Paper: Investor Wants SBM Offshore to Fund Fleet via Partnerships


AMSTERDAM, Dec 2 (Reuters) – Activist investor Centaurus Capital, which has a small stake in SBM Offshore, wants the marine services company to use a more tax-efficient structure to fund its oil storage and production vessels, a Dutch newspaper said on Monday.

Centaurus wants SBM Offshore to fund its fleet using what it says is a more tax-efficient structure known as Master Limited Partnerships, which are used by U.S. investors in the energy sector, Het Financieele Dagblad said.

As a major operator of floating oil production, storage and offloading platforms (or FPSOs), SBM has a large capital funding need in the next decade, the newspaper quoted Torbjorn Haugen, a Centaurus partner, as saying.

"That's why we have suggested MLPs as an alternative source of funding," he said.

But SBM Offshore's chief financial officer told the newspaper the company found the structure too inflexible.

Haugen declined to comment on the report when contacted by Reuters. A spokesman for SBM Offshore was not immediately available for comment.

(Reporting by Sara Webb; Editing by Greg Mahlich)

Copyright 2016 Thomson Reuters. Click for Restrictions.


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