SBM Offshore: Revenue Up 216% in Q1 2026, Debt Reduced by 43%
SBM Offshore reported a spectacular increase in revenue for the first quarter of 2026, with Directional revenues reaching $3.489 billion, a 216% increase year-over-year. This growth is primarily driven by the Turnkey segment ($2.879 billion), boosted by the sale of the FPSO One Guyana in February and the allocation of a new Fast4Ward hull to the Longtail project in Guyana. Concurrently, the group continues an ambitious shareholder return program, with revenue outlooks revised upwards for the full year 2026.
Turnkey Dominance: Asset Sales and New Orders Boost Revenues
The notable increase in revenue largely rests on the Turnkey segment, which recorded $2.879 billion in revenues in the first quarter, compared to $627 million the previous year, an increase of 359%. This growth is primarily due to two factors: the sale of the FPSO One Guyana in February 2026 and the allocation of a Fast4Ward hull to the Longtail project in Guyana for ExxonMobil, which benefits from a strong demand for gas processing capacities. The Lease & Operate segment, representing the group's recurring operational revenues, showed a more moderate increase with $610 million, up 28% from $476 million a year earlier. This rise is explained by the integration of three new FPSOs into the fleet during 2025 (Almirante Tamandaré, Alexandre de Gusmão, and One Guyana), partially offset by the departure of two units (FPSO Aseng and FPU Thunder Hawk).
Strengthened Balance Sheet and Accelerated Shareholder Returns
SBM Offshore continued to optimize its financial structure, with a 43% reduction in Directional net debt, from $5.7 billion at the end of 2025 to $3.2 billion in the first quarter of 2026. This improvement is largely attributable to the proceeds from the sale of the FPSO One Guyana. The group also intensified its shareholder returns, with a cash dividend of $100 million (0.5009 euro per share) paid on May 13, and an ongoing share buyback program of $270 million (18% completed at this stage). An additional dividend of $100 million is planned for September 2026, representing a total increase of 57% in returns compared to the previous year. The group remains on track to distribute at least $2.1 billion to shareholders by 2031, with potential for further increases.
Revised Upward Outlook and Expansion of Fast4Ward Portfolio
With improved visibility, SBM Offshore has raised its Directional revenue outlook for the full year 2026, from 'about $6.5 billion' to 'above $6.9 billion'. The baseline guidance for Directional EBITDA for 2026 is maintained around $1.8 billion. The group has also ordered two additional Fast4Ward hulls to support its bidding activities in a robust FPSO market, while one of the four hulls currently on order has been allocated to the Longtail project in Guyana. The management also announced the award of the FEED contract by ExxonMobil for the Longtail project, a gas development in Guyana that, subject to a final investment decision and government approvals, would lead to the construction of an FPSO with the highest gas processing capacities ever deployed. This expansion and the strengthened position of the group in gas projects reflect increased confidence in the long-term demand for ocean infrastructure solutions.
