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>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 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

EXPLORATION AND PRODUCTION OFFSHORE CONGRESS HUB 2019

During the last few years Oil&Gas sector had a difficult time surviving in brutal low-price environment…

read more >

Brasil Offshore 2019

The commemorative 20th anniversary edition of Brasil Offshore will be held under the auspices…

read more >

Subsea EMEA 2019

Subsea EMEA, the elite submarine cable-focused event hosted by Capacity Media, will return for its third year situated…

read more >

9th International Conference Offshore Foundations

Offshore Foundations is a technical event for experts in the wind industry. The goal is to push forward technical development for future foundation concepts.

read more >