2008 Full Year Results - SBM Offshore

Return On average Capital Employed and Equity
3000
2400
1800
1200
600
0
in millions of US$
FPSO Serpentina Sale
1818
(Weighted) Average Capital Employed
1828
1747
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2006
2499
2004 2005 2006 2007 2008
Capital Employed (Equity + Provisions + Deferred tax liability + Net Debt) at year-end 2008 is US$ 483
million above last year’s level due to the increasing investments in leased production facilities (and
consequently net debt), plus retained profits less adjustments to equity in respect of financial instruments.
With the strengthening of the US Dollar and the dramatic reduction in US interest rates in the second half of
the year, equity has been negatively impacted by US$ 269 million in 2008 on marking to market the
Company’s portfolio of forward exchange contracts and interest rate swaps.
25.00
20.00
15.00
10.00
5.00
0.00
in millions of US$
FPSO Serpentina Sale
8.9
1886
Return on Average Capital Employed (%)
14.6
10.7
14.6
15.1
11.0
2004 2005 2006 2007 2008
ROACE (Return On Average Capital Employed) decreased in 2008 to 11.0%. This is the combined result of
two main factors, namely:
• low profitability of Turnkey Systems and Services segment;
• high profitability from the Lease and Operate segment but with growing average capital employed.