Annual Report 2010 - SBM Offshore

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