Netherlands' SBM Offshore posts higher revenue, boosted by turnkey unit (updated)

SBM Offshore NV

15/05/2025 07:00

Recasts throughout, adds analyst consensus in paragraph 3, adds share move in paragraph 4, adds CEO quote in paragraphs 6-9,

By Hugo Lhomedet and Michal Aleksandrowicz

May 15 (Reuters) - Dutch oil and gas services firm SBM Offshore SBMO.AS on Thursday reported a higher first-quarter revenue, supported by its turnkey unit, although the results fell slightly short of market estimates.

The Amsterdam-listed firm, which provides floating production services to the offshore energy industry, posted a quarterly directional revenue of $1.10 billion, below the $1.16 billion consensus, as quoted by brokerage Degroof Petercam.

The company's shares were down 1.3%, as of 0845 GMT.

SBM Offshore uses directional reporting, which recognizes revenue from payments received during the construction phase before lease contracts commence.

When asked about potential tariffs, macroeconomic and geopolitical risks, CEO Oivind Tangen told Reuters that he doesn't see "the immediate sort of growth opportunities for SBM are impacted."

"We don't trade in and out of the (United) States," he added.

The CEO, however, flagged "constrained supply chains", partially due to growing power demand from AI.

"There is an emerging demand for gas turbines, which are the similar type of gas turbines that we use," he said.

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.

The directional lease and operate segment's quarterly revenue dropped 14% to $476 million due to 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.

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

 ((Hugo.Lhomedet@thomsonreuters.com;))