SBM Feels Weak Market Sting as DSCV ‘SBM Installer’ Hurts Its Bottom Line

Dutch company SBM Offshore has lowered its forecast for operating profit (EBITDA) in 2016 as it will recognise a write-down of $30 million on a contract around a diving support and construction vessel (DSCV) SBM Installer.

Due to the continuing downturn in the oil industry, the operating profit is now estimated at $720 million because the vessel’s projected utilisation has decreased and resulted in classification of its long-term charter deal as ‘onerous’.

To remind, the SBM Installer was sold in 2014 to OS Installer AS, joint venture between Ocean Yield (75%) and SBM Offshore (25%), for $150 million in cash. The vessel was then chartered back to SBM Holding (SBM) for a fixed period of 12 years on a “hell and high water” bareboat contract.

The DSCV SBM Installer is based on the MT-6024 design from Marin Teknikk in Norway and built by Keppel Singmarine, Singapore, in 2013.

Subsea World News Staff

Share this article

Follow Subsea World News

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

The 22nd lnternational Offshore Crane and Lifting Conference

The Norwegian Society of Lifting Technology (NSLT) & The Offshore Mechanical Handling Equipment Committee (OMHEC) invite you …

read more >

OMC 2017

OMC mission is serving all people interested in the Mediterranean Offshore Industry…

read more >

Ocean Business 2017

Ocean Business 2015 was phenomenally successful, with visitor numbers up an incredible 29%. The overall attendance was a staggering 4,589…

read more >

International Connectivity and Cables Conference

Meet and network with leading telecom operators and OTTs including du, Etisalat, Omantel, Saudi Telecom Company, Yahoo, Angola Cables…

read more >