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Introduction & Market Context
SBM Offshore ( AMS (VIE:AMS2):SBMO) presented its half-year 2025 earnings on August 7, highlighting robust financial performance amid strong demand in the deepwater market. The offshore solutions provider has capitalized on what it describes as a "robust market" with approximately 46 potential FPSO awards globally expected between 2025-2028, with about one-third falling within SBM’s strategic focus areas.
The company emphasized the double resilience driving deepwater growth, with break-even oil prices in the $20-35 range and approximately 45% lower emissions compared to other production methods. According to data presented, more than 30% of new oil production by 2030 is expected to come from deepwater sources.
As shown in the following market positioning slide, SBM Offshore is strategically positioned to benefit from projected oil supply shortages in the coming decade:
Financial Performance Highlights
SBM Offshore reported impressive financial results for the first half of 2025, with revenue reaching $2.31 billion, representing a 26% increase compared to the same period in 2024. EBITDA grew by 10% to $682 million, while the company maintained a strong net cash backlog of $9.0 billion.
Based on this performance, management raised its full-year 2025 guidance, now projecting revenue above $5.0 billion and EBITDA exceeding $1.6 billion. This upward revision reflects confidence in the company’s operational execution and market conditions.
The following slide summarizes the key financial highlights from the half-year results:
A deeper look at segment performance reveals contrasting trends. The Turnkey segment showed significant improvement, with revenue increasing from $662 million to $1.32 billion and EBITDA turning positive at $225 million compared to a $12 million loss in the previous year. Conversely, the Lease and Operate segment saw declines, with revenue falling from $1.18 billion to $988 million and EBITDA decreasing from $679 million to $497 million.
Operational Achievements
SBM Offshore highlighted several operational milestones during the first half of 2025. The company successfully delivered two FPSO (Floating Production Storage and Offloading) start-ups and prepared FPSO ONE GUYANA for first oil. Additionally, SBM secured its position as the first operator in Suriname by signing an Operations and Maintenance service contract with TotalEnergies (EPA:TTEF) for FPSO GranMorgu.
The company’s Guyana operations achieved record production of approximately 665,000 barrels per day combined. SBM’s Fast4Ward® program continues to drive efficiency and standardization across projects, with six Fast4Ward FPSOs already delivered and continuous learning improving execution.
The following timeline illustrates SBM’s project delivery schedule and the implementation of its Fast4Ward® approach:
Strategic Positioning and Growth Outlook
SBM Offshore emphasized its lifecycle approach to project execution, from product development through responsible recycling. The company reported 99.4% uptime across its fleet, which now has 2.7 million barrels per day of installed capacity across 17 operational units.
Looking forward, SBM is diversifying beyond traditional oil and gas infrastructure into broader ocean solutions. The company is developing concepts such as Near Zero Emission FPSOs, Floating Power Hubs, and Blue Ammonia FPSOs to address global challenges including energy demand, decarbonization, and fresh water scarcity.
As illustrated in the following slide, SBM is leveraging its ocean infrastructure expertise to unlock new value streams:
Shareholder Returns and Capital Allocation
SBM Offshore continues to strengthen its balance sheet while increasing returns to shareholders. The company reduced its net debt to $5.6 billion, down from $5.7 billion, improving its net debt to EBITDA ratio to 2.9x from 3.0x. Management projects this ratio will continue to improve, reaching approximately 1.5x by 2030.
For 2025, SBM has committed to $280 million in cash returns to shareholders, with a minimum of $1.7 billion planned for the 2025-2030 period. The company has already paid €150 million in dividends and completed approximately 34% of a €141 million share buyback program.
The following slide details SBM’s cash allocation strategy through 2030:
Forward-Looking Statements
SBM Offshore’s management expressed confidence in the company’s growth trajectory, supported by a robust deepwater market outlook and its strategic positioning. The company’s $33.2 billion backlog provides significant visibility for future revenue, with approximately $9.0 billion in net cash backlog.
The company plans to allocate $1.1 billion for growth and incremental cash returns from its existing backlog, while maintaining flexibility to pursue additional growth opportunities. SBM’s debt structure is designed to support growth, with different financing approaches for corporate operations, construction, and project execution.
In conclusion, SBM Offshore’s half-year 2025 results demonstrate strong performance across financial and operational metrics, with increased guidance reflecting management’s confidence in continued execution. The company’s strategic focus on both core FPSO business and diversification into new ocean infrastructure solutions positions it well for sustainable growth, while its commitment to shareholder returns balances growth investments with direct value creation for investors.
Full presentation:
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