SBM Offshore N.V.

First-half directional revenue was $4.9 billion, up from around $2.3 billion in the first half of 2025. Directional EBITDA was over $1.3 billion, almost double the year-ago period, versus about $0.7 billion implied by management’s “almost double” comparison; management specifically said Turnkey EBITDA was $813 million and Lease and Operate EBITDA was around $547 million. Revenue was driven by Turnkey revenue above $3.7 billion versus around $1.3 billion a year ago, and Lease and Operate revenue of around $1.2 billion versus around $1.0 billion. Backlog increased to a record $35.6 billion, net debt was $3.7 billion, and pro forma leverage was around 1.6x EBITDA. Full-year 2026 directional revenue guidance was raised to around $7.6 billion, with about $2.4 billion expected from Lease and Operate and about $5.2 billion from Turnkey, while directional EBITDA guidance was raised to around $1.9 billion from around $1.8 billion. Management said the SEAP awards will not get past the 25% completion stage this year, but they support future backlog and cash conversion; net cash backlog was around $8 billion, and SBM expects leverage to remain below 3x over time, though it could move up somewhat this year due to Jaguar, Chalchi, and timing of milestone receipts. The company also reconfirmed the $100 million interim dividend for 2026 to be paid in September and said it is on track for at least $2.1 billion of aggregate shareholder returns for 2026 through 2031, alongside the ongoing $270 million equivalent buyback program.

Oivind Tangen said the first half confirmed the strength of SBM’s model: disciplined execution, resilient client demand, and value creation from its core offshore energy production business. He emphasized that the company is still focused on growing the core FPSO franchise, while selectively looking at broader ocean infrastructure opportunities such as floating desalination with Veolia. His tone was confident and measured, repeatedly stressing standardization, Fast4Ward, and disciplined capital allocation as the basis for future growth.

Douglas Wood pointed to the main financial drivers behind the quarter: the One Guyana sale, the SEAP awards, and the contribution of three large vessels that entered the fleet last year. He said the backlog reached $35.6 billion, net debt fell to $3.7 billion, and leverage was around 1.6x EBITDA, while net cash backlog was around $8 billion. He also noted that the $440 million cash return planned for 2026 includes the $100 million dividend already paid, around 3 million shares repurchased for $118 million, and the reconfirmed $100 million interim dividend. On margins and capital allocation, he said Turnkey overhead is about $100 million a year and has been stable, and that leverage should stay below 3x, even if it fluctuates with construction financing and sale-and-operate working capital timing.

Analysts focused on whether SBM’s stated capacity of six FPSOs in parallel is a hard limit, and management said it is more a function of organizational sizing and historical execution models than a fixed ceiling; with standardization, outsourcing, and supplier planning, they believe they can scale beyond six without compromising execution quality. Questions on Venus centered on competitive pressure and Namibia strategy, and management said Venus is strategically important but declined to comment on bid status, while reiterating they will not lower return expectations. Analysts also pressed on working capital and H2 EBITDA, and management said the main drivers of the guidance uplift were strong fleet performance, bonuses tied to uptime, and better project execution, while working capital may remain volatile because of sale-and-operate timing and new hull investments. On the China yard fatality, SBM said there was no direct schedule or yard-selection impact, but it is conducting a full Tier 1 investigation and learning review.