SBM Offshore (AO) | Hold | Stronger-for-longer FPSO outlook, but much now in the price

Research evidence excerpt

SBM Offshore (AO) | Hold | Stronger-for-longer FPSO outlook, but much now in the price

Release date: 27 May 2026

Philip Ngotho, CFA

Equity Research Analyst

Hold +31 20 563 2367SBM Offshore pngotho@keplercheuvreux.com

Netherlands | Energy equip. & services Beta Profile: MCap: EUR5.8bn

Target Price: EUR39.00 Bloomberg: SBMO NA Reuters: SBMO.AS

Current Price: EUR34.84 Free float 62%

Up/downside: 11.9% Avg. daily volume (EURm) 33.0

YTD abs performance 42.2% Market data: 26 May 2026

52-week high/low (EUR) 37.00/19.98

Stronger-for-longer FPSO outlook, but much now in the price

Key points:

Yesterday, as part of our SMID CEO/CFO Week 2026, we hosted a well-attended investor group meeting with SBM Offshore's CFO,

Douglas Wood.

Overall, the meeting reinforced SBM’s positive long-term FPSO outlook, with management seeing a longer and deeper demand

cycle supported by energy security, oil & gas underinvestment, low deepwater breakevens and rising gas-handling requirements.

We reiterate our Hold rating. We continue to like SBM’s resilient business model, strong balance sheet, shareholder returns and

FPSO exposure. However, after the strong re-rating, risk-reward looks more balanced in our view. New awards remain the key

catalyst, but are now partly reflected in the share price.

Further details/items discussed

SBM does not see the FPSO market as a short cyclical spike. Douglas Wood expects the FPSO pipeline to remain full well into

the end of the next decade. The logic is that major oil companies are trying to rebuild resource bases after years of

underinvestment, while deepwater is one of the few places where customers are still finding large-scale reserves.

In management’s view, recent Middle East tensions have highlighted the importance of affordability and security of supply