Annual Report 2010 - SBM Offshore

Financial Review
Highlights
The consolidated result for 2010 is a net profit of US$
276.0 million, a 20.0% increase in comparison with the
2009 net profit of US$ 230.0 million. This result includes
non recurring items which generated a net gain of US$
9.0 million in 2010 (US$ 32.4 million in 2009). Net profit
attributable to shareholders amounts to US$ 240.0 million
(US$ 221.0 million in 2009).
Earnings per share amounted to US$ 1.44, which is
2.0% below the level of US$ 1.47 in 2009. EPS did not
increase in line with net profit due to the larger portion
of net profit attributable to minority interests and due to
a higher average number of shares. Proposed dividend
per share is US$ 0.71, representing the Company’s normal
pay-out ratio of 50% of net profit.
New orders in the year totalled US$ 4,532 million (split
43% / 51% / 6% between the Lease and Operate, the
Turnkey Systems and the Turnkey Services segments
respectively), compared to US$ 3,740 million of new
orders in 2009.
Turnover increased by 3.4% to US$ 3,056 million, in
comparison with US$ 2,957 million in 2009, mainly as a
result of higher Turnkey Systems revenues.
Total order portfolio at the end of the year was US$
11,502 million compared to US$ 10,032 million at the
end of 2009, an increase of 14.7% and a new record.
Of this, 78% or US$ 9,003 million relates to the nondiscounted
value of the revenues from the Company’s
long-term lease contracts in portfolio at year-end.
Financial Review / Financial Statements 2010
Operating profit (EBIT) increased by 23.5% to US$
362.4 million compared with US$ 293.4 million in 2009.
EBIT margin increased to 11.9% compared to 9.9% in
2009 while the net profit margin rose to 9.0% (7.8% in
2009).
EBITDA amounted to US$ 688.4 million, a 12.2%
increase compared to US$ 613.3 million in 2009.
The year was marked by the following highlights:
• a Letter of Intent for one major new order in the first
half of the year (FPSO Cidade de Paraty finance
lease), plus a Letter of Agreement for the Tubular
Bells project, several lease extensions, variation
orders, and various smaller projects;
• the sale of 20% of the Company’s stake in the
Paenal construction yard to DSME resulting in a
non-recurring reduction of net financing costs of
US$ 9.0 million;
• first oil from two major projects for Petrobras, the
FPSO Capixaba relocation to the Cachalote field,
and the FPSO P-57 turnkey delivery and start of the
3-year operating contract;
• improved margins on Turnkey Systems activities,
but impairment charges totalling US$ 50.7 million
incurred on the Yme MOPUstor platform under
construction for the Lease and Operate segment
and the tanker inventory;
• Capital expenditure in 2010 amounted to US$ 519
million, which is lower than in 2009 (US$ 656 million)
but excludes investments in two leases which are
accounted for as finance leases and accordingly are
not reported as property, plant and equipment but
under construction contracts;
• new project finance facilities of US$ 602 million for
FPSO Aseng and a new, expanded 5-year Revolving
Credit Facility of US$ 750 million.
Segmental information in respect off reporting segments
the three core businesses of the Company
during 2010 is provided in the detailed financial
analysis that follows. Turnover by geographical area is
included in the notes to the Financial Statements.
SBM Offshore – Annual Report 2010 101