SBM Offshore Q1 revenue lifted by Prosperity and Sepetiba vessel delivery
Recasts, adds details from quarterly statement
May 8 (Reuters) -Dutch oil and gas services firm SBM Offshore SBMO.AS reported a 17% rise in first-quarter revenue on Wednesday, led by delivery of its floating production, storage and offloading vessels (FPSO) Prosperity and Sepetiba.
The company, which leases, operates, builds and sells FPSO vessels to produce and transport crude and gas, posted revenue of $871 million for the first three months of 2024, compared with $742 million a year earlier.
"On the operational front, FPSO Prosperity has been producing at capacity since January 2024 and FPSO Sepetiba achieved flare out in April 2024," CEO Oivind Tangen said, adding that the vessels have a joint production capacity of more than 400,000 barrels of oil per day.
SBM Offshore's directional lease-and-operate revenue climbed 22% to $554 million, partially offset by a shift to an operating contract for the FPSO Liza Unity that was bought by Exxon Mobil in November.
"Directional reporting" assumes all leases are operating leases and records as revenue payments made during the construction phase prior to a lease's execution.
The Company maintained its 2024 directional revenue guidance at around $3.5 billion, of which it expects about $2.2 billion from the lease-and-operate segment and about $1.3 billion from its turnkey business, which builds FPSOs.
Reporting by Shivani Tanna in Bengaluru; Editing by Tom Hogue and Sonali Paul
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