Latest update June 1st, 2026 12:37 AM
‘One Guyana’ FPSO lends to record profits for Dutch Floater Specialist
Kaieteur News – The Dutch floater specialists, SBM Offshore that was contracted to construct four Floating, Production, Storage and Offloading (FPSOs) for use in Guyana’s Stabroek Block has reported record profits, with the award of the ‘One Guyana’ vessel for the Yellowtail development.
The announcement was made by the entity Chief Executive Officer (CEO) Bruno Chabas, who in announcing the entity’s forecast for 2023 aiming to secure some revenues in excess of $2.9 billion for 2023, bringing its guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA) to above $1 billion.
The group, which supplies and operates FPSO vessels, reported an EBITDA of $1.01 billion for 2022, roughly in line with the company-provided consensus of $1.00 billion, and improving from last year’s result of $0.93 billion.
“We achieved record-level underlying EBITDA, driven by our strong backlog which also grew to a year-end record level following the award of FPSO ONE GUYANA,” the Chief Executive Officer said, adding that its performance allowed the company to continue increasing shareholder returns.
As such, SBM Offshore at the time also proposed a dividend of $1.10 per share, a 10 percent increase from $1 it paid a year ago.
The One Guyana FPSO
The group recorded a one-off impairment of $92 million from the shutdown of FPSO Cidade de Anchieta, but the company said it did not affect its EBITDA.
Although the pace of company’s construction activities has been impacted by logistics issues from the Ukraine war, lockdowns in China, and inflationary pressures — which increased costs — Chabas said, “at a portfolio level, margins remain robust.”
Additionally, he reported on SBM’s progress “towards our 2030 targets of reducing emissions intensity by 50% per barrel of oil produced and developing innovative lower-carbon, new energy and digital technologies. Industry pacesetting and ‘doing things right’ at all levels of the organization is what SBM Offshore does and will continue to do. It is our contribution to the energy transition.”
It was noted, the pro-forma Directional backlog at the end of December 2022 increased by US$1 billion year on year to a total of US$30.5 billion.
“This increase was mainly the result of the awarded contract for the FPSO ONE GUYANA project less the turnover for the period which consumed US$3.3 billion of backlog. SBM Offshore’s backlog provides cash flow visibility of 28 years, up to 2050.”
According to Chabas, the pro-forma Directional backlog at the end of 2022 reflects some key assumptions, such as the fact that the FPSO Liza Destiny contract covers the basic contractual term of 10 years of lease and operation.
He noted too that the FPSOs Liza Unity, Prosperity and ONE GUYANA contracts cover a maximum period of two years of lease and operation within which the units will be purchased by the client.
For both FPSOs ONE GUYANA and Prosperity, the pro-forma backlog takes the operation and maintenance scope up to a two-year contractual period as it has been agreed in principle, pending a final work order.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
