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  Title	SBM Offshore N : 2025 Half Year Earnings
  ID	12296748
  External ID	7949392619
  Author	Unknown
  Published Date	Aug. 7, 2025, 12:14 a.m.
  Summary	2025 HALF YEAR EARNINGS TRUE. BLUE. OFFSHORE TRANSITION. HALF YEAR MANAGEMENT REPORT 4 Highlights and Half Year Earnings 5 Financial Review 10 DECLARATION MANAGEMENT BOARD 22 SBM OFFSHORE N.V.
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  URL	https://www.marketscreener.com/news/sbm-offshore-n-2025-half-year-earnings-ce7c5ededf80f427
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  Content ID	7857299
  Key	538939d9-46db-45d3-a611-0cc7aa3b40e8
  Content	2025 HALF YEAR EARNINGS TRUE. BLUE. OFFSHORE TRANSITION. HALF YEAR MANAGEMENT REPORT 4 Highlights and Half Year Earnings 5 Financial Review 10 DECLARATION MANAGEMENT BOARD 22 SBM OFFSHORE N.V. - CONDENSED CONSOLIDATED HALF YEAR IFRS FINANCIAL STATEMENTS (UNAUDITED) 24 Consolidated Financial Statements (unaudited) 25 Notes 30 ‌"Thanks to solid project execution performance and the start-up of two major FPSOs, we delivered strong financial results for the first half of 2025. As a result, we are increasing both our Directional revenue and EBITDA guidance for 2025. This success underscores our teams' ability and discipline in executing our lifecycle model. It is also a clear demonstration of a resilient business model, consistently proving its quality and agility regardless of macro-economic uncertainties and geopolitical challenges. During the first half of the year, we brought online two large FPSOs in Brazil with a combined capacity of 405,000 bbls/day. Additionally, FPSO ONE GUYANA, which will be the largest producing unit in Guyana with a nameplate capacity of 250,000 bbls/day, is on charter as of August 4 and preparing for first oil. Delivery of these three assets brings the size of our fleet to 17 FPSOs with a production capacity of 2.7 million bbls/day. This scale brings experience, learnings and data which allow us to continuously refine our lifecycle value proposition and deliver enhanced value to our clients by derisking project execution, accelerating time to reach full operational capacity and improving uptime. Construction is on track for FPSOs Jaguar GranMorgu and FSO Trion. The last two FPSOs that started production in Brazil achieved flare out in an industry-leading average below 45 days, and we achieved an uptime average of 99.4% for the first six months across the fleet. In Guyana, debottlenecking of processing facilities on our initial three FPSOs increased production capacity by 125,000 bbls/day. In June, we signed an agreement with TotalEnergies to provide the operations and maintenance service for at least two years of FPSO GranMorgu . This contract will make SBM Offshore the first FPSO operator in Suriname. The deepwater market outlook remains robust, driven by the demand for cost-efficient and low-emission oil production. We are progressing construction of two new hulls to actively support tendering activities and remain disciplined in selecting prospects where we can generate most value to enhance our portfolio. The strong fundamentals of the deepwater market, coupled with our backlog's resilience to inflationary pressures, underpins our ability to provide stable and growing returns to shareholders. We are on track to return a minimum of US$1.7 billion to shareholders over the six years from 2025 to 2030, with upside potential from the existing backlog and prospective new awards. Using our ocean infrastructure expertise, we are innovating for the long term with purpose. In April 2025, we secured the American Bureau of Shipping's approval in principle for our near zero emission FPSO, and our collaboration with Microsoft to develop standardized floating power solutions with integrated carbon capture technology is progressing. We are delivering on our promise to provide reliable, affordable, and sustainable energy for the long-term through a strategy that pays." ‌HIGHLIGHTS AND HALF YEAR EARNINGS Highlights Increase in full year 2025 Directional revenue guidance from above US$4.9 billion to above US$5.0 billion Increase in full year 2025 Directional EBITDA guidance from around US$1.55 billion to above US$1.6 billion 26% increase in year-to-date Directional revenue of US$2.3 billion; 10% increase in Directional EBITDA of US$682 million First oil for FPSOs Almirante Tamandaré and Alexandre de Gusmão FPSO ONE GUYANA on charter, preparing for first oil FPSO GranMorgu operations and maintenance contract signed with TotalEnergies Further portfolio rationalization through sale of FPSO Aseng EUR150 million dividend paid; EUR141 million share repurchase program on track, c. 34% completed Net debt is calculated as total borrowings (including lease liabilities) less cash and cash equivalents. Directional net debt is calculated as Directional total borrowings (including lease liabilities) less Directional cash and cash equivalents. Directional reporting, presented in the Financial Statements under section Operating Segments and Directional Reporting, represents a pro-forma accounting policy, which treats all lease contracts as operating leases and consolidates all co-owned investees related to lease contracts on a proportional basis based on percentage of ownership. This explanatory note relates to all Directional reporting in this document. The completion of the transaction remains subject to several conditions precedent and approvals. As of August 6, 2025. Directional revenue stood at US$2,311 million in the first half of 2025, a 26% increase compared with the same period in 2024. The increase is mainly driven by Directional Turnkey revenue, which rose to US$1,322 million in the first half, a 100% increase compared with US$662 million in the same period last year. This improved contribution mainly reflects the progress on the construction projects of FPSOs Jaguar and GranMorgu under the Sale and Operate model. This was partially offset by the completion of FPSO Sepetiba in January 2024, and the overall comparatively lower level of construction activity during the first half of 2025 on FPSOs Almirante Tamandaré Alexandre de Gusmão and ONE GUYANA as these projects reached or neared completion. Directional Lease and Operate revenue came in at US$988 million, a 16% decrease compared with US$1,178 million in the same period last year. This variance is mainly driven by FPSOs Liza Destiny and Prosperity only contributing as operating contracts in 2025 following the purchase of the units by the client in 4Q 2024 and a decrease in reimbursable scope on the fleet, partially offset by FPSOs Almirante Tamandaré and Alexandre de Gusmão joining the fleet upon successful delivery in the first half year of 2025 and the contribution of FPSOs N'Goma, Saxi Batuque and Mondo following the increase in ownership in June 2024. Directional EBITDA amounted to US$682 million in the first half of 2025, a US$62 million or 10% improvement compared with the same period last year. This was mainly attributable to the higher contribution of Directional Turnkey EBITDA, which increased from US$(12) million in the year-ago period to US$225 million in the first half of 2025 due to (i) full margin contribution of FPSO Jaguar after reaching the 25% stage of completion gate in 4Q 2024, (ii) limited but positive contribution of FPSO GranMorgu as the project reached the requisite stage of completion in 2Q 2025, (iii) successful completion of FPSOs Almirante Tamandaré and Alexandre de Gusmão , and (iv) offset by a lower level of activity on other product and services projects. Directional Lease and Operate EBITDA stood at US$497 million in the first half of the year compared with US$679 million in the same period last year. This lower contribution reflects (i) the same drivers as Directional Lease and Operate revenue, and (ii) a net positive impact from the completion of the transactions with MISC in the first half of 2025 (acquisition of interests in FPSO Espirito Santo and the full divestment in FPSO Kikeh ), partially offset by an aggregate gain in the prior period from the transactions with Sonangol (acquisition of interests held in FPSOs N'Goma Saxi Batuque and Mondo, divestment of the Paenal shipyard). The other non-allocated costs charged to Directional EBITDA amounted to US$(41) million in the first half of 2025, a 14% improvement compared with the previous year as a result of lower general and administrative costs. The Company recorded a Directional net profit of US$274 million, or US$1.57 per share, for the first half of 2025 up from US$128 million, or US$0.71 per share, in the year-ago period. Funding and Directional Net Debt Directional net debt stood at US$5.6 billion as of June 30, 2025 versus US$5.7 billion as of December 31, 2024. While the Turnkey (with Sale and Operate model) and the Lease and Operate segments continue to generate strong operating cash flow, the Company implemented a new financing tool with the sale and leaseback financing agreement for FPSO Cidade de Paraty , fully drawn in the first half year of 2025. The Company also continued to draw on the project finance facilities for FPSOs Alexandre de Gusmão and ONE GUYANA , on the construction financing for FPSO Jaguar and on the new RCF agreement. This was partially offset by scheduled repayments on the non-recourse debt, the full repayment of the MPF facility, the full repayment of the previous RCF agreement and the full repayment of the US private placement notes in relation to FPSO Cidade de Anchieta Almost half of the Company's Directional debt as of June 30, 2025 consisted of non-recourse project financing (US$3.0 billion). The remainder (US$3.3 billion) comprised (i) borrowings supporting the construction of FPSOs ONE GUYANA and Alexandre de Gusmão , which will become non-recourse following project execution finalization and release of the related parent company guarantees, (ii) the construction financing for FPSO Jaguar which will be repaid following completion of construction, and (iii) the new Company's RCF, which was drawn for US$100 million as at June 30, 2025. The Directional net cash balance stood at US$794 million as of June 30, 2025. Pro-forma Directional Backlog Changes in ownership scenarios and lease contract durations have the potential to significantly impact the Company's future cash flows, net debt balance as well as the profit and loss statement. The Company therefore provides a pro-forma Directional backlog based on the best available information regarding ownership scenarios and lease contract durations for the various projects. The pro-forma Directional backlog decreased by US$1.9 billion compared with the position at December 31, 2024 to a total of US$33.2 billion reflecting the turnover for the period. The Company's backlog provides cash flow visibility up to 2050. The pro-forma Directional backlog at June 30, 2025 reflects the following key assumptions: The FPSO ONE GUYANA contract covers a maximum lease period of 2 years, within which the ownership of the FPSO will transfer to the client. The impact of the subsequent sale is reflected in the Turnkey backlog. The FPSO Jaguar contract awarded to the Company in April 2024 covers the construction period within which the ownership of the FPSO will transfer to the client and is reported in the Turnkey backlog. 10 years of operations and maintenance are considered for FPSOs Liza Destiny Liza Unity Prosperity and ONE GUYANA following signature of the Operations & Maintenance Enabling Agreement in 2023. Regarding FPSO Jaguar , the proforma Directional backlog includes the operating and maintenance scope for 10 years as it has been agreed in principle, pending a final work order. This is consistent with prior years. The FPSO GranMorgu contract awarded in November 2024 covers the construction period within which the FPSO ownership will transfer to the client and is reported in the Turnkey backlog. The operations and maintenance contract signed in June 2025 covers a minimal period of two years after first oil. The FSO Trion contract awarded to the Company in August 2024 is considered for 20 years in lease and operate contracts at the Company ownership share at June 30, 2025 (100%). The full divestment of FPSO Aseng has been reflected in the pro-forma backlog. The completion of the transaction remains subject to several conditions precedent and approvals. Leases, operations and maintenance contract extension options are considered when secured. It should be noted that the sale and leaseback financing agreement for FPSO Cidade de Paraty signed in April 2025 did not impact the pro-forma Directional backlog. Under Directional reporting, the transaction is not treated as a sale of the unit according to IFRS 16. Project Review and Fleet Operational Update Project deliveries The Company is on track to bring three major FPSOs into operation in 2025: FPSO Almirante Tamandaré - First oil was achieved in February and gas flare out in 49 days, as planned. FPSO Alexandre de Gusmão - First oil was achieved in May and gas flare out in 36 days, ahead of plan. FPSO ONE GUYANA - The FPSO was delivered on time. The Production Readiness Notice was issued on August 4, and the unit is preparing for first oil. These three units have a combined production capacity of 655,000 bbls/day, bringing the size of the SBM fleet to 17 FPSOs with a production capacity of 2.7 million bbls/day. 1 Project delivery not disclosed by the client. The construction portfolio is progressing well and all projects remain on track. An update on the individual ongoing projects is provided below considering the latest known circumstances. FPSO Jaguar - The project continues to perform as per plan. The unit entered dry dock on July 1, and the topsides fabrication is on track. First oil is expected in 2027. FSO Trion - The fabrication of the disconnectable turret mooring system is progressing as per plan. The engineering and procurement activities for the hull are well under way with construction planned to start in the second part of the year. FPSO GranMorgu - Engineering and procurement continue to progress well and topside modules fabrication has started as per plan. Strategic positioning for new prospects The strategic positioning of SBM Offshore in the market is supported by investments in anticipation of new projects through the Company's Fast4Ward ® MPF hull program. Ten MPF hulls have been ordered to date: Six Fast4Ward ® MPF hulls are in operation. Two Fast4Ward ® MPF hulls are delivered and allocated to ongoing projects under construction. Two Fast4Ward ® MPF hulls are under construction, supporting active discussions with clients driven by the strong FPSO market outlook. Fleet update Contract extension - The Company has agreed the contract extension related to the lease and operations of FPSO Saxi until June 2026. Fleet Uptime - Year-to-date, the fleet uptime was 99.4%. Safety and Sustainability Safety - There were zero Fatalities or Permanent Impairment Injuries in the first half of 2025, within the full year target of zero. Sustainable recycling - SBM Offshore is recycling FPSO Capixaba at Denmark's M.A.R.S. Facility, in line with its Responsible Recycling Policy aligned with the Hong Kong Convention and EU regulations. The unit is expected to move to final stage of cleaning and dismantling towards end of 2025. SBM remains committed to safe, compliant, and environmentally responsible recycling. Near zero emission FPSO - The Company has achieved its target to propose a near zero emission FPSO in 2025 as it has secured the American Bureau of Shipping's "Approval in Principle" for its design. Shareholder Returns The EUR150 million dividend (c. US$155 million equivalent ) was paid in May. The EUR141 million (c. US$150 million equivalent ) share repurchase program effective from April 24, 2025 is progressing and was c. 34% complete on August 6, 2025 after market close. The objective of the share buyback program is to reduce share capital and provide shares for regular Based on the exchange rate on February 20, 2025. management and employee share programs (maximum US$25 million). Shares repurchased as part of the cash return will be cancelled. Guidance The Company's 2025 Directional revenue guidance is increased to above US$5.0 billion of which above US$2.2 billion is expected from the Lease and Operate segment and around US$2.8 billion from the Turnkey segment. 2025 Directional EBITDA guidance is increased to above US$1.6 billion for the Company. EBITDA - Profit/(loss) excluding net financing costs, income tax expense, depreciation, amortization and impairment as well as share of profit/(loss) of equity accounted investees. For a reconciliation to the consolidated income statement, refer to section 'Alternative Performance Measures'. Directional EBITDA - Directional Profit/(loss) excluding Directional net financing costs, Directional income tax expense, Directional depreciation, amortization and impairment as well as Directional share of profit/(loss) of equity-accounted investees. For a reconciliation to IFRS figures, refer to section 'Alternative Performance Measures'. Net debt is calculated as total borrowings (including lease liabilities) less cash and cash equivalents. Directional net debt is calculated as Directional total borrowings (including lease liabilities) less Directional cash and cash equivalents. General The Company's primary business segments are Lease and Operate' and Turnkey'. Additionally, the Company discloses separately non-allocated corporate income and expense items presented in the category Other'. Revenue and EBITDA are analyzed by segment, but it should be recognized that business activities are closely related. During recent years, the Company's awarded lease contracts were systematically classified under IFRS as finance leases for accounting purposes, whereby the fair value of the leased assets is recorded as a Turnkey 'sale' during construction. For the Turnkey segment, this accounting treatment results in the acceleration of recognition of lease revenues and profits into the construction phase of the asset, whereas the asset generates the cash mainly only after construction and commissioning activities have been completed, as that is the moment the Company is entitled to start receiving the lease payments. In the case of an operating lease, lease revenues and profits are recognized during the lease period, in effect tracking more closely cash receipts. Following the implementation of accounting standards IFRS 10 and 11 starting January 1, 2014, it has also become challenging to extract the Company's proportionate share of results. To address these accounting issues, the Company discloses Directional reporting in addition to its IFRS reporting. Directional reporting treats all lease contracts as operating leases and consolidates all co-owned investees related to lease contracts on a percentage of ownership basis. Under Directional, the accounting results track more closely cash-flow generation, and this is the basis used by the Management Board of the Company to monitor performance as well as for business planning. Reference is made to note 4.3.2 Operating Segments and Directional Reporting of the Company's 2024 Annual Report for further detail on the main principles of Directional reporting. With regards to the recently awarded Sale and Operate contracts for the FPSO Jaguar and FPSO GranMorgu projects, the full construction Revenue and margin will be recognized during the construction period in the same way under IFRS and Directional reporting within the Turnkey segment. Revenue Revenue for the first half-year of 2025 increased by 28% to US$2,840 million versus US$2,220 million in the first half-year of 2024. The increase was mainly driven by the Turnkey segment. Turnkey revenue increased from US$1,249 million to US$1,777 million, mainly explained by (i) the progress on the construction projects FPSOs Jaguar and GranMorgu under the Sale and Operate model and FSO Trion under the Lease and Operate model. This was partially offset by (ii) the completion of FPSO Sepetiba in early January 2024, (iii) the overall reduced relative level of progress during the first half of 2025 compared with the first half of 2024 on FPSO Almirante Tamandaré (completed in February 2025), FPSO Alexandre de Gusmão (completed in May 2025) and FPSO ONE GUYANA as this project approaches completion and (iv) the lower level of activity and progress on other products and services projects. Lease and Operate revenue for the first half-year of 2025 increased by 10% to US$1,063 million versus US$971 million in the same period in the previous year. This reflects mainly the following events: (i) FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão joining the fleet upon successful delivery during the first half-year of 2025, (ii) full consolidation and associated contribution of the lease and operating entities related to FPSOs N'Goma Saxi Batuque and Mondo following the acquisition of additional shares (the 'Sonangol Transaction') in June 2024 partially offset by (iii) reduced revenue from FPSOs Liza Destiny and Liza Prosperity only contributing in 2025 as Operations and Maintenance contracts following the purchase of the units by the client in the last quarter of 2024 (therefore not contributing to lease revenue in 2025) and (iv) the regular declining profile of interest revenue from finance leases. EBITDA The EBITDA based on IFRS accounting policies amounted to US$756 million, an increase of 42% when compared with the same period in the previous year. This variance is further detailed as follows by segment: Turnkey EBITDA increased from US$127 million in the the previous year period to US$400 million mostly coming from: full margin contribution during the first half-year of 2025 from FPSO Jaguar given that the project only reached the requisite 'stage of completion' to allow margin recognition during the last quarter of 2024 (no margin contribution in the first half-year 2024); the limited but positive contribution of FPSO GranMorgu over the period as the project just reached the requisite 'stage of completion' during the second quarter of 2025; and the successful close-out of the construction activities of FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão , delivered during the first half year of 2025; partially offset by the overall reduced relative level of progress during the first half of 2025 compared with the first half of 2024 on FPSO Almirante Tamandaré (completed in February 2025), FPSO Alexandre de Gusmão (completed in May 2025) and FPSO ONE GUYANA as this project approaches completion; and the lower level of activity and progress on other products and services projects. Finally, it should be noted that with respect to the contracts which contributed to revenue during the period, only FSO Trion project had no contribution to EBITDA as the project had not reached the requisite 'stage of completion' to allow margin to be recognized at the end of the current period. Turnkey EBITDA margin increased from 10% in the previous year period to 23% of Turnkey revenue mainly due to the FPSO Jaguar and FPSO Gran Morgu projects fully contributing to EBITDA over the first half of 2025. Lease and Operate EBITDA for the first half-year of 2025 decreased by -13% to US$397 million versus US$454 million in the same period in the previous year. The key factors impacting the change in Lease and Operate EBITDA are: the effect of FPSOs Liza Destiny and Liza Prosperity only contributing to Operation and Maintenance revenue and not to finance lease revenue during the period, following the purchase of the units by the client in the last quarter of 2024; the previous year's net gain for a total of US$32 million from the acquisition of interests held by Sonangol related to FPSOs N'Goma Saxi Batuque and Mondo, and the divestment in the parent company of the Paenal shipyard in Angola recognized in Other operating income in the previous year period; the regular declining profile of interest revenue from finance leases; partially offset by the positive effect of FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão joining the fleet in February and May 2025, respectively; and the full consolidation impact in 2025 of the lease and operating entities related to Angola operations which were not yet significantly contributing to the prior year period as the transaction occurred in June 2024. It should be noted that the completion of the Share Purchase Agreements with MISC Berhad during the period had no impact on the Lease and Operate EBITDA. The acquisition of the interests in the entities related to the FPSO Espirito Santo was accounted for directly in equity as a transaction with a non-controlling interest while the full divestment of the lease and operating entities of the FPSO Kikeh had a nil impact on the EBITDA. The other non-allocated costs charged to EBITDA amounted to US$(41) million in the first half-year of 2025, an improvement compared with the US$(47) million in the previous year period which is mainly explained by the decrease in general and administrative costs. Net income Depreciation, amortization and impairment decreased compared with the previous year period mostly from FPSO Cidade de Anchieta having a lower depreciable base as a result of the impairment recognized in the last quarter of 2024 and the impairment of a funding loan provided to some equity-accounted entities which was recognized in the previous year period. Net financing costs came in at US$(255) million for the first half of 2025, an improvement of 20% compared with the previous year period, mostly explained by (i) lower interest expense on FPSOs Liza Destiny and Liza Prosperity following purchase of the units by the client and the full repayment of the respective project loans in 2024, (ii) gains in forward currency contracts and (iii) the scheduled amortization of project loans for the fleet under operations. This was partially offset by (iv) increased financing to fund projects under construction (FPSO Almirante Tamandaré , FPSO Alexandre de Gusmão , FPSO ONE GUYANA and FPSO Jaguar) The effective tax rate over the first half-year of 2025 decreased to 15%, compared with 24% for the first six months of 2024. The decrease in the effective tax rate is mainly explained by (i) higher profit during the period of construction recognized in 2025, with moderate tax effect, (ii) lower tax on the Guyana projects following the sales of two FPSOs in 2024 and (iii) lower withholding tax basis on the new Brazilian projects. As a result, net profit attributable to shareholders for the first half-year of 2025 came in at US$322 million compared with US$116 million for the previous year period. Total equity increased by US$201 million from US$5,844 million at year end 2024 to US$6,045 million at June 30, 2025. The increase in equity mainly resulted from (i) the positive result over the first half-year of 2025, (ii) the gain recognized in retained earnings from the acquisition of the non-controlling interests in Espirito Santo entities which were already controlled by the Company prior to the transaction and (iii) the increase of the hedging reserve, partially offset by (iv) dividends to shareholders and to non-controlling interests and (v) the share repurchase program. It is to be noted that the dividends distributed to the shareholders amounted to EUR150 million (equivalent to US$170 million ) and the Company's cumulative share repurchase amounted to US$73 million as of June 2025 in relation to: The share repurchase program (the 'Incremental Buyback') effective from August 8, 2024, which was fully completed by end of April 2025 for a total amount of c. US$71 million. The objective of this program was to reduce share capital and, in addition, provide shares for regular management and employee share programs. Repurchased shares not allocated to regular management and employee share programs will be cancelled. The additional share repurchase program effective from April 24, 2025, which is expected to be completed by end of February 2026 for a total amount of c. US$150 million. The objective of this program is to reduce share capital and, in addition, provide shares for regular management and employee share programs (maximum US$25 million). Repurchased shares not allocated to regular management end employee share programs will be cancelled. The movement in the hedging reserve was mainly caused by (i) the increase in mark-to-market value of forward currency contracts, driven by the depreciation of the US$ exchange rate versus the hedged currencies (especially EUR and BRL), partially offset by (ii) the negative impact of the mark-to-market value of interest rate swaps due to decreasing US$ market interest rates. Net debt increased by US$11 million to US$8,148 million at June 30, 2025. While the Turnkey (with the Sale and Operate model) and the Lease and Operate segments generated strong operating cash flows, the Company (i) has implemented a new financing tool with the sale and leaseback financing agreement for FPSO Cidade de Paraty fully drawn in the first-half year of 2025 and has continued to draw on (ii) project finance facilities for FPSO Alexandre de Gusmão and FPSO ONE GUYANA , (iii) on construction financing for FPSO Jaguar , and (iv) on the new RCF agreement. These were partially offset by (v) the scheduled repayment of non-recourse project debt, (vi) the full repayment of the MPF facility, (vii) the repayment of the existing RCF agreement and (viii) the full repayment of the US private placement notes in relation to FPSO Cidade de Anchieta. More than half of the Company's debt as of June 30, 2025 consisted of non-recourse project financing (US$5 billion) in special purpose investees. The remainder (US$4 billion) comprised of (i) borrowings to support the construction of FPSO ONE GUYANA and FPSO Alexandre de Gusmão , which will become non-recourse following project execution finalization and release of the related parent company guarantee, (ii) the construction financing for FPSO Jaguar which will be repaid following completion of construction, and (iii) the new Company RCF, which was drawn for US$100 million as at June 30, 2025. The net cash balance stood at US$1,013 million and lease liabilities totaled US$101 million. Total assets increased to US$17.8 billion as of June 30, 2025, compared with US$17.2 billion at year end 2024. This primarily resulted from (i) the increase of finance lease receivables following the first oil of FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão during the current period compared with their contract asset value at the end of 2024, (ii) the investments in multi-purpose floater hulls under construction for use in future projects, (iii) the increase of contract assets and Based on the EUR/US$ exchange rate on May 6, 2025. Dividends were paid in euro. receivables related to the FPSO projects under construction at the end of the year and (iv) net cash generation, partially offset by (v) a reduction of the gross amount of finance lease receivables in line with the repayment schedules. RELATED PARTY TRANSACTIONS During the first half-year 2025, the Company made equity contributions towards investees, related to FPSO Sepetiba , FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão (combined US$130 million) projects and received share premium reserve reimbursement from investees related to FPSO Sepetiba and FPSO Alexandre de Gusmão (combined US$134 million). There were no other major related party transactions requiring additional disclosure in the consolidated financial statements. The Company has transactions with joint ventures and associates recognized as follows in the Company's condensed consolidated half-year financial statements: For the avoidance of doubt, revenue and cost of sales are presented for the six months ended June 30 whereas financial positions are presented as of June 30, 2025 and December 31, 2024. The Company granted loans to joint ventures and associates such as shareholder loans and funding loans at interest rates comparable to the applicable market rates. During the period, the Company entered into trading transactions with joint ventures and associates on terms equivalent to those that prevail in arm's-length transactions. The decrease in 'Revenue with related parties' and 'Trade receivables' is mostly due to the impact of the change in consolidation method triggered by the completion of the acquisition of shares from Sonangol EP and the disposal of the Paenal shipyard in Angola at the end of the 2024 half-year. FINANCIAL REVIEW DIRECTIONAL DIRECTIONAL REPORTING Since 2014 the Company has disclosed Directional reporting in addition to its IFRS reporting. In summary, Directional reporting differs from IFRS reporting in three ways: i) all lease contracts are treated as operating leases; ii) all co-owned investees related to lease contracts are consolidated on a percentage of ownership basis; (iii) all deferred tax generated by intragroup eliminations are not recognized. Under Directional, the accounting results track more closely cash flow generation and Directional reporting is the method used by the Management Board of the Company to monitor performance and for business planning. The Management Board, as chief operating decision maker, monitors the operating results of the Company primarily based on Directional reporting. The financial review is presented both under IFRS and Directional. As far as the half-year financial statements are concerned, the financial information provided in note 8 Operating Segments and Directional Reporting is presented under Directional with a reconciliation to IFRS, while the remainder of the numbers in the half-year financial statements are presented solely under IFRS. Pro-forma Directional backlog Changes in ownership scenarios, lease contract duration and contractual commitments have the potential to significantly impact the Company's future cash flows, net debt balance as well as the profit and loss statement. The Company therefore provides a pro-forma Directional backlog based on the available information regarding ownership scenarios, lease contract duration and contractual commitments for the various projects. The pro-forma Directional backlog at June 30, 2025 reflects the following key assumptions: The FPSO ONE GUYANA contract covers a maximum lease period of 2 years, within which the FPSO ownership will transfer to the client. The impact of the subsequent sale is reflected in the Turnkey backlog. The FPSO Jaguar contract awarded to the Company in April 2024 covers the construction period within which the FPSO ownership will transfer to the client and is reported in the Turnkey backlog. 10 years of operations and maintenance are considered for FPSOs Liza Destiny Liza Unity Prosperity and ONE GUYANA following signature of the Operations and Maintenance Enabling Agreement ('OMEA') in 2023. For FPSO Jaguar , the proforma Directional backlog includes the operating and maintenance scope for 10 years as it has been agreed in principle, pending a final work order. This is consistent with prior years. The GranMorgu FPSO contract awarded to the Company in November 2024 covers the construction period within which the FPSO ownership will transfer to the client and is reported in the Turnkey backlog. The operations and maintenance contract signed in June 2025 covers a minimal period of two years after first oil. The FSO Trion contract awarded to the Company in August 2024 is considered for 20 years in lease and operate contracts at the Company ownership share at June 30, 2025 (100%). The full divestment in FPSO Aseng has been reflected in the proforma backlog. The completion of the transaction remains subject to several conditions precedent and approvals. For leases and operations and maintenance contracts extension options are considered when secured. It should be noted that the sale and leaseback financing agreement for FPSO Cidade de Paraty signed in April 2025 did not impact the pro-forma Directional backlog. Indeed, under Directional reporting, the transaction is not treated as a sale of the vessel according to IFRS 16. The Company continues to recognize its share of this vessel as property, plant and equipment and has recognized its share of the consideration received as a borrowing. Consequently, the pro-forma backlog still includes the Company share in future revenue from FPSO Cidade de Paraty The pro-forma Directional backlog decreased by US$1.9 billion compared with the position at December 31, 2024 to a total of US$33.2 billion. The decrease was mainly the result of the turnover for the period which consumed approximately US$2.3 billion of backlog. The Company's backlog provides cash flow visibility up to 2050. Accounting treatment of projects under construction (IFRS versus Directional) Please refer to note 8 Operating Segments and Directional Reporting for more information on the differences between IFRS and Directional over the accounting treatment of projects under construction in the Company's current project portfolio. Directional Revenue Directional revenue for the first half-year of 2025 came in at US$2,311 million, an increase of 26% when compared with the same period in 2024. This increase is further detailed by segment as follows: Directional Turnkey revenue increased to US$1,322 million, representing 57% of total 2025 half-year Directional revenue. This compares with US$662 million, or 36% of total Directional revenue, in the previous year period. This increase resulted mainly from (i) the progress on the construction projects FPSOs Jaguar and GranMorgu under Sale and Operate model partially offset by (ii) the completion of FPSO Sepetiba in early January 2024, (iii) the overall reduced relative level of progress during the first half of 2025 compared with the first half of 2024 on FPSO Almirante Tamandaré (completed in February 2025), FPSO Alexandre de Gusmão (completed in May 2025) and FPSO ONE GUYANA as this project approaches completion and (iv) a lower level of activity and progress on other product and services projects. Directional Lease and Operate revenue for the first half-year of 2025 came in at US$988 million, a decrease of -16% compared with the same period in the previous year. This reflects mainly the following events: (i) reduced revenue from FPSOs Liza Destiny and Liza Prosperity only contributing in 2025 as Operations and Maintenance contracts following the purchase of the units by the client in the last quarter of 2024 (therefore not contributing to lease revenue in 2025), (ii) the decrease in reimbursable scope on the fleet, partially offset by (iii) FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão joining the fleet upon successful delivery during the first half-year of 2025, and (iv) the change in ownership contribution of the lease and operating entities related to FPSOs N'Goma Saxi Batuque and Mondo following the acquisition of additional shares (the 'Sonangol Transaction') in June 2024. Directional EBITDA Directional EBITDA for the first half-year of 2025 came in at US$682 million, an increase of 10% compared with the same period in 2024. This variance is further detailed as follows by segment: Directional Turnkey EBITDA increased from US$(12) million in the previous year period to US$225 million for the first half of 2025. The key factors impacting Directional Turnkey EBITDA are: full margin contribution during the first half-year of 2025 from FPSO Jaguar given that the project only reached the requisite 'stage of completion' to allow margin recognition during the last quarter of 2024 (no margin contribution during the first half-year of 2024); The limited but positive contribution of FPSO GranMorgu over the period as the project just reached the requisite 'stage of completion' during the second quarter of 2025. the successful close-out of the construction activities of FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão , delivered during the first half year of 2025, partially offset by lower level of activity and progress on other products and services projects. Directional Lease and Operate EBITDA stood at US$497 million in the first half-year of 2025, a decrease compared with US$679 million in the previous year period. This trend resulted from: the same drivers as for the Directional Lease and Operate revenue; the previous year net gain arising from the acquisition of interests held by Sonangol related to FPSOs N'Goma Saxi Batuque and Mondo, and the divestment in the parent company of the Paenal shipyard in Angola recognized in 'Directional Other operating income' for a total amount of US$30 million and the N'Goma dividends; partially offset by the net gain in 2025 for a total of US$67 million from the MISC Berhad transaction, regarding the acquisition of interests held by MISC Berhad in FPSO Espirito Santo entities and the full divestment in FPSO Kikeh entities recognized in 'Directional Other operating income'. Other non-allocated costs charged to Directional EBITDA amounted to US$(41) million in the first half-year of 2025, an improvement compared with the US$(47) million in the previous year period which is mainly explained by a reduction in general and administrative costs. Directional Net income Directional depreciation, amortization and impairment decreased by US$(68) million year-on-year, primarily due to (i) to FPSO Liza Destiny and Liza Prosperity no longer contributing to depreciation following purchase of the Units by the client at the end of 2024, (ii) FPSO Cidade de Anchieta having a lower depreciable base as a result of the impairment recognized in the last quarter of 2024, (iii) the 13.5% divestment ownership interest in FPSO Sepetiba to CMFL completed in October 2024 partially offset by (iv) FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão joining the fleet upon successful delivery during 2025. Directional net financing costs came in at US$(93) million for the first half of 2025, an improvement of 42% compared with the previous year period mainly reflecting (i) lower interest expense on FPSOs Liza Destiny and Liza Prosperity following purchase of the units by the client and the full repayment of the respective project loan at the end of 2024, (ii) the scheduled amortization of project loans for the fleet under operations, (iii) gains in forward currency contracts and (iv) the 13.5% divestment ownership interest in FPSO Sepetiba to CMFL completed in October 2024. This was partially offset by (v) additional interest expense generated by the construction financing of FPSO Jaguar and (vi) additional interest expense on FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão joining the fleet in the first half-year 2025. The Directional effective tax rate over the first half-year of 2025 decreased to 28% compared with 33% for the first six months of 2024, primarily driven by (i) higher profit during the period of construction recognized in 2025, with moderate tax effect, (ii) lower tax on the Guyana projects following the sales of two FPSOs in 2024 and (iii) lower withholding tax basis on the new Brazilian projects. As a result, the Company recorded a Directional net profit of US$274 million, or US$1.57 per share, for the first half-year of 2025, up from US$128 million, or US$0.71 per share, in the previous year period. 1 Directional net debt is calculated as Directional total borrowings (including lease liabilities) less Directional cash and cash equivalents. Directional Total Shareholder's equity increased from US$2,002 million at year end 2024 to US$2,265 million at June 30, 2025, as a result of (i) the positive result for the period and (ii) the increase of the hedging reserve, partially offset by (iii) the dividends distributed to the shareholders of EUR150 million (equivalent to US$170 million ) and (iv) the cumulative share repurchase amount of US$73 million in relation to: Based on the EUR/US$ exchange rate on May 6, 2025. Dividends were paid in euro. The share repurchase program (the 'Incremental Buyback') effective from August 8, 2024, which was fully completed by end of April 2025 for a total amount of c. US$71 million. The objective of this program was to reduce share capital and, in addition, provide shares for regular management and employee share programs. Repurchased shares not allocated to regular management and employee share programs will be cancelled. The additional share repurchase program effective from April 24, 2025, which is expected to be completed by end of February 2026 for a total amount of c. US$150 million. The objective of this program is to reduce share capital and, in addition, provide shares for regular management and employee share programs (maximum US$25 million). Repurchased shares not allocated to regular management end employee share programs will be cancelled. The movement in the hedging reserve was mainly caused by (i) the increase in mark-to-market value of forward currency contracts, driven by the depreciation of the US$ exchange rate versus the hedged currencies (especially EUR and BRL), partially offset by (ii) the negative impact of the mark-to-market value of interest rate swaps due to increasing US$ market interest rates. It should be noted that under Directional policy, historically the contribution to profit and equity of the FPSO program under construction has mainly materialized in the operating phase at the Company's share of ownership in lessor-related SPVs, in line with the generation of associated operating cash flows. With regards to the FPSO Jaguar and FPSO GranMorgu which, contrary to the other FPSOs under construction, are classified as construction contracts falling solely in the scope of IFRS 15, their contribution to profit and equity will largely materialize in the coming years during the construction period. Directional net debt decreased by US$(89) million from US$5,719 million at year end 2024 to US$5,630 million as of June 30, 2025. While the Turnkey (with Sale and Operate model) and the Lease and Operate segments generate strong operating cash flows, the Company (i) has implemented a new financing tool with the sale leaseback financing agreement for FPSO Cidade de Paraty fully drawn in the first half-year of 2025 and has continued to draw (ii) on project finance facilities for FPSO ONE GUYANA and FPSO Alexandre de Gusmão, (iii) on construction financing for FPSO Jaguar and (iv) on the new RCF agreement. This was partially offset by (i) the scheduled repayments on non-recourse debt, (ii) the full repayment of the MPF facility, (iii) the repayment of the existing RCF agreement and (iv) the full repayment of the US private placement notes in relation to FPSO Cidade de Anchieta. Almost half of the Company's Directional debt as of June 30, 2025, consisted of non-recourse project financing (US$3 billion) The remainder (US$3.3 billion) comprised of (i) borrowings to support the construction of FPSO ONE GUYANA and FPSO Alexandre de Gusmão , which will become non-recourse following project execution finalization and release of the related parent company guarantees, (ii) the construction financing for FPSO Jaguar which will be repaid following completion of construction, and (ii) the new Company RCF, which was drawn for US$100 million as at June 30, 2025. The Directional net cash balance stood at US$794 million and lease liabilities totaled c. US$101 million as of 30 June, 2025. Total Directional assets increased to US$11.4 billion as of June 30, 2025, compared with US$10.8 billion at year end 2024 mostly due to (i) the investments in property, plant and equipment for FPSOs under construction, (ii) the investments in multipurpose floater hulls under construction for use in future projects, (iii) the increase of contract assets and receivables mostly related to FPSO Jaguar , under construction, (iv) the increase in mark-to-market value of forward currency contracts and (v) net cash generation. Directional Cash from operating activities for the period was positive at US$737 million. This reflected strong cash flows generated by the fleet under operations and the positive Turnkey cash flows benefiting mostly from client's milestone payments on Sale and Operate model FPSO projects. The Company completed the acquisition of the shares in the lease and operating entities related to FPSO Espirito Santo from its partner MISC Berhad and, simultaneously, completed the sale of all its shares in the parent company of the FPSO Kikeh in Malaysia to MISC Berhad for a total consideration received of, approximately, US$60 million, which is reported as investing activity within the Directional cash flow statement. ALTERNATIVE PERFORMANCE MEASURES ESMA defines an alternative performance measure (APM) as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework (IFRS). In addition to measures defined in IFRS, the Company continuously analyzes the performance of its activities based on APMs applicable to IFRS and to Directional reporting. The Company provides a full reconciliation of Directional reporting and IFRS figures for items relating to the consolidated income statement, the consolidated statement of financial position and the consolidated cash flow statement in note 8 Operating segments and directional reporting. APMs may be viewed under the following two categories: APMs applicable to IFRS and Directional reporting : The Company uses these APMs in order to enhance investors' understanding of its financial reporting, and to facilitate meaningful comparison of the results between periods. The Company provides these APMs based on IFRS and Directional reporting. EBITDA (IFRS) is reconciled to the consolidated income statement as follows: Directional EBIT and Directional EBITDA are reconciled in this report in note 8 Operating segments and Directional reporting. Net debt and Directional net debt are reconciled as follows: Notes 1H 2025 APMs specific to Directional reporting : In addition to the APMs applicable for IFRS and Directional reporting, the Company uses forecast measures specific to Directional reporting. APM Definition Purpose Pro-forma Directional backlog Pro-forma Directional net cash backlog Represents a pro-forma view of the outstanding performance obligations to its clients on awarded contracts under Directional reporting. As such, this measure includes unsatisfied performance obligations on ongoing construction contracts, lease contracts treated as operating leases which according to IFRS are finance leases, and ongoing multiple-year operating contracts consolidated on a percentage of ownership basis, based on the available information regarding ownership scenarios, lease contract duration and contractual commitments for the various projects. As a forecast measure, it is not reconcilable to the consolidated financial statements. Reflects a pro-forma management view of the foreseeable net cash flows related to the pro-forma Directional backlog, after contingency, direct overheads, tax and debt service. As a forecast measure, it is not reconcilable to the consolidated financial statements. A key performance indicator used to monitor the Company's future earnings trend according to Directional reporting measures. A key performance indicator used to monitor the Company's future cash flow and liquidity risk according to Directional reporting measures. ‌The Management Board of the Company declares, to the best of its knowledge that: The condensed consolidated half-year financial statements as of and for the six months ended June 30, 2025, as presented under IAS 34, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company, and the undertakings included in the consolidation taken as a whole; The half-year Management Report gives a fair view of the information required pursuant to section 5.25d, subsection 8 and, as far as applicable, subsection 9 of the Dutch Financial Markets Supervision Act (Wet op het Financieel Toezicht). The information in the condensed consolidated half-year financial statements is unaudited. Management Board حivind Tangen, Chief Executive Officer Douglas Wood, Chief Financial Officer Consolidated Financial Statements (unaudited) 25 Consolidated Income Statement (unaudited). 25 Consolidated Statement of Comprehensive Income (unaudited). 26 Consolidated Statement of Financial Position (unaudited). 27 Consolidated Statement of Changes in Equity (unaudited). 28 Consolidated Cash Flow Statement (unaudited). 29 Notes 30 General Information. 30 Basis for Preparation. 30 New Standards, Amendments and Interpretations. 30 Use of Estimates and Judgment. 31 Fair Value Measurement. 31 Financial Risk Management. 31 Financial Highlights. 32 Operating Segments and Directional Reporting. 34 Revenue Information. 45 Other Operating Income/(Expense). 46 Net Impairment Gains/(Losses) on Financial Assets and Contract Assets. 46 Net Financing Costs. 47 Income Taxes. 47 Earnings/(Loss) per Share. 48 Property, Plant and Equipment. 48 Finance Lease Receivables. 49 Trade Receivables and Payables. 50 Other Financial Assets. 50 Inventories. 51 Equity. 51 Borrowings and Lease Liabilities. 52 Accounting Classifications and Fair Values of Financial Instruments. 55 Provisions. 57 Other Information. 57 Financial Information Related to Equity-Accounted Investees. 57 Commitments and Contingencies. 58 Related Party Transactions. 58 Events After the End of the Reporting Period. 59 The Notes 1 to 25 are an integral part of these condensed consolidated half-year IFRS financial statements. ‌CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) ‌CONSOLIDATED INCOME STATEMENT (UNAUDITED) For the six months ended June 30, figures are expressed in millions of US$ Notes ‌CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) For the six months ended June 30, figures are expressed in millions of US$ ‌CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) in millions of US$ Notes 30 June 2025 31 December 2024 ‌CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) in millions of US$ Notes Issued share capital Share premium reserve Treasury shares Retained earnings Other reserves Attributable to shareholders Non-controlling interests Total Equity ‌CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) For the six months ended June 30, figures are expressed in millions of US$ Notes 1 Net cash and cash equivalents end of period' in the 2025 half-year consolidated cash flow statement include US$68 million of cash presented in 'Assets held for sale' in the consolidated statement of financial position. ‌NOTES ‌GENERAL INFORMATION SBM Offshore N.V. has its registered office in Amsterdam, the Netherlands and is located at Evert van de Beekstraat 1-77, 1118 CL in Schiphol, the Netherlands. SBM Offshore N.V. is the holding company of a group of international marine technology-oriented companies. The Company globally provides services in the field of the offshore oil and gas industry and alternative energy sources. The Company is registered at the Dutch Chamber of Commerce under number 24233482 and is listed on the Euronext Amsterdam stock exchange. The condensed consolidated half-year financial statements as of and for the six months ended June 30, 2025, comprise the half-year financial statements of SBM Offshore N.V., its subsidiaries and interests in associates and joint arrangements (together referred to as 'the Company'). They are presented in millions of US dollars, except when otherwise indicated. Figures may not add up due to rounding. The condensed consolidated half-year financial statements were authorized for issue by the Supervisory Board on August 6, 2025, and have not been audited. ‌BASIS FOR PREPARATION The condensed consolidated half-year financial statements as at and for the six months ended June 30, 2025 have been prepared in accordance with IAS 34 'Interim Financial Reporting'. The half-year financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2024, as the same policies apply except for the new IFRS standards and interpretations adopted by the European Union as at June 30, 2025, where effective, for the financial year beginning January 1, 2025. The Company has not identified any differences between IFRS adopted by the European Union and IFRS issued by the IASB impacting its condensed consolidated half-year financial statements. The consolidated financial statements of the Company for the year ended December 31, 2024, are available upon request or can be downloaded on the Company's website. The condensed consolidated half-year financial statements are not materially impacted by seasonality. ‌NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS APPLICABLE AS OF JANUARY 1, 2025 The Company has adopted the following new standards with a date of initial application of January 1, 2025: Amendments to IAS 21 - 'Lack of Exchangeability'. Amendments to IAS 21 - Lack of Exchangeability These amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates' specify when a currency is exchangeable into another currency and how an entity determines the exchange rate to apply when a currency is not exchangeable, and require the disclosure of additional information on the effects on the entity when a currency is not exchangeable. The amendments are not applied retrospectively. Any effect of initially applying the amendments is recognized as an adjustment to the opening balance of retained earnings in the period of initial application. These amendments had no impact on the Company's condensed consolidated half-year financial statements, as the Company does not have operations or material transactions in currencies that are not exchangeable. Attachments Original document Permalink Disclaimer SBM Offshore NV published this content on August 07, 2025 , and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT) , unedited and unaltered, on August 07, 2025 at 05:09 UTC
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