SBM Offshore's Weekly Share Repurchase Program: A Deep Dive

SBM Offshore, a leading technology provider in the offshore energy industry, has been actively engaged in a share repurchase program since February 29, 2024. This program, with a total repurchase amount of EUR130 million (c. US$140 million), aims to reduce share capital and provide shares for regular management and employee share programs. The program is expected to be completed by the end of April 2025.


The repurchases are made under the authorization granted by the Annual General Meeting of the Company on April 13, 2023, and April 12, 2024. The execution of the share repurchase program is done in compliance with the safe harbor provisions for share repurchases, and transactions may be carried out during closed periods.


As of October 9, 2024, the cumulative repurchase amount stands at EUR61,611,032, with a cumulative quantity repurchased of 4,110,755 shares. The cumulative average repurchase price is EUR14.99, and the percentage of the program completed is 47.39%.

The share repurchase program has been increased by an additional amount of EUR65 million (c. US$71 million) effective from August 8, 2024. The objective of the Incremental Buyback is to reduce share capital and in addition to provide shares for regular management and employee share programs.

The execution of the share repurchase program is expected to be completed by the end of April 2025, and it will be accomplished under the authorization granted by the Annual General Meeting of the Company on April 13, 2023, and the authorization of April 12, 2024.

In accordance with the European Market Abuse Regulation, the Company will inform the market of the progress made in the execution of this program through weekly press releases and updates on its website.

The share repurchase program is a strategic move by SBM Offshore to reduce its share capital and provide shares for management and employee share programs. This program is expected to have a positive impact on the company's earnings per share (EPS) over time, as the reduction in the number of outstanding shares increases EPS on a per-share basis. Additionally, the share repurchase program can signal to the market that the company's management believes its shares are undervalued, potentially leading to an increase in the share price.

However, the effectiveness of the share repurchase program in affecting the company's share price is influenced by various factors, including market conditions and investor sentiment. For instance, a strong market performance or positive investor sentiment may overshadow the impact of the share repurchase program on the share price. Conversely, a weak market performance or negative investor sentiment may dampen the impact of the share repurchase program on the share price.

The company's financial performance and cash flow management also play a crucial role in its ability to sustain the share repurchase program and its impact on the share price. A strong financial performance and robust cash flow enable the company to allocate resources to the share repurchase program without compromising its core operations. This can lead to a positive impact on the share price, as investors may view the company's financial strength as a sign of its ability to create value for shareholders.

In conclusion, SBM Offshore's weekly share repurchase program is a strategic initiative aimed at reducing share capital and providing shares for management and employee share programs. The program is expected to have a positive impact on the company's EPS and share price, although its effectiveness is influenced by market conditions, investor sentiment, and the company's financial performance. As the program progresses, investors should monitor the company's financial performance and the market's reaction to the share repurchase program to assess its impact on the share price.