SBM Offshore N.V.: history, ownership, mission, how it works & makes money

A Brief History of SBM Offshore N.V.

SBM Offshore N.V., a leading provider of floating production solutions to the offshore energy industry, was founded in 1969. The company, originally known as "Single Buoy Moorings," started its journey in the design and deployment of floating production storage and offloading (FPSO) units.

In 2005, SBM Offshore expanded through its acquisition of the FPSO division of the company, "Bramley," which significantly augmented its capabilities in the floating market. By 2007, SBM Offshore went public, listing its shares on the Euronext Amsterdam stock exchange, which facilitated its global expansion efforts.

In 2011, the company saw a robust increase in revenues, reaching approximately USD 3.4 billion, driven largely by high oil prices and increased demand for offshore production. By 2012, SBM Offshore had reported an order backlog of around USD 18 billion, showcasing its strong market position and confidence from clients.

In the following years, SBM Offshore was involved in several key projects. Notably, in 2016, the company secured a contract for the deepwater Liza project offshore Guyana, which would later become a flagship operation for the company. By 2021, SBM Offshore had delivered over 30 FPSOs and had a significant presence in various offshore regions, including Brazil, West Africa, and the Gulf of Mexico.

In 2022, SBM Offshore reported revenues of approximately USD 3.7 billion, with a net income of about USD 340 million. The company's total assets reached USD 9.5 billion, reflecting its ongoing investment in technology and new projects.

Financial Performance Overview

SBM Offshore has continually focused on innovation and sustainability. In recent years, the company has invested in developing floating wind solutions and carbon capture technology, aligning with global trends towards renewable energy and reducing carbon emissions. This strategic shift has positioned SBM Offshore at the forefront of the energy transition, aiming to contribute effectively to a sustainable future in the energy market.

As of 2023, SBM Offshore remains a significant player in the offshore energy sector, with a market capitalization of approximately EUR 3.2 billion. The company continues to explore new markets, including Asia-Pacific and the Middle East, aiming to leverage its experienced workforce and advanced technology to maintain its competitive edge.

A Who Owns SBM Offshore N.V.

SBM Offshore N.V. is a leading provider of floating production solutions for the offshore energy industry. The company's ownership structure primarily consists of institutional investors, private equity firms, and individual shareholders. As of the most recent data, SBM Offshore's largest shareholders include:

As of the second quarter of 2023, SBM Offshore reported total shares outstanding at approximately 106.7 million. The company is listed on Euronext Amsterdam under the ticker symbol SBMO. Its market capitalization was around €4.62 billion as of the same period.

The company has a diverse shareholder base, with institutional investors holding a significant portion of its shares. This strong institutional backing provides stability and confidence in SBM Offshore's operational strategy and financial strength.

SBM Offshore's top executives also hold shares in the company, aligning their interests with shareholders. For instance, the CEO, Bruno Chabas, has an ownership stake of about 0.1% as of the latest filings.

In its recent earnings report for Q2 2023, SBM Offshore disclosed revenues of $1.2 billion, driven by ongoing projects in Brazil and Guyana. The company's operational focus remains on expanding its fleet of floating production storage and offloading (FPSO) units, with significant contracts expected to be finalized in the coming year.

The company also announced a dividend payout of €0.85 per share for the fiscal year 2022, reflecting its commitment to returning value to shareholders while maintaining a robust cash flow position.

Overall, SBM Offshore N.V. showcases a well-distributed ownership structure, supported by a strong institutional presence, which facilitates its continued growth and stability in the highly competitive offshore energy market.

SBM Offshore N.V. Mission Statement

SBM Offshore N.V., a leader in providing floating production solutions to the offshore energy industry, has a mission statement that reflects its commitment to sustainability and innovation. The company positions itself as a trusted partner for clients in the oil and gas sector, focusing on delivering safe and sustainable solutions while minimizing environmental impact.

As of 2023, SBM Offshore aims to achieve a strong balance between operational excellence and sustainability through its mission. The company's vision emphasizes the importance of reliable offshore production systems to enhance energy supply while supporting the transition to renewable energy sources.

The mission statement highlights SBM Offshore's dedication to safety, integrity, and sustainability in all its operations. The company has a diverse fleet of floating production, storage, and offloading units (FPSOs). As of 2023, SBM Offshore operates over 15 FPSOs globally, serving major oil and gas companies.

To further its mission, SBM Offshore has set ambitious targets for reducing carbon emissions and increasing the use of renewable energy in its operations. The company aims for a 30% reduction in greenhouse gas emissions by 2030, contributing to global efforts against climate change.

SBM Offshore's strategy supports the mission statement through various initiatives, including technology development and partnerships with other organizations focused on renewable energy solutions. The company's commitment to innovation is demonstrated by its investment of around €100 million annually in research and development.

In summary, SBM Offshore N.V. stands as a committed player in the offshore energy sector, with a mission statement that underscores its dedication to safety, sustainability, and innovation while delivering significant financial performance and growth metrics.

How SBM Offshore N.V. Works

SBM Offshore N.V. is a leading provider of floating production solutions for the offshore energy industry, primarily focusing on oil and gas. The company operates in various segments, primarily through its Floating Production Storage and Offloading (FPSO) units, and has a presence in several key regions including Brazil, the Gulf of Mexico, and West Africa.

In 2022, SBM Offshore reported a total revenue of USD 2.5 billion, reflecting a strong recovery from the COVID-19 pandemic's impact on the industry. The company’s operating profit was around USD 930 million, with a net income of USD 470 million.

Business Segments

SBM Offshore operates mainly through three business segments:

• Lease and Operate: The company leases FPSOs to clients and is responsible for their operation. This segment generated approximately USD 2.1 billion in revenue in 2022.
• Engineering and Construction: This segment focuses on the design and construction of FPSOs. It produced about USD 300 million in revenue for the same year.
• Technology: SBM Offshore invests in innovative technologies to enhance offshore production efficiency, contributing around USD 100 million to annual revenues.

Financial Overview

The company's financial health is reflected in its balance sheet, which shows total assets of USD 10 billion and total liabilities of USD 6.5 billion as of December 31, 2022. This results in a solid equity standing of about USD 3.5 billion.

Operational Highlights

SBM Offshore operates a fleet of over 16 FPSOs globally. Some of the notable projects include:

• Sepetiba FPSO: Expected to commence operations in 2024, with a capacity of 150,000 barrels per day.
• Jasmine FPSO: Currently operating in Brazil with a production capacity of 100,000 barrels per day.
• Vito FPSO: Located in the Gulf of Mexico, has a design capacity of 90,000 barrels per day.

In terms of sustainability, SBM Offshore has set ambitious targets, aiming for net-zero emissions from its operations by 2050. The company has also invested in technologies to enhance energy efficiency and reduce carbon footprints.

The stock performance of SBM Offshore reflects its operational success. As of October 2023, the share price is around EUR 18.50, with a market capitalization of approximately EUR 6.6 billion. The company's stock has seen an increase of over 30% year-to-date.

SBM Offshore maintains a robust dividend policy, with a declared dividend of EUR 0.50 per share for the 2022 fiscal year, marking a 25% increase from the previous year.

Future Prospects

Looking ahead, SBM Offshore anticipates continued growth driven by increased offshore oil and gas exploration and production activities. The company is poised to benefit from emerging markets, particularly in Brazil and the Gulf of Mexico.

With a healthy backlog valued at approximately USD 17 billion as of Q3 2023, SBM Offshore is well-positioned to capitalize on future opportunities in the offshore energy sector.

How SBM Offshore N.V. Makes Money

SBM Offshore N.V. operates primarily in the oil and gas industry, focusing on the design, supply, installation, and operation of floating production and storage units (FPSOs), among other types of offshore facilities. The revenue streams are diversified across several key segments.

Revenue Segments

SBM Offshore generates revenue through the following primary segments:

• Lease and Operate
• Engineering, Procurement, Construction, and Installation (EPCI)
• Production Operations

Lease and Operate

This segment represents a significant portion of SBM Offshore's revenue. As of 2022, the company reported that the Lease and Operate segment contributed approximately 67% of total revenue. They have a fleet of FPSOs that are leased to major oil companies, which provides a steady income stream.

EPCI Projects

The EPCI segment accounted for about 22% of the total revenue in 2022. This includes contracts signed for the engineering, procurement, construction, and installation of offshore projects. In 2022, SBM Offshore secured contracts worth approximately $1.5 billion which included various projects across different geographic regions.

Production Operations

The Production Operations segment includes activities related to the operational phase of projects. In 2022, revenue from this segment was around 11% of the total, reflecting the company’s capability to generate additional returns from existing assets.

Financial Performance

For the fiscal year ending December 31, 2022, SBM Offshore reported the following financial metrics:

Market Position and Strategy

SBM Offshore has positioned itself as a leader in the FPSO market, with a focus on sustainable technology and reducing carbon emissions. In 2021, they were the largest FPSO operator, having secured contracts with major players like Shell, ExxonMobil, and TotalEnergies. Their fleet consisted of 15 FPSOs operating globally by 2022, and they are actively pursuing new projects in the renewable energy sector.

Geographic Diversification

The company's operations are geographically diversified, which mitigates risk. In 2022, the breakdown of revenue by region was as follows:

Future Outlook

Looking ahead, SBM Offshore is focusing on enhancing its renewable energy capabilities, particularly in floating offshore wind projects, which are expected to be a significant growth area. The expected investment in renewable projects over the next decade is projected to reach approximately $1.2 billion. The company aims to achieve a 15% return on equity from these new ventures.