SBM Offshore 2025 profit falls 25% to $677m

Core Insights - SBM Offshore's net profit attributable to shareholders for the full year 2025 decreased by 25% to $677 million, down from $907 million in 2024 [1] - Directional earnings per share for 2025 was $3.91, a 23% decline compared to $5.08 in the previous year [1] Revenue Performance - Directional revenue for 2025 stood at $5.1 billion, a 17% year-on-year decline from $6.1 billion in 2024, primarily due to lower turnkey activity following a high base year of FPSO asset sales and completions [2] - Directional turnkey revenue fell by 26% to $2.8 billion from $3.7 billion in 2024, reflecting the non-recurrence of FPSO Prosperity and Liza Destiny asset sales in Q4 2024 [2] - Directional Lease and Operate revenue declined 3% to $2.3 billion from $2.4 billion, partially offset by fleet additions of new FPSOs [3] EBITDA Analysis - Directional EBITDA declined 10% to $1.7 billion from $1.9 billion in 2024, primarily due to weakness in the Turnkey segment, where EBITDA fell 23% to $561 million from $724 million [4] - Directional Lease and Operate EBITDA held relatively steady at $1.2 billion, compared to $1.3 billion in 2024, a 2% decrease [4] - On an International Financial Reporting Standards basis, EBITDA rose 78% to $1.9 billion from $1 billion in 2024, reflecting differing accounting treatments of lease contracts [5] Future Outlook - For 2026, SBM Offshore has set a directional revenue guidance baseline of around $6.5 billion, a projected 28% increase from 2025 [6] - Directional EBITDA guidance for 2026 stands at a baseline of approximately $1.8 billion, a 5% improvement from 2025's Directional EBITDA [7] - Three major construction projects are on track and expected to underpin revenue growth in the coming years [7]