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• Revenue: $6.1 billion, a 35% increase from 2023.

• EBITDA: $1.9 billion, a 44% increase compared to 2023.

• Backlog: Increased to $35.1 billion, with $9.5 billion net cash expected.

• Net Debt: Decreased by almost $1 billion to around $5.7 billion.

• Shareholder Returns: Proposed 30% increase to $1.59 per share, including a $155 million dividend and a $150 million share buyback program.

• Lease and Operate Revenue: $2.4 billion, an increase of over $400 million from the previous year.

• Turnkey Segment Revenue: More than $3.7 billion, driven by new awards and sales.

• Net Leverage Ratio: Reduced to three times EBITDA, a 50% reduction compared to two years ago.

• Directional Revenue Guidance for 2025: Above $4.9 billion.

• Directional EBITDA Guidance for 2025: Around $1.55 billion.

• Warning! GuruFocus has detected 13 Warning Signs with SBFFF.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SBM Offshore NV (SBFFF) achieved record levels of revenue and EBITDA in 2024, with revenue at $6.1 billion and EBITDA at $1.9 billion.

• The company secured three new FPSO awards, contributing to a record backlog of $35.1 billion, indicating strong future cash flow potential.

• A proposed 30% increase in shareholder returns to $1.59 per share, including a $155 million dividend and a $150 million share buyback program.

• Successful operational achievements with high uptime for 16 units in operation and no significant injuries reported, reflecting strong safety performance.

• Strategic partnerships and innovations, such as the joint venture with Technic Energies on floating offshore wind and carbon capture solutions with Mitsubishi Heavy Industries, position SBM Offshore NV (SBFFF) for future growth and diversification.

Negative Points

• Despite strong financial performance, the company faces potential volatility in turnkey margin and EBITDA due to the timing of project completions and cash flow recognition.

• The company's net debt remains significant at $5.7 billion, although it decreased by almost a billion dollars from the previous year.

• The tax-free dividend system in the Netherlands restricts the company's ability to further increase dividends, impacting shareholder returns.

• Yard availability and capacity constraints in the offshore sector could pose challenges for future project execution and scheduling.

• The company's growth potential is partly dependent on the successful execution of new awards and maintaining strategic partnerships, which may involve risks and uncertainties.