SBM Offshore Warns of Sharp Revenues Drop

SBM Offshore, the Dutch marine oil production and loading vessels specialist, said on Wednesday its revenue this year could fall to as low as $2.2 billion, down from $3.5 billion in 2014.

 

"The effects of the recent drop in oil prices are being felt across the offshore services industry in the form of lower order intake," said Chief Executive Bruno Chabas in reporting its results for last year.

 

However he added that the company's strong lease and operate backlog meant the company was "uniquely positioned" with long-term cashflow that was unaffected by movements in oil prices or production levels.

 

The company said it would end 2015 with net debt below $3.5 billion. It stood at $3.3 billion at the end of 2014 and $2.7 billion at the end of 2013, according to company reports.

 

SBM Offshore also said it would not pay a dividend for 2014, having also passed on a payout for 2013.

 

Dogged by bribery allegations since 2012, SBM Offshore is currently facing investigations in Brazil, where its agents are suspected of paying off government officials to secure contracts with Petrobras.

 

SBM Offshore said it was unaware of any other investigations underway into its affairs. In November, it settled the bribery case with Dutch prosecutors for a record $200 million.