2.1.11Market Positioning

MANAGEMENT APPROACH

Market positioning is about having a global presence, adapting to market developments and engaging in emerging markets.The size of the business, new business development and sustainability benchmarks are seen as strong indicators of a successful management approach. Examples of metrics are the performance of the fleet, the revenue backlog, the number of projects won, the new developments in the renewables market and SBM Offshore’s ESG ratings performance. The effectiveness of actions related to these metrics is monitored through the regular business reporting cycle involving the Management Board.

SBM Offshore’s strategy addresses material topics, aiming for a leadership position, from an economic, environmental and societal stand point. Through market positioning, SBM Offshore addresses the competitiveness risks mentioned in section 1.4.2.

2023 Performance

Performance is detailed in subsections of 2.1. The following achievements were made in 2023:

  • FEED contract award for FSO project: Trion.
  • FEED contract award for FPSO project: Whiptail.
  • The FPSO Liza Unity purchase option was exercised by ExxonMobil Guyana.
  • A 10-year agreement with ExxonMobil Guyana for the operations and maintenance of the Guyana FPSO fleet. The lease terms and durations remain the same for all units. SBM Offshore will operate the units through an Integrated Operation Model, which encompasses an organization model including seconding ExxonMobil Guyana employees in some key onshore and offshore positions. This model will combine both companies’ experience and resources to increase team efficiency and foster synergies.
  • Fleet size of 16: 15 FPSOs and 1 Semi-submersible. (Including FPSO Prosperity).
  • 388.4 years of cumulative operating experience.
  • Five FPSO projects under construction and two Fast4Ward® multi-purpose floaters, including MPF #7 allocated to the Whiptail development project.
  • Contract award for the marine installation for both Trion projects, the semisubmersible-based Floating Production Unit and the FSO, which will be SBM Offshore’s largest ever installation scope.
  • Launch of digital solution platform, SBM+, designed for offshore asset management. SBM+ delivers services based on solutions currently deployed and tested on SBM Offshore’s fleet. It unlocks the full potential of data to transform offshore asset operations by empowering clients to optimize their assets’ performance and leverages SBM Offshore’s proven track record, industry expertise, operational framework and innovative digital solutions.
  • Solid sustainability rankings – most notably in S&P Global, CDP and Sustainalytics (section 2.2).
  • Part of Euronext’s AEX® ESG Index, an index of shares of Dutch-listed companies with a strong ESG performance (25 best-in-class performer).

FUTURE

In 2024, SBM Offshore’s focus remains the safe and reliable execution of its ongoing projects and operation of its fleet. SBM Offshore also continues to engage early with clients and vendors to make further progress on the emissionZERO® program and enable the energy transition by leveraging SBM Offshore’s unique capabilities in floating solutions. To further advance the energy transition and SBM Offshore’s role in this, SBM Offshore will continue to seek innovation in line with stakeholders' needs and offer digital solutions to the market.