Annual Report 2010 - SBM Offshore

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The bank interest-bearing loans and borrowings include at 31 December: in thousands of US$ Original repayment period Interest per annum on the remaining loan balance Remaining loan balance 2010 Remaining loan balance 2009 US$ PROJECT FINANCE FACILITIES DRAWN: Mid 2000 (FSO Yetagun) 10 years 3.86% - 4,271 March 2005 (Sanha LPG FPSO) 6 ½ years 5.40% 9,860 34,352 May 2006 (FPSO Espadarte) 5 years 2.55% - 28,708 October 2006 (FPSO Capixaba) 6 ½ years 6.43% 103,200 149,310 May 2010 (FPSO Capixaba relocation) 6 years 5.44% 200,000 December 2006 / March 2008 (FPSO Kikeh) 7 years 5.18% 124,954 152,341 November 2007 / March 2008 (FPSO Mondo) 6 years 4.90% 50,920 86,826 April / May / September 2008 (FPSO Saxi Batuque) 6 years 4.30% 77,969 117,416 September 2007 / March 2009 / July 2009 (Thunder Hawk) 5 ½ years 5.22% 217,561 303,369 November 2008 / February 2009 (FPSO Espirito Santo) 6 ¼ years 5.03% 229,440 271,064 US $ GUARANTEED PROJECT FINANCE FACILITIES DRAWN: June 2009 (MOPU Deep Panuke) 5 ¼ years 7.58% 208,192 202,333 December 2010 (FPSO Aseng) 5 years 5.52% 300,000 REVOLVING CREDIT FACILITY US $750 million revolving credit facility 5 years variable 95,000 145,000 OTHER Other long term debt 148,186 45,400 Remaining principal at 31 December 1,765,282 1,540,390 In 2010, the 'Other long term debt' includes loans received from minority partners in subsidiaries. For the project finance facilities, the respective vessels are mortgaged to the banks. Interest expensed on long-term debt during 2010 amounted to US$ 63.6 million (2009: US$ 60.0 million) and interest capitalised amounted to US$ 32.6 million (2009: US$ 28.3 million). Financial Review / Financial Statements 2010 SBM Offshore – Annual Report 2010 159
Financial Review / Financial Statements 2010 The following important financial covenants have been agreed with the respective lenders (unless stated otherwise, these relate to both SBM Offshore N.V. and SBM Holding Inc. S.A. consolidated financial statements), after adjustment of EBITDA and net debt for certain items and proposed dividend, as defined in the relevant financing facilities. For the new Revolving Credit Facility concluded in 2010, covenants and definitions (at SBM Offshore level) vary from those of the old facility, which however still apply to existing Project Finance Facilities, and are therefore still reported. • Consolidated tangible net worth to Consolidated total tangible assets (Solvency) of minimum 25% of SBM Offshore N.V. The actual solvency at year-end 2010 is 41.9% • Minimum tangible net worth of SBM Holding Inc. S.A. of US$ 490 million. Actual tangible net worth is US$ 1,894 million (2009: US$ 1,566 million). Minimum tangible net worth of SBM Offshore N.V. of US$ 570 million. Actual tangible net worth is US$ 2,005 million (2009: US$ 1,631 million); • Leverage (net debt : EBITDA ratio) of maximum 3.75 : 1 at year-end. Actual leverage is 2.54 (2009: 2.43) and 2.49 (2009: 2.39) for SBM Holding Inc. S.A. and SBM Offshore N.V. respectively; for the new Revolving Credit Facility, with Adjusted EBITDA definition, the actual leverage at year-end 2010 is 2.30; In June 2010, the Company completed the refinancing and expansion of its revolving credit facility of US$ 500 million to a new US$ 750 million facility. The RCF facility has been arranged to help finance the Company’s temporary cash requirements related to the supply of turnkey projects or the assets under construction where project finance is not planned or not yet put in place. • Interest cover ratio (EBITDA : net interest expense) of minimum 5.0 : 1; Actual interest cover ratio is 11.1 (2009: 12.2) and 8.2 (2009: 10.2) for SBM Holding Inc. S.A. and SBM Offshore N.V. respectively. For the new Revolving Credit Facility, with an Adjusted EBITDA definition, the actual interest cover ratio is 9.0; • Consolidated Adjusted EBITDA of SBM Holding Inc. S.A. must be > 75% of the Consolidated Adjusted EBITDA of the Company. At year end 2010 the actual percentage is 102%. The Company has no ‘off-balance sheet’ financing through special purpose entities. All long-term debt is included in the Consolidated statement of financial postion. No carrying amounts of long term debt were in default at the balance sheet date nor at any time during the year. During the year 2010 and 2009 there were no breaches of the loan arrangement terms and hence no default needed to be remedied, or the terms of the loan arrangement renegotiated, before the financial statements were authorised for issue. The Company has available borrowing facilities resulting from the undrawn part of the revolving credit facility (RCF) and the undrawn part of project facilities. The expiry date of the undrawn facilities are: in thousands of US$ FLOATING RATE: 2010 2009 Expiring within one year 141,808 200,000 Expiring beyond one year 755,000 502,667 Total 896,808 702,667 160 SBM Offshore – Annual Report 2010
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Annual Report 2010
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Financial Review / Financial Statem
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1 2 Overview 11 Message from the CE
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Semi-Submersible Drilling Rig Tensi
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Deck view of the FPSO Espirito Sant
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I am pleased to report that the Com
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In addition to these main centres,
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Highlights 2010 Financial • Turno
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Shareholders As the shares are bein
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Corporate Strategy In line with the
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Lease and Operate The lease and ope
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World Map of SBM Offshore Project E
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Report of Board of Management Repor
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Report of Board of Management Compo
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Report of Board of Management requi
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Report of Board of Management In co
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Report of Board of Management Remun
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Report of Board of Management Secti
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Report of Board of Management was a
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Report of Board of Management Actua
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Report of Board of Management With
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Report of Board of Management Infor
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Disconnectable Turret of the FPSO O
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Introduction The relatively high oi
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Turnkey Systems A major highlight o
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Top: Deep Panuke Production Field C
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Report of the Board of Management 0
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At the start of 2010, the Company o
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SBM Offshore employees on board an
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contract will be based on a product
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Semi-Submersible Drilling Rigs The
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Semi-Submersible drilling rig 'Delb
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Top: SBM Services repairing the Sof
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y a large buoyant structure when di
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For smaller gas-supply rates, the C
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Corporate Governance Corporate Gove
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If either the GM or the Supervisory
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Appointment and Remuneration Commit
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of the Supervisory Board are meant
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Notice to convene a meeting The not
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Routine inspection on the Yme MOPUs
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• no agreement has been concluded
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Risk Management Risk Management ope
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Strategic Irregular order intake In
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the consequences of the Deepwater H
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Funding risk Success in obtaining n
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Supervisory Board and has been disc
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Michael Wyllie British, 1958 Chief
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Annual Report 2010 - SBM Offshore

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