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Losses cut by almost two thirds in 2013 for SBM

Losses cut by almost two thirds in 2013 for SBM
SBM Offshore cut its losses to $58m in 2013, from $175m in 2012.

The company's directional figures, which give a clearer indication of the company's lease-heavy performance, show a 13% increase in its revenue in 2013, to $3.4bn from $3.1bn in 2012.

The company reported increase in its directional backlog of 39%, amounting to $23bn, a company record.

Moves to mitigate debt obligations included the agreement to decommission the Yme platform and settle outstanding issues with Talisman for $470m. The update to residual values and decommissioning costs resulted in one off non-cash charges of $158m. Total company debt stood at $2.6bn at the end of December.

“2013 was a year of progress on all fronts: strategic, operational and financial,” said SBM Offshore ceo Bruno Chabas, citing project wins in Brazil and in the Gulf of Mexico. “Our Company is now focused, without distraction, on its future.

“Our industry faces a challenging period, but we believe SBM Offshore is strongly positioned. We possess a balanced portfolio of projects, the ability to offer a choice of financing options for clients and the leading position in a niche service which the oil industry needs to sustain future production.”

SBM has been mired in controversy recently after the company's coo Jean Phillipe Laures was sacked for undisclosed reasons in November, and an $180m MOU with Daya Vessels Limited fell through in December. Meanwhile, internal investigations into potentially improper sales practices conducted by outside counsel and forensic accountants are still ongoing.