2020 was a challenging year for SBM Offshore. The COVID-19 pandemic affected our operations and performance, but the company rose to the challenge and focused efforts on keeping our people safe, continuing to transform our business and investing in solutions for the energy transition. We made progress on constructing FPSOs Liza Unity, Sepetiba and Prosperity, maintained the performance and operations of our lease fleet and made progress on our renewable projects. COVID-19 may have made things more difficult, but it also gave us renewed vigor to continue transforming our business for further success in the future. Our story continues.
First Generation 3 FPSO goes into operations
The lease and operate contract that commenced in June 2013 marked a major achievement with the delivery and first oil for FPSO Cidade de Paraty offshore Brazil. Paraty was the first in a series of four pre-salt FPSOs and at the time it represented the deepest in SBM Offshore’s operating fleet at 2,140 meters. The FPSO design is what SBM Offshore calls ‘Generation 3’, capable of high production capacity up to 150,000 bopd and with a topsides weight up to 23,000 tons. The four pre-salt FPSO projects delivered illustrate that SBM Offshore’s ‘design one and build several’ concept works and provides added value to clients, while progressing the Company’s standardization efforts.
Thunder Hawk Semi-sub hub begins producing in the Gulf of Mexico (USA)
SBM Offshore’s Thunder Hawk DeepDraft Semi was installed and started production for Murphy Oil in the Gulf of Mexico in July 2009 under a Production Handling Agreement (PHA). In 2014 SBM Offshore signed a PHA with Noble Energy to tie-back the Big Bend and Dantzler fields to Thunder Hawk. The additional tie-backs illustrate the strategic value of the platform to SBM Offshore, while offering the industry a cost effective development solution for the Gulf of Mexico. The Thunder Hawk offers numerous advantages for deepwater, subsea developments including reduced development capital, lower operating costs, an accelerated development schedule.
First Lease & Operate FPSO contract
SBM Offshore pioneered the lease and operate concept for Floating Production Storage and Offloading (FPSO) units based on tanker conversions. The Company leased its first FPSO in 1980, opening up a new opportunity for clients to reduce their CAPEX. Named FPSO II, it was deployed on the Cadlao field offshore The Philippines, where oil production started in August 1981. With the first contract to design, construct, install and operate the unit, SBM Offshore led the way for a new, commercial model for FPSOs, launching the lease and operate market as we know it today. FPSO designs have changed considerably over the years as clients’ needs evolve.
Company presence grows worldwide
In a strategic move to focus on sales and after sales service of buoys and to facilitate closer engagement with clients, the Board of IHC approved the set-up of a separate company. On February 27, 1969, Single Buoy Moorings Inc. was registered in Switzerland. By mid-1969, the Company had grown and was operating from three locations: Rotterdam, Fribourg and Antwerp. The move to Monaco of the Company’s engineering activities took place in 1971 and the Regional Center (RC) remains the heart of SBM Offshore’s technological innovation and the largest RC of the five RCs located around the globe, including Schiedam, Houston, Kuala Lumpur and Rio.
Listing on the Amsterdam stock exchange
SBM Offshore N.V. shares have been listed on the Amsterdam stock exchange since October 11, 1965 originally under the name IHC Holland and later as IHC Caland and finally as SBM Offshore N.V. in 2005. The shares are currently included in the AEX Index of Euronext Amsterdam. Options on the Company’s shares have been traded since July 7, 1993 on the Euronext Amsterdam Derivative Markets.
First order for a single point mooring buoy
SBM Offshore has a long history of innovation. From its shipping origins at the Gusto Shipyard in the Netherlands, IHC (as the Company was first known) secured a contract to supply its single point mooring system (SPM) for Shell’s operations offshore Indonesia in 1959. Instead of the multi buoy systems used at the time, the design for this buoy was a pioneering SPM system on which Shell and SBM Offshore had first begun collaborating in 1958. It proved to be so successful that it went on to be used extensively, opening up new possibilities for the industry. Demand for Catenary Anchor Leg Mooring (CALM) buoy terminals continues today.
MESSAGE FROM THE CEO
By assuring business continuity, by accelerating our transformation and by further investing towards the energy transition, we have not only coped through 2020. We also have prepared ourselves for the future. We are well positioned to ride out the rough patch and deliver on our vision!
Our 2020 results evidence strong performance in this difficult year. Underlying Directional revenue increased by 6% to US$2,291 million, Underlying Directional EBITDA by 13% to US$944 million. We saw a pro-forma backlog net increase of almost US$1 billion. Dividends increased by 10%.
Our personnel's health was prioritized throughout the pandemic. Thanks to strategic adaptation of our operating model, uptime was maintained at historic levels of 99%. We also continued the development and deployment of our digital initiatives under the Smart Operations vision.
Effective global response to pandemic. Maintained progress on projects and strong operational performance. FPSO Prosperity Contract awarded. Continued transformation - Fast4Ward® and emissionZERO™. Addressing the energy transition, with progress on Ambition 2030, including renewables and gas.