SBM Offshore's Record 2024 Earnings: A Beacon of Strength in the Offshore Energy Industry

SBM Offshore, a leading provider of floating production solutions to the offshore energy industry, has reported record financial results for the full year 2024. The company's strong performance reflects the overall health of the offshore energy industry and sets the stage for continued growth and success. In this article, we will delve into the key aspects of SBM Offshore's 2024 earnings and explore the trends and factors that contributed to the company's remarkable achievements.

SBM Offshore's 2024 Annual Report, released on February 23, 2025, highlights the company's exceptional performance across various financial metrics. The company reported a record Directional Revenue of US$6.1 billion, representing a 35% increase compared to the previous year. This impressive growth was driven by a 45% increase in Directional Turnkey revenue, which rose to US$3,743 million in 2024. The company's record Directional EBITDA of US$1.9 billion, a 44% increase from 2023, further underscores SBM Offshore's robust financial health.

The company's outstanding performance can be attributed to several factors, including:

1. FPSO Sales and Awards: SBM Offshore completed the sales of FPSOs Prosperity and Liza Destiny to ExxonMobil Guyana in Q4 2024, contributing to the record revenue. Additionally, the company secured three new awards, further boosting its backlog and future revenue streams.
2. First Oil Achievements: FPSO Almirante Tamandaré achieved first oil on February 15, 2025, while two additional units, FPSO Alexandre de Gusmão and FPSO ONE GUYANA, are on track to achieve first oil in 2025. These achievements de-risk the construction portfolio and contribute to revenue growth.
3. Progress on Awarded Contracts: The progress on awarded contracts for FPSOs Jaguar and GranMorgu also contributed to the increase in revenue.
4. Fast4Ward® Program: SBM Offshore's Fast4Ward® program has been setting the pace for deepwater developments, with three units having a combined capacity of 655,000 barrels of oil per day. This program is expected to continue driving growth in the long term.
5. Diversification and Decarbonization: SBM Offshore has been diversifying and decarbonizing its solutions by creating a joint venture, Ekwil, with Technip Energies for floating offshore wind and investing in Ocean-Power for lower-emission power solutions. These initiatives position the company well for long-term growth in the evolving energy landscape.

SBM Offshore's increased cash return to shareholders, through dividends and share repurchases, further enhances the company's attractiveness to income-oriented investors. The company announced a 30% increase in cash return to US$1.59 per share, comprising a US$155 million dividend and US$150 million share repurchase program. This increase in cash return is a result of the company's strong performance in 2024 and reflects management's commitment to returning value to shareholders.

In conclusion, SBM Offshore's record 2024 earnings serve as a beacon of strength in the offshore energy industry. The company's exceptional performance reflects the overall health of the industry and sets the stage for continued growth and success. SBM Offshore's increased cash return to shareholders further enhances the company's attractiveness to income-oriented investors, making it an appealing choice for those seeking a stable and growing income stream. As the offshore energy industry continues to evolve, SBM Offshore's strong performance and commitment to innovation and sustainability position the company well for long-term success.