GEORGETOWN - ExxonMobil (NYSE:XOM) Guyana has taken ownership of the floating production storage and offloading (FPSO) vessel Liza Unity from SBM Offshore in a significant transaction valued at $1.26 billion. The acquisition, completed before the lease term's scheduled end in February 2024, marks a strategic shift in the operations of one of the region's key offshore oil assets.
The FPSO Liza Unity has been a collaborative venture between SBM Offshore and ExxonMobil Guyana since February 2022, operating under an integrated model that combines leasing with operations and maintenance. Despite the change in ownership, SBM Offshore will continue to manage the vessel's operation and maintenance.
Looking ahead, SBM Offshore has outlined its plans to apply the proceeds from this sale to fully repay its $1.14 billion project financing debt. This move is expected to significantly improve the company's net debt position. Moreover, SBM Offshore's engagement with the FPSO Liza Unity is set to persist, with operational and maintenance duties continuing until 2033.
This transaction not only underscores ExxonMobil Guyana's commitment to expanding its operations in the region but also illustrates SBM Offshore's strategic approach to financial management and its long-term involvement in the project. The ongoing partnership between the two companies promises stability and efficiency in the management of this crucial offshore asset.
InvestingPro Insights
ExxonMobil (XOM) and SBM Offshore (SBMO) are both significant players in their respective sectors. According to InvestingPro, XOM has raised its dividend for 41 consecutive years and is a prominent player in the Oil, Gas and consumable Fuels industry. The company's cash flows can sufficiently cover interest payments and it operates with a moderate level of debt.
On the other hand, SBMO operates with a significant debt burden and analysts anticipate a sales decline in the current year. However, the company pays a significant dividend to shareholders and has maintained dividend payments for 8 consecutive years.
InvestingPro data shows that XOM has a market cap of 415.83B USD and a P/E ratio of 10.41. The company's revenue for the last twelve months as of Q3 2023 was 350.39B USD with a gross profit of 118.66B USD. In contrast, SBMO has a smaller market cap of 2372.05M USD and a P/E ratio of 7.11. The company's revenue for the same period was 4957M USD with a gross profit of 1237M USD.
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