Slide 1: Full Year Results 2022
FULL YEAR RESULTS 2022 February 23, 2023 Click to add title © SBM Offshore 2023. All rights reserved. www.sbmoffshore.com
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: Highlights
Highlights OPERATIONAL FINANCIAL POSITIVE TRANSITION PERFORMANCE PERFORMANCE OUTLOOK IN ACTION FPSO LIZA UNITY delivered US$1,010 million record EBITDA2 FPSO ONE GUYANA award PGL on track for 2023 delivery 97% underlying fleet uptime US30.5 billion record backlog3 Strong FPSO market outlook emission
Slide 5: Recognized energy transition company
Recognized energy transition company Ranking1 : #1 in Energy Services Industry PEOPLE FIRST Rating: A [AAA= max, CCC=min] Rating2: A- [A= max, D- = min] Ranking3: Top 5% Global ESG Score EMISSIONS REDUCTION As of February 2023 (1) ESG-risk rating 14.5 – 'low risk’, improved from 18.5 in 2021 (2) A-,
Slide 6: Ocean Infrastructure
Ocean Infrastructure Transition the Core New Energies Financials
Slide 7: Performance in Guyana
Performance in Guyana FPSOs LIZA DESTINY & UNITY delivered on time & on budget exceeding target production FPSO PROSPERITY on track for 1st oil in 2023 FPSO ONE GUYANA 4th FPSO awarded MoU SIGNED FOR 7TH MPF1 HULL granting exclusivity to ExxonMobil Guyana (1) Multi-purpose floater © SBM Offshore 202
Slide 8: Execution and Operations update
Execution and Operations update Percentage 1st oil date of completion BACKLOG VISIBILITY UNTIL 2050 FPSO Sepetiba 2023 > 75% with 15 units in operation and 6 under construction contract extension potential ExxonMobil FPSO Prosperity 2023 > 75% Guyana 97% UNDERLYING1 FLEET UPTIME 91% fleet uptime inc
Slide 9: Transition the Core
Ocean Infrastructure Transition the Core New Energies Financials
Slide 10: Favorable FPSO market outlook
Favorable FPSO market outlook ~40% PROSPECTS WITHIN TARGET 2+ WINS CAPACITY PER YEAR SELECTIVE & DISCIPLINED large and complex FPSOs or 6 FPSO under construction targeting projects delivering value to all stakeholders 12 12 avg. / year 11 10 10 9 9 9 1 7 8 1 1 3 5 5 1 4 4 3 4 7 1 3 2 2 12 2 2 1 1 1
Slide 11: Double resilience
Double resilience ~US$25-35 ~40% LOW BARREL LOWER EMISSION INTENSITY BREAKEVEN PRICE THAN INDUSTRY AVERAGE1 BETTER PERFORMANCE, DELIVER FASTER DECARBONIZATION OF PRODUCTS (1) 18kgCO2e/boe upstream GHG intensity from IOGP 2021 Environmental performance indicators data; ~8-12kgCO2e/boe applicable for
Slide 12: Accelerating time-to-market
Accelerating time-to-market FIELD DEVELOPMENT PERFORMANCE BEST IN CLASS from discovery to first oil1 leading in Guyana 4.6 years SBM Offshore projects 7.3 years FPSO Liza Destiny Other deepwater 9.3 years 2015 2016 2017 2018 2019 2020 2021 2022 FPSO Liza Unity 6.8 years (1) Source: Rystad. Field dev
Slide 13: Our Net Zero targets
Our Net Zero targets SBM Offshore Reported Emissions 2022 based on CO2e volumes SCOPE 1 & 2 SCOPE 3 Downstream Leased Assets NEAR-ZERO EMISSION FPSO 2025 CLIMATE NEUTRAL available to the market by 2025 50% GHG INTENSITY REDUCTION2 2030 100% GREEN ENERGY1 ZERO ROUTINE FLARING3 2050 NET-ZERO BY 2050 (
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: New Energies
Ocean Infrastructure Transition the Core New Energies Financials
Slide 16: Provence Grand Large, 25MW floating wind farm
Provence Grand Large, 25MW floating wind farm 2023 EXPECTED COMMISSIONING all major milestones achieved 1st TENSION LEG FLOATING WIND each floater will support 8.4MW turbines ~10%1 OF TOTAL MW CAPACITY for FOW installed by 2023 (1) Source: 4C Offshore © SBM Offshore 2023. All rights reserved. www.sb
Slide 17: Promising FOW market outlook
Promising FOW market outlook AMBITION TO BE A MAJOR PLAYER TARGETING AT LEAST 2GW BY 2030 SELECTIVE & DISCIPLINED as floating technology provider & leveraging full EPCI capabilities installed capacity or under construction targeting projects delivering value to all stakeholders 6-12GW potentially in
Slide 18: Leverage technology and experience to create value
Leverage technology and experience to create value FLOATING OFFSHORE WIND EPCI DIGITAL SOLUTIONS AMMONIA & HYDROGEN >500 FLOATING STRUCTURES >160 MILLION DATA SIGNALS built worldwide analyzed daily from operations in 2022 >60 YEARS OF EXPERIENCE >130 PATENT FAMILIES EPCI and O&M including 48 patents
Slide 19: Financials
Ocean Infrastructure Transition the Core New Energies Financials
Slide 20: Financial Highlights
Financial Highlights 10% PROPOSED US$1,010 MILLION US$30.5 BILLION US$1.75 BILLION DIVIDEND INCREASE Record Directional EBITDA1 Record year-end Backlog2 Largest ever financing raised for US$1.10 per share FPSO ONE GUYANA 7% Yield3 (1) On underlying basis, no underlying restatement was recognized in
Slide 21: Directional Overview
Directional Overview1 Pro-forma backlog (US$ billions) Net debt (US$ billions) 29.5 30.5 5.4 6.1 FY 2021 FY 2022 FY 2021 FY 2022 Revenue (US$ millions) EBITDA (US$ millions) 3,288 1,010 931 Underlying 2,317 Underlying 849 2,242 FY 2021 FY 2022 FY 2021 FY 2022 (1) Directional reporting, presented in
Slide 22: 2022 Sources and Uses of Cash and Liquidity
2022 Sources and Uses of Cash and Liquidity Directional, US$ millions Group liquidity Working (US$ billions) Cash from Operations1 capital Debt drawdowns Other Sources of cash 946 3 1,164 50 0.6 1.4 1.0 Uses of cash 447 181 100 178 1,392 307 Tax Net cash Debt repayment Growth Divestment2 (including
Slide 23: 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$30.5 billion pro-forma backlog L&O and BOT net cash translated in EUR/share2 27 25 23 ~US$9.4 billion net cash from L&O and BOT sales 700 BOT 0.6 Average L&O net cash p.a. after tax ~US$450 million until 2028 6% 7
Slide 24: Capital Allocation & Shareholder Returns Model
Capital Allocation & Shareholder Returns Model US$ millions Net cash from ~US$9.4 billion net cash backlog Growth + L&O and BOT sales Including US$600 million net cash from BOT sales BOT 0.6 Dividend 700 = 600 500 + L&O 8.8 400 Acceleration Growth 300 Accelerated equity cash flow 200 Lower debt High
Slide 25: Building track-record of industry leading shareholder returns
Building track-record of industry leading shareholder returns US$ millions 400 1 $1.2 $1.10 Millions 10% PROPOSED DIVIDEND INCREASE 350 $1.00 to US$1.10 per share equivalent to 7% yield2 $1.0 $0.89 300 $0.81 $0.8 250 7 CONSECUTIVE YEARS of growing dividends 200 $0.6 178 165 150 $0.37 $0.4 166 $0.25
Slide 26: 2023 Guidance
2023 Guidance DIRECTIONAL EBITDA Above 1.0 billion US$ 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 direct and indirect impacts from the combined effects of the COVID-19 pandemic and the
Slide 27: Appendix
APPENDIX _— sateen Dm OFFSHORE
Slide 28: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Underlying Revenue Underlying EBITDA EBITDA Revenue 1,763 1,584 1,080 989 1,525 733 19 7 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 “Other” Under
Slide 29: Debt enables growth
Debt enables growth Directional, US$ billions Net debt / Backlog ratio 45.0 21% Historical Range 40.0 15% – 20% 16% 35.0 30.0 29.5 30.5 11% 25.0 20.0 21.6 20.7 6% 15.0 17.1 16.8 14.8 10.0 1% 5.3 6.0 5.0 3.1 3.3 4.0 2.7 2.2 - -4% 2016 2017 2018 2019 2020 2021 2022 Pro-forma Backlog Net Debt (excludin
Slide 30: 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 FY 2022 reflects the following key assumptions: the FPSO Liza Destiny contract covers 10 years of lease and operate, the FPSOs Liza U
Slide 31: Group P&L and underlying items
Group P&L and underlying items Directional, US$ millions Group P&L Directional underlying items US$ millions FY 2021 FY 2022 Variance US$ millions FY 2021 FY 2022 Impact P&L Revenue 2,242 3,288 1,046 Deep Panuke termination fee (75) - Revenue Underlying Revenue 2,317 3,288 971 Subtotal Revenue impac
Slide 32: Turnkey and Lease and Operate P&L
Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions FY 2021 FY 2022 Variance Main contributors to 2022 revenue are: Unity, Prosperity, Sepetiba, Ongoing Projects Almirante Tamandaré, Alexandre de Gusmão, ONE GUYANA and Revenue 733 1,525 792 other various busines
Slide 33: 2022 Sources and Uses of Cash
2022 Sources and Uses of Cash Directional, US$ millions L&O 1,080 Turnkey 7 Other (77) Underlying EBITDA 1,010 Deferred income (63) Cash from Operations Working capital Debt drawdowns Other Sources of cash 946 3 1,164 50 Uses of cash 447 181 100 178 1,392 307 Debt repayment Tax Growth Divestment1 (i
Slide 34: Balance Sheet
Balance Sheet Directional, US$ millions Comments on variation US$ millions 31-Dec-2021 30-Dec-2022 Variance Capitalization of FPSO projects partially Property, plant & equipment and Intangibles 7,234 8,196 963 offset by divestment on Almirante Tamandaré and Alexandre de Gusmão and depreciation o
Slide 35: Lease qualification and consolidation methods
Lease qualification and consolidation methods as of 31 December 2022, 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% Proporti
Slide 36: External bank loans and borrowings
External bank loans and borrowings Directional, US$ millions Net book value as of December 31, 2022 Full Amount IFRS Directional PROJECT FINANCE FACILITIES DRAWN FPSO Cidade de Paraty 72 72 45 FPSO Cidade de Anchieta 202 202 202 FPSO Cidade de Ilhabela 764 764 573 FPSO N’Goma 259 - 130 Normand Insta
Slide 37: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 6,500 6,082 4,500 5,401 1,422 2,500 615 1,000 500 FY 2022 (1,500) Undrawn RCF Net cash Undrawn project debt FY 2021 FY 2022 Net cash Project debt Lease liabilities Average cost of debt1 FY 2022 borrowings and
Slide 38: All covenants are satisfied
Revolving Credit Facility Covenants Key financial covenant FY 2022 Definition1 Solvency ratio > 25% 30% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0 5.5 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lendin
Slide 39: Lease and Operate portfolio
Lease and Operate portfolio Initial Lease Period Contractual Extension Option Confirmed Extension FPSO Capixaba has been excluded as it has left the fleet in June 2022 (1) FPSO Serpentina is owned by the client and is operated by Gepsing – a subsidiary between SBM Offshore (60%) and GEPetrol (40%) (
Slide 40: © SBM Offshore 2023. All rights reserved. www.sbmoffshore.com
© SBM Offshore 2023. All rights reserved. www.sbmoffshore.com