Prospectus - SBM Offshore

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penalties, criminal and civil sanctions and other remedies.
· Failure by the Group to be successful in product and technology development
activities, and to respond quickly to technological developments, could adversely
affect the Group's ability to compete.
· The Group could infringe the intellectual property rights of third parties, which
could lead to legal action against the Group. This could cause a disruption to the
Group's business and financial loss.
· Infringement by third parties of the Group's intellectual property rights could
damage the Group's business. Decisions of courts and changes in laws and
regulations could affect the value of the Group's intellectual property rights or
their enforceability.
· The Group could be subject to intellectual property theft or misuse, which could
result in third party claims and harm its business and results of operations.
· The Group's licensing of its patents to other companies in the industry and through
industry standard organisations could make it more difficult for the Group to
monitor and enforce its rights. It may allow other companies to use its patent
rights to produce a competing product.
Financial risks
· The Group is exposed to the risk of cost inflation and interest rate risk which could
reduce the Group's profits and adversely affect its financial results.
· The Group is exposed to the risk that a customer, or counterparty of a financial
instrument, delays or defaults on a payment obligation which could reduce the
Group's profits and adversely affect its financial results.
· If projects are terminated before certain milestones are reached, the Group's
customers may not pay in full all amounts due to the Group, or costs incurred by
it.
· The Group's tax liability may increase if tax laws and regulations change or
become subject to adverse interpretations or inconsistent enforcement or may be
greater than currently anticipated or change.
· The Group's assessment of tax assets and tax liabilities may prove incorrect which
may adversely affect its results and financial condition.
· The Group's business is capital intensive and requires significant capital outlays
for equipment, such as vessels and other fixed assets. Lease and operate contracts,
in particular, are capital intensive and typically require that significant amounts of
third party debt funding be arranged. The Group may need additional equity or
debt funding in the future which may not be available.
· Exchange rate fluctuations may adversely affect the Group's revenue, profit and
financial condition.