Prospectus - SBM Offshore

· The Company believes that the Group's success and results (including its ability to charge a premium
for its services) is in part dependent on the strength of its reputation, as well as the reputation of its
partners. Any damage to the reputation of the Group or its partners may result in existing customers
withdrawing their business from the Group, or not awarding the Group future business or the
opportunity to bid for future business, each of which could adversely affect the Group's business,
results and financial condition.
· The Group enters into turnkey contracts and lease and operate contracts with its customers. The
choice as to whether a particular project is undertaken as a lease and operate contract, or a turnkey
sale, is ultimately made by the relevant client. Whereas turnkey contracts typically generate neutral or
positive cash flows from the engineering phase through the construction period of the vessel (as
progress payments from customers are made), lease and operate contracts are capital intensive and
typically require that significant amounts of third party debt funding be arranged. The Group is
continuously seeking an optimal balance between its turnkey activities and its lease and operate
activities that is consistent with its budgeted cash flows and capital requirements, and that takes into
account considerations such as the availability of third-party debt funding, the cost of borrowing and
the likely returns on borrowed monies. The Group may not always be able to maintain an optimal
balance between turnkey contracts and lease and operate contracts, or, in the case of lease and operate
contracts, may not be able to obtain the necessary third-party debt funding, each of which may
adversely affect the business, results and financial condition of the Group.
· The Group's current corporate transformation campaign may fail to meet objectives and generate risks
(such as resistance to the transformation campaign by personnel) as well as ineffective processes or
tools. If the Group is unable to deliver expected improvements the Group's business, results and
financial condition could be adversely impacted.
· There can be no assurance that the Group's Strategy Plan will be successfully implemented, or that the
Group will (fully) realise the expected benefits of the Strategy Plan.
· Employee, agent or partner misconduct or failure to comply with anti-corruption and other
government laws and regulations could harm the Group's reputation, reduce its revenue and profit,
and subject it to administrative, criminal and civil enforcement actions.
· The Company may have violated anti-corruption laws, which, if true, could harm the Company's
reputation, reduce its revenue and profit, and result in monetary penalties, criminal and civil sanctions
and other remedies.
· 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.
3.6 Market and industry data
All references in this Prospectus to market data and industry statistics are based on a number of sources,
including independent industry publications, reports by market research firms or other independent
publications (each an Independent Source), such as Pareto Securities (Pareto), International Energy Agency
(IEA), Douglas-Westwood (DW), Wood Mackenzie (WM), International Maritime Associates (IMA) and
IHS Inc. (IHS).
The information in this Prospectus that has been sourced from the Independent Sources has been accurately
reproduced and, as far as the Company is aware and able to ascertain from the information published by that
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