The main aim behind SBM Offshore’s overall vision and mission is to grow the business in the long-term – both in terms of size and value, within the offshore deepwater oil and gas industry as has been the focus in recent years, but also within the Offshore Energy sector at large and possibly even beyond. The Company has been very disciplined over the past five years adhering to a defined risk appetite framework to avoid a repeat of past legacy issues and it continues to pursue potential projects with the same strict approach.
Objectives for the three axes for the Company are as follows:
- Optimize current business activities – ensuring that operations perform at high safety rates and targeted uptime to provide value to clients, partners and shareholders, while seeking to add value and be more cost effective across the full life cycle. By delivering on targets the Company maintains its credibility in the industry. In particular, by optimizing the Company’ assets it can offer clients resourceful solutions. In the short to medium-term, identified areas of growth in the low investment climate include brownfield services. With over 200 brownfield projects completed and a pool of technologies at its disposal, the Company can leverage its competitive advantage when clients consider future tie-backs and life-extensions. In the long-term SBM Offshore aims to expand the number of units in its fleet by optimizing its Operations know-how and capacity; adding three s to the operating fleet is a positive step in this direction. The Company aims to create synergies with the expertise of partners and other players as Management is convinced that this will be the way forward for the industry. The Company also aims to gradually put in place the digitalization of its activities, vessels and technologies, which will transform the way SBM Offshore works and will optimize results.
- Transform by bringing to market new, innovative ways of executing the Company’s key products, which overcome the challenges and barriers inherent in this low oil price environment and offering alternative commercial models including potentially ’sale and lease back’ allowing synergies, especially where the Company has existing operations. One key solution that the Company is confident will transform the industry is its newbuild Fast4Ward . In addition, by leveraging digital technology SBM Offshore will optimize the use of data throughout its activities.
- Innovate as SBM Offshore’s reputation rests on the strength of its pioneering technology track record. Many of its technologies have broken down previous barriers in the industry. The Company aims to continue to invest in developing design solutions by leveraging its technical expertise and experience, particularly in ultra-deep water where it sees the greatest potential once the market picks up. In addition, mindful of climate change and the evolution in the energy mix, positive steps are being made into the rapidly growing Renewable Energy market with SBM Offshore’s wind floaters, which leverage the Company’s 60 years’ experience in mooring systems.
SBM Offshore manages performance on these objectives through the balanced score card framework.
For 2017 the Company will focus on three areas:
- Strong cash management, delivering on our backlog and expectations of the financial markets.
- Leveraging a lower breakeven point for the Company – through improved cost structures and new products, while at the same time managing capacity in anticipation of an improved market environment.
- Maximize time spent with clients to co-create new solutions and more efficient ways to advance projects for offshore production.