SBM boasts of bright future in Guyana market

Feb 11, 2022 News

– Company sees over US$29B in cash flow until 2050; returned US$343M to shareholders

Kaieteur News – Executives at SBM Offshore, the Dutch company which built the Liza Destiny, are thrilled about their future with Guyana, the world’s most exciting exploration hotspot.
Their state of euphoria is rooted in the fact that Guyana has been approving ExxonMobil’s oil production projects in the Stabroek Block at industry leading speeds. This has actually allowed SBM to benefit tremendously in the process. Since oil production got underway in 2019, SBM has been the preferred builder for the country’s second and third ships, being the Liza Unity and Prosperity floating, production, storage and offloading (FPSO) vessels.
Last year, the company was also given the contract to build the fourth FPSO for Guyana’s Yellowtail Project in the Stabroek Block. Approval for the Yellowtail development is expected by month end. In light of the tremendous work it has received to date from Guyana, SBM was pleased to announce on Thursday that its project portfolio is on a record high while adding that it sees cash flow visibility into 2050 totalling over US$29B.
In his remarks to the market on Thursday, Bruno Chabas, CEO of SBM Offshore, commented that last year, the Dutch company performed well. Once again, this is thanks to the multi-billion dollar projects it has received from Guyana. Chabas said,“We closed the books in line with our guidance. The Company has a record project portfolio and we have confirmed our position as a leader in the support of our clients in the energy transition. We are truly proud of our teams who deliver our projects and continue to operate our fleet safely, despite the challenges that came with the COVID-19 pandemic.”
Chabas added, “Our project portfolio stands at a record level with five projects under execution and a large Front End Engineering Design (FEED) underway for the Yellowtail development project for Exxon in Guyana. FPSO Liza Unity is now in the commissioning phase, in line with our pre COVID-19 schedule. The other projects remain on track relative to the latest planned schedules and we continue to anticipate a competitive level of performance from this portfolio.”
The CEO said SBM’s order book continues to bring stability as its net cash forecast is underpinned by contracts from premium clients which include ExxonMobil. He said, “This is unique in our industry. It also allows us to invest in the future, both in our traditional business as well as in renewables.” Thanks to the projects it has in Guyana, Chabas was keen to note that in 2021, the company was able to return US$343 million to shareholders through dividends. In light of this performance and its forecast into 2050, the company appears to be on the trajectory to continue this trend of making its shareholders richer on account of its Guyana bonanza.

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