Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — Sbm Offshore Nv Ord — H1 2021 Earnings Presentation
47 slides from Sbm Offshore Nv's earnings presentation, Aug 5, 2021
Slide 1: Earnings Update
EARNINGS UPDATE August 5, 2021 ENERGY. COMMITTED.
Slide 2: Disclaimer
Disclaimer The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate legal entities. In this presentation “SBM Offshore” and “SBM” are sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general. These expressions
Slide 3: Agenda: Highlights
Highlights ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 4: Highlights
Highlights 2 5 Major growth phase Major FPSO Fast4Ward® projects Awards under delivery Net cash flow expansion US$ 29.5 b US$ 8.7 b Record Backlog1 Net cash from L&O1 Enhanced shareholders with return EUR 150 m Offshore Wind Scaling up renewable business Share Repurchase Initiatives Program (1) Refl
Slide 5: Vision. Value Creation
Vision. Value Creation “SBM Offshore believes the oceans will provide the world with safe, sustainable and affordable energy for generations to come. We share our experience to make it happen.” OCEAN GROWING THE CORE NEW ENERGIES INFRASTRUCTURE CONTRACTUAL HISTORICAL RENEWABLES CARBON DIGITAL BACKLO
Slide 6: ESG
Highlights ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 7: ESG at the heart of our business
ESG at the heart of our business ENVIRONMENTAL SOCIAL GOVERNANCE Energy transition towards Net Zero A safe and inclusive environment where people Values-based actions to achieve high ethical inspire and empower each other standards ON TRACK TO ACHIEVE 2021 TARGETS1 (1) For further details on 2021 Su
Slide 8: Embedding sustainability across the life cycle
Embedding sustainability across the life cycle OPERATIONS TECHNOLOGY OPERATIONS Plympton Farms Guyana: emissionZERO™ activities Plympton farm Guyana: local development, to qualify topsides local development, healthier nutrition, lower technology to drive down healthier nutrition, lower emissions emi
Slide 9: Ocean Infrastructure
Highlights Jean - New picture ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 10: Ocean Infrastructure
Ocean Infrastructure 15 vessels in operation ~US$ 300 m Average annual net cash from L&O1 Fleet uptime until 2050 99% 99% 99% 98% 98% 99% 99% 99% 97% 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Cash Acceleration 99% historical uptime performance Potential (1) Reflects a pro-forma view of the Com
Slide 11: Delivering value to shareholders
Delivering value to shareholders US$ millions Dividend Share repurchase More than US$ 1.2 billion returned over the period 1 180 165 196 Stable and growing dividends 166 150 165 47 51 75 45 More than US$ 700 million of 2016 2017 2018 2019 2020 2021 share repurchased over the period (1) EUR 150 m sha
Slide 12: Growing the Core
Highlights ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 13: Execution on track
Execution on track Expected Percentage of completion First Oil Liza Unity (FPSO) > 75% 2022 FPSO Sepetiba > 50% < 75% 2023 Prosperity (FPSO) > 25% < 50% 2024 FPSO Almirante Tamandaré < 25% 2024 FPSO Alexandre de Gusmão < 25% 2025 ENERGY. COMMITTED. © SBM Offshore 2021. All right reserved. www.sbmoff
Slide 14: Double resilience with competitive and low carbon technologies
Double resilience with competitive and low carbon technologies US$ break-even price per barrel ~US$25-35 Break-even price of world-class deep water reservoirs 0 10 20 30 40 50 60 Upstream Carbon intensity kgCO2e/boe ~8-11.5 KgCO2e/boe1 Industry average based on various sources For new FPSO To net ze
Slide 15: Potential FPSO Awards 2021-2024
Potential FPSO Awards 2021-2024 2+ FPSO Positive Selective & 3 projects per outlook for year capacity target market Disciplined 1 3 1 3 11 12 1 2 9 9 1 10 c. 8 Avg. / year 2 7 15 5 5 3 FPSO awards 2 SBM Offshore FPSO awards 2021 FPSO awards to date 1 2 1 2 Potential FPSO awards Break Even <US$40 per
Slide 16: New Energies
Highlights Jean - New picture ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 17: Mission and Portfolio
Mission and Portfolio Develop products and services for the sustainable energy of the future leveraging what SBM Offshore is best at: Ocean Energies, Project Management, Innovation/Technology, Operations and Financial Engineering RENEWABLES CARBON CAPTURE SMART SERVICES ENERGY. COMMITTED. © SBM Offs
Slide 18: Floating Offshore Wind – Positioning and Progress
Floating Offshore Wind – Positioning and Progress POSITIONING IN THE FULL VALUE CHAIN Contributing to LCOE1 reduction and competitive solutions to our of floating offshore wind business clients. Technology program next generation floater 25 MW PGL project on track Operation & Development Execution M
Slide 19: Floating Offshore Wind – Strong commercial pipeline
Floating Offshore Wind – Strong commercial pipeline Looking for the RIGHT OPPORTUNITIES Engaging in ALL KEY MARKETS 2 GW BY 2030 AMBITION project portfolio developed AMBITION TO BE TOP 3 KEY FLOATING OFFSHORE WIND AWARD AREAS (2021-2030) floating technology provider Source: SBM Offshore market intel
Slide 20: Floating Offshore Wind - Tension Leg Platform Key Benefits
Floating Offshore Wind - Tension Leg Platform Key Benefits • HIGHER [AEP] LOWER Reduced Low motion and Turbine friendly LCOE seabed footprint counter pitch concept Concept O&M scalability optimization Higher output1 Lower cost2 (1) AEP (Annual energy production) (2) LCOE (Levelized cost of energy) E
Slide 21: Transferring our expertise into carbon capture & storage value chain
Transferring our expertise into carbon capture & storage value chain 2 million tonnes per year of CO2 captured and reinjected on existing fleet Applying our Tower Loading Unit technology for carbon transfer to a project with Carbon Collectors Technology and experience for Transportation, Capture & R
Slide 22: HY 2021 Financials
Highlights ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 23: Financial Highlights
Financial Highlights US$ 29.5 b US$ 8.7 b Record Backlog1 Net cash from L&O1 US$ 1.9 b EUR 150 m Financings Closed2 Share Repurchase Program (1) Reflects a pro-forma view of the Company’s Directional backlog and expected net cash from Lease and Operate after tax and debt service. Please refer to sli
Slide 24: Directional Overview
Directional Overview1 Pro-forma backlog and L&O net cash2 (US$ billions) Net debt (US$ billions) 29.5 21.6 US$ 300 m avg/year US$ 260 m avg/year L&O net cash to 2050 4.1 4.6 L&O net cash to 2045 FY 2020 1H 2021 FY 2020 1H 2021 Revenue (US$ millions) EBITDA (US$ millions) 1,147 Underlying Revenue 1,1
Slide 25: 1H 2021 Sources and Uses of Cash
1H 2021 Sources and Uses of Cash Directional, US$ millions Cash from Operations1 Debt drawdowns2 Other Sources of cash 460 695 25 Uses of cash 270 95 27 165 155 543 Debt repayment Interest Dividend Growth (including lease liabilities) (Capex + Fast4Ward®) Tax Working capital Cash December 2020 383 C
Slide 26: Debt enables growth
Debt enables growth Directional, US$ billions Net debt/ Backlog1 ratio 45 20% 40 Historical Range 35 14% – 20% 15% 30 25 29.5 10% 20 20.7 21.6 15 17.1 16.8 10 14.8 2 5% 3.1 3.3 4.0 4.5 5 2.7 2.2 - 0% 2016 2017 2018 2019 2020 1H21 Pro-forma Backlog Net Debt (excluding IFRS 16) Debt to Backlog (1) Ass
Slide 27: 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$ 29.5 b L&O and BOT net cash translated in EUR/share3 Pro-forma 21 19 18 backlog1 TK 2.6 BOT 2.4 700 6% 7% 8% 600 Average L&O net cash p.a. after tax Discount rate c. US$ 360 million until 2031 500 c. US$ 300 mill
Slide 28: Long Term Value Growth Upside
Long Term Value Growth Upside GROWING THE CORE - FPSO NEW ENERGIES ~1-2 EUR per share per awarded contract 2 GW ambition by 2030 Focus development EPCI Operation projects NPV1 Sell down EUR 1 EUR 2 Development Securing access to opportunity pipeline Financing Facility Financing Facility (1) Uses ran
Slide 29: Capital Allocation & Shareholder Returns Model
Capital Allocation & Shareholder Returns Model US$ 29.5 b + Acceleration Pro-forma backlog1 … Net Cash Backlog … Dividend 700 Accelerated equity cash flow 600 Lower debt Higher debt … 500 400 300 Y0 Y1 Y1 Y2 Y2 Yn Yn New Equity Original Debt New Debt = Growth US$ billions 200 100 - + Growth Share Re
Slide 30: Outlook
Highlights ESG Ocean Infrastructure Growing the Core New Energies HY 2021 Financials Outlook ENERGY. COMMITTED.
Slide 31: 2021 Guidance confirmed
2021 Guidance confirmed DIRECTIONAL EBITDA Around 900 million US$ DIRECTIONAL REVENUES Around 2.6 billion US$ LEASE & OPERATE Around 1.6 billion US$ TURNKEY Around 1.0 billion US$ This guidance includes Directional revenues and EBITDA of US$ 75 million related to the cash receipts in 2021 from the D
Slide 32: Appendix
Appendix ENERGY. COMMITTED.
Slide 33: Sustainable Development Goals – Company targets for 2021
Sustainable Development Goals – Company targets for 2021 ENERGY. COMMITTED. © SBM Offshore 2021. All right reserved. www.sbmoffshore.com 33
Slide 34: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Underlying Revenue Underlying EBITDA Revenue EBITDA 829 827 538 531 351 321 25 9 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 “Other” Underlying EBITDA 1H 2020 US$ (40) million vs 1H 2021 US$ (40
Slide 35: Lease and Operate: Debt supporting L&O projects
Debt supporting L&O projects Directional, US$ billions Assets Liabilities and net assets Group liquidity Property, Plant & Equipment 0.21 Other Financial assets 0.1 Net working capital, Cash and cash equivalents 0.3 provisions and other 0.7 0.3 Other net liabilities 0.2 Lease Liabilities (IFRS 16) 0
Slide 36: Pro-forma Backlog and borrowings repayment
Pro-forma Backlog1 and borrowings repayment Directional, US$ billions 2 TK 2.6 Pro-forma Directional L&O and BOT backlog (1) Backlog is the undiscounted revenue over the firm portion of the contracts. The pro-forma Directional backlog at 1H 2021 reflects the following key assumptions: the Liza Desti
Slide 37: Group P&L and underlying items
Group P&L and underlying items Directional, US$ millions Group P&L Directional underlying items US$ millions 1H 2020 1H 2021 Variance US$ millions 1H 2020 1H 2021 Impact P&L Revenue 1,179 1,072 (107) Deep Panuke termination fee - (75) Revenue Underlying Revenue 1,179 1,147 (32) Subtotal Revenue impa
Slide 38: Turnkey and Lease and Operate P&L
Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions 1H 2020 1H 2021 Variance Liza Unity, Prosperity, Sepetiba, Almirante Tamandaré, multiple Ongoing Projects Revenue 351 321 (30) FEEDs and other various business Gross Margin 10 50 40 D, A & I SBM Installer impai
Slide 39: 1H 2021 sources and uses of cash
1H 2021 sources and uses of cash Directional, US$ millions L&O 531 Turnkey 10 Other (40) Underlying EBITDA 501 Deferred income (41) Cash from Operations Debt drawdowns1 Other Sources of cash 460 695 25 Uses of cash 270 95 27 165 155 543 Debt repayment Interest Dividend Growth (including lease liabil
Slide 40: Cash Flow Statement
Cash Flow Statement Directional, US$ millions US$ millions 1H 2021 EBITDA 426 Changes in operating assets and liabilities (210) Income taxes paid (27) Net cash flows from (used in) operating activities 188 Capital expenditures (452) Other investing activities 23 Net cash flows from (used in) investi
Slide 41: Balance Sheet
Balance Sheet Directional, US$ millions Comments on variation US$ millions FY 2020 1H 2021 Variance Progress of main FPSO projects partially compensated by Property, plant & equipment and Intangibles 6,133 6,393 259 depreciation Investment in associates and other financial assets 311 322 11 Investme
Slide 42: Lease qualification and consolidation methods IFRS 10 & 11
Lease qualification and consolidation methods IFRS 10 & 11 Assets Lease Contract Type SBM Share % Directional IFRS FPSO N’Goma FL 50% Proportional Equity FPSO Saxi Batuque FL 50% Proportional Equity FPSO Mondo FL 50% Proportional Equity FPSO Cidade de Ilhabela FL 75% Proportional Full consolidation
Slide 43: External loans and borrowings
External loans and borrowings Directional, US$ millions Net book value as of June 30, 2021 Full Amount IFRS Directional PROJECT FINANCE FACILITIES DRAWN FPSO Cidade de Paraty 254 254 160 MOPU Deep Panuke 10 10 10 FPSO Cidade de Anchieta 257 257 257 FPSO Cidade de Ilhabela 823 823 618 FPSO N’Goma 356
Slide 44: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 5,000 3,500 4,603 4,093 1,226 2,000 310 500 710 -1,000 FY 2020 1H 2021 1H 2021 Net cash Project debt RCF and other Lease liabilities Undrawn RCF Net cash Undrawn project debt Average cost of debt 1H 2021 borro
Slide 45: Revolving Credit Facility Covenants
Revolving Credit Facility Covenants Key financial covenant 1H 2021 Definition1 Solvency ratio > 25% ✓ 33% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0 ✓ 5.3 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lendin
Slide 46: Lease and Operate portfolio
Lease and Operate portfolio Initial Lease Period Contractual Extension Option Confirmed Extension Conversion (1) FPSO Serpentina is owned by the client and is operated by Gepsing – a subsidiary between SBM Offshore (60%) and GEPetrol (40%) (2) Client change yet to be confirmed as Chevron/Noble Energ
Slide 47: ENERGY. COMMITTED. © SBM Offshore 2021. All right reserved. www.sbmoffshore.com
ENERGY. COMMITTED. © SBM Offshore 2021. All right reserved. www.sbmoffshore.com 47