SBM Offshore (SBMO NA) Netherlands
Energy
SBMO delivered another impressive performance in H1 and raised FY25 guidance. The Fast4Ward model is proving highly effective: in the past 7 months, 3 FPSOs with a combined 650kbpd capacity have achieved first oil, with unprecedented time-to-market that sets SBMO apart. While net debt of $5.6bn is still a concern for some investors and came in above consensus, it largely reflects new FPSO construction financing and the IDEA! expects deleveraging to progress as planned. This underpins its $1.7bn dividend / buyback commitment through 2030, with further upside from new orders and two unallocated hulls. Given SBMO’s continued strong performance, the IDEA! reiterates their positive stance.
Edition: 218
- 22 August, 2025
SBM Offshore (SBMO NA) Netherlands
Energy
Despite a positive outlook for new orders SBMO shares still trade at a relatively high discount to NPV - highlights opportunities to win additional contracts with the likes of Exxon where FPSOs SBMO has been building are very efficient (breakeven price for the ONE Guyana FPSO is pegged at $29/BBL Brent). Analysts at the IDEA have previously demonstrated that each new FPSO contract could add up to €1 to €2 per share in the NPV of the company’s L&O portfolio. This value already amounts to between €19 and €23 per share based on discount rates of 8% and 6% respectively. SBMO shares currently trade at €13.70.
Edition: 135
- 13 May, 2022