SBM Offshore Full Year 2024 Earnings: Beats Expectations

SBM Offshore (AMS:SBMO) Full Year 2024 Results

Key Financial Results

• Revenue: US$4.78b (down 3.6% from FY 2023).
• Net income: US$150.0m (down 70% from FY 2023).
• Profit margin: 3.1% (down from 9.9% in FY 2023). The decrease in margin was primarily driven by higher expenses.
• EPS: US$0.84 (down from US$2.74 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

SBM Offshore Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 7.9%. Earnings per share (EPS) also surpassed analyst estimates by 52%.

The primary driver behind last 12 months revenue was the Turnkey segment contributing a total revenue of US$2.71b (57% of total revenue). Notably, cost of sales worth US$3.65b amounted to 76% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$761.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how SBMO's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Energy Services industry in Europe.

Performance of the market in the Netherlands.

The company's shares are up 14% from a week ago.

Risk Analysis

Before we wrap up, we've discovered 4 warning signs for SBM Offshore (1 is potentially serious!) that you should be aware of.

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