Strong Demand for FPSO Vessels Drives Revenue at SBM Offshore
by Jon Mainwaring
Wednesday, May 16, 2012
Strong momentum in the oil and gas upstream market is continuing to drive demand for FPSO vessels and related products, according to Dutch SBM Offshore.
The Dutch company, which specializes in floating production technology, announced a trading update Wednesday in which it revealed its first quarter turnover was greater by 12 percent than 1Q 2011 at $763 million.
Order intake for the first three months of the year amounted to $564 million, compared with $440 million in 1Q 2011, bringing the firm's total order portfolio to $16.7 billion by March 31, 2012. SBM said that $3.2 billion of these orders is expected to be recognized as turnover in 2012.
SBM expects total turnover for 2012 to be in the region of $4 billion. Operating margin (at the EBIT level) for its Turnkey Systems business is expected to be close to 10 percent, while SBM estimates the margin for its Turnkey Services operation will be between 15 and 20 percent.
During the first quarter, SBM said that it continued "to capitalize on its strength and expertise in its core FPSO market," having secured a contract for the engineering, procurement, fabrication and supply of a 'turret & mooring' system for the Ichthys LNG project.
Since the end of the first quarter, the firm has also received an extension of 14 months for the 'lease and operate' contract of SBM's FPSO Brasil vessel from Petrobras.
SBM said that all of its fleet operations are performing with high production uptime and, overall, execution of the project portfolio is showing good progress in line with expectations.
Commenting on the firm's recent trading, SBM CEO Bruno Chabas said in a statement: "SBM Offshore's first quarter performance maintained the trend of consistent year-on-year growth. Strong momentum in the oil and gas upstream market continues to drive demand for FPSOs and related products. The recent award of the turret for the Ichthys FPSO is a reminder of the strong rationale for a strategy to focus on the products for which we are the world leader."
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