SBM Offshore Quarterly Revenue Drops 24% on One-off Divestment

Dina Kartit
Thursday, May 11, 2023

May 11 (Reuters) - Dutch oil and gas services firm SBM Offshore SBMO.AS reported a 24% drop in first-quarter revenue on Thursday, citing the impact from one-off divestment in two of its vessels last year.

Group revenue fell to $742 million for the first three months of 2023, compared with $970 million a year earlier.

The divestment of a 45% interest in floating production storage and offloading (FPSO) vessels Alexandre de Gusmao and Almirante Tamandare in the first quarter of 2022 benefited SBM's turnkey segment, SBM said.

In the first quarter of 2023 ended March, however, the turnkey business saw its revenue fall 49% to $290 million.

"Despite the various remaining challenges related to the COVID-19 pandemic, supply chain constraints and general inflation, the overall margin on FPSO projects under construction remains robust at portfolio level," SBM CEO Bruno Chabas said in a statement.

The lease and operate business revenue increased by 12% year-on-year to $453 million, driven by FPSO Liza Unity operating over the full quarter.

The group stuck to its guidance for the year 2023.

(Reuters - Reporting by Dina Kartit; Editing by Jacqueline Wong and Rashmi Aich)

Categories: Energy Industry News Activity FPSO Europe Floating Production

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