SBM Offshore: Revenue Tripled and Net Debt Reduced by 43%
SBM Offshore announced on Thursday a directional revenue of $3.489 billion for the first quarter of 2026, an increase of over 200% year-on-year. This growth is primarily driven by the Turnkey segment, boosted by the sale of FPSO ONE GUYANA in February and the allocation of a Fast4Ward hull to a new project. Concurrently, the shipowner has increased shareholder returns by 57% and reduced its net debt by 43%.
Growth Fueled by Asset Disposals and Hull Allocations
The directional Turnkey revenue stood at $2.879 billion in the first quarter of 2026, up from $627 million a year earlier, an increase of over $2.2 billion. This growth primarily stems from two factors: the sale of FPSO ONE GUYANA in February 2026 and the allocation of a Fast4Ward hull to the Longtail project in Guyana. These movements were partially offset by the delivery of three FPSOs in 2025 (Almirante Tamandaré, Alexandre de Gusmão, and ONE GUYANA), which had contributed to the figures of the previous period. The Lease and Operate segment recorded revenue of $610 million, up from $476 million a year earlier, an increase of 28%. This growth reflects the integration of three new FPSOs into the fleet during 2025, partially offset by the departure of two units (FPSO Aseng and FPU Thunder Hawk) in the fourth quarter of 2025.
Accelerated Deleveraging and Increased Shareholder Returns
The directional net debt decreased to $3.2 billion in the first quarter of 2026, a 43% reduction from the end of 2025. This improvement is primarily due to the proceeds from the sale of FPSO ONE GUYANA and the group's deleveraging strategy. Concurrently, SBM Offshore increased shareholder returns by 57% in 2026 compared to the previous year. The group distributed a cash dividend of $100 million (payable on May 13), launched a $270 million share buyback program (approximately 18% completed by May 6), and scheduled an interim dividend of $100 million for September 2026. Over the period 2026-2031, SBM Offshore is committed to returning at least $2.1 billion to shareholders, with potential for additional upside.
Revenue Outlook Raised to Over $6.9 Billion for 2026
SBM Offshore has raised its directional revenue outlook for 2026 to over $6.9 billion, with approximately $2.3 billion from the Lease and Operate segment and over $4.6 billion from the Turnkey. The directional base EBITDA outlook for 2026 is maintained around $1.8 billion. The increase in revenue guidance compared to the initial scenario is mainly due to the award of FEED contracts for the Longtail project and additional secured work over the period. Three projects are currently under construction and progressing as planned: FPSO Jaguar (first oil expected in 2027), FSO Chalchi, and FPSO GranMorgu (first oil expected in 2028). The fleet shows a 97.9% availability year-to-date, and the company has recorded no deaths or permanent disability injuries for the quarter.
