SBM Offshore - Bound to come back on investor radar
Since year-end 2019, SBM's undiscounted net cash backlog per share has grown 66% to EUR 47, thanks to ongoing projects wins and strong execution. During the same period, total return for shareholders was only 15%. We believe that the share price was held back by three factors that will now change positively. Therefore we reiterate our Buy recommendation with a target price of EUR 25. The three factors are:Favorable ESG profile increasingly recognized. Initially, many investors used a simplistic ESG approach in which they avoided investments in fossil fuel-related companies altogether. We believe that with the growing availability of ESGSBM Offshore is a holding company. Co. provides floating production solutions to the offshore energy industry, over the full product life-cycle. Co.'s main activities are the design, supply, installation, operation and life extension of floating production, storage and offloading (FPSO) vessels. Other products include semi-submersibles, tension-leg platforms, floating production storage and offloading liquefied natural gas, turret mooring systems, brownfield and offshore (off) loading terminals. As of Dec 31 2015, Co.'s fleet consisted of 10 FPSOs, two floating storage and offloadings, one mobile offshore production unit, one semisubmersible in operation worldwide.
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