Exxon’s ship builder profit increased to US$128M for half-year

Aug 09, 2024 News

…Guyana projects driving growth

Kaieteur News – Dutch ship-builder, SBM Offshore has recorded increased earnings for the first-half of 2024, buoyed by strong project performance and continued expansion in Guyana, a key growth market for the company.

The offshore energy giant made the announcement on Thursday. Chief Executive Officer (CEO) of SBM, Øivind Tangen disclosed, “Our great teams continue to deliver strong performance and we ended the period with a record backlog of US$33.7 billion. As a result, we are increasing our Directional EBITDA [earnings before interest, taxes, depreciation, and amortization] guidance to around US$1.3 billion from around US$1.2 billion…”

Tangen added, “With our unique value proposition, we expect to see more awards based on the “sale & operate” model like FPSO Jaguar, with an accelerated cash flow profile versus the historical “lease & operate” model.”

For the first-half of 2024, SBM Offshore reported Directional revenue of US$1.8 billion, a 23% increase compared to the same period in 2023. The company’s Directional net profit for the period also saw substantial growth, rising to US$128 million up from US$36 million in the year-ago period.

Back in April, SBM had announced that it secured a contract with ExxonMobil Guyana Limited (EMGL) to build and install Guyana’s sixth Floating Production Storage and Offloading vessel (FPSO) Jaguar for ExxonMobil’s Whiptail development. The vessel will be designed to produce 250,000 barrels of oil per day, and will have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,630 meters and will be able to store around 2 million barrels of crude oil.

The fourth FPSO, ‘One Guyana’ will arrive next year

To date, SBM projects in Guyana, includes FPSOs Liza Destiny, Liza Unity, Prosperity, and the upcoming ONE GUYANA, all crucial contributors to the company’s growth. Exxon had recruited the services of Japanese ship builder, MODEC, for its fifth FPSO, Errea Wittu.

SBM stated that the Directional Turnkey revenue rose to US$662 million compared with US$558 million in the year-ago period. This 19% increase reflects mainly the FPSO Jaguar; the increased support to the fleet through brownfield activities, partially offset by the completion of FPSOs Prosperity for Exxon and Sepetiba, for works offshore Brazil. The company said, “FPSO Jaguar, as planned, the Fast4Ward® MPF hull was launched out of drydock in the second quarter of 2024. First oil is expected in 2027.” As it relates to, FPSO ONE GUYANA, SBM said that the topside modules lifting campaign has been successfully completed and that integration and commissioning activities are progressing in line with plan. First oil is expected in the second half of 2025.

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Builder, Chief Executive Officer, Guyana, increased, Øivind Tangen

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