Dutch floating production storage and offloading (FPSO) vessel operator SBM Offshore has announced a directional revenue of $607m in first quarter of this year. In a statement, the company said this was in line with expectations.
SBM has slightly reduced its 2020 guidance due to market uncertainty as a result of coronavirus pandemic and low oil prices. It said the number of prospects for new FPSO work will decrease in the short to medium term.
As a result of these conditions, the company adjusted its expected directional revenue guidance from “above” to “around” $2.3bn this year.
The Dutch-based operator also said it has implemented several measures to reduce the impact of the Covid-19 pandemic on its operations.
These include cutting its aggregate staff and contractor workforce by nearly 300. It has also stopped hiring, and suspended or postponed several internal programmes.
SBM Offshore CEO Bruno Chabas said: “The company’s results, the dividend track record and completed share repurchase exemplify SBM Offshore’s robust business model.
“At the same time, SBM Offshore is also impacted by the combined demand and supply crises in the oil and gas market and is taking measures to evolve and adapt with the uncertain, dynamic market conditions.
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“Oil and gas companies have responded to the low oil price environment by delaying and reducing investments. Although the market conditions have worsened across the board, large capacity offshore developments will attract funding in the future.
“These projects have very competitive break-even prices and will be prioritized in clients’ selection of investment opportunities.”
In January this year, SBM Offshore’s first Fast4Ward hull arrived at the Keppel yard in Singapore. This multi-purpose floater (MPF1) completed a 2,300 nautical mile (4,260km) journey from the Shanghai Waigaoqiao Shipbuilding and Offshore yard in China.