Dutch oilfield services firm SBM Offshore's strategy of focusing on supplying FPSO products is reaping rewards, according to half-year results released by the company Thursday.
SBM reported that its revenues for the six months to June 30 were greater by 14 percent at $1.7 billion compared with 1H 2011. Meanwhile, the company made a net profit of $158 million compared with a loss of $251 million in 1H 2011.
The strong first half results followed similarly upbeat first quarter results in May, when SBM reported that 1Q turnover had increased by 12 percent to $763 million.
SBM said that its strategic focus to pursue FPSOs (floating, production, storage and offloading vessels) and related products has been reflected in recent contract wins and an "encouraging" bid pipeline. Underlying demand for the company’s FPSO products remains strong, it added.
Contract wins during the first half included a $500 million engineering, procurement, fabrication and supply contract for a turret and mooring system for the Ichthys LNG project – one of Australia's largest undeveloped gas projects with estimated recoverable reserves of 12.8 trillion cubic feet of gas.
SBM is also conducting a review of its asset portfolio to identify non-core assets for sale. The firm intends to target total disposals of approximately $400 million.
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