Prewrite: SBM Offshore FY

Modec

08/02/2022 12:13

Feb 8 (Reuters) - 
    
07.00 AM: press release publication
10:00 AM: call with four board guys
bertjaap.dijkstra@sbmoffshore.com
vincent.kempkes@sbmoffshore.com

https://www.kpneventcall.nl/EventRegistration/e888f27b-5457-4030-9aca-3b999e1afe69
 (beforehand to get code)
        
The directional view assumes all lease contracts are classified
as operating leases and all vessel investees are proportionally
consolidated.
    
Buzios P-80 or P-81 units are turnkey: impact on cash flow
FPSO: floating production storage and offloading (platforms,
vessels, units) Liza Unity, Sepetiba and Prosperity: turnkey 

Consensus
https://bit.ly/3Lj9rq3
FY 2021 revenues: $2.33 bln (L&O: $1.62 bln; turnkey: $705 mln)
FY 2021 EBITDA: $927 mln (L&O: $1.01 bln; turnkey: $3 mln)
FY 2021 net profit: $97 mln
---------------------------------
FY 2022 revenues: $2.99 bln (L&O: $1.62 bln; turnkey: $1.37 mln)
FY 2022 EBITDA: $993 mln (L&O: $1.03 bln; turnkey: $48 mln)
FY 2022 net profit: $140 mln
    
!! UNDERLYING DIRECTIONAL !!
    
*************************************
        
URGENT
        
Outlook    
Oil and gas services group SBM Offshore  SBMO.AS  on Thursday
said it expected full-year core earnings XXX, XXX
    The Dutch company, which supplies floating oil and gas
production vessels, forecasts revenues/earnings before interest,
tax, depreciation and amortisation of around $XXX
billion/million in 2022.
    Analysts polled by SBM expect on average revenues/EBITDA/net
profit to reach $2.99 billion/$993 million/$140 million for the
new fiscal year.
    
Results
SBM Offshore's full-year revenues/core profit/net profit
 SBMO.AS  beat/fell short of expectations, the oil and gas
services group said on Thursday, XXX
    The Dutch company, which supplies floating oil and gas
production vessels, reported revenues/earnings before interest,
taxes, depreciation and amortisation/net profit for the year of
$XXX, up/down from the $2.33 billion/$927 million/$97 million
expected by analysts in a company-compiled consensus.

*************************************
    
UPDATE 1
    
// urgent's first paragraph (to tweak)
    
    If outlook
    The Dutch company, which supplies floating oil and gas
production vessels, forecasts revenues/earnings before interest,
tax, depreciation and amortisation (EBITDA) of around $XXX
billion/million in 2022.
    "XXX," chief executive Bruno Chabas said in a quarterly
earnings statement.
    Analysts polled by SBM expect on average revenues/EBITDA/net
profit to reach $2.99 billion/$993 million/$140 million for the
new fiscal year.
    
    If results
    The Dutch company, which supplies floating oil and gas
production vessels, reported revenues/earnings before interest,
taxes, depreciation and amortisation/net profit for the year of
$XXX, up/down from the $2.33 billion/$927 million/$97 million
expected by analysts in a company-compiled consensus.
    "XXX," chief executive Bruno Chabas said in a quarterly
earnings statement.
    Last November, the group had said its 2021 revenues/EBITDA
would be above $2.3 billion/around $900 million.  urn:newsml:reuters.com:*:nL8N2S21AR

    If wind projects
    The Dutch supplier of floating oil and gas production
vessels, which seeks to develop floating offshore wind power
activities, said it had been commissioned for XXX
    "XXX," chief executive Bruno Chabas said in a quarterly
earnings statement.
    // details on new project
    The group aims to generate at least 25% of revenues from gas
and renewables products by 2030 as part of efforts to reduce its
fleet's carbon footprint.  urn:newsml:reuters.com:*:nASA00D8B
    The Organization of the Petroleum Exporting Countries and
allies led by Russia, known as OPEC+, blamed surging prices on
the failure of consuming nations to ensure adequate investment
in fossil fuels as they shift to greener energy.  urn:newsml:reuters.com:*:nL1N2UD0KX
    XXX, Chabas added.
    
    Along with a post-pandemic demand recovery, the lack of
spare capacity of the Organization of the Petroleum Exporting
Countries and allies led by Russia, known as OPEC+, has put a
charge into energy prices and driven global inflation higher.
    Shell  SHEL.L , BP  BP.L  and Equinor  EQNR.OL  ended 2021
on a high note, fuelled by an energy crunch that lifted Europe's
power prices.  urn:newsml:reuters.com:*:nL1N2UE0EN  urn:newsml:reuters.com:*:nL1N2UJ0C8  XXX 
(to update with Equinor on Wed)
    
    BP's  BP.L  profits hit their highest in eight years in
2021, lifted by soaring gas and oil prices, as the company
boosted share repurchases.  urn:newsml:reuters.com:*:nL1N2UJ0C8
    Shell  SHEL.L  again boosted its dividend and share
repurchases after fourth quarter profits hit their highest in
eight years, fuelled by higher oil and gas prices and strong gas
trading performance.  urn:newsml:reuters.com:*:nL1N2UE0EN 
    
    
    SBM had however previously warned 2020 challenges would
spill into 2021, as many of its clients cutting budgets.
    Line on latest update on oil prices around 9.00 AM  XXX 
    Sensitive to cuts in capital expenditure as it builds and
sells floating production and storage vessels to oil and gas
firms, its turnkey business therefore remained pressured and
brought in $XXX to revenues, up/down XX% year-on-year.
    The group's lease and operate division, whose relies on
multi-year contracts and allows SBM to generate cash in periods
of lower oil prices, fell/rose XX% during the year.
    XXX, Chabas added.
    Warying of responding to calls on its strained capacity to
cap surging prices, the Organization of the Petroleum Exporting
Countries and allies led by Russia, known as OPEC+, stuck last
week to its target of monthly increases of 400,000 barrels per
day.  urn:newsml:reuters.com:*:nL1N2UD0KX

*************************************
    
UPDATE 2

Company shares were up/down XX% as at XXXX GMT, XXX of
Amsterdam's AEX index CAC 40  .AEX .
    // sending the shares diving XX%
    // knocking more than XXX (convert) off its market value
    SBM plunged as much as XX%, before trimming some of those
losses to trade down XX%. The stock is down by more than 12%
year-to-date.
    
SBM said its lease and operate fleet uptime was XX%, up/down/in
line with 99% in 2020.
       
*************************************
        
Nutgraph
Big oil companies like Shell  SHEL.L , Equinor  EQNR.OL  and BP
 BP.L  have profitted from an energy crunch that pushed Europe's
power prices to record highs as tight gas supplies collided with
strong demand in economies recovering from the pandemic.
SBM had previously warned 2020 challenges would spill into 2021,
as many of its clients cutting budgets.

Description
, which operates in the Gulf of Mexico, Brazil, the North Sea,
West Africa and Southeast Asia, XXX
, which operates for a total fleet oil production capacity of
1.66 billion, XXX
, which employs around 4,500 people worldwide, XXX
The Dutch provider of floating oil and gas production vessels
for the global offshore energy industry XXX

Who's who
"XXX," chief executive Bruno Chabas
"XXX," finance chief Douglas Wood
"XXX," chief operating Philippe Barril
"XXX," chief governance and compliance Erik Lagendijk 

Guidance
* SBM confirmed in November it guided for full-year earnings
before interest, tax, depreciation and amortisation (EBITDA) of
around $900 million.
* SBM revised in November its revenue target to above $2.3
billion from around $2.6 billion, with about $1.6 billion coming
from it lease and operate unit and over $0.7 billion brought in
by the turnkey segment.
* SBM said in February 2021 it aimed at generating at least 25%
of revenues from gas and renewables products by 2030 as part of
efforts to reduce its fleet's carbon footprint.  urn:newsml:reuters.com:*:nASA00D8B
* SBM said in August it expected to spend $150 to $200 million
over the next seven to eight years on associated developments
with Cierco, part of a joint venture seeking seabed rights and
permits to develop technologies for floating offshore wind power
activities.  urn:newsml:reuters.com:*:nL1N2PC0CE

Rivals
* BP's  BP.L  profits hit their highest in eight years in 2021,
lifted by soaring gas and oil prices, as the company boosted
share repurchases.  urn:newsml:reuters.com:*:nL1N2UJ0C8
* Shell's  SHEL.L  fourth-quarter profits hit their highest in
eight years, fuelled by higher oil and gas prices and strong gas
trading performance.  urn:newsml:reuters.com:*:nL1N2UE0EN
                
Divisions
* Its turnkey business, which builds and sells floating
production and storage vessels to oil and gas firms, is
sensitive to cuts in capital expenditure by energy companies.
* Its lease and operate division, which runs and leases the
vessels later sold to customers after an initial lease period,
relies on multi-year contracts, allowing the company to keep
generating cash even in periods of low oil prices.    

Background
* Brent crude prices  LCOc1  hit a seven-year high of $91.70 a
barrel on January 28 and are currently trading at about $90.    
* OPEC+ lack of spare capacity along with a post-pandemic demand
recovery, has put a charge into energy prices and driven global
inflation higher.
* OPEC+, which already struggles to meet existing targets ad
waries of responding to calls on its strained capacity for more
crude to cap surging prices, stuck last week to its target of
monthly increases of 400,000 barrels per day.  urn:newsml:reuters.com:*:nL1N2UD0KX
* The Organization of the Petroleum Exporting Countries and
allies led by Russia, known as OPEC+, blamed surging prices on
the failure of consuming nations to ensure adequate investment
in fossil fuels as they shift to greener energy.  urn:newsml:reuters.com:*:nL1N2UD0KX
* The International Maritime Organisation, which capped last
year marine fuels' sulphur content at 0.5% as part of efforts to
boost energy efficiency in vessels, aims at reducing by 40% the
carbon footprint of international shipping by 2030 and seeks to
halve overall greenhouse gas emissions from ships by 2050 from
2008 levels.  urn:newsml:reuters.com:*:nL8N2HY6ZD    
    
Bribery 
* In December, a former SBM manager, convicted in Britain over
how oil contracts were secured in post-occupation Iraq, lodged
an appeal, in another potential blow to one of the Serious Fraud
Office's (SFO) most high-profile bribery cases.  urn:newsml:reuters.com:*:nL8N2SZ49X
* Last March, a former sales manager of SBM was sentenced to
jail after being convicted, following a Serious Fraud Office
investigation into Monaco-based oil consultancy Unaoil, of
bribing public officials by a London jury to win oil contracts
in post-occupation Iraq. SBM has paid over the past decade
around $800 million to settle bribery cases in the Netherlands,
Brazil and the United States.  urn:newsml:reuters.com:*:nL8N2KV8U9  urn:newsml:reuters.com:*:nL8N2IG22J
* Oil whistleblower Jonathan Taylor, which exposed bribery at
former employer SBM, accepted to speak with a public prosecutor
in Monaco after he avoided his extradition to the principality,
hoping to bring "this nonsense to an end", BBC News reported https://www.bbc.com/news/uk-england-hampshire-58587523
 in September as it consulted the summons.
    
Previous results
https://bit.ly/3CHkG7b
Q3 2021 revenues: $1.72 bln
https://bit.ly/2ZXY8Rj
FY 2020 revenues: $2.29 bln
FY 2020 EBITDA: $944 mln
FY 2020 net profit: $125 mln
    
Analysts
https://bit.ly/34EBQWO we believe Q4 results will show positive
earnings momentum where driven by upstream > downstream and
within upstream by gas > oil exposure

 (Reporting by Juliette Portala and Olivier Sorgho; editing by)
 ((juliette.portala@tr.com
mailto:juliette.portala@thomsonreuters.com; +48 58 769 66 07))