SBM Offshore

SBM Offshore

21 August 2018Reading time: 2 minutes

SBM Offshore has published its half year result for the year 2018 on 09.08.2018. The company shows solid results despite the tumultuous environment on the oil market. The turnkey branch is gaining momentum and there is actually two majors project for SBM Offshore: the Castberg turret mooring system and FPSO Liza 1 both are on track according to client schedule. FSPO stands for Floating Production Storage and Offloading Vessel, which are basically ships responsible for the transport and the processing of hydrocarbons in a storable form. The FPSO Liza 2 project has been award with the FEED ( Front End Engineering and Design), the project is part of SBM’s Fast4Ward strategy, which aim to improve rentability and hence reduce payback time in deepwater project. According to the company, Deepwater project have in average a lower break-even-price than shale oil project. However the average payback time for shale oil project is very low (below 2Y) compared to deepwater project (7-8Y) , therefore the crucial need to further implementation of the Fast4Ward strategy for SBM Offshore.

The overall revenue of the company dropped by 3% to USD 808 million compared to the first HY of 2017. The EBITDA soared by 50% to USD 647 million compared to HY of 2017 main driver was the exceptional result of the turnkey division. Furthermore the company except an energy supply gap in the mid 2020’s due to years of underinvestment in new project, which might signify a needed increase in Oil&Gas solution, which might profit to SBM Offshore.

Recently, SBM Offshore has made an agreement with Brazilian authorities regarding the Petrobras bribery scandal. SBM Offshore has to pay penalties to Petrobras totalizing USD 148 million. Through this payment , SBM Offshore and Petrobras can normalize their business relationship and enable new business opportunities in the future which might create a virtuous circle for both company. However, the future development remains to be seen.

Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

Vontobel products on SBM Offshore are tradable at DEGIRO.


Important legal information:

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

Fordetailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: http://beursproducten.vontobel.com. Additionally, the Base Prospectus, anysupplements to the Base Prospectus and the Final Terms are available inprinted form, free of charge, at the registered office of the issuer: Vontobel Europe AG, Bockenheimer Landstrasse 24, 60323
Frankfurt am Main, Germany.


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16/06/2019 08:58:44