2005 Annual Report - SBM Offshore

Report of the Board of Management
The Managing Directors, with the approval of the Supervisory
Board, have granted a call option to the Foundation to
acquire a number of preference shares in the Company’s
share capital, equal to one half of all ordinary shares
outstanding immediately prior to the exercise of the option,
enabling it effectively to perform its functions as it, at its sole
discretion and responsibility, deems useful or desirable. The
option was granted on 30 March 1989. In accordance with
the by-laws of the Company, shareholders were advised of
the reasons for granting this option in the Extraordinary
General Meeting of Shareholders of 28 April 1989.
In the joint opinion of the Supervisory Board, the Board of
Management and the members of the Board of the above
Foundation, the ‘Stichting tot Beheer van Preferente
Aandelen in SBM Offshore N.V.’ is independent from the
Company as defined in the ‘Fondsenreglement’ of the
Euronext Amsterdam Stock Exchange.
Human Resources
Labour
The increase in the Company’s activity from 2004 to 2005
was reflected by the hiring of more staff in all Group
companies. Due to the increase in the number of offshore
floating production and storage units coming on line during
this period a considerable number of new staff was also hired
for offshore operations. The overall number of staff for SBM
Offshore has increased to 3,164 persons at year end 2005, an
increase of 25% in comparison with the end of 2004.
A project progress meeting
32
SBM Offshore continues to benefit from the employment of
contract staff to provide short term hires through the
Company’s own in-house agency and approved external
agencies. This provides flexibility in expansion during peak
work periods, which is controlled by keeping these contract
staff numbers to below 30% of the total workforce.
The distribution of the total number of personnel at year end
2005 over the lease and turnkey supply activities of the
Company and, within each of these activities, the split
between permanently employed staff and agency and
contracted personnel are shown in the chart hereafter.
1162
318
1317
A second chart shows the distribution of the total number
over the three main execution centres, the staff in other
offices and shore bases worldwide, and the manning of the
fleet.
1381
The Company has continued the intake of graduates using an
internship programme, providing a flow of young engineers
and support staff to provide for the future. The new staff
members receive a structured training programme
specifically designed to meet the requirements of their
functions. Special efforts are made to bring the non-technical
staff closer to understanding the very technical nature of the
Company’s products through ‘Continuing Professional
Development’ (CPD) programmes that explain in simple
terms the nature of oil and gas processing. This has closed
the technical gap that traditionally exists between technical
and non-technical staff in engineering companies.
367
Permanent Turn key Contractor s Turn key
Permanent Lea se Contractor s Lea se
151
768
486
Monaco S chiedam
Houston Worldwide On shore
Worldwide Off shore
Total 3164
378
Total 3164