
US$611 million.
The Company continued to capitalise on its strength and expertise in its core
FPSO market, securing new orders including:
FPSO Stones (Gulf of Mexico)
The Company secured a contract from Shell for the supply and lease of an FPSO
for the Stones development project in the Gulf of Mexico. The contract includes
an initial period of ten years with future extension options up to a total of
twenty years. The Stones development is located in 2,900m (9,500ft) of water
approximately 320km (200 miles) offshore Louisiana in the Walker Ridge area.
FPSOs Cidade de Maricá and Cidade de Saquarema for Petrobras
Contracts have been executed with BM-S-11 subsidiary Tupi BV for the twenty-year
charter and operation of the two FPSOs Cidade de Maricá and Cidade de Saquarema.
Both FPSOs are destined for the Lula field in the pre-salt province offshore
Brazil. BM-S-11 block is under concession to a consortium comprised of PETROBRAS
(65%), BG E&P Brasil Ltda. (25%), and Petrogal Brasil S.A. (10%). The FPSOs will
be owned and operated by a Joint Venture owned by SBM Offshore, Mitsubishi
Corporation, Nippon Yusen Kabushiki Kaisha, and Queiroz Galvão Óleo e Gás S.A.
with an SBM Offshore share of 56%. SBM Offshore is in charge of the
construction. Planned delivery for FPSOs Cidade de Maricá and Cidade de
Saquarema is expected by the end 2015 and early 2016 respectively.
Turnover
Total Directional(1) turnover rose significantly in the year due to higher
revenues recognised in the Turnkey segment, especially under the strong
contribution of the contracts signed in early 2013.
Turnkey third party Directional(1) turnover of US$2,367 million rose by 14% and
represents 69% of total 2013 turnover (2012: US$2,082 million representing 68%)
as a result of a full year of construction progress on a number of FPSOs, such
as FPSOs Cidade de Maricá and Cidade de Saquarema, FPSO Cidade de Ilhabela, FPSO
N'Goma, and increased year on year construction progress of the three major
turrets, offset by the completion of FPSO OSX-2 and FPSO Cidade de Paraty and
the loss of revenue due to the sale of GustoMSC completed at the end of 2012.
Construction commenced for the finance lease FPSO Stones. The project is fully
controlled by SBM Offshore, as the Company currently owns 100% of the project.
Construction commenced for the finance lease of FPSOs Cidade de Maricá and
Cidade de Saquarema. The joint venture (JV) is controlled by SBM Offshore, and
is consolidated proportionately to the Company's 56% share of the JV.
Directional(1) turnover reflects SBM's income generated by invoicing the JV
partners for their 44% share in the EPCI lump-sum cost of the FPSO under
construction. IFRS adds to this the revenue calculated as the present value of
the 56% SBM share of the future lease income.
Construction continued for the finance lease FPSO Cidade de Ilhabela throughout
2013, with refurbishment and conversion at the Chinese shipyard completed. The
vessel is currently in Brazil where the process modules at the Brasa yard will
be installed. Start-up of the facility is expected in the second half of 2014.
The joint venture (JV) is jointly controlled by SBM Offshore, and is
consolidated proportionately to the Company's 62.25% share of the JV. Thus
Directional(1) turnover reflects SBM's income generated by invoicing the JV
partners for their 37.75% share in the EPCI lump-sum cost of the FPSO under
construction. IFRS adds to this the revenue calculated as the present value of
the 62.25% SBM share of the future lease income.
Construction was completed and the vessel has been on hire since June 2013 for
the finance lease FPSO Cidade de Paraty contract (SBM Offshore share 50.5%).
Directional(1) turnover reflects SBM's income generated by invoicing the JV
partners for their 49.5% share in the EPCI lump-sum cost of the FPSO under
construction. IFRS adds to this the revenue calculated as the present value of
the 50.5% SBM share of the future lease income.
The twelve-year lease contract with ENI for FPSO N'Goma is also accounted for as
a finance lease. Construction, refurbishment and the lifting of process modules
at the shipyard in Singapore is complete. The FPSO will sail to Angola for
integration and start of production currently forecast in the second half of
2014. Directional(1) turnover reflects SBM's income generated by invoicing
Sonangol for their 50% share in the EPCI lump-sum cost of the FPSO under
construction. IFRS adds to this the revenue calculated as the present value of
the 50% SBM share of the future lease income.
Lease & Operate Directional(1) turnover increased by 10% to US$1,078 million
(31% of total revenues; 32% in 2012), as a result of the start-up of FPSO Cidade
de Paraty in July 2013, the full year operation of FPSO Cidade de Anchieta, and
despite the exit from the fleet of FPSO Sanha.
Total IFRS turnover rose significantly in the year due to higher revenues
recognised in the Turnkey segment, especially under the strong contribution of
the finance lease contracts under construction, including the Siakap North Petai
extension to FPSO Kikeh, classified as a finance lease in 2013.
The ongoing charter contracts for FPSOs Cidade de Paraty, Aseng, Mondo and Saxi
Batuque are similarly accounted for as finance leases, as per IAS 17 Leases.
Earned interest in Lease & Operate turnover in 2013 in respect of these
contracts amounted to US$87 million (2012: US$64 million).
Ongoing Construction Contracts
FPSO Stones (US Gulf of Mexico)
Construction continued for the finance leased vessel throughout 2013, with
refurbishment and conversion work being done at Keppel Singapore. The charter
contract includes an initial period of 10 years with future extension options up
to a total of 20 years. When installed at almost 3 kilometers of water depth,
the FPSO Stones will be the deepest offshore production facility of any type in
the world. The vessel is a typical Generation 2 design, with a disconnectable
internal turret and processing facility capacity of 60,000 barrels of oil per
day (bpd) and 15 mmscfd of gas treatment and export.
FPSO Cidade de Maricá and Cidade de Saquarema (Brazil)
Construction is ongoing for the two finance leased vessels. Refurbishment and
conversion work progressed throughout 2013 at a Chinese yard. The charter
contract for both vessels includes a period of 20 years with options for
extension. The two double hull sister vessels will be moored in approximately
2,300 meters water depth and with a storage capacity of 1.6 million barrels
each. The topside facilities of each FPSO weigh approximately 22,000 tons, will
be able to produce 150,000 bpd of well fluids and have associated gas treatment
capacity of 6,000,000 Sm3/d. The water injection capacity of the FPSOs will be
200,000 bpd each.
FPSO Cidade de Ilhabela
Construction continued for the finance leased vessel throughout 2013, with
refurbishment and conversion at the Chinese shipyard completed. The vessel
arrived at year end 2013 in Brazil where the process modules at the Brasa yard
will be installed. The FPSO will include topside facilities to process 150,000
bpd of production fluids, with processing of the substantial volumes of
associated gas from the pre-salt field for export. Start-up of the facility is
expected in the second half of 2014.
FPSO N'Goma
The construction, refurbishment, and module work at Keppel shipyard in Singapore
is nearing completion. The FPSO is expected to arrive in Paenal, Angola for
lifting of the remaining modules and completion of the FPSO. The schedule
foresees a production start in 2014 at a design capacity of 100,000 bpd.
Turret Mooring Systems
The three large complex turrets for Prelude FLNG, Quad204 and Ichthys are
progressing well and on schedule at their respective stages of completion of the
project. These three turrets represent a substantial proportion of the Turnkey
segment with delivery of sections in 2013 reaching completion with the
superstructure of Ichthys as the last section in 2014. All three turrets contain
elements that require advanced technology solutions for high mooring loads;
total weight of 11,000 tons with a height of 95 meters for Prelude, fluid
throughput of 320,000 bpd in the swivel stack on Quad 204 and 40 years of
continuous operation in harsh environment on Ichthys.
Main Projects Overview
Order Portfolio
Year-end Directional(1) order portfolio at US$23.0 billion is higher by 39.4%
from last year's level of US$16.5 billion reflecting the effect of a high level
of orders in 2013. The current Directional(1) order portfolio includes US$20.1
billion (2012: US$13.6 billion) for the non-discounted value of future revenues
from the long- term charters of the lease fleet. Approximately 53% of the total
future revenues from the long-term charters of the lease fleet will be generated
from the lease contracts which have yet to commence (FPSOs Cidade de Ilhabela,
N'Goma, Cidade de Maricá and Cidade de Saquarema and Stones).
Turnkey Directional(1) order portfolio remained stable at US$2.9 billion (US$2.9
billion in 2012), representing approximately 1.2 year's equivalent turnover.
The Company's order portfolio as of December 31, 2013 is expected to be executed
as per the table below.
Directional(1) Order Portfolio
+--------------------------------------------------+
| in billions of US$ Turnkey * Lease & Total |
| Operate |
| |
| 2014 2.0 1.1 3.1 |
| |
| 2015 0.8 1.2 2.0 |
| |
| 2016 0.0 1.5 1.6 |
| |
| Beyond 2016 0.0 16.4 16.4 |
| |
| Total 2.9 20.1 23.0 |
+--------------------------------------------------+
* Turnkey Systems and Turnkey Services segments have been merged into one
segment "Turnkey".
Profitability
The primary business segments of the Company are Lease & Operate and Turnkey
plus "Other" non-allocated corporate income and expense items. EBITDA and EBIT
are analysed per segment but it should be recognised that business activities
are closely related, and certain costs are not specifically related to either
one segment or another. For example, when sales costs are incurred (including
significant sums for preparing the bid), it is often uncertain whether the
project will be leased or contracted on a turnkey lump sum basis.
In recent years, new lease contracts are showing longer duration and are
increasingly classified as finance leases for accounting purposes, whereby the
fair value of the leased asset is recorded as a Turnkey "sale" during
construction. This has the effect of recognising, in the Turnkey segment during
construction, part of the lease profits which would, in the case of an operating
lease, be reported through the Lease & Operate segment during the lease.
Directional(1) EBITDA in 2013 of US $577 million (US$623 million in 2012)
consisted of US$285 million (US$337 million in 2012) from Lease & Operate
activities, US$311 million (US$334 million in 2012) from Turnkey, less US$19
million (US$48 million in 2012) of non-allocated corporate, other costs and the
2013 book profit resulting from divesting activities. Restated for divestment
profits, impairment charges, and other non- recurring items, the underlying
Directional(1) EBITDA for 2013 increased by 19% to US$825 million compared to
2012 underlying Directional (1)EBITDA of US$694 million.
IFRS EBITDA in 2013 of US$700 million (US$681 million in 2012) consisted of
US$226 million (US$292 million in 2012) from Lease & Operate activities, US$493
million (US$437 million in 2012) from Turnkey, less US$19 million (US$48 million
in 2012) of non-allocated corporate and other costs and the 2013 book profit
resulting from divestment activities. Restated for divestment profits,
impairment charges, and other non- recurring items underlying IFRS EBITDA for
2013 increased by 26% to US$951 million compared to 2012 underlying IFRS EBITDA
of US$753 million.
As a percentage of turnover, Directional(1) EBITDA was 16.8% (2012: 20.3%).
Segmental Directional(1) EBITDA margins for Lease & Operate stood at 26.4%
(2012: 34.5%), Turnkey 13.1% (2012: 16.0%) excluding intercompany projects. The
relative contribution to Directional(1) EBITDA from the segments was 48% from
Lease & Operate and 52% from Turnkey. In 2012, the corresponding split was 50% /
50%.
As a percentage of turnover, IFRS EBITDA was 14.6% (2012: 18.7%). Segmental IFRS
EBITDA margins for Lease & Operate stood at 22.2% (2012: 31.3%), Turnkey 13.0%
(2012: 16.1%) and the relative contribution to IFRS EBITDA from the segments was
32% from Lease & Operate and 68% from Turnkey. In 2012, the corresponding split
was 40% / 60%.
The Directional(1) operating profit in 2013 amounted to US$98 million (EBIT loss
in 2012 US$79 million) with the following highlights:
* High contribution from the Turnkey segment, with a strong EBIT margin of
12.5% (14.9% in 2012 and 8.8% excluding GustoMSC and SBM Dynamic Installer
divestments), driven by good projects execution and positive settlements on
projects completed in 2013.
* The level of Lease & Operate fleet activity was slightly higher to that of
2012 and resulted in an EBIT loss of 16.4% or a 26.6% profit excluding
impairment charges and other non-recurring items (-34.9% and 29.2% excluding
impairment charges and other non-recurring items in 2012).
Restated for divestment profits, impairment charges, and other non-recurring
items underlying Directional(1) EBIT for 2013 increased by 28% at US$535 million
compared to 2012 underlying Directional (1)EBIT of US$420 million.
Taking into account IFRS adjustments related to finance lease contracts
totalling US$195 million and representing mainly the deemed net profit on the
Company's share in the Joint Venture acquiring the FPSOs under construction,
IFRS EBIT in 2013 amounted to US$293 million (EBIT profit in 2012 US $38
million).
Non-allocated "Other" income and expenses showed a net cost of US$21 million in
2013, compared with US$49 million in 2012, and includes US$27 million of book
profit relating to divesting activities in 2013.
Net financing costs increased to US$100 million compared to 2012 (US$78 million)
mainly as a result of interest paid on the US Private Placement set up for FPSOs
Cidade de Anchieta and FPSO Cidade de Paraty project loan. The average cost of
debt came to 5.3% in 2013 (5.3% in 2012).
More generally, once production units are brought into service the financing
costs are expensed to the income statement whereas during construction interest
is capitalised. It should be emphasised that the net profit contribution of
newly operating leased units is limited by the relatively high interest burden
during the first years of operation, although dedication of lease revenues to
debt servicing leads to fast redemption of the loan balances and hence reduced
interest charges going forward.
Interest income on the Company's cash balances was again very low in 2013 due to
the low level of short-term US interest rates. Main interest income of the
Company is derived from interest bearing loans to joint ventures and associates.
The reported share of profit in associates was minimal in 2013 (US$1 million) as
it was in 2012 (US$4 million). In the future the Company's share of net results
in any non-controlled joint ventures (as defined by IFRS 11 Joint Arrangements)
will appear in this line item, but at present the Company's accounting policy
for joint ventures continues to be the proportionate consolidation method
whereby the Company's share of each income statement or statement of financial
position line item is included in the consolidated financial statements.
The underlying Directional(1) Effective Tax Rate in 2013 was stable at 13.6%
compared to 14.0% in 2012.
IFRS non-controlling interests in the 2013 net result amounted to income of US$3
million compared to the 2012 minority share of US$5 million due to reported
results from fully consolidated joint ventures where the Company has a minority
partner (principally concerns FPSOs Aseng and Capixaba).
IFRS net result attributable to shareholders accordingly amounts to income of
US$111 million (US$79 million loss in 2012).
As previously advised, the Company will not pay a dividend over 2013.
Statement of Financial Position
Total assets were US$7.1 billion as of 31 December 2013 (31 December 2012:
US$6.3 billion). The increase is largely a result of the growing investments and
activities recorded in 2013, and the proceeds from divestment of non-core assets
and the rights offering.
Shareholders' equity increased from US$1,458.6 million to US$2,064.2 million due
to 2013 net income of US$111 million, the 1 for 10 rights offering of new
ordinary shares raising US$247 million and the US$27 million top-up to the
December 2012 private placement with HAL and the US$201 million income in Other
Comprehensive Income resulting from the variation of hedging reserve related to
financial instruments.
Capital Employed (Equity + Provisions + Deferred Tax Liability + Net Debt) at
year-end 2013 amounted to US $4,946.8 million and increased by 45% compared to
last year's level (US$3,419.9 million). This was due to the positive
contribution to equity of the rights offering, increase to the private placement
realised at the end of December 2012 and the increase of net debt.
At 31 December 2013, the Company has undrawn committed long-term bank facilities
totalling US$1,234 million (Revolving Credit Facility, FPSO N'Goma, FPSO Cidade
de Ilhabela - SBM 62.25% share and bilateral credit facilities for FPSO Cidade
de Maricá and Saquarema) available for financing capital investment in 2014
onwards.
Net debt at the year-end amounted to US$2,691 million (US$1,816 million at 31
December 2012) with net gearing at 126.0% which is slightly higher than last
year despite the rights offering and HAL private placement top-up, due to the
increase of the net debt driven by the US$470 million settlement with Talisman.
The relevant banking covenants (main solvency, net debt/adjusted EBITDA,
interest cover) were all met.
As in previous years, the Company has no off-balance sheet financing.
In 2012, the Company announced a plan to sell and lease back its premises owned
in Monaco. The Company completed sale and lease back transactions for two of
three office buildings. The remaining building is now expected to be sold in
2014. As a consequence, the Company's related property, plant and equipment
continues to be classified as assets held for sale for their carrying value in
the Company statement of financial position as of 31 December 2013, together
with three non-core vessels, the DSCV SBM Installer, the FPSO Falcon, and the
VLCC Alba.
The current ratio defined as "current assets/current liabilities" increased to
1.67 mainly due to the increasing construction activities on finance lease
contracts, and the reduction of the current portion of loans and borrowings.
Statement of Financial Position
+--------------------------------------------------------------------------+
|in billions of US$ 2009 2010 2011 2012 2013|
| |
|Capital employed 3,325.8 3.811.9 3,354.3 3,420.0 4,694.8|
| |
|Total equity 1,816.8 2,123.4 1,349.0 1,529.8 2,135.0|
| |
|Net debt 1,464.0 1,644.3 1,958.5 1,815.8 2,690.8|
| |
|Net gearing (%) 81.0 77.4 145.2 118.7 126.0|
| |
|Net debt : unadjusted EBITDA ratio 2.39 2.31 2.41 2.7 3.8|
| |
|Current ratio 0.91 1.48 0.86 1.17 1.67|
| |
|Solvency ratio NA 39.6 30.0 27.1 30.2|
+--------------------------------------------------------------------------+
Capital Structure
Following the successful private placement of the Company's shares with HAL in
December 2012, the subsequent top- up of the private placement of the Company's
shares with HAL and the 1 for 10 rights offering of new ordinary shares in early
2013, the financial position of the Company is secure. The anticipated future
proceeds from the non-core asset disposals and frozen dividend payments, will
provide further equity support. The Company's medium-term objective remains to
strengthen the balance sheet to a point that it will be able to obtain an
investment grade credit rating in order to access the corporate bond market.
Investments and Capital Expenditures
Total investments made in 2013 increased to US$1,423 million compared to
US$1,217 million in 2012 and were recorded as:
* Â Â Â Capital expenditures of US$201 million (US$655 million in 2012).
* Â Â Â Investments in finance leases for US$1,222 million (US$563 million in
2012).
Total capital expenditures for 2013 (comprised of additions to property, plant &
equipment plus capitalised development expenditure) amounted to US$201 million
(2012: US$655 million). The majority of this total is related to new investments
in the lease fleet (operating leases only) and other ongoing investments for
which the major elements are:
* Â Â Â Â Final expenditure on the commissioning for the MOPU gas platform for
EnCana's Deep Panuke field in Canada.
* Â Â Â Â Ongoing investment in the Brasa integration yard in Brazil.
* Â Â Â Refurbishment of a newly leased office "Le Neptune" in Monaco.
Expenditures in 2013 on the FPSOs Cidade de Paraty, Cidade de Ilhabela, Cidade
de Maricá and Cidade de Saquarema for Petrobras, FPSO Stones for Shell, and on
FPSO N'Goma for ENI are excluded from the total amounts above. Due to the
classification of the contracts as finance leases, investment in the units were
recorded through construction contracts, with the investments in finance lease
to be ultimately recorded in non-current financial assets. The net investment in
these finance lease contracts amounted to US$1,222 million in 2013 (US$563
million in 2012) and are reported as investing activities in the consolidated
cash flow statement.
The decrease in property, plant and equipment in 2013 to US$2,023 million (31
December 2012: US$2,414 million) resulted from capital expenditure in 2013 less
depreciation, impairment and amortisation, the reclassification as asset held
for sale of the SBM Installer (Diving Support and Construction Vessel), the FPSO
Falcon and the VLCC Alba.
The Company's investments comprise the external costs (shipyards,
subcontractors, and suppliers), internal costs (man-hours and expenses in
respect of design, engineering, construction supervision, etc.), third party
financial costs including interest, and such overhead allocation as allowed
under IFRS. The total of the above costs (or a proportionate share in the case
of joint ventures) is capitalised in the Company's consolidated statement of
financial position as the value of the respective facility. No profit is taken
on completion/delivery of such a system for a lease & operate contract which is
classified as an operating lease, apart from the profit realised by SBM Offshore
with external partners on the construction contract with a joint venture
proportionally consolidated.
Cash Flow/ Liquidities
+---------------------------------------------------------------------------+
| in billions of US$ 2009 2010 2011 2012 2013 |
| |
| EBITDA 613.3 712.4 813.2 681.0 699.6 |
| |
| Net liquidities/securities 146.7 103.4 164.7 715.1 199.5 |
| |
| Cash flow from operations 548.5 981.8 1,157.6 1,133.6 471.0 |
| |
| EV:EBITDA ratio at 31/12 7.7 7.6 6.8 6.3 9.9 |
| |
| EBITDA : interest cover ratio 10.2 8.2 16.3 10.5 12.7 |
+---------------------------------------------------------------------------+
Return on Average Capital Employed (ROACE)
ROACE (Return On Average Capital Employed) increased to 7.0% and Return On
average shareholders' Equity (ROE) also increased to 6.3%, both resulting from
the increased activity and improved results in 2013 and the increase in equity
and capital employed due to the top-up of the private placement of the Company's
shares with HAL and the 1 for 10 rights offering of new ordinary shares.
Cash Flow/Liquidity
IFRS EBITDA increased from the previous year mainly due to increased activity
and improved results.
Net cash and undrawn facilities decreased slightly to US$1,434 million, of which
US$854 million can be considered as being dedicated to specific project debt
servicing or otherwise restricted in its utilisation.
The Enterprise Value to EBITDA ratio at year-end 2013 stood at 9.9; higher than
the previous year due mainly to increased market capitalisation.
Analyst Presentation & Conference Call
SBM Offshore has scheduled a webcast of its Analyst Presentation and a
conference call followed by a Q&A session at 9:00 Central European Time on
Thursday, February 6, 2014.
The presentation will be hosted by Bruno Chabas (CEO), Peter van Rossum (CFO)
and Sietze Hepkema (CGCO). Interested parties are invited to listen to the call
by dialling +31 45 631 6905 in the Netherlands, +44 207 153 2027 in the UK or
+1 480 629 9726 in the US. Conference ID#: 4660813. Interested parties may also
listen to the presentation via webcast through a link posted on the Investor
Relations section of the Company's website.
A replay of the conference call will be available on Thursday, February
6, 2014, beginning at 11:00 Central European Time for one week. The phone number
for the replay is +31 45 799 0028 in the Netherlands and +44 207 959 6720 in the
UK using access code 4660813#. The webcast replay will also be available on the
Company's website.
-----------------------------------------+-------------+------+
Financial Calendar | Date | Year |
+----------------------------------------+-------------+------+
| Publication of AGM Agenda | March 4 | 2014 |
+----------------------------------------+-------------+------+
| Annual General Meeting of Shareholders | April 17 | 2014 |
+----------------------------------------+-------------+------+
| Trading Update Q1 2014 - Press Release | May 9 | 2014 |
+----------------------------------------+-------------+------+
| Half-Year 2014 Results - Press Release | August 7 | 2014 |
+----------------------------------------+-------------+------+
| Trading Update Q3 2014 - Press Release | November 13 | 2014 |
+----------------------------------------+-------------+------+
Corporate Profile
SBM Offshore N.V. is a listed holding company that is headquartered in Schiedam.
It holds direct and indirect interests in other companies that collectively with
SBM Offshore N.V. form the SBM Offshore group ("the Company").
SBM Offshore provides floating production solutions to the offshore energy
industry, over the full product life-cycle. The Company is market leading in
leased floating production systems with multiple units currently in operation,
and has unrivalled operational experience in this field. The Company's main
activities are the design, supply, installation, operation and the life
extension of Floating Production, Storage and Offloading (FPSO) vessels. These
are either owned and operated by SBM Offshore and leased to its clients or
supplied on a turnkey sale basis.
Group companies employ over 9,600 people worldwide, who are spread over five
execution centres, eleven operational shore bases, several construction yards
and the offshore fleet of vessels. Please visit our website at
www.sbmoffshore.com.
The companies in which SBM Offshore N.V. directly and indirectly owns
investments are separate entities. In this communication "SBM Offshore" is
sometimes used for convenience where references are made to SBM Offshore N.V.
and its subsidiaries in general, or where no useful purpose is served by
identifying the particular company or companies.
The Management Board
Schiedam, February 6, 2014
For further information, please contact:
Investor Relations
Nicolas D. Robert
Head of Investor Relations
Telephone: +377 92 05 18 98
Mobile: +33 (0) 6 40 62 44 79
E-mail: nicolas.robert@sbmoffshore.com
Website: www.sbmoffshore.com
Media Relations
Anne Guerin- Moens
Group Communications Director
Telephone: +377 92 05 30 83
Mobile: +33 (0) 6 80 86 36 91
E-mail: anne.guerin- moens@sbmoffshore.com
Website: www.sbmoffshore.com
Disclaimer
Some of the statements contained in this release that are not historical facts
are statements of future expectations and other forward-looking statements based
on management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance, or events
to differ materially from those in such statements. Such forward-looking
statements are subject to various risks and uncertainties, which may cause
actual results and performance of the Company's business to differ materially
and adversely from the forward-looking statements. Certain such forward-looking
statements can be identified by the use of forward-looking terminology such as
"believes", "may", "will", "should", "would be", "expects" or "anticipates" or
similar expressions, or the negative thereof, or other variations thereof, or
comparable terminology, or by discussions of strategy, plans, or intentions.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described in this release as anticipated, believed, or expected. SBM
Offshore NV does not intend, and does not assume any obligation, to update any
industry information or forward-looking statements set forth in this release to
reflect subsequent events or circumstances.
To see the complete version of this press release please click on the link
below:
SBM Offshore press release:
http://hugin.info/130754/R/1759599/595242.pdf
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GlobeNewswire clients. The owner of this announcement warrants that:
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SBM Offshore N.V. via GlobeNewswire
[HUG#1759599]