2008 Annual Report - SBM Offshore
2008 Annual Report - SBM Offshore
2008 Annual Report - SBM Offshore
- No tags were found...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
84 <strong>SBM</strong> <strong>Offshore</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2008</strong> / Financial ReviewFinancial ReviewHighlightsThe consolidated result for <strong>2008</strong> is a net profit of US$227.9 million, a 14.6% decrease in comparison with the2007 net profit of US$ 266.8 million. After adjusting fornon recurring sales of assets or activities (net gain US$ 31million in <strong>2008</strong> versus US$ 5 million in 2007) operationalprofits show a decrease of approximately 24.9%.Earnings per share amounted to US$ 1.54, comparedto US$ 1.85 in 2007, but proposed dividend per shareis maintained at US$ 0.93, representing a pay-out ratioof 60%.New orders in the year totalled US$ 4,365 million (split 67%/ 33% between the Turnkey Systems and Services and theLease and Operate segments respectively), compared toUS$ 3,822 million of new orders in 2007.Turnover increased to US$ 3,060 million, a 6.6% increasein comparison with US$ 2,871 million in 2007, mainly as aresult of expanded lease and operate activities.Total order portfolio at the end of the year was US$ 9,247million compared to US$ 7,955 million at the end of 2007,an increase of 16.2%. Of this, 67.9% or US$ 6,278 millionrelates to the non-discounted value of the revenues fromthe Company’s long-term lease contracts in portfolio atyear-end.Operating profit (EBIT) decreased to US$ 275.1 millioncompared with US$ 302.0 million in 2007. EBIT margindecreased to 9.0% compared to 10.5% in 2007 while thenet profit margin decreased to 7.4% (9.3% in 2007). Bothdecreases result mainly from higher materials, equipmentand subcontractors costs than budgeted on certain majorprojects, which severely impactedthe profitability of the Turnkey Systems and Servicessegment in the first half <strong>2008</strong>.EBITDA amounted to US$ 530.1 million, compared to US$548.3 million in 2007.The year was marked by the following highlights:• a healthy inflow of new orders, from turnkey contracts(including two orders for FPSOs on a sales basis) anda major upgrade and contract extension for the FPSOCapixaba;• the sale of the FPSO Mystras (50% owned by theCompany) to Agip Energy Natural Resources (NigeriaLtd.) (AENR) in May <strong>2008</strong> and the FPSO TantawanExplorer to Chevron <strong>Offshore</strong> Thailand Ltd. in August<strong>2008</strong> under the client’s contractual purchase options;• the sale of the Alblasserdam South land remainingfrom the Company’s previous Dutch shipbuildingactivities;• the delivery of one major lease project, the FPSOEspirito Santo for Shell in Brazil;• the total investment in fixed assets in <strong>2008</strong> amountedto US$ 1.00 billion, which is much higher than in2007 (US$ 551 million) and which excludes thecosts of completing the investment in the FPSO SaxiBatuque contract which is accounted for as a finance(capital) lease.Segmental information in respect of the two core businessesof the Company during <strong>2008</strong> is provided in the detailedfinancial analysis which follows. Turnover by geographicalarea is included in the Notes to the Consolidated FinancialStatements.