Sbm Offshore Nv · EURONEXT:SBMO

Sbm Offshore Nv — H1 2023 Earnings Presentation

36 slides from Sbm Offshore Nv's earnings presentation, Aug 10, 2023

Slide 2: Disclaimer
Disclaimer Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual
Slide 3: Creating value for all stakeholders
Creating value for all stakeholders ENERGY TRANSITION COMPANY REDUCE COSTS AND EMISSIONS DEVELOP COMPETITIVE FROM O&G PRODUCTION RENEWABLE ENERGY LIFECYCLE SOLUTIONS VALUE PLATFORMS OCEAN INFRASTRUCTURE TRANSITION THE CORE NEW ENERGIES Strong backlog On-time delivery & Emissions reduction Digital re
Slide 4: Consistent delivery of the strategy
Consistent delivery of the strategy OPERATIONAL FINANCIAL POSITIVE TRANSITION PERFORMANCE PERFORMANCE OUTLOOK IN ACTION FPSOs Prosperity & Sepetiba Guidance maintained Strong FPSO market outlook PGL successful load out on track for 1st oil US$457 million EBITDA3 2 hulls under construction emissionZE
Slide 5: FPSOs the solution of choice to fulfill the oil supply gap
FPSOs the solution of choice to fulfill the oil supply gap ~10-20 Mbpd oil supply shortage in the coming decade FPSOs’ double resilience: low cost, low emissions 100 90 ~20Mbpd 80 Million barrels per day (Mbpd) 70 ~30Mbpd ~US$25-35 60 57 LOW BARREL 50 BREAKEVEN PRICE ~20Mbpd 40 Announced Pledges Sce
Slide 6: Favorable FPSO market outlook
Favorable FPSO market outlook ~50% PROSPECTS WITHIN TARGET 6 FPSO CAPACITY SELECTIVE & DISCIPLINED large and complex FPSOs under construction or 2+ wins per year targeting projects delivering value to all stakeholders 12 11 avg. / year 10 9 9 9 9 1 7 8 3 6 5 6 4 3 4 6 4 2 2 2 14 2 2 1 1 '18 '19 '20
Slide 7: On track for 2023 deliveries
On track for 2023 deliveries FPSO FPSO PROSPERITY SEPETIBA 220,000 bpd 180,000 bpd ~8-12KgCO2e/boe1 kg CO2/boe ~8-12KgCO2e/boe1 kg CO2/boe (1) Industry average: 18kgCO2e/boe upstream GHG intensity from IOGP 2021 Environmental performance indicators data; ~8-12kgCO2e/boe applicable for Fast4Ward® new
Slide 8: Steady progress on significant execution portfolio
Steady progress on significant execution portfolio Nameplate Percentage 1st oil date capacity (bpd) of completion FPSO Sepetiba 180,000 2023 > 75% 5 FPSOs UNDER CONSTRUCTION FPSO Prosperity 220,000 2023 > 75% +2 MPF hulls, with MPF #7 under exclusivity agreement with ExxonMobil Guyana FPSO Almirante
Slide 9: Accelerating time to market
Accelerating time to market Field development performance From discovery to first oil from discovery to first oil1 leading in Guyana FPSO 4.6 years Liza Destiny SBM Offshore fleet 7.3 years FPSO 6.8 years Liza Unity FPSO < 7 years Prosperity 2 Other deepwater 9.4 years FPSO 2 < 7 years ONE GUYANA 20
Slide 10: Operational excellence
Operational excellence BACKLOG VISIBILITY UNTIL 2050 with 15 units in operation and 5 under construction & contract extension potential 99.5% FLEET UPTIME1 In line with historical fleet uptime 1.8MBPD INSTALLED CAPACITY ~1M barrels per day produced in the first half of 2023 (1) Excluding planned mai
Slide 11: Long-term engagement in Guyana
Long-term engagement in Guyana 10-YEAR O&M AGREEMENT signed for the Guyana FPSO fleet ~US$3 BILLION REVENUE BACKLOG based on various operating and maintenance assumptions INTEGRATED OPERATION MODEL maximizing value from the Guyana developments for industry-leading performance PIONEER IN THE INDUSTRY
Slide 12: Adapting the Company for the long-term future
Adapting the Company for the long-term future Corporate & Business SBM Offshore India Solution Center High value engineering center of excellence New centralized multi-disciplinary center Supporting growth and competitiveness Creating synergies and improving efficiency HQ Rationalizing portfolio in
Slide 13: Our Net Zero ambitions
Our Net Zero ambitions SCOPE 1 & 2 SCOPE 3 Downstream Leased Assets NEAR-ZERO EMISSION FPSO 2025 CLIMATE NEUTRAL1 available to the market by 2025 50% GHG INTENSITY REDUCTION3 2030 100% GREEN ENERGY2 ZERO ROUTINE FLARING4 2050 NET-ZERO BY 2050 (1) Balancing emissions associated with market-based offi
Slide 14: emissionZERO program roadmap
emissionZERO® program roadmap MODIFY ELECTRIFY NULLIFY 15-40% 40-80% 80-100% REDUCTION POTENTIAL REDUCTION POTENTIAL REDUCTION POTENTIAL Implement available Increase electrification and Nullify residual emissions and implement carbon reduction solutions develop carbon capture technology new power ge
Slide 15: Provence Grand Large, 25MW floating wind farm
Provence Grand Large, 25MW floating wind farm ON TRACK FOR COMMISSIONING with successful load out of the 3 floaters 1st TENSION LEG FLOATING WIND each floater will support 8.4MW turbines ~10%1 OF TOTAL MW CAPACITY installed worldwide following commissioning © Ian Hanning / Capa Pictures (1) Source:
Slide 16: Floating offshore wind market outlook
Floating offshore wind market outlook AMBITION TO BE A MAJOR PLAYER SELECTIVE & DISCIPLINED as floating technology provider & leveraging full EPCI capabilities targeting projects delivering value to all stakeholders Key development areas (2023-2030) Projected installed capacity (GW) 14 12 10 8 6 4 2
Slide 17: Positioned for disciplined growth in the energy transition
Positioned for disciplined growth in the energy transition Building on decades Energy transition partner reducing of experience customer & company emissions offshore FLOATING OFFSHORE WIND EPCI DIGITAL SOLUTIONS AMMONIA & HYDROGEN CARBON CAPTURE © SBM Offshore 2023. All rights reserved. www.sbmoffsh
Slide 18: Financial Highlights
Financial Highlights US$32.2 BILLION US$3.2 BILLION GUIDANCE MAINTAINED 7% DIVIDEND YIELD3 Above US$1 billion EBITDA2 Record Backlog1 Total project financing secured ~US$200 million paid in May 2023 Above US$2.9 billion revenue2 (1) Reflects a pro-forma view of the Company’s Directional backlog (2)
Slide 19: Directional Overview
Directional Overview1 Pro-forma backlog (US$ billions) Net debt (US$ billions) 30.5 32.2 6.1 7.2 FY 2022 1H 2023 FY 2022 1H 2023 Revenue (US$ millions) EBITDA (US$ millions) 1,763 500 1,491 457 1H 2022 1H 2023 1H 2022 1H 2023 (1) Directional reporting, presented in the Financial Statements under sec
Slide 20: Turnkey Model
Turnkey Model TURNKEY ACTIVITIES TURNKEY ACCOUNTING Turnkey Gross Margin (SBM Offshore FPSO share) (Research & Development) (Renewables Investments) (Sales & Marketing) (Overheads) = Turnkey Directional EBITDA Margin generated from BOT/L&O phase IFRS Turnkey Gross Margin 1 20% 17% 2018 - 2022 1H 202
Slide 21: 1H 2023 Sources and Uses of Cash and Liquidity
1H 2023 Sources and Uses of Cash and Liquidity Directional, US$ millions Group liquidity (US$ billions) Cash from Operations1 Debt drawdowns Other Sources of cash 433 974 20 0.4 1.8 0.8 Uses of cash 234 123 55 197 213 807 33 Debt repayment Working Growth2 Non-recurring3 Net cash Tax (including lease
Slide 22: c. 30 years of net cash flow visibility from L&O and BOT
c. 30 years of net cash flow visibility from L&O and BOT1 Directional, US$ millions US$32.2 billion pro-forma backlog L&O and BOT net cash translated in EUR/share2 28 26 24 ~US$9.5 billion net cash from L&O and BOT sales 700 BOT 0.6 6% 7% 8% Average L&O net cash p.a. Discount rate 600 ~US$330 millio
Slide 23: Capital Allocation & Shareholder Returns Model
Capital Allocation & Shareholder Returns Model US$ millions Net cash from ~US$9.5 billion net cash backlog Growth + L&O and BOT sales Including US$600 million net cash from BOT sales BOT 0.6 Dividend 700 = 600 500 + L&O 8.9 400 Acceleration Growth 300 Accelerated equity cash flow 200 Lower debt High
Slide 24: 2023 Guidance maintained
2023 Guidance maintained DIRECTIONAL EBITDA Above 1.0 billion US$ DIRECTIONAL REVENUE Above 2.9 billion US$ LEASE & OPERATE Around 1.9 billion US$ TURNKEY Above 1.0 billion US$ This guidance considers the currently foreseen impacts from the war between Russia and Ukraine on projects and fleet operat
Slide 25: Appendix
APPENDIX _— sateen Dm OFFSHORE
Slide 26: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Revenue 933 EBITDA Revenue EBITDA 854 527 546 909 558 16 HY 2022 HY 2023 HY 2022 HY 2023 HY 2022 HY 2023 (37) 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 “Other” EBITDA 1H 2022 US$(43) million v
Slide 27: Pro-forma Backlog and borrowings repayment
Pro-forma Backlog1 and borrowings repayment Directional, US$ billions 2 (1) Backlog is the undiscounted revenue over the firm portion of the contracts. The backlog at Half Year 2023 reflects the following 35 key assumptions: the FPSO Liza Destiny contract covers the basic contractual term of 10 year
Slide 28: Group P&L
Group P&L Directional, US$ millions Group P&L US$ millions 1H 2022 1H 2023 Variance Revenue 1,763 1,491 (272) Gross Margin 330 318 (12) Overheads (102) (111) (9) Other operating income / (expense) 6 (10) (17) Net impairment losses on financial and contract assets 13 1 (12) EBIT 248 198 (50) Deprecia
Slide 29: Turnkey and Lease and Operate P&L
Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions 1H 2022 1H 2023 Variance Main contributors to 1H 2023 revenue are the 5 FPSOs under construction and other various projects vs divestments on Revenue 909 558 (351) Revenue FPSOs Almirante Tamandaré and Alexandr
Slide 30: Balance Sheet
Balance Sheet Directional, US$ millions Comments on variation US$ millions 30-Dec-2022 30-Jun-2023 Variance Capitalization of FPSO projects partially offset by depreciation over the Property, plant & equipment and Intangibles 8,196 8,909 713 period Investment in associates and other financial as
Slide 31: Lease qualification and consolidation methods as of 30 June 2023
Lease qualification and consolidation methods as of 30 June 2023, IFRS 10 & 11 Assets Lease Contract Type SBM Share % Directional IFRS FPSO N’Goma FL 50% Proportional Equity FPSO Saxi Batuque FL 90% Proportional Equity FPSO Mondo FL 90% Proportional Equity FPSO Cidade de Ilhabela FL 75% Proportional
Slide 32: External funding loans and borrowings
External funding loans and borrowings Directional, US$ millions Net book value as of June 30, 2023 Full Amount IFRS Directional FACILITIES DRAWN FPSO Cidade de Anchieta 183 183 183 FPSO Cidade de Ilhabela 855 855 669 FPSO N’Goma 226 - 113 Normand Installer 19 - - FPSO Cidade de Maricá 734 734 448 FP
Slide 33: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 6,500 7,193 6,082 4,500 1,751 2,500 381 829 500 1H 2023 (1,500) 2 Undrawn RCF Net cash Undrawn project debt FY 2022 1H 2023 Net cash Project debt Lease liabilities Average cost of debt1 1H 2023 borrowings and
Slide 34: All covenants are satisfied
Revolving Credit Facility Covenants Key financial covenant 1H 2023 Definition1 Solvency ratio > 25%  29% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0  4.4 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lendin
Slide 35: Lease and Operate portfolio
Lease and Operate portfolio Initial Lease & Operate Period Contractual Extension Option Confirmed Extension Operations & Maintenance (1) FPSO Serpentina is owned by the client and is operated by Gepsing – a subsidiary between SBM Offshore (60%) and GEPetrol (40%) (2) Lease only (3) Noble Energy EG L

SBM Offshore — H1 2023 Earnings Presentation on 6ix

Sbm Offshore Nv — H1 2023 Earnings Presentation

Slide 1: Half Year 2023 Earnings

Slide 2: Disclaimer

Slide 3: Creating value for all stakeholders

Slide 4: Consistent delivery of the strategy

Slide 5: FPSOs the solution of choice to fulfill the oil supply gap

Slide 6: Favorable FPSO market outlook

Slide 7: On track for 2023 deliveries

Slide 8: Steady progress on significant execution portfolio

Slide 9: Accelerating time to market

Slide 10: Operational excellence

Slide 11: Long-term engagement in Guyana

Slide 12: Adapting the Company for the long-term future

Slide 13: Our Net Zero ambitions

Slide 14: emissionZERO program roadmap

Slide 15: Provence Grand Large, 25MW floating wind farm

Slide 16: Floating offshore wind market outlook

Slide 17: Positioned for disciplined growth in the energy transition

Slide 18: Financial Highlights

Slide 19: Directional Overview

Slide 20: Turnkey Model

Slide 21: 1H 2023 Sources and Uses of Cash and Liquidity

Slide 22: c. 30 years of net cash flow visibility from L&O and BOT

Slide 23: Capital Allocation & Shareholder Returns Model

Slide 24: 2023 Guidance maintained

Slide 25: Appendix

Slide 26: Financial performance per segment

Slide 27: Pro-forma Backlog and borrowings repayment

Slide 28: Group P&L

Slide 29: Turnkey and Lease and Operate P&L

Slide 30: Balance Sheet

Slide 31: Lease qualification and consolidation methods as of 30 June 2023

Slide 32: External funding loans and borrowings

Slide 33: Group net debt and borrowings

Slide 34: All covenants are satisfied

Slide 35: Lease and Operate portfolio

Slide 36: © SBM Offshore 2023. All rights reserved. www.sbmoffshore.com