SBM Offshore increases profit forecast and cuts jobs

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Published on 6 augustus 2020 08:15 |
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ROTTERDAM (AFN) – Maritime oil service provider SBM Offshore increases its profit forecast for the whole year. Despite the weak market conditions in the oil and gas industry due to the sharply lower oil price and the impact of the corona crisis, the company was able to reduce its costs through improved operational performance and the loss of 600 jobs.

SBM Offshore is now counting on an operating result (EBITDA) of more than $ 900 million. That was previously up to $ 900 million. In its forecast, the company assumes the accounting method ‘directional’. The forecast for directional sales of approximately 2.3 billion was maintained.

The need to lower the cost base leads to job losses at SBM. A total of 600 jobs will be lost, 300 of which were already announced in the first quarter. Nearly 4,500 people worked at the group at the end of last year.

Directional turnover

Operating income was $ 523 million in the first half of the year, up 31 percent from a year earlier. Directional revenue in the first half was $ 1.2 billion, up 22 percent compared to the same period in 2019, with SBM benefiting mainly from the Lease and Operate segment and benefiting from the addition of new production. and storage ship (FPSO) to the fleet, the Liza Destiny at the end of last year. In addition, interests in five Brazilian FPSOs that SBN acquired from a partner last year increased.

CEO Bruno Chabas stated that SBM Offshore successfully passed a challenging period and performance is in line with its own expectations. He emphasizes that the corona crisis is having a major impact on the oil industry, including in the long term. He states that SBM will continue to adapt to the changing energy market.

Due to the corona crisis and weaker activity in the oil market, SBM has taken several measures to reduce costs, including passing on additional costs of additional corona virus security measures to customers. The outlook for the number of new projects entering the market remains uncertain. The company says it continues to consider the possible effects of the corona crisis on projects and fleet operations.

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