SBM Offshore N.V. (SBFFY.PK), a prominent Dutch provider of offshore energy solutions, announced on Thursday that its first-half profit attributable to shareholders, on an IFRS basis, fell by 35% to $116 million, compared to $179 million in the previous year.
Earnings per share were $0.64, marking a 35% decrease from $0.99 a year earlier.
The Directional net profit rose significantly to $128 million, or $0.71 per share, a substantial 258% increase from $36 million, or $0.20 per share, in the year-ago period.
EBITDA decreased by 10% year-over-year to $533 million, whereas Directional EBITDA saw a 36% rise to $620 million.
Revenue for the first half dropped by 9% to $2.22 billion from $2.45 billion a year prior. However, Directional revenue increased by 23%, reaching $1.84 billion.
For fiscal 2024, SBM Offshore has raised its Directional EBITDA guidance to approximately $1.3 billion, up from the previous estimate of $1.2 billion.
The company also elevated its Directional revenue forecast to over $3.8 billion, compared to the earlier expectation of around $3.5 billion. The projections include around $2.4 billion from the Lease and Operate segment and more than $1.4 billion from the Turnkey segment.
Furthermore, SBM Offshore announced the initiation of an additional €65 million (approximately $71 million) share repurchase program starting on August 8. The repurchase is slated for completion by the end of April 2025.
Separately, the company disclosed the signing of a 20-year lease and operation contract with Mexico's Woodside Petróleo Operaciones de México. This agreement involves a Floating Storage and Offloading (FSO) unit to support the Trion field development in Mexico.
Under this deal, SBM Offshore will construct the FSO unit and lease it to Woodside for a duration of 20 years.
