SBM Offshore Full Year 2025 Earnings

Core Insights - SBM Offshore achieved strong operational performance in 2025, with Directional revenue of US$5.1 billion and Directional EBITDA of US$1.7 billion, reflecting the company's expertise in the FPSO lifecycle [2][8] - The company plans to return a record US$2.57 cash return per share, totaling US$440 million, which is a 57% increase compared to the previous year [3][45] - SBM Offshore's fleet expanded to 16 FPSOs, with total daily production nearing two million barrels of oil equivalent, while maintaining high safety and uptime performance [4][28] Financial Performance - Directional revenue decreased by 17% year-on-year from US$6.1 billion in 2024 to US$5.1 billion in 2025, primarily due to lower Turnkey revenue [9][10] - Directional EBITDA also saw a 10% decline, from US$1.9 billion in 2024 to US$1.7 billion in 2025, largely driven by the Turnkey segment [11] - Profit attributable to shareholders fell by 25% to US$677 million, or US$3.91 per share, reflecting the decrease in Directional EBITDA [14] Operational Updates - The construction of three major projects is on track: FPSO Jaguar for ExxonMobil, FSO Chalchi for Woodside, and FPSO GranMorgu for TotalEnergies [5][23] - The company is well-positioned in the deepwater market with at least 16 FPSO prospects identified for the next three years [6] - Fleet uptime was reported at 99.1%, indicating strong operational reliability [28] Strategic Initiatives - SBM Offshore is advancing its sustainability efforts, achieving approvals for FPSO designs that integrate carbon capture technology, aiming for an 80% reduction in GHG emissions [7][37] - The company signed a memorandum of understanding with Veolia to develop innovative floating desalination units, addressing global water scarcity [42] - Strategic collaborations with Cognite and SLB are being leveraged to optimize asset lifecycle management and enhance operational efficiency [4][40] Shareholder Returns - The company revised its dividend policy to include semi-annual payments, with a proposed US$200 million aggregate dividend for 2025 and 2026 [44][45] - The total cash return to shareholders is expected to reach a minimum of US$2.1 billion over the next six years [3][45] Guidance - For 2026, SBM Offshore projects Directional revenue of approximately US$6.5 billion and Directional EBITDA of around US$1.8 billion [47]