SBM Offshore lifts 2025 outlook after strong half-year results
The company, which provides floating production services to the offshore energy industry, sees directional earnings before interest, taxes, depreciation and amortization (EBITDA) of around $1.6 billion this year, $50 million higher than it had originally guided.
It also sees directional revenue of more than $5 billion, after saying it would exceed $4.9 billion in February. Analysts on average had projected annual revenue of $4.96 billion, according to a company-compiled consensus.
Strong execution and the commissioning of two major floating production, storage and offloading vessels (FPSOs) in Brazil contributed to the improved first-half results and the outlook hike, CEO Øivind Tangen said in a press release.
The Amsterdam-listed company reported half-year directional EBITDA of $682 million, up 10% from the same period a year ago, beating analysts' consensus of $673 million.
"The deepwater market outlook remains robust, driven by the demand for cost-efficient and low-emission oil production," Tangen added.
SBM Offshore operates in the deepwater segment, where production costs per barrel are typically lower than in other offshore regions. This positioning helps shield the company from oil price volatility, making its business model more resilient amid market fluctuations.
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